February 15 WALL STREET, NEXT WEEK:
Financial Astrology for the Successful Investor and Trader
Note: The next edition of WSNW is MARCH 1, as I will be spending the week in Vancouver, B.C.
1. THIS AND THAT
2. PLUTO IS FAR OUT!
3. QUOTE
4. MAY CONFERENCE
5. LETTERS
Our Advice: Sell on rallies. We have one major "UP" time this
March, but from what price level?
Amazingly, investors are showing concern that share prices have risen
further than their earnings can justify. We have been buying Bonds
and Gold for protection for a possible flight to quality next week.
Astrologically, next week is a potential land mine with Tuesday's Solar
Eclipse ready to blow up any number of fragile markets.
This February's buying of US Bonds will be our last BUY of US bonds in this century. Wednesday, the price of my breakfast (egg and cheese on a roll and coffee) increased from $1.99 to $2.29. Obviously, my next buy later this year will be for US INFLATION ADJUSTED bonds! I repeat: Potential BLOOD IN STREETS, with BULLS running for cover. Right or Wrong, no matter what, PROTECT YOUR PORTFOLIO. Remember: Reality (Saturn) Check (in Taurus) officially begins February 28.
Key Dates: February 15, 16, 17, 18
BONDS: Buy 5.26 OB
GOLD: Buy 292 OB
Traders note: Starting Tuesday, program trading collar will be triggered when the DJIA rises or falls 180 points from it previous close, more than triple the 50 point level in place since 1988. Finally, we will get some ACTION (volatility) in the stock market, it has been Soooooo boring lately :)
3. Since 1979, Neptune has been the planet furthest from the Sun. As of February 11, Pluto crossed Neptune's orbit and once again become the more distant planet. This was the primary astrological signal for WSNW Alert 36 D along with next week's Solar Eclipse.
3. WSJ 2/9 Editorial BANK SHOTS IN CHINA ref: GITIC bankruptcy
re: $4.3 B
"the bank [Commerzbank] plans to make sure that in future it does business
only with partners it know can repay their debs 'without having to rely
on the government's stamp. We don't exactly know what as going through
Mr. Lemmer's mind at the time. What is sounds like is that the moral
hazard route having failed, an annoyed Commerzbank is now vowing to go
back to responsible lending practices. Next time they will insist on collateral
or proof of the borrower's ability to repay. Imagine that.
HW: More proof Jupiter Saturn is coming!
4. Our May 14-16, 1999 conference particulars is being updated at ISBA CONFERENCE, for the latest panels etc. If you ever needed another excuse to visit NYC, this is it!
5. Q: I note the great majority of your buy recommendations have been on the sell side. Considering the failure of the market to crash and burn despite predictions of that scenario throughout the last 5 years, and the huge swings we have had (like August down, October November up- 2000 points both ways!), you are taking away 50% of our money making opportunities by not having us go long as well as short. This is one evidence that your long term outlook is interfering with your ability to read the market short term. I'm sure you are afraid, as I had been, that the market is about to self destruct any minute. Here's what I'd like to see you do to further enhance the value of your service to your subscribers:
1. Stick to and focus on your stated goal of calling the near term moves
of the market, and fulfill the name of your service: Wall Street Next Week!
2. If there appear to be no land mines in the cards for the near future,
why not recommend buying the dips after selling the rallies?
3. Keeping your long term bearish outlook in mind is OK, but don't
let it make you miss/ or ignore the bull runs in the short to intermediate
term.
4. Keep up the good work with your fallen angels.
HW: Well there are potential land mines EVERY day, just certain
days the newbie investors take charge. There is one time in mid-March
which we may trade long, but that is probably the only time this year until
the market corrects seriously. I prefer to sell into each rallies
and almost all our Wall Street alerts give 200 DJIA points profit to start.
Now as an investor not a trader, I naturally have long positions as well
as short and vary the proportion depends on the objective of the portfolio.
I don't mind missing some, and even being "wrong" and lose money.
As long as as the end of the day WE CONTINUE TO OUT PERFORM ALL EQUIVALENT
RISK/REWARD PORTFOLIOS e.g. AFund Benchmark UITs more than double
DJIA index. Our call in 1997-8 for Italy the top performing markets
in both years - well over 100% up. Same with Korea in 1998, up 100%, FAR
MORE than the US market. Why would I go long in the US when there are better
opportunities elsewhere eg. Holland in 2000? Of course, when the
US market is below 7000, I will be net long!
Comment: I would like to take the opportunity to thank you for the Biomira
pick. I picked them up at $3.00 and sold at $5.00. I picked up another
26,000 IHI this week and after reading your forecasts. Well lets hope for
a great future for it. I will with profits as I can afford keep adding
to it. Did you see New Zealand has been now added to their list?
I picked up the BAANF at 9.50 a week before you had it registered as
the February pick.
Despite there being some rather negative comments this week. Perhaps
those people should address your picks of Oxford Health Plan from $6.00
to $18.00 and Brio Technology- $7.00 to over $25.00. Yes I was caught out
last year when you were saying sell the market late in the year, but what
these people miss it is impossible to be right all the time. I know
it is the best investment I have made in the last 4 months. Thanks.
HW: Their comments were not meant to be over complaining, but
so I could answer critics. If you follow my recommendations, you will make
money. NOT every time, but most times. As to October 9, the
market SHOULD have collapsed and would have had the FED not intervened!
But we have a multitude of positions on at all times, and consistently
well outperform buy and hold/index strategies.
Q: Do you think I should buy Lucent? You have predicted
a split or any of the other ones listed last week?
A: I consider those stocks I mentioned SELLS or shorting candidates,
NOT BUYS. The fact they would be ready to split, would be a perfect opportunity
to hit the pop.
Q: I noticed on the web sight that Alert 36C was sent for Feb 4.
I did not receive it. Please check and make sure I am on the list.
I am a Silver subscriber. Thanks
A: Silver subscribers do NOT receive Wall Street Alerts, only Stock
of the Month Club alerts. WSNW Alerts are for traders and are part
of our Gold and Platinum premium services. If you are an active trader,
you could upgrade to them.
Q: If BAANF drops below your stop signal while you are gone, will you
sell or buy more?
A: This depends on the account. In general, we would be
adding a second position between 8 1/4 and 8 3/4. Those accounts
that buy 3 positions have already added a second position at 9 1/4. Please
remember however, that is my opinion, the world stock markets are in for
a broad decline in 99, so this is the first buy of my Dutch Portfolio 2000
i.e. a potential hold for 12-24 months. Of course should BAAN be
a take over target beforehand and double, we will naturally book or protect
profits.
Would it be possible for you to note holidays (when the markets are
closed) on the calendar in your daily market commentary? I am not in the
US, and don't really have a handle on when the market closes! for instance,
I believe that next Monday is Presidents day, and since this is the day
before the Solar Eclipse, it will probably impact what I do this afternoon!
HW: Good point. We will institute this practice today,
and always appreciate such reader feedback.
Q: Will you be enlightening us as to what you mean by "watch bonds"
on 23rd Feb?
A: Not only have we covered our MAJOR sell of US bonds, [however,
we still recommend being long British Bonds], we have reversed positions.
From the 23rd on, we are ready to close and/or start to reverse positions.
Please send your comments, questions and
suggestions to Letters.
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