Friday February 1,
2002 3:55 AM
MARKET TALK: Of Mice And Machine After The Bell
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
1:27 (Dow Jones) Always one to watch, the next report on January capacity utilization
(Feb. 15) could be especially telling. Jack Schannep, of TheDowTheory.com, says it's the
best indicator to look at to find when a recession is over. Four of the last five
recessions ended the same month that utilization bottoms (the other was a month late), and
with December at 74.4%, it has only been lower in two prior recessions. If January's
reading is up, then the recession ended in December, he believes. If it's down, then watch
for the mid-March report for February to know when the recession has ended. Either way, he
says the bull market is intact, and advises clients to stay fully invested. (TG)
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& TheDowTheory.com
