Week of Feb 1, 1997

1. GAZARELLI/WEINGARTEN DAY

2. FEBRUARY: "January" effect plays

3. POPULIST SOAP BOX

4. LETTERS

1. Was January 23 the day Gazarelli/Weingarten stood back to back THE 1997 top for the DIJA: 6900? Perhaps, after all we do have a number of astrological market land mines coming up over the next two weeks. Yet S & P 795-800 is not out of the question. Either way we are positioned to SHORT ANYTHING THAT MOVES. Of course, I wouldn't do that to Phillip Morris THIS month. Anyway March 11 is coming after all.... so stay tuned.

2. Focusing on February, I never thought Enzo Biochem (ENZ) would be subject to severe shorting, especially with such strong fundamentals AND positive company NEWS. Be that misteak as it may, Astrologically we are committed to our forecast for Mid-February breakout highs. International Hi-Tech IndJustries (IHI.V or IHITF) THIS February is THE month we wrote about in INVESTING BY THE STARS two years ago. After meeting with Hi-Tech president Roger Rached last night, I AM reasonably confident investors will say: "Good call, Henry". Peak Technologies (C.PKT.A) continues to be an obvious buy at current prices.

3. Alan Greenspan who I admire seems to have agreed to "pretend" there is no inflation. From the viewpoint of cold logic, since Congress wont REALLY have proper tax or budget discipline, pretending inflation away is a reasonable way to gradually deal with the looming US BUDGET AND BALANCE OF PAYMENT DISASTER. Just this morning I finally realized WHY the government pays little attention to Food or Energy Costs as "ordinary" people do. Simple if you live in Washington: 1) you don't PAY for food, PACs who take you out do and 2) you don't PAY for energy if you have a government limo! Now if you don't live in Washington DC what then?

4. << Since I don't know how to short stocks and would be fearful of doing so because of that, do you think the next two months are going to be rocky and perhaps I should put our evenly weighted IRA funds in sideline money markets till aft Mar 11th? FIRST GIVE MY FORECAST AT LEAST ONE DAY TO THE 12TH :). YES, BUT YOU COULD ALSO CONSIDER SOME CASH UNTIL DIJA 5122 IF I AM RIGHT. AS WE COME INTO THE SUMMER, US BONDS AT PAR WILL BE VERY ATTRACTIVE.

>>Any good ideas for us folks here in Canada with Rates @ 2% Canadian? It's a terrible experience not to basque in the warm south. CFN (cheers for now) UNFORTUNATELY MID-1998 TO 1999 IS VERY DANGEROUS PERIOD FOR THE CANADIAN POLITICAL ECONOMY. PREPARING MY CANADA REPORT SHORTLY.

AURA BEST,

Henry Weingarten