Prime Stock Advisory Letter for November 17th, 1998

For those of you who would like to contact me during the day I am also available on line through the AOL Instant Messenger service (It is available through AOL and as a Netscape Plug-In.).  My screen name is "ESN Fin".  I welcome and encourage you to use this method of communication.  I look forward to your use of the AOL Instant Messenger Service.  This is a FREE SERVICE.  You do not need to be an AOL Subscriber to use this service.  A free download of this service is available at www.newaol.com/aim
 

Position Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher.  We recommend that stop orders be placed at the time of purchase,  and once the position has moved profitable we recommend a stop be placed a minimum of 3/8th above the purchase price and moved higher as the position moves higher.

Today's Comments:  The overall market moved moderately higher yesterday.  There was solid across the board strength with most of the sector indices I track moving higher.  The only significant weakness yesterday was in the Amex Natural Gas Index 'XNG' and the Amex Oil & Gas Index 'XOI'.  I will point out that several of the different sector indices are beginning to look like they may be forming a short term top,  but the strength in the broad based indices leads me to believe there is a good chance the market will move higher.  The Dow Jones Industrial Average 'INDU' closed above the 9,000 level for the 1st time late July,  the financial press will probably make a significant mention of this,  but I would like to point out that I do not believe that 1,000 point marks are of any real significance.  The next important point on the Dow Jones Industrial Average is 9,211.84  The Federal Reserve Board meets today to consider a change in interest rates.  I have learned not to try to predict the direction of the market on days the Fed may decide to change interest rates.  I do have a concern that if the Fed decides to leave interest rates unchanged that a market sell off may occur.

I have mentioned Greg Manning Auctions 'GMAI' several times over the last 1-2 weeks.  I learned last night after the close of trading that Greg Manning will appear on FOX's "Cavuto Business Report" @ 5:00 PM.  This is their business news channel.

Company:  Boeing Co.           Symbol: 'BA'         Closing Price: $42.75/share.
YH: $56.25      YL: $29.50     EPS:$0.16      P/E: 267      Forecasted EPS: N/A
Dividend: $0.56      Yield:  0.13%       Ex Dividend: 11/10/1998
Price Targets:  $44.56 & then $47.75       Downside Stop:  $40.875
Options Recommendation: December 40 Calls,  Symbol 'BALH' @ $3.50/contract.

Company Description: This company is the world's leading manufacturer of commercial jet liners.

Recent News:  11/06  Boeing's Delta II rocket deploys Iridium satellietes
10/27  Boeing sees world air cargo fleet doubling by 2017

Our Analysis: Boeing Co. is a component of the Dow Jones Industrial Average 'INDU',  which I have rated as moving higher from its current levels.  The shares of 'BA' closed above a key upside resistance level yesterday.  They should continue to move higher and test $44.56/share,  the point from which they gapped higher in late June.  If the shares close above that level then they should continue to move  higher and test $47.75/share,  the point from which they gapped lower in late July of this year.
 

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