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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-
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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.
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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
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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 '
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