January 25 WALL STREET, NEXT WEEK:
Financial Astrology for the Successful Investor and Trader
1. MARKETS
2. CLINTON ECLIPSE
3. QUOTES
4. GOLD
5. LETTERS
WHEN WILL THE PARTY BE OVER?
Financier George Soros forecasts the next economic crisis to take place
in U.S. and that the U.S. asset bubble will burst and trigger the next
major global economic crisis. Actually I think China comes first, but why
quibble.
If we were right and January 11 is the higher of two broad market peaks,
or even if not, what should INVESTORS now? As usual, we advise to
wait patiently and buy our stocks when they meet our price. If they
don't, we don't buy - "no tickie, no washie."
This week we recommend buying fallen angels IDT (IDTC) and BAAN (BAANF)
and GOLD. In the next couple of months, we will buying stocks
in the energy sector such as Royal Dutch (RD), Enron (ENE) Enron Oil and
Gas (EOG) and Schlumberger (SLB) etc. See Star Picks and Pans on
UpStars/DownStars.
Non-Subscribers can check our monthly sector
forecasts picks.
Good news. If we are right about the next 18 months economically, then hopefully we will also be right about a forecast we made several years ago that Bill Bradley would be our Teddy Roosevelt in the next century. Last Tuesday, he formally announced his candidacy - common sense, decency and real economic progress. More about that later.
More brokerage houses will no longer margin certain hot Internet stocks. A long overdue, necessary step to avoid much unnecessary destruction of economic wealth. Did you see how quickly Market Watch MKTW - dropped after its IPO Jan. 15 debut. Over the new few months, it is likely become a familiar pattern to Internuts, except in future what happen in 3 days, may happen in 3 hours! WSNW ALERT 36A forecast one of two 1999 Nasdaq tops on Jan. 20 , as WSNW Alert #36 did for the broad market (DJIA/SP500) on Jan. 11.
Trim Tabs reported a net outflow of $6.3 billion from the US equity funds last week, probably the largest weekly withdrawal ever measured. SMART MOVE! We are raising our cash allocation in all portfolios and we recommend you do the same.
BAD IDEA: Clinton plan for market investment for Social Security. This would keep the market up longer, but will hurt US Bonds and ultimately the safety of US retirement funds.
BAD NEWS: U.S. Trade Deficit Widens to $15.493 Billion in November to set a new record, past the annual record set in 1987. 1987? Sound familiar? Begin to diversify away from US Dollar assets into Euro and Gold, if you have not.
Blue Moon Lunar eclipse (Jan. 31) opposite Uranus a shocking surprise to markets which hate surprises? February is likely to be a down month, with a powerful Solar Eclipse falling on the Chinese New Year (Asia focus Hong Kong/China et al)
Key Dates: January 25, 31
DJIA:
9000 and 9181 Tests
2. The Lunar eclipse is 31/1/99, set for 11.19 in Washington. The Sun is conjunct Uranus in Aquarius; Neptune is making a T. Square with Mars opposing Saturn, too. In Clinton's chart, the eclipse axis falls within half a degree of his Pluto - the Moon is conjunct his Pluto. A CLINTON "Secret" about to be exposed?
3. Morgan Stanley Dean Witter Investments Chairman Barton Biggs
said in last week Barrons that he expects the U.S. stock market to drop
5 percent by the end of the year, but `"this will be a year in which market
timers reign supreme."
HW: Read that: FINANCIAL ASTROLOGERS.
ARCH CRAWFORD "If we get another rally, stocks hitting highs will TOP EXACTLY on Lunar Eclipse Jan 31. Another Politically sensitive date is Jan 24 when Pluto forms 90-degree (square) angle to the Lewinsky Solar Eclipse of Feb'98! "
4. "Gold shares could rally sharply during the first quarter of
1999 if the recent internet stock bubble is pieced and leads to a correction
in the stock market and the U.S. Dollar according to Sam Hewitt, Chief
Technical Analyst at Van Eck Global.
Our proprietary indicators show as long as gold hold the lower end
of its trading range $270-$275) in late January, an excellent technical
setup is present for a strong precious metals rally over the next quarter."
See his report for
details.
5. Q: What date do you use for WCOM first trade date? Do you count
the merger with MCI or are you still using the old date?
A: I am not currently trading WCOM. I forwarded your request
to Bill Meridian, author of PLANETARY STOCK TRADING. He gave 9/15/93.
My instinct is to use the old one, but this should be tested before
trading any big money.
Congratulations on your incredible accuracy re the market this week.
IT JUST SHOWS THE IMPORTANCE OF ACCURATE ASTROLOGY as the markets didn't
necessarily look to weaken at this time. Much appreciated.
HW: Thanks
Q: Will you please allow me to upgrade my subscription to the next level
for the remaining year (silver to gold) crediting me the $99 I have already
paid in....
Thank you so much! I truly appreciate your service. Your
information saved my butt last week.
A: Yes, upgrade are always possible with credit for unexpired
subscription time.
I have just read you may purchase more IHI. Well, I thought I may join
you. Do you think in the upcoming bloodbath I am likely to purchase at
the .48 level again - I may as well try. When do you really see it moving
forwards in a steady rate upwards?
HW: Iit is possible it will go down again. I didn't believe it would
go below .50, but it did briefly. I see IHI and Gold are such incredibly
undervalued resources, that I pay less attention to technicals and just
buy on fundamental VALUE perception.
Once two requirements are met - listing on Nasdaq or Amex and the BC
factory is in production. After that, the skies the limit.
PS I will be in Vancouver Chinese New Year week to watch IHI's GVHBA
show demonstration.
Q: Is your table correct? Yhoo short, entry 367, stop 347??, exit
<300. I thought that going short was like a put - please correct
me if I am wrong! If this is the case, why a stop of 347 (ie less
than 367)! I would have expected a stop of 387.
HW: Yhoo is both a day trading instrument for us in addition
to a positional short above $400. Remember our forecast that YHOO
would close 99 closer to 40 than 400. Because it is so volatile,
we were stating that unless were at least 20 in the money but the end of
the day, I was out. It is easy to reshort Yahoo several times a day.
Q: Hi Henry do you have a target price for (baanf)?
A: BAANF is our "Oxford Heath Care" i.e. fallen angel play
of 1999. My price target depends on which portfolio it is in.
In some, it is already closed out with a quick 25% trading profit in under
two weeks. In our 99 UIT, it is obviously a hold untill the end of
the year. In other accounts, it will be bought next week under $10
for a target of $20+.
Q: Significant down on Jan 18th, a "bloodbath" on a holiday? What
do I overlook if I do not understand how a market cannot be up or down
on a free day?
From a technical point of view I agree that January 11th looks like
July 20th 98, but astrologically it is quite different following the indicators
I use. I appreciate your work, it is most useful to me and I learn a lot
of it.
A: Astrological influences that fall on holidays, can come the
day before or after, or not at all. (I wish I knew the secret.) However,
as this was a two day call, it was likely to have effect on the 19th at
least intraday. However given the Clinton talk that evening and Alan
Greenspan speaking on Wednesday, these two events could put the market
drop on hold until the 20th.
Please send your comments, questions and suggestions to Letters.
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