Prudential Equity Group fired technical analyst Ralph Acampora, a 15-year veteran of the firm known for his prediction that the Dow Jones...
Prudential Equity Group fired technical analyst Ralph Acampora, a 15-year veteran of the firm known for his prediction that the Dow Jones industrial average would reach 10,000, and shut his department to cut costs.
Included in the three-person department was senior analyst Peter Martin. The move comes seven months after Citigroup’s Smith Barney unit fired its team of technical analysts, which studies price charts to make buying and selling decisions.
“The reaction from clients is that they’re shocked and dismayed,” said Acampora, 64. “You need a counterbalance to fundamental analysis, and the buyside of the street realizes that.”
Before joining Prudential, Acampora was director of technical research at Kidder Peabody from 1980 to 1990. He also co-founded the Market Technicians’ Association in 1970 and served as a panelist on the TV show Wall Street Week with Louis Rukeyser.
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Acampora was known for his June 1997 prediction that the Dow average would reach 10,000, a level it breached in March 1999. His calls after that were mixed.
When the Dow reached 10,000, he said it would continue rising to 18,500 in 2006. The benchmark would need to gain 77 percent from here to reach that level.
Acampora was voted a runner-up among technical analysts in Institutional Investor’s 2004 survey. Louise Yamada, who was the poll’s top-ranked strategist, was part of the cuts made by Citigroup in February.
Research has diminished as commissions paid to trade securities declined and firms settled regulators’ allegations they published biased analysis to win investment banking.