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1. ASTROBEAR
2. WSNW ALERT 34
3. QUOTE OF THE WEEK
4 LETTERS
INVESTORS: Until further notice, we are again recommending MAXIMUM cash positions similar to our July 20th forecast. Alternately, use close stops.
A week ago on October 9, we officially touched the BEGINNING of a bear market when the DJIA reached 7469. Friday, the DJIA reached 8429, almost 1000 points higher. Please consider our WSNW Alert 34 very carefully. Your future financial security MAY be at stake. In February, Alan Greenspan said Asia was no problem. I believe he has been just as wrong since then. (FYI: previously I approved of his actions almost 100%). He may succeed in avoiding a US stock market crash and recession with a "soft landing" scenario. We foresee just one more 1/4 point rate reduction before the third Saturn/Neptune conjunction early next year. But generals too often like to fight the last war. The new world order is dying. The economic system needs to change, not be prolonged into the next millennium.
Speaking of adages, after coming from an incredible string of wins since July 20, our streak had to end sometime. The fact our October 10 call was wrong was a stealth detection of a major up week cycle. I follow some financial astrologers who predicted this past week correctly, but I choose to ignore them. The trading adage to follow in such a case is: "Know when to hold them, know when to fold them." This is why money management so important . We have often said that astrologers are 50% less surprised by the markets. Thursday was for this astrologer one of the OTHER 50% times.
We are NOW astrobears and advise investors to increase cash and decrease stock market exposure. The risk/reward is terrible given that our 12 month trading range is 6000 to 8600. Technically, I do not believe we had a sufficient test of the August lows.. As an astrologer, I foresee two more cosmic land mines dead ahead!
KEY DATES: October 24, 25
DJIA: P1 8000 P2 7500 P3 7100
NASDAQ P1 1500 P2 1200 P3 1000
2. WSNW Alert 34 TRIPLE SELL Oct 16
"Yesterday almost all our trading positions were either stopped out or blown out of the water. All week long we have traded like a long term investor. After so many perfect trades, we became too careless in fading our system more than one day. Now for the future:
Fact 1) The Options boys don't need to push the market up e.g. Cadbury forecast SPX 1052 10/30 October 30th .
Fact 2) Yesterday's Fed move was an act of desperation.
Fact 3) Our 12 month target of 6000 to 8600 is too close to the top for comfort.
Investors: WE ARE AGAIN RAISING CASH LEVELS. START SELLING OR STOP LOSSING KEY S/P 500 STOCKS.
Traders: We are going in short one on opening circa SPZ 960 and then adding at 950 and 940. 950 is a day pivot and 940 possible support - trade accordingly.
From NY Post Oct 16, 1998 John Cudele
"Who in trouble? What's wrong? What is the Federal Reserve worried about?
Yesterday's stunning move by the Fed to cut interest rates by another quarter point, just weeks, after the last reduction, was explained away by Washington as necessary to keep the economy moving. Wall Street doesn't believe. And neither do I?
'You have to ask yourself. Why the cut? Why now? There has to be trouble out there........ Suckers were lured into the stock market by yesterday's rate cut. Most pros weren't. As one veteran trader put it: 'I'm' selling everything. I expect there's some bad news that's gonna come out.'"
3. "These big financial giants want to privatize profits and socialize losses."
4. I've been a subscriber for about a year and am very pleased. Here's a suggestion: Set up a dictionary page on your web site and begin defining your key words and abbreviations.
HW: We have at About WSNW Alerts. This is a work in progress. If I have missed something, write me and I will add it in due course.
Recently someone wrote regarding your gold page. It sounds like you write about precious metals somewhere.
A: Under sectors analysis or Gold.
Note: you can always Search for gold posts or anything else you wish to research on our web site.
Q: Do you believe that next year will be a trading market with lots of dips and rallies?
A It is our view we are in a trading range of 6000 to 8600, and that intermediate term trading portfolios will outperform long term investing portfolios for some time to come.
Our forecast for December 31, 1999 remains 7001.67.
I have noticed my stress levels lowered as a trader since subscribing to your service. Your accuracy is amazing and just helps to time each trade with a lot more accuracy.
HW: I have often said if I did not use astrology, I would have become a heavy drinker! While not always right, we maintain the precision and forecasting accuracy to outperform.
Q: How do I see the stock of the month call? Last month OXHP was a good call. Thanks!
A: We most liked Gold and Motorola this month. Too bad, Motorola reached its 25% target on Friday in just a week. Still I would rather miss out on an investment then get creamed. We missed out.
I found this at the LIM website. Cocoa: Beware - 10/09/98
Q: What happens when Cocoa rallies as Mars switches from the section of space nicknamed Leo to the one named Virgo?
A: Over the next three days, Cocoa rallies more than 2%. However, over the three days that follow the rally, Cocoa gives it all back by falling more than 2.5% on average in 75% of 12 past occurrences.
HW: Since Mars is already in Virgo, we have to wait until September 18, 2000 to profit from this trade. :(
I look forward to your prediction for 10/10/98 and see how it works out. I will then probably look at a 3 month subs.
HW: Trading is not about one forecast. Otherwise our incredible series of winners from July 20 on would have convinced you. Trading is about risk/reward and probability and trading advisors about reliability and precision of timing signals. Cheers.
From looking at your website, it is unclear to me exactly which services would be available to me as a gold subscriber--please clarify.
HW: Gold includes all silver benefits plus WSNW alerts, and access to our Gold area including Daily Market Commentary. See Premium Service for gold posting area. Primarily it is for active traders that need to have more frequent price and time updates.
After your last report I have been doing very well with intraday OEX puts - until Friday the 9th and Monday the 12th. I continue to hold Nov 420 contracts. Do you have predictions for the next BIG down?
HW: 420 is rather far out of the money. We are looking for another possible test of SPZ 920, and P1 OEX target of 472.
PLEASE RESTATE: OCT 24, 25. IS THIS THE END OF A DROP OR WHAT?
HW: Another danger point - one week on either side of the second pass of Saturn/Neptune (Alan's NEXT worry?).
1000 point drop on DJIA? Interesting day! This must be the good news! I wonder what the bad news is?
Upside down! Actually quite "bad" news economically if you reason WHY the Fed did what it did.
Yesterday's rally was the last nail in the bear market's coffin!
HW: The October bears, but remember, we have been reborn November option bears!"
"Can you afford NOT to have financial astrology in YOUR future?"
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