February 1 WALL STREET, NEXT WEEK:
Financial Astrology for the Successful Investor and Trader
1. MARKETS
2. DEFENSIVE INVESTING
3. QUOTE
4. WEB SITES
5. WSNW Q
6. LETTERS
Markets closed January as Winners - particularly Nasdaq which ended up at a record high 2505. This compares with under 2% gain for the Dow, 4% for the S&P 500 vs. 5% for our 1999 UIT. Big high-tech companies and Internet darlings sky rocketed to send the index up nearly 14% for the month. Accordingly, we suggested shorting Yahoo, Microsoft and AOL at market close. We like the R/R: 500 downside target for 100 point risk to 2600. Should the Blue Moon eclipse fail us, we run away and play another day, the more "negative" February Solar Eclipse for example. [Note: Technically Nasdaq could reach 2800 and its horoscope is not "bad" until the summer.]
The Fed is reading mixed signals. GDP jumps 5.6% and inflation 0.8% (numbers it believes, even though I do not.) But the Fed also sees early warning signs of recession - layoffs, high debt levels, and of course law firms specializing in corporate bankruptcies prospering. With no more stock market Viagra i.e. Interest Rate cuts on the horizon before April and now talk of a Fed hike to slow the economy down, we find additional confirmation that February should trend down. The key February marker is next week: watch carefully February 3, which coincidentally is also the day of the next FOMC meeting.
Key Dates: February 3
EURO:
Buy 88 OB.
Nasdaq: Sell P1 2500, P2 2550,
P3 2600
Note: Sunday is your last chance for the super discount for our 7th Astrology and Stock Market Conference May 14-16, 1999. After the January 31 Blue Moon, fees increase 10%.
2. When you have decided it it time for some defensive investing, what to do? The traditional havens are Phones and Utility stocks. I prefer the later, as the telephone industry will be subject to CUT THROAT competition in 1999, BOTH on the hardware supplier and telephone systems side. So despite the relatively attractive dividends of some phone companies, we would AVOID this sector unless your stock is a probable acquisition target in 1999 or Motorola (MOT).
We prefer Water and Electric utilities. With deregulation, there will be lots of winners and losers here. Some of our favorites here include France's VIVENDI, Germany's RWE, and US Filter (USF). Also check the stock picks in our Saturn Fund. For example, in the drug sector, companies such as Covance (CVD) and Johnson and Johnson (JNJ).
A recent survey of British men said they would rather have a year's free petrol than a date with a supermodel. What does that say about the oil sector? Buy this spring!
3. "All the old markers by which the price of a promising common stock
could be measured had long since been passed; if a stock once valued at
100 went to 300, what on earth was to prevent it from sailing on to 400?
And why not ride with it for fifty or a hundred points, with Easy Street
at the end of the journey?"
ONLY YESTERDAY, Frederick Lewis Allen, page 309 The sentence which
immediately precedes the foregoing:
"By the summer of 1929, prices had soared far above the stormy levels
of the preceding winter into the blue and cloudless empyrean."
4. Practice your forecasting skill each week at INVESTORS
FORECAST.
View new financial astrology research and content at Lim
Research.
Try a free trial at Astrikos.
They use technical analysis for the direction to trade and short-term astrological
cycles to tell WHEN.
5. There is a diverse readership to WALL STREET, NEXT WEEK ranging from individual investors to day traders to money managers and institutions. We have separated some of these varied informational needs in our Silver, Gold and Platinum Channels. Still we feel we could do more. Subscribers please send us your feedback on what you would like to see in future issues.
6. The US 30 year Bonds seem to have made a major top on the 5th October.
There is a relationship between the bonds topping and the stock market
in the business cycle. I always understood it to be 3 to 6 months afterwards
that the stocks top.
A: Makes good sense to me and agrees with my forecasting model
for 99.
Q: What are the ripe shorts? I'm in total agreement with you.
I'm very glad to be a subscriber!
A: All over the pace. Always use the instruments, time
frame and stocks you are most familiar and comfortable with.
Q: I am interested to know more about Afund: is this a stock,
a mutual fund or other in which to invest?
A Currently we offer money management. Our minimum account size 100K.
Please see MONEY for details.
Thank you for your interest.
Q: I noticed in you report from '99 you projected the Dow to be
at 7000 at the end of the year. Does this hold for the S&P 500?
This is important to us Canadians, because the only way we can invest Registered
Retirement Saving Plans 100 per cent in US markets is through S&P 500
index funds (a loophole in law).
A: YES S/P will be DOWN as well. If you are a WSNW subscriber,
we are setting up a silver channel posting area on Canada you can visit.
Q: You mentioned buying gold a couple of times, as well as begin
to diversify into Euro and Gold. Can you be more specific?
Are you saying to buy options or futures, or ??
A: As to gold, notwithstanding there is a chance it will collapse
and then do its major rally Spring into Summer, we are buying. We are mostly
buying gold stocks like Homestake Mining (HM) and INCREASING allocation
for European Stocks and DECREASING US stock allocation. Futures and
options are fine if you know what you are doing, IF YOU ARE NOT AN
EXPERIENCED OPTION OR FUTURES TRADER, NOW IS NOT THE TIME TO START.
Q: What is H2R? I can't seem to find a reference to it.
A: HIGH RISK TWICE, I.E. VERY HIGH RISK.
Q: Do you think copper and silver will go up when gold does?
A: Silver yes, copper not as much. The latter implies a stronger
economic recovery than we foresee intermediate term.
My home page Astroboot
is
for people interested in astrology and the Dutch market it could be interesting.
The page is in Dutch, but basic studies are offered in English.
HW: Given my interest in the AEX in 2000, I am publishing this in our
newsletter.
As far as the eclipse goes, you have company. Arch Crawford will be going short tomorrow also. I have been long --- fully invested since Wednesday's (January 20) close (can't say my timing is poor). I sold half of my position (Jan. 28) on today's close. Will sell remaining half at tomorrow's close. The bull in me is happy we are taking out key resistance levels (basis the cash S&P). The bear in me worries about the eclipse and your February marker day ahead.
I see us bottoming in the February 18-21 time frame (20 week cycle low
& a spiral calendar date). Then on to new all time highs into
the 9 month cycle top---- April 6-9 time frame. I know you
do not share my opinions.
HW: The market can rally again in March. The question is how
much. The answer will be known by all shortly.
Please send your comments, questions and
suggestions to Letters.
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