Today was a good reflection of the cross-currents at work in the market. The Nasdaq had a 17 point gain, making a new all-time high, while the Dow Industrials were up 8 without being a record. The Dow has now been up 7 days in a row.

And yet, aside from the High Tech's and Internet's, as well as some market leaders like Amgen, the market showed a worrisome lack of breadth. Losers outnumbered gainers by 1652 to 1391 on the Dow, and by 2239 to 1855 on the Nasdaq. We must keep a close watch on these advance/decline ratios as an indicator of market health or otherwise.

I hate to see all the money rushing in for a relatively few big stocks. The money has been pouring into the U.S. equity funds, with over 9 billion coming in from Dec 18 through Dec. 24, with billions more due to arrive from now through early January. You only have 3 more days to take advantage of tax-loss selling, so review your shopping list and BUY. The days immediately ahead may well be one of the best buying opportunities of the year. Stay tuned.

The Market Pro - December 28, 1998