				Ken Deen's
			   THE AGGRESSIVE TRADER
			      BUY/SELL ALERT

							   1339 Virginia Rd.
							 Montecito, CA 93108
							      (805) 565-2039
						      CompuServe: 72020,2050
							      Vol. 1, No. 11
							       Jan. 30, 1992

Buy/Sell Report

   On Jan. 30, I sold all shares Sunrise Technologies (SNRS) at 20 3/4.
   (I bought this Jan. 7 at 19 1/4; that's a 7.8% profit before commissions.)

   Also on Jan. 30, I bought OEX March 375 puts at 6 7/8.

   No trades for the model portfolios.

Discussion

   Both these actions were motivated by concerns that a significant market
slide may be just around the corner.  I feel that the market is very risky
right now on a short-term basis.
   One reason for this relates to Alan Greenspan's remarks to the Senate
Banking Committee yesterday.  His remarks have been interpreted by many as
signalling a bottom for interest rates.  For the past year, we have been
enjoying a bull market fueled by an ideal climate of Fed easing.  Although
we will probably be enjoying very low interest rates for the rest of this
year, the perception that we have hit bottom is a negative for the market.
   Additional factors:
     + Yesterday, my technical indicators reached the most bearish reading
       I have seen in a long time.
     + The Dow has gained about 400 points in the past six weeks, and thus
       is ripe for profit-taking.
     + Bullish sentiment is very strong on Wall Street.  When everyone
       agrees that the market is going to go up, it usually goes down.
   I do not expect a bear market to ensue (yet), but I do think the market
needs to go lower before it can go higher.
   Although I expect all of my stocks to bounce back quickly from any
sell-off, I chose to sell Sunrise Technologies because it is a medical
stock with a relatively high P/E.  Sunrise Tech is not over-valued,
especially when compared to some other super high-flying stocks in the
medical group.  But when these other high-flyers get hit, they may take
the entire medical group with them.  Even so, I would not be selling Sunrise
if I could not do so at a profit.  It is still an excellent stock.
   The OEX put options represent a hedge.  The market value of these
contracts goes up when the S&P 100 index goes down.  Thus, if the market
does fall, the gain in these options will cushion the blow.  I think of it
as a short-term insurance policy.
