HOW THE SELLOFF ON 1/14/99 WAS FORECASTED ACCURATELY

       
DOW SELLOFF WAS FORECASTED WITH 96% FORECASTING ACCURACY


For Immediate Release ... January 14, 1999 ...  11 p.m. EST


This sharp selloff was accurately predicted by an adaptive
forecasting computer with a consistent record of forecasting
major market crashes for the past several years.  This selloff
and earlier stock market crashes on October 27, 1997 and October
31, 1998 were accurately predicted and posted on the internet.
 
Today (1/14/99), the Dow closed down another 229 points, for a
total loss of 354 points in two days.  The Dow Jones Industrial
Average plunged 261 points yesterday (1/13/99) in early trading
before staging a recovery at noon, to close down more than 125
points.

This decline in stock prices occured after two weeks of strong
gains.  Before this selloff began to accelerate, on 1/12/99, the
market decline was forecasted with a 96% forecasting accuracy. 
When the adaptive forecast generated new sell signals for the
Dow, the S&P 500 and 14 of 37 business sectors, the financial
markets were poised for a big selloff.   

These forecasts notify investors to take action, prevent losses,
and preserve their investment capital.  The selloffs can either
be very brief or extended over several days.  In either case the
investor can benefit from knowing in advance that price declines
are probable.  

Financial market forecasts are posted publicly each evening on
the internet for investors to consider before the market opens
the following day (  http://www.coe.uncc.edu/~hphillip/  ).    

The evening before the current big decline in the stock markets,
the forecast recommended a SELL for the DJIA and the S&P 500
indexes, as well as new SELL signals for 14 of the 38 mutual
funds listed in the daily forecasts.  Sell forecasts were posted
before the big selloff for several business sectors, including
financial securities, industrial equipment, energy, regional
banks, and transportation.

Phillips & Co. provides financial forecasts to Fortune 500
companies and institutional investors.  The high forecasting
accuracy is being obtained using engineering forecasting theory
developed by Dr. Phillips before he joined The University of
North Carolina at Charlotte.  The university recently established
a Financial Engineering field of study for Ph.D. students.

A book has been written to describe computer-generated financial
forecasting and how to interpret/use the forecasts that are
posted publicly on the internet.

-----------------------------------------------------------------
For additional information:   Phillips & Co.
                              Dr. H. Phillips
                              Voice Telephone:  704-593-1166
                              FAX:  704-593-1002
                              hp@unc.edu

Photograph available:  http://www.coe.uncc.edu/~hphillip/ 

More information below:  Here is the forecast posted on 1/12/99,
the evening before the sharp selloff in worldwide financial
markets began on 1/13/99.

-----------------------------------------------------------------



                                                                    
SELECT MUTUAL FUNDS                                                 
                                                                    
FROM:  Howard Phillips                                              
PHONE:  704-593-1166                                                
                                                                    
                          Forecasting Accuracy = 96%                
                                                                    
             CURRENT   ...CLOSING PRICES...               PAPER     
ISSUE  NAME   TRPRI  |  01/11/99  01/12/99  TREND WINS   PROFIT NEWS
                     |                                              
.DJI   DJ IND  9475  |     9620 L    9475 S   .1%           .0% SELL
.IXIC  NAS/NM  2013  |     2385 L    2321 L  1.3%    +    15.3%     
.SPX   S&P 50  1240  |     1264 L    1240 S -1.5%           .0% SELL
FBIOX  BIOTEC 36.54  |    39.21 L   39.15 L  -.9%    +     7.1%     
FBMPX  MULTIM 36.52  |    41.74 L   41.21 L  1.0%    +    12.8%     
FCYCF  CYCLIC 11.22  |    12.10 L   11.93 L -1.0%    +     6.3%     
FDCPX  COMPUT 61.05  |    73.12 L   71.29 L  1.1%    +    16.8%     
FDFAX  FOOD & 48.68  |    48.68 S   48.01 S -2.2%    +     1.4%     
FDLSX  LEISUR 67.91  |    78.49 L   77.14 L  1.1%    +    13.6%     
FDPMX  PRECIO  9.13  +    10.71 L   10.40 L  3.6%    +    13.9%     
FGRIX  GROWTH 45.23  |    46.00 L   45.23 S -2.2%           .0% SELL
FIDSX  FINANC 99.87  |   101.94 L   99.87 S -1.5%           .0% SELL
FNATF  NATURA  8.89  |     9.10 L    8.89 S  -.5%           .0% SELL
FSAGX  AMERIC 13.93  |    14.98 L   14.43 L  3.5%    +     3.6%     
FSAIX  AIR TR 23.64  |    26.75 L   26.38 L  -.3%    +    11.6%     
FSAVX  AUTOMO 23.26  |    25.60 L   25.16 L   .1%    +     8.2%     
FSCGX  INDUST 26.17  |    26.67 L   26.17 S -1.2%           .0% SELL
FSCHX  CHEMIC 32.89  |    32.92 S   32.35 S -1.6%    +     1.6%     
FSCPX  CONSUM 31.19  |    31.50 L   31.19 S -1.3%           .0% SELL
FSCSX  SOFTWA 49.15  |    57.31 L   55.95 L  1.3%    +    13.8%     
FSDAX  DEFENS 34.26  |    34.67 L   34.26 S -1.5%           .0% SELL
FSDCX  DEVELO 26.70  |    33.63 L   32.84 L  2.7%    +    23.0%     
FSDPX  INDUST 20.11  |    21.82 L   21.36 L  1.2%    +     6.2%     
FSELX  ELECTR 44.57  |    52.45 L   51.58 L  1.0%    +    15.7%     
FSENX  ENERGY 18.17  |    18.57 L   18.17 S -1.2%           .0% SELL
FSESX  ENGY S 15.81  |    16.66 L   15.81 S   .1%           .0% SELL
FSHCX  MEDICA 22.61  +    22.16 S   21.87 S -4.6%    +     3.3%     
FSHOX  HOUSIN 27.27  |    27.27 S   27.28 S -2.0%          -.0%     
FSLBX  BROKER 36.41  |    42.02 L   41.16 L   .4%    +    13.0%     
FSLEX  ENVIRO 12.65  |    13.96 L   13.83 L  -.8%    +     9.3%     
FSNGX  NATURA 11.59  |    11.79 L   11.59 S  -.8%           .0% SELL
FSPCX  INSURA 42.57  |    43.11 L   42.57 S -1.7%           .0% SELL
FSPFX  PAPER  18.11  |    20.00 L   19.79 L  2.3%    +     9.3%     
FSPHX  HEALTH131.94  |   131.94 S  130.38 S -3.7%    +     1.2%     
FSPTX  TECHNO 71.48  |    86.57 L   84.65 L  1.3%    +    18.4%     
FSRBX  REGION 42.52  |    43.50 L   42.52 S -1.8%           .0% SELL
FSRFX  TRANSP 23.81  |    24.22 L   23.81 S  -.3%           .0% SELL
FSRPX  RETAIL 63.19  |    64.12 L   63.19 S -2.9%           .0% SELL
FSTCX  TELECO 53.54  |    62.75 L   61.60 L  -.9%    +    15.1%     
FSUTX  UTILIT 61.16  |    61.80 L   61.16 S -1.8%           .0% SELL
FSVLX  HOME F 41.22  |    44.80 L   44.30 L   .0%    +     7.5%     
                                                                    
L = LONG.  S = SHORT/SELL.  C = CASH.              96%              
Not adjusted for dividend distributions.          WINS              
FORECASTING ACCURACY = 96%.                                         
Forecasting Accuracy = % of WINS for positions held 1 day or longer.
--------------------------------------------------------------------