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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Jan. 16, 1981)
page 2 daily nebraskan friday, january 16, 1981 Market analyst's single-handed shake-up doubted By Mary Louise Knapp Joseph Granville, the New York market analyst whose advice to investors is said to have spurred a drastic Dow Jones average decline on Wall Street last week, claims he has the power to control the market single-handedly. However, financial experts in Lincoln are doubtful that Granville has any more power to shake up the market than other investment analysts. "Just because he can scare the daylights out of invest ors doesn't mean he controls the market," said Rod Cerney, a market analyst for First Mid-America Inc., 122' N St. Cerny describes himself as a "fundamental" analyst who examines such things like interest rates and corpor ate prices to predict market trends. Granville, a technical analyst, pays little attention to these factors. Cerny said. Instead, he uses a "tree of indi cators" which include the number of stocks advancing and declining, the number of issues hitting highs and lows, and what he terms "on-balance volume." which relates shifting volume to shifting prices. Market predictions Granville's record for correct market predictions is not exceptionally better than those of more conventional analysts. Cerny said. "He's been right a couple of times in the past several years, but he has also missed several market calls. He hasn't been infallible," Cerny said. Granville's market timing was accurate last April when he helped touch off a 30.72 jump in the Dow Jones in dustrials with a buy recommendation, and accurately pre dicted a low in the industrials. Last Tuesday the Dow Jones Industrial average hit a four-year high, topping at over 1,000 points. Immediately. Granville sent warnings by telephone to investors to sell everything, and even to go short, in hopes of profiting from price delinces on the stock that had gained the most ground in recent months. The message to sell sparked two days of panic trading which resulted Wednesday in a Dow loss of 23.KO. elimin ating a large portion of the nearly 41 point gain it had built dining the first three trading days of IUS1. Volume on the stock exchange set a record ol l)2.X million shaies. The previous high was X4.08 million, set last Nov. 5. Decline inevitable Cerny said the market would probably have dec even if Granville had not warned investors to sel though perhaps not by such a large number ol points. ed al- THE I JANUARY SALE Thru Saturday Entire Stock 10-50 Off 28 Different Coffees 0', Off Over 100 Teas -10-3(W Off 80 Spices - 25' Off Tea Sets & Coffee Makers 10-25'; Off Jars and Containers 10-50'; Off S20 Spice Racks SI 2.95 S20 Copper Tea Kettles SI 2.95 Selected Close-Outs & Overstocks 25-50'v Off The Mill 119 N. 14th SI The Inter-Varsity Christ ian fellowship will meet to night at 7 in the Nebraska Union. Room number will be posted. The University Program Council will sponsor the American Films Committee Sunday at 9 p.m. in the Nebraska Union. Corncobs will meet at 4:45 Monday. Nominations for new officers will be accepted and pictures will be taken. Non-traditional Students Association will have a luncheon today from 1 1 :30 to 1 Room number will be posted. The UNI. Chess Club will meet toniuht in the South Crib. IVI i I OLD TASHIONED PJIB18E1 PLUS TAX Save 250 this Friday, Saturday and Sunday at Wendy's Old Fashioned Hamburgers on a regular size order of meaty Chili with a Small Drink of your choice. No Coupon Needed. Good only at 2615 South 48th 930r!orth48th "The hi't that t ie market usieueu m mm inuicaies that something is wrong." Cerny said. "When one person can have this much effect on the market, it means the market itself is getting shaky." Cerny said the stock market will be "sensitive and vola tile" throughout the next six weeks to two months, partially as a result of Granville's influence, but that Gran ville will not continue to control investments for an ex tended period of time. Karl llannum, an accountant for Peat. Mai wick. Mitchell & Co. in Lincoln's f irst National Bank building, said Granville has gained a great deal of notoriety recent ly, but he will not continue to influence investors on a large scale. "No one can consistently predict how the market will behave over a long period ol time." he said. llannum said the general views of analysts to whom he has spoken is that the market would have declined List week with or without Granville's aid. "A lot of his (Granville's) claims aie show business." said Manlerd 0. I'eterson. chairman of UNI. 's department of finance. "I doubt he can control the market. I le has done bettei than some individual investors in predicting market turn ing points, but not on individual stocks." ASUN Senate passes new center resolution A resolution supporting construction of new rec reactional facilities on city campus was passed by the ASUN Senate Wednesday night by a vote of 18-5-4. Sen. Steve McMahon. who submitted the resolution, said student support for the project is needed before it can be undertaken, and that t lie resolution is intended to demonstrate such support. In other business. Government Liason Committee Chairman Nette Nelson announced that the petition drive for a State Student Association (SSA) has been ex tended until the end of January. Aproximately 200 additional signatures have been col lected since the beginning of the semester. By the end of last semester. 2.284 signatures had been obtained, she said. !V itsbiaskiin UPSP 144-080 Editor Kathy Chenaul t ; Managing editor: Tom McNeil; News editor Veil Swinton. Associate news editors: Diane Andersen Steve Miller, Assistant news editor: Bob Lannin; Niqht new. editor Kathy Stokebtand, Magazine editor: Mary Kempkes Entertainment editor Casey MeC.ibe , Sports editor Lar r y Spat ks Ait director Dave luebke, Photography chief - Mark Billmqsli'S . Assistant photogi aphy chief Mitch Hrdhcka. Copy editors Mike Bartels, Sue Brown, Pat Clark, Nancy FUr.. Dan Epp, Maureen Hutfless, Alice Hmicek, Kim Hachiya, Jeanne Mohatt, Janice Pigaga Business manager. Anne Shank, Production manager K 1 1 1 v Pohcky; Advertising manager Art Small, Assistant advertising manager Jeff Pike. Publications Boaril chairman Mark Bowen, 473 0212 Pi" fessional adviser Don Walton. 4 73 7301 the Daily Nebraskan r, published by the UNL Publication, Board Monday through Friday dining the fall arid spnng semest ers. except during vacations Address Daily Nebraskan, 34 Nebraska Union, 14th and H streets. I incoln. Net) , G8588 Telephone 4 72 2588 Material may be reprinted without permission if attributed t the Daily Nebraskan, except material covered by a copyright Second ( lass postage paid .it Lincoln, Neb., 68510 iuunoi m Iwkm German suluction Sdxtwi 'Selection VOU VRA9 Wine Lesson-of-the-Veek Q What is t he 1 1 t f erenre between Vouvrays .' Jacques Scott Vnuvray is produced exclusively from the classic rhenm Ulanc jrape. It is a soft, fruity, fragrant white wine of PK-pt lonally hiih quality. a. is Vouvray served and what food It ccwnpl imrnt ? Should always tie served chilled and is best with lish. shell fish, hai veal, rhicken. or by itself. I I It II i i I t -v a II. M. at 1 1 r,) ! I mill '. VMM AMI VIM ' 3k
