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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (34817)	12/2/1998 4:27:00 PM
From: Terry Whitman	Respond to of 94695

You're welcome. Admittedly, Dow theory is not going to get you in at a top or a bottom. It's main purpose is to assist in determining long term trends. Another indicator that was historically widely followed is GM. As GM goes, the rest of the country follows. It has been shown that anytime GM hits a new high, the bull has at least 4-6 months more to run. Check it out- no new high since July, and with poor earnings just out, not likely to see a new high soon...... Something to ponder, TW

To: Paul Shread who wrote (34817)	12/2/1998 4:37:00 PM
From: donald sew	Read Replies (2) \| Respond to of 94695

Paul, Heard today on CNBC that of the 30 DOW stocks only 6 have set new highs. The DOW setting a slightly NEW HIGH is a bullish signal when it happened. Now there needs to be follow-thru. It would be hard for me to imagine for the DOW to get alot higher to the 10,000 range as many analyst are now calling for, on the back of only 6 stocks, especially since the DOW is not a weighted index. The key is follow-thru, and I realise that it will take some time for the other DOW issues and the TRANSPORTs to catch up; however in such a volitile/dynamic/impatient market Im not sure that the market is willing to wait too long. Wonder if anyone did a study on the time permitted for for one part of the DOW THEORY to catch up to the other. My gut feeling is 2 months for once of the DOW sectors to catch up to the other, so in this case that would put it at the end of JAN/early FEB. Seeya