1. MOTHERS DAY MARKETS
2. LETTERS
Friday May 7th Early Edition: As next week we are hosting our 7th annual May conference, the next issue of Wall Street, Next Week will be May 21.
Comps.com Inc. made history as the first US. company with a ``dot-com'' in its name to fall below its issue price in its initial day of trading after going public. Once Goldman Sachs (GS) falls back to 53, it should NOT be too hard to guess the market reaction.
On Thursday the Bonds broke 119 (5.75% yield). This is the do or die market pivot.
While we are in a countdown to June/July market melt down, we continue to note the beginning cracks in the technology sector. When will the financial sector follow and will it be market neutral or over or under perform a sector? This is the key question all portfolio manager should be asking about the balance. We will have Jupiter/Neptune aspects coming later in the year, which includes inflation issues, and we believe with Oil solidly over $18 to $20, like a 119 Bond, will scare the hell out of the financial sector. The usual 1999 M & A game are the exceptions. Greenspan speaks at the May 18 FOMC meeting. Will this Pisces say anything of market consequence? The market will likely be on edge and may trend down until then.
What I have been waiting for years is almost here. We are building shorts positions that we plan to hold till the cows come home [Summer] or margin calls! As far as gold is concerned, I can smell XAU 100, can you?
Key Dates: May 14, 18, 21
DJIA:
10,500 tests
Bonds: 119
Pivot
2. READER: The AFUND web site lists the date and time for the Nasdaq
chart as February 5, 1971, at 100. Does this mean 1:00 PM?
And is the location New York? Why this date and not Nasdaq's first
trade date of February 8, 1971, (time assumed to be 6:30 am).
The following answer is courtesy of Carol Mull (Fax 13173536246):
My guess is that the 100 refers to the "Nasdaq 100" index rather than
the time-of-day, but this is only a guess.
The Nasdaq that started in 1971 was in NY I am very partial to the
date established, i.e., became a legal entity which would be February 5,
1971, in NY Others prefer the first trade. For your information the
Nasdaq 100 first traded in Chicago's Board of Trade on October 25, 1985.
The time this opened was 8:30 CST.
HW: The 100 refers to the original value of the index which was 100.
READER: I went to Amazon and found some really negative reviews for
your book. Do you think you can ask some people that you know to go on
there and counter those bad reviews? Especially that last one, its really
detailed.
HW: Well, I hope some readers of Wall Street, Next Week will do this.
Any that do, I would appreciate receiving a copy. Thank you.
READER: I read with interest your readers question re day trading IHITF.
I tried to-but until the share goes above $1.00 you can't place a buy and
sell on the same day with a US. broker unless you actually know the
shares have sold-impossible for overseas people like my myself. However
I have been doing quite well with 10% clear gains trading once a week-doesn't
seem much but 40% a month isn't too bad. Actually the daily range of IHITF
shows the somewhat futility of how misleading paper trading can be. I would
like to get it up to twice a week but the OTC trading isn't the best.
HW: With IHI's May chart, $1 and above should be forthcoming.
Your returns are quite good indeed, if after commission expenses.
READER: What is the difference between the subscriptions? What
is the trading letter as opposed to the investing subscription? Can
you send me a past issue of a trading subscription?
HW: The newsletters are identical. Trading subscriptions access
our Gold channel and daily market commentary and receive Wall Street Alerts.
Note trading subscriptions price increase of as of July 1.
READER: Is there a web site that gives daily market commentary that
my subscription includes?
HW: No. This is a prime benefit of a gold subscription; you would have
to upgrade. You are entitled to full access on the Silver premium
channel only.
READER: I am trying to follow the daily market calendar and its interpretation,
and can't find any legend to accompany it which would help me to decipher
the colors. The current calendar for May 3 - May 14 has five colors:
blue, green, yellow, orange, and red. What do these colors mean and
what are they intended to communicate about the market and trading on those
days?
HW: GREEN IS AN UP DAY, RED IS A DOWN DAY, YELLOW IS DANGER: BE ALERT,
ORANGE IS HALF YELLOW/RED DANGER DOWN. THE BLUE COLOR WAS A MISTAKE,
AND MEANS NOTHING.
READER: Let's see what you got! Will I have a good lead time to act
before market crashes?
HW: Less than you might think!
READER: After watching the Dow going through the 11,000 I must say I
am now wondering if I have it all wrong re this year. I joined you in your
bearishness but I wonder if their may be a correction in July and then
later in the year it will correct like previous years? Do you still feel
as bearish as before or more so I suspect.
HW: I HAVE NEVER felt bearish, I just like to buy cosmic value and
there is so, so little around that I often choose not to buy more often
than to buy. However, many money managers I know,feel MORE BEARISH
THAN THEY HAVE EVER FELT IN THEIR LIFE.
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