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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

433.0. "Donoghue Signal Number" by CPDW::ROSCH () Wed Mar 31 1993 13:37

    Anyone follow Donoghue Signal Numbers? I picked up a book at the local
    library last night by Donoghue on investment strategies and he claims
    that there are two numbers to watch to indicate a buy-sell signal tied
    to the interest rates.
    One number is the number of days to maturity for the Money Market
    funds. If it's less than 40 then it is a leading indicator of a rise in
    the interest rates. (Currently it's 54)
    The other is the Donoghue Signal Number which is the latest % on
    taxable MMF's compared to the 25-week average for MMF's. If the average
    is below the Signal then it's a buy market, if it's above it's a sell.
    Right now the DSN is 2.82 and the 25-week average is 2.65 so it's a buy
    market.
    In the book he plots the DSN and the 25-week average over 10 years and
    it correllates quite well to the S&P 500.  The book is 4 years old.
    Has anyone tracked the numbers recently? Over the past few months? I'd
    be really interested in seeing the graph trend.
    
    Anyhow the Donoghue Advisory Service is 1-508-881-2800.  They'll send
    you a free Investment Advisory Letter as well as a workbook for
    tracking the number.
T.RTitleUserPersonal
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433.1I've watched the number for a couple of years now MAST::HOPTAThu Apr 01 1993 08:3213
  I've followed the Donoghue number for a couple of years, now.  I was not sure
that I believed the theory completely, so I decided to watch the progress of it
until it showed a "sell" signal.  I've got the chart on my wall showing the 
progress from August '91 until now.  It's been a "buy" for the entire time.  It
got very close to a sell on Jan. 10th of this year and then fell back to firmly
in the "buy" region.  It only takes 10 minutes a week to watch so I continue to
do so.  

  I'm in the Mill in Maynard and your welcome to come look at the chart.  I'm 
not planning to type it into this file.  Send me mail if you're interested.

                                                    Dan
433.2Donoghue Signal Number GraphCPDW::ROSCHMon Apr 05 1993 16:17257
    
    Attached is a graph of the Donoghue Signal Numbers since October '92.
    It's in PostScript. Extract/nohead, delete this message, and print in
    landscape orientation.  Thankls for the contributors who made this
    possible.
    
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%%*diag* 13 diagnostic messages issued
% End-of-file

433.3Donoghue BUY signalASDG::HORTONpaving the info highwayFri Sep 08 1995 17:2711
    The Donoghue MMF Yield Signal flashed a BUY in mid-July,
    and over the seven weeks since then the trend on MMF
    interest rates remains downward (bullish for stocks).
    
    The last Donoghue signal was a SELL in late November 1993.
    
    Does anyone feel nervous putting new money into an already
    heated market?
    
    -Jerry