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Pastimes : Richard Ney and the Wall Street Gang -- Ignore unavailable to you. Want to Upgrade?

To: ccryder who wrote (88)	1/5/1998 2:47:00 AM
From: BenYeung	Read Replies (1) \| Respond to of 492

Have you noticed the action of the Dow in the last month? IBD has an article on it, saying that the TWO rallies had little volume and the TWO big decline had above average volume. Using Ney's Theory, specialists are selling short to insiders during the rallies and use the declines to accumlated/cover shorts. I believe this cycle will continue, but likely to bring the Dow up to a new high a one point (but not necessarily sustain at that high) before February. Heavy volume on the upside is indeed dangerous. Looking back in July/August, remember the 10-12 day heavy volume rally interrupted after MSFT announced great earnings. They called it profit taking and sell on MSFT excuse. Then airlines and some NASDAQ (semis) continued to advance, then the semis ended up getting hammered the most after the Oct mini-crash. Airlines are still going strong, but I am not a momentum chaser and I think they are dangerous to be in right now. Remember I mentioned AT&T's advance a few weeks ago, using new CEO (by the way, M. Armstrong spoke at my graduation when he was still heading Hughes) and restructuring and improvement as excuses. Now, it retreated as "telecommunication deregulation" matters scared "investors." I tended to explain market actions using Ney, but I still pick and analyse stocks using W. ONeil, W. Buffett and P. Lynch. Ney is not a good stock picker, in my opinion. His portfolio matched S&P, but does not outperform it. But hey, he's pretty right on market direction, right?