& TheDowTheory.com
| & TheDowTheory.com |
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| The TaskMaster Seduced by a Sell Signal By Aaron L. Task 9/16/99 10:39 PM ET URL: http://www.thestreet.com/comment/taskmaster/784704.html SAN FRANCISCO -- Transports Need A Lift The Dow Jones Transportation Average fell 100.72, or 3.3%, to 2986.88. Like Milli Vanilli you can blame it on the rain, although today's decline was probably more a function of FDX (FDX:NYSE) shedding 13% after its profit shortfall and subsequent warning. The transportation average is now down 21% from its May 12 record of 3783.50, which is bear market territory any way you lip-synch it. Jack Schannep, president of The Dow Theory Investment Timing Newsletter, agreed pure
Dow Theory still gives a "buy" signal. But his proprietary (see above) market
timing indicator is flashing a sell signal. "Dow Theory is still in the buy,
although there are reasons to be cautious because of its proximity tochanging," he
said, suggesting 10,466.93 is the "magic number" for the DJIA. While
"just" 7.6% below the Dow's Aug. 25 all-time high of 11,326.04, it's the level
to which the average retreated to on May 27 . That's significant because the last time
both the industrials and transports made new highs 'n synch was on May 13 and May 12,
respectively. |
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