March 1 WALL STREET, NEXT WEEK:
Financial Astrology for the Successful Investor and Trader
1. FAIRY TALES
2. TECH STOCKS
3. GREAT STOCKS
4. WORLD BANK ERRORS
5. LETTERS
Friday's economic news purported that the U.S. economy grew at the fastest pace in more than two years during the fourth quarter of 1998 and inflation last year fell to its lowest level since 1949. True Believers may wish to buy the TOOTH FAIRY Mutual fund or Brooklyn Bridge REIT partnerships.
Tuesday morning is a pivotal Full Moon and March, like January,
has a second Full or Blue Moon on the 31st along with Venus square Uranus.
On Sunday, Reality (Saturn) Checks (Taurus) begin a two year zeitgeist
change. We could crash on Monday/Tuesday due to inflation concerns
- one reason Bond yields are above 5.5%. Meanwhile, newbie investors
are in the final, manic phase, no longer content with linear appreciation,
but expecting log scale profits.
Enjoy any pre-tax season rally this month. This may well
be the last of this century. We advise reducing intermediate term
stock holdings.
Gold subscribers and traders please note: we are revising future Wall Street Alerts. Previously, they were issued for Major market moves i.e. 200 DJIA points. Now that 200 points intraday moves are increasingly common due to expanded trading curbs, 200 DJIA profit points is day trading! Starting with WSNW Alert 37, our target will be for 300 or more points.
Critical Dates: March 1, 2, 9
DJIA:
S1 8888 S2 9000 S3 9180 R1 9300 R2 9500 R3
9600
2. We have posted our Spring Computer Industry report on our web site. Fax subscribers without Internet access can fax us to request a copy. We are pleased to note how industry analysts have followed us with downgrades of Compaq. We are constantly shorting Yahoo. Our last cover was 125, with reentries suggested at 150-159. In addition to the big four, we will be recommending more aggressive shorting of Market Watch - MTKW and the Singapore favorite Pacific Internet - PCNTF. Still, you may have to wait until this summer to get rich - a lifetime for Internet crazies.
3 FIVE TRAITS OF GREAT STOCKS - Morningstar has identified five simple points that focus on the most important areas to consider when picking stocks. These are:
1. Growth: Ability of the company to increase the
size of the business consistently over time.
2. Profitability: A consistently high return on
shareholder investment.
3. Financial Health: Keeps debts low and generates
cash every year.
4. Stock Performance: Long-term record of enriching
shareholders.
5. Valuation: The stock is reasonably priced.
As we approach the Jupiter/Saturn conjunction in May 2000, money managers
who ignore point 5, will mostly likely be among the 80% that underperform
the S.&P. 500. Financial astrologers like myself, should continue
to be among the 20% that outperform the S.&P. 500 as we follow the
dictum:
"Keep your Head OPEN to the sky, but walk with your feet FIRMLY
on the ground."
4. The World Bank admits Asia mistakes, seeks changes. From Janet Guttsman Reuters article on Feb 21: "The World Bank, which admits it failed to tackle problems leading to Asia's economic demise, should change the way it lends to member states, according to a policy paper from the head of the bank...
The internal document by World Bank President James Wolfensohn says the bank should take a longer-term, holistic approach to the problems facing countries, looking at the whole picture rather than at individual sectors. Giving examples, Wolfensohn said it was pointless to privatize firms without also creating a competitive environment and a sound rule of law, or to build schools if there were no roads that children could use to get there.
'`We know, at least from hindsight, that part of the failures in Russia were due to paying insufficient attention to the preconditions for a market economy,' he said in the report, 'A proposal for a comprehensive development framework.... The bank ... could not have predicted the timing and the severity of the crisis, but it could have been better prepared, had past successes not bred overconfidence'..... But the World Bank, like many others, was dismally wrong in some of its forecasts for Indonesia and other countries."
MY SOLUTION WOULD BE SIMPLE, LOW COST AND EFFECTIVE: HIRE A WORLD CLASS FINANCIAL ASTROLOGER!
5. "We start this winter with a warning pair of eclipses
January 31 and Feb. 16. Together they may cut off any January
effect rallies." Congratulations! a good call on your part.
A: Thank you. We expect the secondary March peak later
this month.
Q: OK, after watching IHI for months, I have become a believer.
As I think that the current upwards pressure on price will drop by next
week, I will wait for your $1.35 buying opportunity and then start bulking
up. It looks to me like this will be a real winner within your projected
time frame. Thanks,
A: You are welcome. You may wish to visit our IHI
EPS Estimates and please don't forget to send me some bubbly when IHI
first goes to $30.
Reader: This is for the suggestions box. In your stock pick of the month,
would you consider putting a brief summary of why you are purchasing the
stock? It was interesting that Biomira was a stock that I did well to sell,
however I note that you are picking BAANF for the start of a Dutch Portfolio
and also you gave enough reasons in your last WSNW for me to consider it
more a longer term hold than a trade. It just helps to know this information,
as it helps people to better decide their exit points- just a suggestion.
A: A very good one, will do. We plan on giving more data
and links with our picks in future.
Our possible March choices include the Internet/phone company IDT (IDTC),
another rebuy of International Hi-Tech (IHITF) or perhaps a quick computer
company trade. We also will issue them anytime during the
month in order to get the best possible price, rather than on the first
of the month.
Q: Does the date March 3rd mean anything to you from a cycles
standpoint? I have that date as a possible turn date, a possible
low.
A: There are a number of cyclic systems that point to
March 3-5 as possible turning points. However, our #2 magic date
is March 25. (#1 of four as you may recall, was the January 11 top.)
Q: Are you still expecting gold to rally? How do you see
its move over the next month?
A: Yes, even though it did NOT reach our $310 target by
end of February despite bond yields over 5.50%. The next BIG move
is expected later this spring and over the summer. While we are still
advising Japanese and Chinese investors to buy gold at this time, in general,
we are more interested in tracking Oil in March and early April, than Gold.
Q: Are there any online sources for incorporation and/or first
trade dates of which you're aware? Any help would be greatly appreciated.
A: Astrikos has
a number of first trade charts in their private subscriber forums; otherwise,
use books or computer programs as a reference. See our Bookstore
for suggestions.
Reader: I think China is going to devalue its currency
by First Week of April'99. Japan will follow the same sooner or later.
A: Many economists and financial astrologers think this is a
good possibility. Japan already IS in the process of devaluing.
Buying Hong Kong in the next two months is similar, although obviously
not as ridiculous as buying Russia last summer - the risk/reward is unacceptable.
Please send your comments, questions and
suggestions to Letters.
"Can you afford NOT to have financial astrology
in YOUR future?"
Stop reading Wall Street, Next Week, last week: YES,
I WANT TO SUBSCRIBE
Subscriptions investing edition are $300 one year; $500 two years;
new subscribers 3 month intro $99.
Subscription rates trading edition are $500/annual; $150/Quarterly.
************************************************************************************