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Article: What stock mart tea leaves tell us
- Article from:
- Chicago Sun-Times
- Article date:
- May 11, 1992
- Author:
CopyrightCopyright 1992 Chicago Sun-Times. (Hide copyright information)
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With the Dow Jones industrial average going on its merry way to a
new high again last week, it seems timely to start talking about when
it will all end.
While we could look at fundamental factors such as short-term
interest rates, corporate earnings and leading economic indicators,
it's more fun to bring out the tea leaves. And it just may be more
accurate.
WHIPSAW ACTION, some gurus contend, is a sure sign that a runup
in stock prices is about to end. When the Dow Jones industrial
average rises by a big amount one day and not only can't follow
through the next, but declines sharply, it's a sign that liquidity -
or the flow of money - is drying up.
At that point, says William King, a ...