Folklore has it that deer, dogs, and all manner of creatures great and small have a mysterious ability to warn of such approaching calamities as storms and earthquakes. The INC. average has yet to be included in such company, but maybe it should. In our most recent calculations, this speculative index was the only average to decline, if only by a modest 1.8%. Perhaps in its own mysterious way, the INC. average was anticipating what soon followed -- one of the worst weeks in the history of the Street, including a 141.03-point drop in the DJIA on record trading volume. And after that, of course, would come the unnerving uncertainties of another "triple-witching hour" (a situation in which stock options, stock index futures, and stock index options expire simultaneously). All in all, September would be a tense month. Are we seeing the birth of a potent new technical indicator, or given the market's continuing fitful performance, would a visit to the local zoo still work just as well?
Nov 1, 1986