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1. OCTOBER 6
2. ECLIPSE HISTORY
3. PORTFOLIO 2000
4. FRANCE - CORRECTION
5 LETTERS
1. October 6 investors have the opportunity to buy the new DIJA index fund or options. Perhaps this will result in a brief upwards spike in the DIJA 30. Later by next summer, its tight First House Moon/Mars/Pluto conjunction strongly suggests to me that the Public (Moon) will be subject to violent (Mars) elimination (Pluto). Translation: A VERY poor investment choice for the intermediate term.
Key dates: September 29 and October 1.
Strategy: Trading Buy latest DOG dogs - especially MO.
2. Eclipses always bad? - nah: With the last two, September 2 and September 16 the stock market rocketed up 200 points [It seems like only last year eclipses powered markets just 100 points] . However, EK was also just eclipsed and collapsed. This shows interpretative skill, as well as knowledge of technicals and fundamentals, are needed to accurately forecast the directional POWER of eclipses.
3. Later this year we will be posting our Portfolio 2000 on our website listing stocks I recommend owning LONG TERM at the turn of the millennium. Some such as IHI I would consider purchasing now, while I would first wait for a correction with others, like Lucent. Timing recommendations from this hypothetical Jupiter fund will also be posted from time to time. From Japan we have two obvious entries: Sony (SNE) and Shiseido (SSDOY) Japan's Top cosmetics manufacturer. When we re-enter Japan, these are both no brainers, the latter is much like buying Tiffany's stock a few years back.
4. PARDON: I translated incorrectly from Jean-Francois Richard's newsletter [fax: 33:01 60 75 31 80). He kindly faxed me the following Correction:
"I'm bullish (and not bearish) until mid-October. I'm just bearish (even for Wall Street) for the second half of October. Probably some people will play a new crash on the pattern of 1987. They will be wrong (no historical crash before 2006-2008) and the market will destroy their positions by early November.
I'm bullish for the rest off November (except the last week) and very, very much bullish for December (new highs probably)."
5. Oct 6 is also the starting time of the "new" S&P Mini futures contract -- or doesn't that count as a significant event since it is based on the existing S&P contract (which is also changing some of its contract specifications soon, f.y.i.)
HW: My answer is a definite MAYBE. Sometimes new charts work better such as the latest German reunification chart. Other times, the original charts work well enough not to worry, and yet, it can also be prudent (although time consuming) to do both. How to find out what's what? DO YOUR HOMEWORK: TRACK THEM!!!
I was wondering if you could tell me of someone I could learn Astrology from for following the commodity markets? Someone who is good and honest and really follows commodities using astrology! Any information would be very helpful!
HW: Clearly there are no "holy grails" for sale in the public marketplace. Check our WEBLINKS and test very carefully anything you learn before committing real money. I know I wouldn't sell what I know about the commodity markets for 1 million dollars [$10 million, maybe :).]
Wonderful call questioning Crawford's 2:50PM blood bath... You're feelings of upside movement vs. others sell off due to lunar concerns was a lone call.
HW: Yes but we missed on the oversized bond move.
Are your alerts Time and/or Price?
HW: Ideally both, however either is valid. However, combined with a time or price of your own or another trading system, should give the very best results i.e. more profits and smaller losses.
1. LUNAR ECLIPSE
2 ASTROLOGY AND THE MEDIA
3. FRANCE
4. LETTERS
1. September 16 at 2:50pm, Harvest Moon Lunar Eclipse. Could be a disaster day as some have forecast, although don't feel that is so. Expect a rather choppy week and will be trading extremes mostly. Short above 7766; cautiously long 7500-7580, until 7600 becomes the ceiling. If as Carol Mull writes in the Astro-Investor [FAX317 353-6246] September 19th is a BIG up day, we will short on close for a Double play down 9/22-23.
Keynote: More weak corporate earnings; Strategy: short stock and bond rallies.
2. We have been recently filmed by Bloomberg TV and some of our 1998 view of Intel will be published by Worth in their November issue.
3. Recently I made the acquaintance of the financial astrologer Jean-Francois Richard whose newsletter (FAX 01 60 75 31 80) covers the French markets. He forecasts a correction possible until the beginning of October to be followed by an 18% up move October and November and 12% in January. If right, this suggests strongly that France is a superior short term trade, something that agrees with my instincts. Two possible Plays: France Growth FRF (NYSE) 20%+ discount closed end fund and/or WEBS France Index EWQ (AMEX)
4.<< I've been sort of following the info about IHI. I've been advised against buying Canadian stocks with the warning, "It'll take forever to get you money." I'm a US citizen. Is this true? When it appears on the US stock exchange will it be more expensive? Also, I 'm new to this game and I would like to know if I can buy IHI over the counter? >>
HW: Nonsense as to selling your stock; however VSE (Canadian) stocks in general are VERY risky and OFTEN result in major losses as well as wins - a $1 stock can more easily go to .10 then $10. You can buy OTC under the symbol IHITF, but is more illiquid with a large spread of about 2%. I would imagine when it appears on Nasdaq it will be more expensive.
Regarding the Lunar Eclipse on Sept 16, both Peter Elides and Arch Crawford suggest a down market from Sept 10-16, and a crash on Sept 16. In WSNW you suggest an upward trend into Lunar Eclipse and possible to new highs before any drastic downside in October. Am I reading you correct and should be long going into the energy on Monday? Also I notice that Chris Cadbury is bullish with his latest numbers. What does your research suggest at these levels.
HW: Not entirely. First like Greg Meadors, I agree the eclipse is a likely turning point date. Second, I agree with Chris that there are a lot of bulls out there. However, we were short until Thursday early afternoon at which point we traded long and took a decent profit on the upside as well. But just as I would NOT go short into Friday's news, I would not go LONG into Tuesday. However, not sure Tuesday is a crash day, and perhaps we will begin trading short and then long in the afternoon. Therefore we are not making a major commitment as we have no clear picture in our mind. Note: Re: the Asian markets I track: HK and Japan, would be much happier short the next two weeks, than long as I have written previously.
I have not received any of your alerts recently. Has my subscription expired?
HW: We only issue a 1-3 alerts a month with Wall Street, Next Week. These are for high probability risk/reward plays. More frequent institutional reports can be
1. MERCURY SD
2. FUNDAMENTAL COMMONSENSE
3. IHI
4. HONG KONG
5. LETTERS
1. Our WSNW ALERT 15: 2 1/2 SELL FOR MONDAY included selling Friday's market when DIJA was up 75. The Day's top was 7942, up 74.79 and then fell leaving us 119 in the money on Friday's close!!! Although we are expecting a possible market slaughter going into Tuesday's Mercury SD, we suggest stop loss entries to protect profits. A third entry is advised Monday if/when bond yields exceeds 6.66 for an expected drop to 112 and below.
Recycled Technicals: P1 7666 P2 7602 P3 7500
Whether to take profits (full or partial on Monday close) depends on your trading horizon. Clearly IMHO, the bull game is nearly over. Still there is enough power for one more bull run over the top. See for example the following comments of Tim Bost from his latest Financial Cycles (timbost@pipeline.com Fax 941-953-3732):
"On balance, my outlook for the stock market in September is for the downward trend and high volatility to continue until September 9 or 10, followed by an upward trend into the Lunar Eclipse of September 16. At that point my expectation is for stock prices to move up fairly sharply, perhaps even challenging the record high set in August. The rally is likely to be a short one, however, with much of the momentum gone by September 23 or 24. There will be some profit-taking sessions toward the end of the month, but overall I expect the trend to be flat to slightly positive as September draws to a close. By the time we get into mid-October, we are likely to have the beginning of another significant correction staring us in the face."
2. Like the recent NSM purchase of Cyrix which was a "no brainer" buy, so will Worldcomm's (WCOM) purchase of Compuserve from HR Block. The clear winner is Worldcomm who also owns UUNET the best internet service. This will hurt ATT, and AOL (if Compuserve gets its act together). WCOM stock price is currently pricey, but if the deal goes through, we will put it on Telecom Buy List in Oct. or Jan. Note: FRO is currently our only hold in that sector.
PS Since NSM has just appreciated over 33%, a tight stop is warranted if you are an intermediate term trader.
3. International High-Tech Industries (V.IHI, IHITF) has recently doubled in price, but still incredibly undervalued.
Traders: expect brief consolidation before breaking through potential heavy resistance at 1.75. First price target 2.20 P2 2.75 P3 4.75.
4. With the latest minor turmoil in Hong Kong, we are looking to add two obvious HK blue chips to the future AFUND CHINA 8 portfolio 2000. Hutchinson Whampoa, and HSBC Holdings. The former obviously because any billionaire that uses a financial astrologer will most likely outperform and the latter because it is one of the best managed banks in the world, period. Of course too soon to buy, just watch or hold if you don't mind 10-20% price retracement.
5. What's the scoop with IHITF? Wondering if I should buy more?
HW: With F1 filed, NASDAQ. listing may come very soon, therefore not surprisingly I say BUY, if high risk/reward start up companies are your cup of tea.
Have one question for you, IHI. I am not hearing or seeing much on this are they still on track or are they falling back.
HW: Lots of good news on the company, just beginning to be reflected in share price. To visit their website CLICK HERE or contact Lindsy Malcolm, their new IR person 1-800-838-8090 or email IHI and ask to receive their press releases.
I am an investor in Hong Kong, and I am concerned about what should be the strategy for Sep and Oct. Since I lost quite a lot of money during the end of Aug, I am thinking to buy a put option for the Heng Seng Index at 14000. However, I don't know whether should I but put option for Sep or Oct.? Can you give me some guidelines for that? Moreover, I am still holding some Red Chips. What's the outlook for short term?
HW: Significant short term risk 16th to 29 of September, especially. We could do some trading buys after the October 1st New Moon. Ask your broker for an appropriate individual strategy.
1. THE FALL IS COMING
2. NEW MARKET MAVENS
3. HONG KONG REVISITED
4. LETTERS
1. How will the market react to the Hamptons bulls returning after Labor Day - will they try to organize a bear hunt? We are mostly standing aside until Thursday, except for short day trading opportunities. We are saving ammunition for next Monday September 8, the day before Mercury goes SD for which we have issued a Double and a Half sell. One sell entry or more will be late Thursday to Friday.
Technicals: Ceilings of 7666 or 7840. P1 7602 P2 7500 P3 6950. We expect Monday September 8 to clue us on how fast we will reach our overall target of the old Weingarten/Gazarelli line of 6950 before year end.
However, remember many big boys plan on buying here. "While you SELL into a BEAR market, you BUY in a BEAR market." Our first buy in October will be MO, we will give time and price guidelines in a forthcoming WSNW alert.
2. If Financial Astrology gaining more respect? You betcha!
We are now officially a "Market Maven" see TFC Also Data Broadcasting Corp DBC has chosen Yours Truly to be "the Maven of the week" 10/1 through 10/8.
3. By now, non-astrologers KNOW why we recommended avoiding Hong Kong (and nearby Asia) at least until the end of August. The blue-chip Hang Seng Index plunged to close the month at 14135. With the market below 15,000 as expected, remember the BLOOD has NOT begun! With the rest of Asia down, the US market ready to correct, bargain hunt at 12,000 and only trading buys at 13,500 or above !!!!!
4.HW: Get a copy of an astrological calendar or celestial guide from your local metaphysical bookstore. An even easier way is to reference page 204 of my book INVESTING BY THE STARS which gives Mercury changes until 2001 - as if you needed one more reason to buy it! :)
Bonds are firming and the market continues to fall. I feel like I am missing out on a great short position on the S.&P.'s. I would like to see some sort of rally to short this market from but not getting it. I am hearing 2 stories which both have decent merit. After Labor day, money comes in and a rally kicks off so I can short ,but as we all know I am in the majority with the public on shorting any rally. The 2nd story is TA suggest continued weakness through Sept 9th, in other words short now and if any rally average down. A bit confused, any thoughts?
HW: Why weren't you short last week? - On vacation like me? We are shorting for the 8th; any shorts before that rather dangerous. Choose good technicals and be prepared to exit FAST. The risk/reward not acceptable for me until Friday/Monday.
Okay, I'll look at Novell. You might be right. Later.
HW: Hey its YOUR pocketbook, not mine. Like GM, Novell will be a stellar performer in 1998. Unlike GM however, NOW is the time to buy it while it is under $10; 1998 target 15+.
1. UPCOMING ECLIPSES
2. GM and ORCL
3. NEW NEWS GROUP
4 THE ECONOMIES
5. LETTERS
1. While many conventional analysts are sure we are in a unrelenting fast march to 10,000, Astrologers tend to be more bearish and mindful of the upcoming eclipse pair September 1 and 16. For example: "A great many cycles indicate a HIGH during July-September and a LOW during October-December....We advise even the most conservative investors to raise cash and snug up their stop loss orders....... Watch for.... August 24-25 a nasty T square of Sun/Moon/Pluto to cause market jitters. Ditto for labor day eclipse!" from August's CRAWFORD PERSPECTIVES.
AFUND TECHNICALS: 7840/7900/8000 Fight zones: P1 7666 P2 7500 Since this is a vacation week, this is what I will largely do, rest and prepare. Monday morning should follow Europe’s lead in the dollar/bond/markets. If 112 bond level becomes the ceiling, so will the above fight zones.
2. We note Donaldson, Lutkin & Jenrette put a buy on GM this week with a one year target of 80+. While GM is one of our favorite stocks in 1998, is this the RIGHT time or price to buy? If you are bullish on the market, then like EK it is a BUY. Still, we believe we will buy (again) cheaper. Oracle is the one of the first stocks to go on our 1988 " January effect "BUY list. Put it on your watch list.
3. I am often confused with being a bear. I am not, I am a cosmic value player, show me value and I will buy it or trade it- like EK last week. But if you can't get enough bearishness, try the new news group: alt.invest.market.crash. This group is new and some posts are serious however my favorite this week is: "I can see only one way that a stock market crash can occur: "A fleet of alien ships landing at New York UN office. They get out and say: 'We can cure ever disease you know of' > Whoops goes Bio-Techs 'We can make any element you need, from Hydrogen' > And you thought Bre-X was big! 'We can make a ream of super computers the size of an atom' > So long High Tech!" HW: And I was thinking it would come from the Bonds, Dollar, Mideast Oil or Clinton with an appropriate astrological trigger!
4. U.S. consumers, weighed down by heavy credit card debts, filed for bankruptcy in record numbers during the second quarter despite a buoyant economy, according to data from the Administrative Office of the U.S. Courts. Bankruptcy filings, more than 95 percent by consumers, hit a record 367,168..... up 10 percent from the old record of 335,073 in the first quarter of this year.
We all know the unofficial difference between a recession and a depression" {a recession is when your neighbor loses his job, a depression is when you do} Year ago we postulated not 2 or 3 US economies but 4: In order to really track what is going on in the REAL world we measure the % of the economy that is in 1) Prosperity 2) Recovery 3) Recession 4) Depression. As the above statistic shows, Economy 3 continues to grow an alarming rate.
5. What if this market continues on for another year like this onward and upward to 10,000 and beyond. I would like to see higher bond yields a second chance to lock in higher rates that I missed earlier this year and a chance to buy stocks at March April prices
HW: This is not misery loves company, conservative/cash portfolios are making historic returns of 15-20%. While this under performs in insane markets, it (will) outperform in sane markets. Trust your life savings to market newbies? Not me!!!
PS. Why not buy at BETTER than March/April prices?
<< I am a recent subscriber, I trade options, and I am interested in your EK trade. Do we buy EK here or wait for 60 - 62 and after we buy do we look for a move back to 70 area? Which options do we buy Sept. or Jan. and what strike price? After the options are bought where would you look to sell EK? Your comments on EK where too general for me to plan a strategy on. I read that you were shorting the market on Thursday how could I have possibly known you are covering on the close? Will you start sending out alerts to interested subscribers? I am anxiously waiting your response.
HW: I am NOT your broker here. I give the time/price entries of high probability, superior risk/reward trading , and not the exit (profit/loss) which varies according to portfolio objectives. My personal one was 66+ - a double. YOU MUST have the trading knowledge yourself or work with a broker who does. EK reached the upper of entry range 60-62. Alerts are simply reminders that time/price objectives given earlier in WSNW have been or are likely to be met that day or next. Cheers.
Tuesday & Friday, listen to our ABS radio program TRADING BY THE STARS
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