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From: bkv2673@ritvax.isc.rit.edu
Subject: NeuroQuant Profiles (8/28/94)
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Date: Wed, 31 Aug 1994 16:56:36 GMT
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This update was sent out to the people on the mailing list on Aug 28th.
WE could not post it on the net since our server has been acting up.
On the things that we've profiled....we don't like XLNX options any more.
.....

starts on next page..



  /---------------------------------------------------------------------\
\/                                                                       \/
/\               "N E U R O Q U A N T   P R O F I L E S"                 /\
\/               .......................................                 \/
/\  Market prediction through the  application of emerging technologies  /\
\/-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  - \/
/\ Last Update: Aug 20th, '94                 This Update: Aug 27th, '94 /\
\/                           Volume 1, Issue 4                           \/
 \-----------------------------------------------------------------------/
      | RESEARCH: The NEUROQUANT natural & artificial brain models.... |
       \--------------------------------------------------------------/
                   | For Info: Call Al or Nipun at (716)424-8170 |
                    \-------------------------------------------/
                       
/----------\
 THIS ISSUE
\----------/

	* We were WRONG on the direction of the US dollar and the
	  broad markets (thanks to Ron Brown, the dollar, and the 
          revised GDP numbers);

        * Spectrum Signal (SSPIF) hit a high of $5 3/4 on Friday 
          and closed at $5. In three months we foresee SSPIF to 
	  be trading between $7 - $8;

	* We were lucky not to have market positions. Week ending 8/26/94, 
          salient Stock and option positions gains read as follows. 

                STOCK NAME      GAIN          OPTION & OPTION GAIN
               -----------------------------------------------------
		John Deere 	+10.82%       Sept 65 C    +157.54%
		Lotus      	+34.98%       Sept 35 C	   +435.71%
                Merck                         Sept 30 C    +414.71%
		Chiron     	+25.58%       Sept 60 C    +348.62%
                Glaxo                         Sept 17.5 C  +254%
		NL Industries   +19.05%
		Silicon Grph    +18.0%

	* We're currently cautious on the stability of the upward direction
          of the markets. We favor long positions on the S&P but strongly 
          believe hedging for potential downside moves on the index would 
          seem prudent. Insurance is worth it;
       
/---------\                        
 QUOTABLES
\---------/

	Vision is the art of seeing the invisible.
				
				- Jonathan Swift

/------------\
 NET THOUGHTS
\------------/

	If you have a problem or need help on Wall Street you need to find 
Junior, (henceforth Jr.) and request him. For instance, if your multi-billion 
dollar pension fund needs to put on a $50 million dollar trade in the most 
effective way, you ask Jr., nicely. Jr. is a real person folks. He's a young 
QUANT at a major brokerage firm on Wall Street and gets paid to wear multiple 
hats - he plays with trading models of many types, contrives arbitrage 
programs, does chart comparisons (not curve fitting!)....and after all 
that he still finds time to do other things! And as interesting as Jr. is, 
was his telephone call and fax to us the other day - it overlayed the 
SP-500 index in 1966 and the index as it has been in this volatile rich year. 
Eye-popping, at the very least!

	The chart that was faxed into our perpetually music rich research 
shop, compares the SP-500 in 1966 and the SP-500 now. The index topped out 
at around 94 in 1966 before it hit a losing streak, while the SP-500 in '94 
topped out at 482 or so. And following that point there is a very close visual
correlation in the way the two charts look if overlayed. For now, just chart 
eyeballing (no analysis either by Jr. or us!) tells us that we may be in here 
on a blow-off period on the S&P. If the chart comparison holds any good, the 
visual readout (bear in mind that is by vanilla eyeballing), if matched with 
the SP-500 in 1966 gives us a potential top on the SP-500 in 1994 at around 
the 483-485 level. And if it does top out at around that level, we're in for 
some serious decline going by what the index did back in 1966. Who truly 
knows these days?

	Once again, this is is not the kind of methods we normally employ to
come to a stance on the future direction of the markets. We're not likely to
use this (we may, who knows!) approach this time around. We thought you might
find Jr. and the above comparison interesting. While we cannot reveal
complete details about Jr.'s nature of further nomenclature or bring to light 
the name of the house wherein, and for whom Jr. does all this juggling, we 
do take the liberty of announcing to the entire world that is reading this 
that the GDP release market ballistic Friday was his birthday (or in reverse 
order; we wish him many more!). By the way, Jr. also listens to Beethoven and 
has something in common with the composer.

	His 'type-A' reaction to this column remains to be seen.

/------------\
 MARKET SCOPE
\------------/

	We were WRONG in the direction of the US dollar and the markets.
Before going on to say what might happen with regards to the broad markets,
it is well worth the time and energy to attempt to lay a finger on the
information which we did not interpret in the right manner...

	We feel that the action that ensued this past week is a result of
the gushing of euphoria fuel. On a more tangible basis, we did not coalesce
the multitude of factors that led to this upsurge in prices - mutual fund
cash inflows had been picking up steadily with fund managers waiting
on the sidelines, short interest was high on stocks (especially the large
caps) and the US dollar, and there was (still is) a consensus that the Fed
would not need to act again until 1995.

	Ironically, the Deere & Co earnings (which we sent an upside alert
on) probably paved the way for cyclicals to rear their heads. Caterpillar
(which our models short covered last issue) followed by moving up higher.
And then a combination of good auction results, Mr. Brown's positive
statement about trade talks and finally, the rally in the US dollar was the
spark that was needed to send bears covering. And on Friday, the revised GDP
numbers (3.8% annual) did it all. And we were very lucky in that we were not
replete with short positions (either on stocks or on the indices) even though
we had a "sloppy to bearish" outlook on the broader markets. While our
portfolios sizzled this week we missed the broad rise in the markets. We were
there, but only half way!

	As a result of the tremendous improvement in stance of some of our
proprietary momentum indicators, we've now decided to crawl out of the den
and side with the bulls cautiously. We think the previous highs on the S&Ps and 
the Industrials will very likely be broken if the indices can break some 
pronounced resistance bands. However, our change of stance is not a complete 
and vociferous one - it would be immensely prudent to have long positions on 
market indices coupled with an eagle's eye watch on the dollar, trade talks, 
and the September and December T-Bonds.

	Once again we feel that the action in the fixed income markets will
largely dictate the action in the equity markets. We do not see any signs of
a near term decouple. Even though stock prices rose by about 3% and the
greenback by about 2% it worries us that bonds have traced a more jagged
pattern. The long bond yield closed at 7.48%, unchanged from the previous
Friday.

	The Industrials (DJIA, 3881.05) is just shy of the psychologically 
important 3900 level. We think the Dow should be able to take out the 3900
level and should see some resistance between the 3930 - 3955 band. On the 
flip side, the Dow has some support around 3820 and down to 3770. The
Transports (DJTI, 1614.40) has moved in unision with the Industrials and
needs to break out from the 1630 level. The Transports have strong support
at around the 1560 - 1580 levels.

	The S&P-500 (SPX, 473.80) seems poised for a momentum breakout.
The index is about 9 points below its high for the year. While we feel
that the index still has enough technical fuel to move on the upside,
we would watch the technical action between the 478 - 482 levels. As 
indicated previously we strongly feel that any long position on the index 
should be hedged. The S&P MidCap (MIDX, 176.36) should perform sympathetic
to the S&P-500. The S&P-100 (OEX, 438.12) should move above a resistance
band between 441 - 444. We would be inclined to trade the markets using 
different combination spreads based on inter-indicii positions.

	The NASDAQ Composite (NASD, 762.94) shows the strongest momentum
signals and should be a screamer in either direction, but the bias is up.
The Russell 2000 index (RUS, 254.59) is at a resistance point and should 
very likely break through on the upside.

	On the different bond indices it is very obvious that we have 
sideways movement (example is the Lehman Bro. T-Bond Composite). We
reiterate that bonds need to be very carefully monitored. We are either
at the making of a phenomenal come-back rally or in the midst of moving 
to a precarious position that should see a major downside move. HEDGE!!!

/----------------------------------\
 NEUROQUANT GLOBAL ASSET ALLOCATOR
\----------------------------------/

	The NeuroQuant Global Asset Allocator uses 10 asset classes and 
is a program that is for conservative investors seeking a return of
12 - 15% annually with a Beta of 0.35. This Beta roughly translates to
about a third of the risk of the equity markets. Such a portfolio can be
easily constructed using no-load mutual funds. Our allocation at the current
time is as follows:

	US Equities (Growth)    10% (e.g., Invesco Dynamics)
	US Equities (Value)     15% (e.g., Fidelity Value)
	US Govt. Bonds           5% (e.g., TRowe Price US Long Term
	International Equities  13% (e.g., TRowe International Stk)
				 5% (e.g., Lexington Worldwide Emerging Mkts.)
	International Bonds     10% (e.g., TRowe Price International Bond)
	Utilities                5% (e.g., Fidelity Utilities Income)
	Precious Metals          6% (e.g., Invesco Gold)
	High-Yield Bonds        14% (e.g., Fidelity Capital Income)
	Real Estate              8% (e.g., Columbia Real Estate Fund)
	Cash                     9% (money market funds)

	As of the current time, we have no change in the allocation. 

/-----------------\
 SIGNAL HIGHLIGHTS
\-----------------/

	We had some phenomenal gains in some of our option positions. We've
had more than 200% returns on most of our positions. Please see the numbers
for further information.

	Our models have generated short covering orders on our last short
position, NL Industries (NL, $9 7/8). This position will be closed out for
a profit of +19%. 

	We're also going to take the loss on the Newbridge Networks 
(NNCXF, $31 1/8) stock position. Our loss will be -11.10% but we're glad 
that our call on the Newbridge networks August 25 Calls worked well - 
giving us a profit of 92.85. This makes us net gainers on the Newbridge
play which was a real test of nerves.

	We'd be inclined to close out the Becton Dickenson (BDX, $43 1/2)
position for a small profit of +2.37%. 

	The positon on Sterling Chemicals (STX, $11 1/4) will also be closed
out for a profit of +17.05%

	Our models are holding on to Lotus, Deere, and Chiron with some good
profits both on the stock and the option positions. Spectrum Signal (SSPIF, $5)
has finally begun to move. We foresee this stock to trade above the $7 level
in about three months.
			
/-------------\
 STOCK MONITOR
\-------------/

New Additions       : DELL, INGR, AGE, DFI, WFSL, IP

Alerts on Portfolio : STX, NL, BDX, NNCXF
                    
*===========================================================================*
 Likely    Security      Profile          Current    Technical Comments
 Position  & Ticker      & Date           Price      & Alerts
*===========================================================================*

----------------------------------------------------------------------------
SHORT     Dell Computer    $33 5/8        $33 5/8    Crossing below $32 1/2
          DELL             8/28/94                   BUY STOP at $34 1/2
----------------------------------------------------------------------------
LONG      Intergraph       $9 1/2         $9 1/2     Crossing above $10 1/4
          INGR             8/28/94                   SELL STOP at $8 7/8
----------------------------------------------------------------------------
LONG      AG Edwards       $20            $20        Crossing above $20 1/2
          AGE              8/28/94                   SELL STOP at $19 7/8
----------------------------------------------------------------------------
LONG      Duty Free Intl   $10 3/4        $10 3/4    Crossing $11 1/8
          DFI              8/28/94                   SELL STOP at $9 7/8
----------------------------------------------------------------------------
LONG      Walmart          $24 3/4        $24 3/4    Crossing above $25 1/4
          WMT              8/28/94                   SELL STOP at $22
----------------------------------------------------------------------------
LONG      Wash Fedrl       $21 5/8        $21 5/8    Crossing above $22 1/4
          Svngs & Loan     8/28/94                   SELL STOP at $20 5/8
          WFSL
----------------------------------------------------------------------------
LONG      Intl Paper       $74            $74        Crossing above $74 5/8
          IP               8/28/94                   SELL STOP at $72
----------------------------------------------------------------------------
LONG      Sterling Chem    $9 1/2         $11 1/8    Portfolio LONG.
	  STX              8/7/94                    WILL TAKE PROFITS!
----------------------------------------------------------------------------
SHORT     NL Industries    $11 3/4        $9 7/8     Portfolio SHORT.
	  NL               7/30/94                   WILL BUY BACK!
----------------------------------------------------------------------------
LONG      Becton Dckson    $42 1/8        $43 1/2    Portfolio LONG.
	  BDX              7/30/94                   SELL CANDIDATE! 
----------------------------------------------------------------------------
LONG      Newbridge Net    $34 5/8        $31 1/8    WILL TAKE LOSSES! 
          NNCXF            6/17/94
----------------------------------------------------------------------------
              
/-------------\
 OPTION ALERTS 
\-------------/

	Listed below are options that we feel offer or continue to offer a 
potential for substantial profit. However, since conditions may change
rapidly the trade scenario contained below may quickly become outdated and
the stance of our models may be modified. All option positions that are 
opened, or are open need to be tracked carefully. It would be very difficult 
to have exact potential entry points on new options that are featured but we 
do feature options so you can pay close attention to. Most important, options 
may not be suitable for all investors. 

==========================================================================
Likely     Option Series          Profile Price     Technical Comments
Position   & Ticker                  Date              & Alerts
==========================================================================

LONG       Xilinx                  $1 15/16        Attractive!        
           XLQJJ                                   SELL STOP at -$15/16
           Oct 50 Calls
-------------------------------------------------------------------------
LONG       Merrill Lynch            $3/4            Attractive!
           MERIH                                    Earnings are due to 
           Sept 40 Calls                            be released.
                                                    BE VERY ALERT!
-------------------------------------------------------------------------
LONG       Apple Computer           $1 1/2          Attractive!
           AAQIG                                    Watch out for ripple
           Sept 35 Calls                            action of semis from
                                                    bonds!
-------------------------------------------------------------------------
LONG       Lonestar Steakhouse      $1/2            Attractive!
           LQSIE 
           Sept 25 Calls
-------------------------------------------------------------------------

/-------------------------------\
 CURRENT/PAST OPTION PERFORMANCE
\-------------------------------/
                 
*========================================================================*
 Option        Ticker    Signal Price    Curr/Sell Price      %Change
 Series                  Date                Status 
*========================================================================*

 Deere & Co    DEIM      $3 1/4           $8 3/8               + 157.69%
 Sept 65C                8/19/94          *OPEN*
-------------------------------------------------------------------------
 US Surgical   USJE      $1 5/8           $1 3/8               - 15.64%        
                         8/19/94          *OPEN*
-------------------------------------------------------------------------
 Chiron        CIQIL     $1 13/16         $8 1/8               + 348.62%
 Sept 60C                8/19/94
-------------------------------------------------------------------------
 American Pwr  PWQID     $3/4             $7/8                 + 16%
 Sept 20C                8/19/94
-------------------------------------------------------------------------
 Glaxo         GLXIW     $0.81            $2 7/8               + 254.32%
 Sept 17 1/2C            7/30/94          *OPEN*
-------------------------------------------------------------------------
 Merck         MRQIF     $0.68            $3 1/2               + 414.71
 Sept 30C                8/7/94           *OPEN*
-------------------------------------------------------------------------
 Lotus Corp    LOQIG     $1 5/8           $9                   +452.15
 Sept 35C                7/29/94          *OPEN*
-------------------------------------------------------------------------
 Glaxo         GLXHW     $1/2             $2 3/8               +374 %
 Aug 17 1/2C             7/30/94          8/19/94
-------------------------------------------------------------------------
 Merck         MRQHF     $0.43            $4                   +830.23%
 Aug 30C                 7/29/94          8/19/94
-------------------------------------------------------------------------
 Newbridge     NNQHE     $3 1/2           $6 3/4               +92.8%
 Aug 25C                 7/30/94
-------------------------------------------------------------------------
 Caterpillar   CATTA     $3/4             $5/8                 -12.5%
 Aug 105P	         7/11/94               
-------------------------------------------------------------------------
 Cabletron     CSGT      $1 3/4           $9 3/4               +457.14%
 July 100C	         7/11/94          7/13/94
-------------------------------------------------------------------------
 SP-500        SPXGJ     $1               $3 1/2               +250.0%
 July 450C	         7/11/94          X:7/15/94
-------------------------------------------------------------------------
 XAU           XAUSJ     $6 3/8           $2.0                 -68.6%
 July 115P	         6/17/94          7/5/94
-------------------------------------------------------------------------
 SP-500        SPXSK     $2 3/4           $7 7/8               +168.68%
 July 455P	         6/16/94          7/7/94
-------------------------------------------------------------------------
 CPQ           CPQQT     $2               $3 3/8               +68.50%
 May 100P                5/3 - 5/5/94     5/10/94
-------------------------------------------------------------------------
 CPQ May       CPQQT     $2 3/4           $7 1/2               +172.00%
 May 100P	         5/11/94)         5/13/94
-------------------------------------------------------------------------
 MSFT          MSQRK     $1 5/8           $2 1/4               +38.04%
 June 55P	         6/2 - 6/10/94
-------------------------------------------------------------------------
 CPQ June      CPQFG     $1/8             $0                   -100 %
 June 35C	         6/8 - 6/15
-------------------------------------------------------------------------
 
/----------------------------\
 EQUITY PORTFOLIO PERFORMANCE                                  
\----------------------------/

	Following are the stocks that are in the model portfolio. They were
all added after they were profiled, and after technical conditions listed in
the STOCK TRACKING section were fulfilled.

============================================================================
Security          Ticker      Signal Price   Trade    Curr/Sold   %Change   
Name                          and Date       Status   Price
============================================================================
Deere & Co         DE         L $65 7/8       Open     $73        +10.82%
                              8/18/94
----------------------------------------------------------------------------
Welfleet           WFLT       L $20 1/8       Open     $23 1/8    +14.91%
Communications                8/16/94
----------------------------------------------------------------------------
US Surgical        USS        L $23 7/8       Open     $23 3/4    -0.50 %
                              8/14/94
----------------------------------------------------------------------------
American Power     APCC       L $17 1/4       Open     $19 1/2    +13.04% 
Conversion                    8/14/94
----------------------------------------------------------------------------
Ivax               IVX        L $17 5/8       Open     $20 3/8    +15.28 %
			      8/7/94
----------------------------------------------------------------------------
Mirage Resorts     MIR        L $18 1/8       Open     $20 7/8    +15.18%
                              7/30/94   
----------------------------------------------------------------------------
Lotus Devp         LOTS       L $32 1/2       Open     $43 7/8    +34.98%
                              7/30/94
----------------------------------------------------------------------------
Chiron             CHIR       L $53 3/4       Open     $67.50     +25.58% 
                              7/30/94
----------------------------------------------------------------------------
Becton Dickinson   BDX        L $42 1/8       Open     $43 1/2    +3.28 %
                              7/30/94                                     
----------------------------------------------------------------------------
NL Industries      NL         S $11 3/4       Open     $9 7/8     +19.05 %
                              7/22/94
----------------------------------------------------------------------------
Cabletron          CS         L $87 1/2       Open     $106 3/4   +22.0 %
Systems                       6/17/94
----------------------------------------------------------------------------
Newbridge          NNCXF      L $34 5/8       Open     $31 1/8    -10.24 %
Networks                      6/17/94
----------------------------------------------------------------------------
Spectrum Signal    SSPIF      L $5            Open     $5         +/- 0 %
Processing                    '93 to 3/94
----------------------------------------------------------------------------
India Investment   IIF        L $15           Open     $14 5/8    -2.46 %
Fund (Morgan St)              2/94
----------------------------------------------------------------------------
Colossal           CLP.V      L $1.50Cdn      Open     $1.70Cdn   +13 %
Resources                     7/93 - 1/94
----------------------------------------------------------------------------
Mercer Intl        MERCS      L $12 1/4       Closed   $11 3/8    -7.1 %
                              8/14 -          8/19/94
----------------------------------------------------------------------------
Atlantic Rchfld    ARC        L $106 5/8      Closed   $104 3/8   -2.0 %
                              7/30/94         8/19/94
----------------------------------------------------------------------------
Mercer Intl        MERCS      L $7 7/8        Closed   $9 3/8     +19.19%
                              4/14/94         6/21/94
----------------------------------------------------------------------------
Helionetics        ZAP        L $3 7/16       Closed   $3 1/4     -5.52%
                              6/21/94
----------------------------------------------------------------------------
Solar              SL.V       L $1.23Cdn      Closed   $2.90      +135.77%
Pharmaceuticals               8/93-9/93       4/25/94
----------------------------------------------------------------------------
Newbridge          NNCXF      L $47 3/4       Closed   $53        +10%
Networks                      4/26/94         5/5/94
----------------------------------------------------------------------------
Telefonos de       TMX        L $49           Closed   $74 1/8    +51.27%
Mexico                        11/09/93        2/16/94
----------------------------------------------------------------------------
Interdigital       IDC        L $3 1/2        Closed   $5 1/8     +46.29%
                              4/21/94         4/29/94
----------------------------------------------------------------------------
Motorola           MOT        L $86 1/4       Closed   $107       +24.06%
                              12/20/93        3/15/94
----------------------------------------------------------------------------
Telefonos de       TMX        S $73 3/8       Closed   $59.0      +24.36%
Mexico                        2/10/94         4/25/94
----------------------------------------------------------------------------
Adobe Systems      ADBE       S 33 1/2        Closed   $26 1/4    +21.64%
                              3/14/94         4/5/94
----------------------------------------------------------------------------
Gupta Corp         GPTA       S $30 1/4       Closed   $25 3/4    +14.88%
                              3/3/94          4/4/94
----------------------------------------------------------------------------
Casino &           CACS       L $7 3/4        Closed   $8 5/8     +11.87%
Credit Services               12/13/93        3/28/94
----------------------------------------------------------------------------
Zoom Telephonics   ZOOM       L $10 1/2       Closed   $11 3/4    + 11.9%
                              12/13/93        4/26/94 
----------------------------------------------------------------------------
BioPharmaceutics   BPH        L $1 15/16      Closed   $1 5/8     -13.92%
                              10/14/93        4/4/94
----------------------------------------------------------------------------
Synoptics         SNPX        L $25           Closed   $21 3/8    -14.52%
Communications                12/08/93        3/25/94
----------------------------------------------------------------------------

*************************** D I S C L A I M E R ****************************

This  profile is not an  investment  advisory service,  and is meant  to be
used for informational/educational  purposes only. Research and information
has  been  obtained from sources  believed to  be reliable. No guarantee is
made  to  the  accuracy,  adequacy, or  completeness  of  the   information
presented above. The information above is not, and is  not to  be construed
as an offering, or solicitation for the  purchase or sale of  any security,
commodity, or derivative. Parties connected with, contributing  as editors,
or  writing as guests  for NeuroQuant  Profiles may from time to  time buy
or  sell securities  profiled in this publication either for themselves or 
for firms they are affiliated with, and their clients. NeuroQuant Profiles, 
its editors, or parties writing for, or contributing to NeuroQuant Profiles' 
research may not be held liable for any losses that may arise from trading. 
Option  positions  are inherently  risky and  may  not be  suitable for all 
investors. Investors  should  obtain annual  reports, mutual fund prospecti 
and  other documentation  prior to investing and should seek a professional
and  qualified  opinion of a  Registered  Investment  Adviser,  Registered 
      Representative, or Certified Financial Planner before investing. 
***************************************************************************
       Ph: (716)424-8170                   Fax: (716)272-0963/424-7714
***************************************************************************
