Newspaper article THE JOURNAL RECORD

Positive Signal Already Flashed for '89 Stock Market

Newspaper article THE JOURNAL RECORD

Positive Signal Already Flashed for '89 Stock Market

Article excerpt

he first ``barometer'' of 1989 has already flashed a positive signal for the stock market.

In the first five sessions of the year, the Dow Jones average of 30 industrials posted a net gain of 30.89 points.

That marks the 24th time in the past 40 years that the market gained ground in the first trading week, according to Yale Hirsch, an Old Tappan, N.J. investment advisor.

On only two of those occasions, in 1966 and 1973, did the market fail to finish the year in the plus column.

Hirsch describes the first-week performance as an ``early warning'' system for his popular January barometer, which is based on the premise that ``as January goes, so goes the year'' in the market.

In his annual Stock Trader's Almanac, Hirsch says the direction stock prices take in January has foreshadowed the full year's outcome correctly all but three times since 1950.

This time of year is a peak period for the various indicators people have adopted to try to solve the perpetual riddle of the market outlook.

When the Super Bowl is played in Miami on Jan. 22, many Wall Streeters will be rooting, at least tongue-in-cheek, for the San Francisco 49ers to beat the Cincinnati Bengals.

That's because the 49ers trace their origins to the National Football League before its merger with the former American Football League.

In the 22 years that the Super Bowl has been played, a victory by a team from the original NFL has always been followed by an up year for stock prices.

Sober, right-thinking Wall Streeters try not to take the Super Bowl indicator too seriously. It simply isn't fitting for people with fiduciary responsibilities to be associating themselves with anything so patently frivolous. …

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