Prime Stock Advisory Letter for December 21st, 1998

---

Today's Comments:  With the recent political activity concerning the impeachment of President Clinton and the market activity from the unwinding of arbitrage positions associated with "Triple Witching" I feel that today is one to sit on the sidelines and see how the day plays out.  I feel there is a high degree of uncertainty concerning the market.  There is a strong possibility that the market may have reached a "triple top".  I feel that by the end of today the picture should be clarified.  As a result I have transmitted a copy of our Rules for Trading.  I believe it helps to periodically review them.

In particular pay strong attention to Rules # 1 & 3.

1. Never let a profit turn into a loss!

2. Always set a stop loss when buying a stock or option.
 A.) Know your maximum Risk!

3. Move your stop up to lock in a profit as soon as possible.
 A.) Min. 3/8th above purchase price.
 B.) Periodically move your stops higher.

4. Do not be afraid to sell at an early profit and have the opportunity to  buy back at a lower price.

5. If a stock/option does not move as you expect within a few days then  look to exit the position.

6. Do not become emotionally attached to an investment.

7. Cut your lososers,   Keep your winners.

8. The key to success is to avoid loosing money.

9.  Averaging Down is throwing good money after bad!!!
      It violates rules # 1,2,3,4,5,6,7, & 8

10.  Do not wait for a stock to go back to its previous high.
        A.  It may never go there.
        B.  It may go lower.

11.  Do not become your own worst enemy.

The Sterling Investment series of newsletters is produced by Sterling Investment Services, Inc.  If you would like to receive a chart on any index or stock mentioned in this report please contact us at the below mentioned numbers.  We also offer custom research reports on any stock investment that you may desire information on.  To receive further information on these services please visit our web page at:  www.sterlinginvestments.com   If you would like to contact us our # is 800-275-6901,  fax # (404)-816-8830  Email address is: enelson@sterlinginvestments.com  Sterling Investment Services may hold positions in the securities recommended or may be providing consulting services to the companies mentioned within this report.