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1. XMAS MARKETS
I am off for a well deserved rest and Caribbean cruise. Here are a few brief thoughts while you digest my 1998 forecasts that were sent last week. The US market is about 1/2 finished with its Xmas rally. Some stocks like CCI, IOM and IBM are more than 3/4 there! Korea is rapidly approaching a first speculative buy; however to date the IMF offers band aids to a crisis that is FAR from over. Some of our January effects stocks are already jumping and Gold is the most incredible bargain. So while the market would be more than generously valued at 7222 year end, 8250 is just as likely. Take the even, take the odd and trade around pivots and support/resistance. However, when we have our first 1000 point drop in the not so distant future, we strongly do NOT recommend buying THAT dip!!!
BUY: GOLD, JANUARY EFFECT STOCKS and YEN
DIJA: PIVOT 8000; S1 7777 R1 8100
SELL: US BONDS
2. Korea is bottoming this month, but this is only a first speculative institutional trading buy. We like a long Yen hedge 128 OB. Hong Kong has the best momentum until 13,500.
3. GOLD below $300 - amazing. Silver is moving up and GOLD will follow with an explosive move, deflation or no. Anyway the precious metals sector is a vastly undervalued sector that before 2000 will be more properly valued. See our 1998 report for some suggested intermediate and long term investments. The XAU at 70 a good risk/reward trading buy until the end of the month.
4. Can you recommend some jr's in Canada?
With the price of gold and silver stocks like PGU and SSC under $1, why bother with jrs? This is mine consolidation time and the bigger boys will win out.
What is happening re gold? I know you said in July of this year that the next six months would produce higher gold prices, but that has not happened. What is your thinking now?
HW: While adding to losers is DEATH for traders, it can be an acceptable value strategy.
BUY SHORT TERM, BUY for the INTERMEDIATE TERM and BUY for the LONG TERM!
What about the ORACLE'S rating DOWNGRADE?
HW: 1. I am very happy. I didn't want to pay more than $30 for ORACLE stock.
2. It puts Oracle stock into stronger hands. Buy now until the 11th.
PAST WALL STREET NEXT WEEK REPORTS
Wednesdays, listen to our ABS radio program TRADING BY THE STARS
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