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1. OCTOBER 10
2. JAPAN
3. LETTERS
Do I recommend buying stocks October 13? Depends how close we are to DJIA 6,000: remember October 24/25 is coming soon. In any case, we are now in sell AND buy mode, roughly 3-1. Some stocks like IBM circa 100 are easy trading buys, others require the services of a good financial astrologer.
November elections: While the expected Republican rout is normally positive for the markets, this may not be true this year. It will almost certainly finish Clinton's last vestige of waning influence.
This past week JP Morgan forecast a US recession in 1999 as well as another .75 drop in interest rates. Global investors are warned to be careful of US bonds, given the $US dollar top. However for domestic consumption, they remain in our portfolios largely unhedged, not like what we recommend for foreign clients.
KEY DATES: October 16, 24,25
DJIA: P1 7272 P2 6970 P3 6448
SPZ: 920
JAPAN: SELL YEN TO 125
2. I am rather pleased that WSNW readers were NOT surprised by the recent Japanese action either re: the Nikkei or the Yen. Obviously certain nameless hedge fund astrologers jobs are about to be axed :)
3. Thank you thank you thank you thank you
HW: Always nice to hear from happy subscribers.
I am very happy with WSNW, but I do not understand the trader's idiom. Is there any book where I can find out what "no prisoners today"etc. means? This is especially difficult because I am not native English.
HW: It means " THE MARKET IS GOING DOWN DOWN DOWN -- show no mercy!"
We are starting to add trading idioms to About WSNW Ask when you don't understand.
I've read your gold page and am confused. If one of the protections of gold is against the decline of the dollar..how would owning gold mining stocks in US dollars be a good hedge. It seems to me, owning gold outright would be the best hedge? no? What is the best way to buy gold outright if what I say is true?
HW: Because we believe US gold stocks will go up more than the US dollar will decline. Also I advise US clients who wish to keep many or all of their investments at home. Personally, I favor patriotic citizens of any country keeping 50% of their assets at home and 50% abroad. The only exception being an anticipated market crash unique to that country.
Gold itself does not have the same leverage as stocks. Also, you could buy Australian, Canadian or South Africa Gold stocks if you have an opinion of their currency. You can also trade gold futures, but that is a very different game.
At what price if any would you get back into OXHP and how much lower before you start buying LU??
HW: OXHP depends on your time horizon - any price under 10 after October 10. 7 -8 for Oxford Health Plan represents a very good VALUE buy. LU not over 45 that is for certain, and even then hesitant given the 1999 US recession. Ask me about LU again with it is below 48.
I am a new subscriber: Is it up to the individual to choose options or futures? Regarding Bonds, you say to sell; 4.50 I'm confused on this one. Rates go down when price goes up, so if you short U.S. Treasury Bonds, shouldn't P2 and 3 be reversed?
HW: If you need direction as to WHICH instruments to buy, we offer direct money management services. Also you SHOULD take classes or work with a good broker. Don't forget I am a global trader. If you were Japanese, you would have been very happy to have dumped your US bonds and dollar ahead of this week's drop. You can tell which HEDGE funds we DON'T advise!!! We are always looking for superior risk and reward GLOBALLY. Conservative US investor are still fully invested in these bonds, but not most foreign investors that we advise.
Q: What do you mean by "circa."
A: This mean "in the area of", in contrast to a precise pricing target.
"Can you afford NOT to have financial astrology in YOUR future?"
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