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Subject: NeuroQuant Profiles (1/22/95)
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  /---------------------------------------------------------------------\
\/                                                       (tm)            \/
/\               "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  /\
\/-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  - \/
/\ This Update: Jan 21st, '95                Last Update: Jan 14th, '94  /\
\/                           Volume 2, Issue 3                           \/ 
 \-----------------------------------------------------------------------/
       | RESEARCH: The NEUROQUANT natural & artificial brain models.... /
        \--------------------------------------------------------------/
                 | For Information: Call Al Vinjamur at (716)272-0963 /
                  \--------------------------------------------------/

/----------\  
 THIS ISSUE
\----------/

	* Open Positions:

		IIF	-20.1%
		SSPIF	-14.3%
		HL	-6.27%
		MSFT	-2.29%
		FRE	-1.04%
		XLNX	+1.01%
		KO	+1.49%
		EMN	+1.60%
		MU	+2.14%
		OKEN	+2.4%
		AXP	+3.8%
		ABF	+7.7%
		FDX	+14.95% 
		NGCO	+23.52%
		PRGS	+40.4%
		CLP.V	+96.6%
	
        		CURRENT HIT RATE	: 70.6%
			CHANGE (LAST WEEK)      : -7.97%
		                
	* Options Open:

		SPX Spread	+83.41%
		AMER Calls	-26.71%
	
	* Closed:

		GLX Calls	-100%
		SPX Straddle	+39.05%

		CAKE		+5.70%
		PG		+/- 0%
		MOT		+11.92%
		CAT		-1.92%
 
/---------\
 QUOTABLES
\---------/
	
	The symbol of all relationships among [rational] men, the moral 
	symbol of respect for human beings, is the trader. We, who live by
	values, not by loot, are traders, both in matter and spirit. A trader
	is a man who earns what he gets and does not give or take the 
	undeserved. A trader does not ask to be paid for his failures, nor
	does he ask to be loved for his flaws.

					- Ayn Rand
	
/------------\
 NET THOUGHTS
\------------/

	"Pattern, Poetry, and Power in the Music of Frederic' Chopin", so goes
Chapter 9 of Metamagical Themas, a book by Douglas R. Hofstadter - Cerebrator,
writer...extraordinaire. Dr. Hofstadter writes about how he grew up listening
to the music but not being able to play the notes of the 11th etude, Opus 25.
And he writes about his realization of the "awesome complexities" he had taken 
for granted and suggests looking at it in two different ways - one, of the way 
in which human perception can integrate a huge set of independent elements and 
"hear" only a single quality, the other at the "incredible skill of the pianist
who could play so many notes so quickly that they all blurred into one 
shimmering mass, a "co-hear-ent" totality."

	Like Chopin's etude are the financial markets. Although ignorant 
of the nature of both it would be extremely gullible of us to believe that the 
seemingly fickle anatomy of the markets are such that we could sit down 
and model its complexities with Fibonacci numbers, RSI's, and Moving averages 
- all approaches that use a single data stream. 

	Realization that modeling the markets requires a Non-Linear Dynamical
System (NLD) has changed the nature of applied research. Jacobs & Levy ('89)
showed that the stock market is not an ordered system that can be explained by
simple rules. Further the markets are not totally random - rather a complex 
system in which portions of the behavior can be explained by a set of complex 
relationships between many inputs that can change over time. 

	Translation: past observed behavior may not give you the same behavior
in the future. Throw out those canned charting programs with a 180 different 
indicators that don't bother about system states, stationarity and prediction 
persistency - all you'll do is end up altering them and calling them 
"proprietary" by visual examination, which really is visual dissonance and a
probability of certainty that there will be a hole in your pocket. It is not a 
seat to the future...Consume change by building models that change...try 
neural-nets...
                       
/------------\
 MARKET SCOPE
\------------/

	Being able to turn on a dime was the secret to making money in the 
markets in 1994. That same sentiment was echoed during the past two weeks
around the world. First, global markets concluded that US rates peaked, while
assuming the problems down south would restrain the Fed from raising rates.
And that psychology was reinforced when the Retail Sales figures set off a
rally. Whether slack sales can reflect the true momentum of the economy is
questionable but Industrial Production numbers and the Fed's beige book
has something else to say: the economy is true-blue and moving at a clip. 

	As noted in "Outlook '95" (Jan 14th. '95), our appraisal that we'll
soon see wage-push inflation seems to be on target - the Beige book found
an increasing ability of producers to pass on price pressures to the consumer
and also found evidence of shortages in skilled labor in various regions. And
we submit to you, that is not the end...

	For the short term, focus on Mexico and Congress passing the $40
Billion bail-out plan, which we think, will be the government's kind gesture
towards all the people on Wall Street who lost a ton of money. And in the
Mexico decision lies the future of the fixed-income and equity markets for the
short term. We would bet that the bill will pass considering that the problem
at hand does not involve just the US and Mexico but is one that involves all
emerging markets.

	Scenarios are as follows:

	If the bill is passed, the Tesobone will rally bringing its yield of
19.75% down. This will, we believe, will cause capital to come out of the
US short term market, causing a convergence of rates between the 7.5% to
7.6% level (US Yield terms)...the shorter end at home will thus show weakness.
The eventual market adjustment of rates may cause the Fed to think twice 
about raising rates..they'll not want an inverted yield curve and may delay 
raising rates until March.

	If the bill is not passed, there should be a lot of chaos in emerging
markets througout the world. A smart investor, we feel, will realize the
the economic underpining (Current Account Deficit) that caused the chaos in
the first place and move money into countries like India...only after election 
results and the release of the budget there in about four weeks.
  
	Back in the US, the 30 Year T-Bond has not been able to crack 
resistance around the 7.70% - 7.75% level and is currently sitting at around 
7.88% level. It will likely head back out to the 8% level. We expect it to head
out towards the 8.05% level before wishful market psychology will play the 
scene we've just been witness to all over again. In short, we expect the Yield 
curve (one of us here is madly in love with it!) to flatten out further, with 
the middle maturities showing stability at their current levels.

	On Friday, the SP-500 hit a low of 463.99 and closed the week at 
464.78...the SP-500 is currenty at a strong band of support which extends
down to the 462 level....this is echoed by they way options are priced on the
SP-500 as well as the SP-100 (OEX). A break of 463.50 should take us down to 
the 462 level, at which point we'd expect a short term bounce. At that point
if the index is not able to penetrate the 464 level, we'd fade the market
aggressively as long as there is no marked improvement in breadth as compared
to the past week.

	On the SP-100 (OEX, 431.28), we should encounter some support at around
the 430 level...a break of 429 on the index should have us visit the 426-427
level.

	With economic numbers and Mexico causing a flight to quality,
commodities and Gold issues have been performing well. While the Commodities
Research Bureau Index (CRB, 237.17) is just below a new high the glitter 
associated wih teh yellow metal is definitely not present in the technical 
action of the Precious Metals Index (XAU, 107.18). We'll turn bullish if the 
112 level is broken. Resistance band around the 109-111 level.

	Expect volatility...and be willing to change your mind on the 
diretion of the markets for the near term...stay on the "Right Side of the
Market"...	
     
/---------------\
 DOGS OF THE DOW
\---------------/

	In this year of the pig, we also want to focus your attention on the 
"Dogs of the Dow": An extremely simple strategy that continues to confound
the skeptics (we were in this camp but are slowly getting converted) and 
sports an excellent year-by-year and 10-yr track record. (See Andrew Bary's 
article in Barron's dated Dec. 26, 1994) 

	The canine recipe involves picking the 10 stocks in the DJIA that have 
the highest dividend yields on Dec. 31 of a given year and holding them for a 
year. Instead of equally weighting the stocks in this portfoio as the article
in Barron's suggested, LBS Capital Management, a premier quantitative manager 
with over $800 Milion in assets suggests the following optimized weightings 
for 1995 (Prices: 1/22/95): 

		Phillip Morris		(MO,  $57)  	17.5%
		Eastman Kodak 		(EK,  $49 5/8)  17.5%
		Chevron     		(CHV, $46 1/4)  15.0%
		Exxon	      		(XON, $62 3/4)  10.0%
		Minnesotta Mining 	(MMM, $52 7/8)  10.0%
	 	JP Morgan 		(JPM, $58 7/8)  10.0%
		Texaco			(TX,  $62)   	 5.0%
		Woolworth		(Z,   $15 3/4)   5.0%
		Sears    		(S,   $45 1/8)   5.0%
		DuPont			(DD,  $56 7/8)   5.0%

	Doug Case, Sr. Portfolio Manager at LBS Capital Management terms the
above the "LBS Dow Greyhound" Portfolio."
        
/-------------------------------\
 NEUROQUANT GLOBAL ASSET MANAGER
\-------------------------------/

	For 1995, we have changed the allocations of the GLOBAL ASSET
MANAGER to be more flexible in seeking opportunties around the world. Model
asset allocation is based on using no-load mutual funds and some attractive 
closed-end funds in different asset classes. Returns will not be posted unless
there is a change in allocation or instrument. Our current allocation is:
 
*===========================================================================*
         CLASS/DESCRIPTION     ALLOCATION    PRICE (Inception: Jan 22, '95)
*===========================================================================*

 STOCKS
 ------
  Fidelity Equity-Income II 	  5%	  	$17.75
  Scudder Global Small Co.  	  5%            $14.73
  India Fund*               	  8%            $10.25
  Chile Fund*               	  7%            $45.12

 BONDS
 -----
  Dreyfus Short/Intrmdt Govt. 	  19%		$10.56
  Scudder International Bond       6%
 
 OTHER
 -----
  Lexington Gold Fund         	   4%		$5.93
  T. Rowe Price New Era       	   6%           $20.26

 CASH
 ----
  Money Market Funds		  40%		
                       
/------------\   
 STOCK ALERTS
\------------/

        The table below lists stocks that the NeuroQuant models picked as
having the best emerging outlook and potential for profits in the near and
intermediate term. The last column lists conditions/criteria that would 
satisfy trade entry/exit, and whose fulfilment would most likely warrant a 
trade by our models. All signals with an "Attractive" rating are moved to the 
portfolio immediately. The signals below are meant only to alert you and is
not to be construed as "recommendations". Consult an RIA or Broker for advice.

        New Alerts          : NVAL, TNCR, MO, NVLS, CSCO
        Moved to Portfolio  : XLNX, MU, DELL, KO, FRE, MSFT
        Conditions Not Hit  : XIRC, UIS, DJ 

*===========================================================================*
 Likely    Security           Profile           Technical Comments
 Position  & Ticker           & Date               & Alerts
*===========================================================================*
 
 Long	  Natl Vision Assoc   $4 5/8     Likely breakout on compressed vol.
          NVAL                1/15/95    Crossing $5 1/4. Sell Stop $4 3/8
-----------------------------------------------------------------------------
 Long     Tencor Instr        $36 3/8    Bounce from $35 1/2. Crossing $36 7/8 
          TNCR                1/15/95    Sell Stop $34 1/2
-----------------------------------------------------------------------------
 Long     Philip Morris       $57        Crossing $57 3/8
          MO                  1/15/95    Sell Stop $56 1/8
-----------------------------------------------------------------------------
 Long     Amer Home Products  $66        Crossing $66 1/4
          AHP                 1/15/95    Sell Stop $65
-----------------------------------------------------------------------------
 Short    Novellus            $47        Crossing down $46 5/8
          NVLS                1/15/95    Buy Stop $47 5/8
-----------------------------------------------------------------------------
 Short    Cisco Systems       $35        Crossing down $34 5/8
          CSCO                1/15/95    Buy Stop $36 1/2
-----------------------------------------------------------------------------
 
/-------------\
 OPTION ALERTS
\-------------/

        Listed below are options that we feel offer a potential for profit.
However, since conditions may change rapidly the trade scenario contained
below may quickly become outdated and the stance of our models may change.
All option positions that are to be opened, or are open need to be tracked
carefully and as such may not be suitable to all investors. This is meant
only to alert you -- seek your adviser for decision making.

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

  Long       IBM Feb 75 C (BO)       $2 5/16     Earnings due!
             IBM Feb 75 P (NO)       $2    
---------------------------------------------------------------------------
  Long       Unisys Feb 10C (BB)     $1/4        Earnings due!
---------------------------------------------------------------------------
  Short      OEX Feb 430C (BF)       $6          Credit of $6. OEX at 431.38
  Long       OEX Feb 425P (NE)       $2 3/8      On rally cover 430C and 425P
  Long       OEX Feb 440C (Bh)       $1 3/8      Credit of $2 1/4
---------------------------------------------------------------------------
  Short      SPX Feb 465C (BM)       $5 5/8      Credit of $10 3/4 
  Short      SPX Feb 465P (NM)       $4 5/8      SPX at 464.77
  Long       SPX Feb 460P (NL)       $3
  Long       SPX Feb 470C (BN)       $3          Net Credit of $4.34
---------------------------------------------------------------------------

/-----------------------\
 OPEN PORTFOLIO - EQUITY
\-----------------------/

        List contains stock signals that are currently being kept open
by our models. All of them were featured in the EQUITY ALERTS section and 
were opened when indicated technical conditions were fulfilled. Percentage 
returns are calculated on the basis of last reported prices.

	Open Positions   : 17 		Hit Rate: 70.6% (Change: -7.97%)
	Losing Positions : 5

*============================================================================*
 Security          Entry Price   Curr Price   %Change   Technical
 Name &  Ticker    and Date                             Comments/Stops etc.
*============================================================================*

Microsoft          $63 1/8       $61 5/8      -2.29%    Sell Stop $61
MSFT               1/16/95                              Trailing Stop $1 1/2
-----------------------------------------------------------------------------
Fedrl Hm Mrtg      $52 5/8       $52 1/8      -1.04%    Sell Stop $51
FRE                1/16/95                              Trailing Stop $1 1/2
-----------------------------------------------------------------------------
Coca Cola          $50 1/8       $50 7/8      +1.49%    Sell Stop $48  
KO                 1/16/95                              Trailing Stop $1
-----------------------------------------------------------------------------
(S) Dell Computer  $45 7/8       $45 7/8      +/- 0%    Buy Stop $47 3/4 
DELL               1/20/95                              Trailing Stop $1 5/8
-----------------------------------------------------------------------------
(S) Micron Tech    $46 5/8       $45 5/8      +2.14%    Buy Stop $47 3/4   
MU                 1/18/95                              Trailing Stop $1 5/8
-----------------------------------------------------------------------------
(S) Xilinx         $60 7/8       $60 1/4      +1.01%    Low of $58 on 1/20/95 
XLNX               1/20/95                              Buy Stop $63. Tr $3
-----------------------------------------------------------------------------
Eastman Chemical   $51 5/8       $52 1/2      +1.60%    Sell Stop $49 1/2
EMN                12/21/94      
----------------------------------------------------------------------------
Progress Sware     $34           $47 3/4      +40.4%    TAKING PROFITS! 
PRGS               11/21/94        
------------------------------------------------------------------------------
Federal Express    $54 3/8       $62 1/2      +14.95%   TAKING PROFITS! 
FDX                12/12/94    
------------------------------------------------------------------------------
American Express   $29           $30 1/8      +3.86%    Sell Stop $29
AXP                12/12/94
------------------------------------------------------------------------------
Airborne Freight   $20 1/8       $21 5/8      +7.70%    Sell Stop $20 7/8
ABF                12/2/94
------------------------------------------------------------------------------
(S) Old Kent Fin   $31 1/4       $30 1/2      +2.4%     Buy Stop $31
OKEN               11/22/94     
------------------------------------------------------------------------------
National Gypsum    $34           $42          +23.52%   TAKING PROFITS! 
NGCO               11/15/94                             
------------------------------------------------------------------------------
Hecla Mining       $10 5/8       $10          -6.27%    Sell Stop $9 1/2
HL                 11/15/94         
------------------------------------------------------------------------------
India Inv Fund     $13 3/8       $10 5/8      -20.19%   Averaged by buying 
Fund (Morgan St)   2/94 & 12/94                         at $11 3/4       
------------------------------------------------------------------------------
Spectrum Signal    $4 5/8        $4           -14.34%   Averaged by buying
Processing  SSPIF  '93 to 12/94                         at $4 3/8 
------------------------------------------------------------------------------
Colossal           $1.50Cdn      $2.95 Cdn    +96.6%    Holding! 
Resources   CLP.V  7/93 - 1/94                          
------------------------------------------------------------------------------
                                                        
/------------------------\
 OPEN POSITIONS - OPTIONS
\------------------------/

*============================================================================*
 Option                Signal Price    Current Price      %Change
 Series                  Date
*============================================================================*

(S) SPX Mar 460C (CL)    $12 1/4           $12                  -2.04% 
(S) SPX Mar 460P (OL)    $10 7/8           $5 1/2 (1/20/95)     +49.40% 
SPX Jan 460C (AL)        $5 7/8            $10 (1/17/95)        +70.35% 
SPX Jan 455P (MK)        $4 3/8 } 12/18    $3 (12/27/94)        -31.3%
                                                                -------
   SPXMK @3 on 12/27/94, SPXAL @10 on 1/17/95                   +83.41%
   SPXOL @5 1/2 on 1/20/95
----------------------------------------------------------------------------
(S) America On-Line (DJ) $7                $8 7/8               -26.71%  
April 50C                12/19/94        
----------------------------------------------------------------------------
                                                          
/---------------------------------\
 RECENTLY CLOSED SIGNALS - EQUITY
\---------------------------------/

        Equity signals closed during the past month were as follows:

============================================================================
Security           Entry Price     Closing            %Change
Name &  Ticker     and Date        Price/Date
============================================================================

(S) CheeseCake     $16 1/8         $15 1/4             +5.70%   
CAKE               11/21/94        1/17/95
------------------------------------------------------------------------------
Procter & Gamble   $62 3/8         $61 3/8             +/-0.0%  
PG                 12/13/94   
------------------------------------------------------------------------------
Motorola           $55 1/2         $62 1/8             +11.92%  
MOT                12/12/94        1/18/95
------------------------------------------------------------------------------
Caterpillar        $57 1/2         $56 1/2             -1.73%
CAT                1/17/95         1/19/95 
-----------------------------------------------------------------------------
Cabletron          $43 1/2         $44 7/8             +3.14%    
CS                 12/12/94        12/23/94
------------------------------------------------------------------------------
Taiwan Fund        $26 1/2         $28                 +5.66% 
TWN                11/9/94         1/3/95
------------------------------------------------------------------------------
Stein Mart Inc.    $14 3/4         $14                 -5.08%    
SMRT               12/2/94         12/20/94
------------------------------------------------------------------------------
Chiron             $75 1/4         $80                 +6.31%
CHIR               12/19/94        12/27/94
----------------------------------------------------------------------------
(S)Micron Tech.    $41 1/2         $43                 -3.48%
MU                 12/12/94        12/21/94
------------------------------------------------------------------------------

/------------------------------\
 RECENTLY CLOSED OPTION SIGNALS
\------------------------------/

        These are our records of signals that were featured in the past. All
options were rated 'Attractive' before the model verified a trade.

*========================================================================*
 Option        Ticker    Signal Price      Sell Price      %Change
 Series                  Date                
*========================================================================*

Glaxo Jan 22 1/2 Calls   $1/4            $0                  -100%
GLXAX                    10/17/94        1/20/94
-----------------------------------------------------------------------------
SPX Jan 460C (AL)        $5 7/8            $10 (1/17/95)     +70.35% }39.05% 
SPX Jan 455P (MK)        $4 3/8 } 12/18    $3 (12/27/94)     -31.3%  }
----------------------------------------------------------------------------


*************************** 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. Prices indicate are representative and commissions are not
represented in the P/L numbers. 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 prospectuses and  other documentation  prior to investing and should 
seek the  professional  and  qualified  opinion of a  Registered  Investment  
Adviser, Registered Representative, or Certified Financial Planner before 
                            investing.
***************************************************************************
                           Ph: (716)272-0963                   
***************************************************************************


