The buying panic continues on Wall Street...

The buying panic continues on Wall Street as the Dow Jones Industrial Average closed above 2,900 on Monday, gaining 71 points for the day on the heels of a 100-point run-up last week, said Irving Katz, an independent San Diego stock analyst.

The buying could be attributed, Katz said, to a squeeze on short sellers and to the recent Federal Reserve Board action to lower the prime lending rate, which institutional investors regard as a bullish sign.

San Diego stocks in most cases managed good gains, but only two attained new highs during the week. Gensia Pharmaceuticals reached $15 as it announced plans to proceed to Phase III studies with a new cardiac drug. PS Group inched up to $39.

Personal Computer Products, which recently aborted a merger plan, sank to a new low. The company has seen its stock drop from $3.50 on Jan. 14 to $.25 on Feb. 11.

Some good gains were made last week by Xytronyx, despite an analyst who was quoted in a Barron’s article as saying the stock was “the best short sale ever.” Cubic Corp gained $2.50 as it awaited word on whether it won the New York City subway fare collection contract. Cubic’s annual shareholders’ meeting will be held Feb. 19.