Today was ok, considering what a nervous market we had last week. The Dow Industrials, Transportation, and Utility Indices as well as the S&P 500 were up, while the Nasdaq, Russell 2000, and Amex were down. Probably the most telling numbers were the excess of declining over advancing issues. Combining the Dow Industrials and the Nasdaq, there were slightly more than 2,900 advancing issues vs. over 4,000 declining.

All this means that the market is very nervous and uncertain. It is hard to say anything profound in this environment. Just do what we have been recommending, which is to practice Stock Lent. Again, that means no use of margin, no high flyers, and no buying except for programs involving regular, constant dollar investments. If you are apprehensive over either your winners or losers but don't want to eliminate the position, we suggest you sell one-half and keep one-half. And don't worry about selling into strength because the stock might go higher; you want to sell when there are buyers.

Regular readers know we have been looking for these uncertain to down markets to continue through October, and perhaps through December. So what. Be prepared and hoard cash! Remember - cash is king. Stay tuned.

The Market Pro - August 24, 1998