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1. WORLD MARKETS
2. STOCK OF THE MONTH CLUB
3. WALL STREET ALERTS
1. Asia again? Isn't that last week's news? Since profiting 10% on a quick speculative trading buy on Korea, we feel confident in recommending a first speculative/intermediate investing buy on Korea next week. The Korean market and the Won, worst case scenario, are within 10 - 15% of major bottoms - so if you are inclined to be contrarian, the Korea Fund (KF) or Korea Investment Fund (KIF) may be your cup of tea.
Similarly, money center banks shorts such as Citibank (CCI) came close to their trading targets on Friday. One exception is Chase Manhattan Bank, which for personal reasons we feel may have both major internal and external problems and should be dumped or cross hedged with a strong regional.
Friday, we closed 1/2 of our Wall Street Alert #24 (short from 8100) with nearly 300 point profits, missing our 7777 target by only 7 points! However, continued caution should prevail until Tuesday, when the FOMC meets and Saturn goes Stationary Direct. Thereafter, we advise more SELECTIVE buying of fallen angels and our January effect stocks, such as Oracle and Novell, whenever "the price is right ".
Continue to avoid/short tech stocks which are:
a) beginning to lose industry dominance and making misteaks such as WINTEL,
b) facing serious new competition and pricing pressure such as HWP, or
c) story bubbles such as AOL and IOM when at, or near, their 52 week highs.
KEY DATE: 12/16
BONDS: P2 SELL 120; P3 121.02
2. Because A) many WSNW subscribers are investors, not traders and B) a number of fallen angels will meet our cosmic value investing criteria in 1998, we have reinstituted our STOCK OF THE MONTH CLUB. Once a month, subscribers will be emailed/faxed our choice. Please visit STOCK OF THE MONTH for more information.
Our first choice was included with our WSNW alert #24 which recommended buying Oracle at 22 9/16. I am of the opinion that CEO Larry Ellison sold none of his shares for good reason. Oracle has a GREAT horoscope for early next year and was therefore one of our 6 January Effect Stock Picks. No longer overpriced, this fallen angel now represents cosmic value and we recommend buying.
3. Have questions about the nature of Wall Street Alerts? Please read ABOUT WSNW ALERTS.
4. I have an interest in the commodity markets. Do you know where I can get the astrological charts for the various commodities?
HW: Carol Mull recently published: WORLDWIDE LIST OF DATES FUTURES CONTRACTS WERE LAUNCHED. It costs $15 and covers 361 futures and futures option contracts. To order or for more info, call 317-357-6855, fax 317-353-6246 or write Mull Publishing PO Box 11133 Indianapolis, Ind 46201-0133.
I read one article in our local paper today and said that, this week in Malaysia, we can view the 7 planets in the sky (Mercury, Mars, Venus, Neptune, Uranus, Jupiter and Saturn and Moon will be lined up "like pearls on the string". In your opinion, does this line up reflect some bad omen to the market? How bad? Someone predicts that it will bring drastic changes globally within the next few weeks. Do you think it is true?
HW: Unfortunately I don't see any drastic changes, just more IMF band aids. However, perhaps behind the scenes, wiser heads are strategically planning for the future. As to Malaysia specifically, the fault there may lie NOT so much in the stars as with the prime minister and company.
You said your favorite in the tech stocks is Oracle....so I have had an eye it. Today it crashed because of the earnings...is it time to buy???
HW: YES! We said buy under $30 (closing basis) and before the 11th (an intermediate bottom?).
Jeeps I am already getting killed with Oxford....If you use OXHP they are raising your rates and taking a loss..... AND Looks like this stock is a real dog -- does anyone still have any hope for it?
HW: I do. We renewed our Oxford Contract at reduced rates by changing the terms of our coverage. As to the stock, after we first issued our triple buy, the stock shot up 10%. You then had a choice to hold until the Spring and 33 (our target) or take a quick profit and run. You didn't take your profits and neither did I, as this was an intermediate term buy for me. Many fund managers who owned OXHP at 70+, ( which I forecast as a GREAT short), want it out of their portfolio by year end. Let's see this winter. Not only do DOW dogs often do well early in the year, but some fallen angels too. I believe it is a very good company fundamentally, and the pessimism is overdone.... Then again I am a natural contrarian! As soon as they figure out how to blame their problems on the Asian crisis instead of their computer foul ups, all will be fine :) PS If you were trading the stock, you should have stopped yourself out at even, remembering the trading motto: "If you ignore your profits, they will just disappear."
"Much of the uncertainty around GOLD stems from the planned 1999 opening of the unified European central bank. The giant question mark surrounding gold is exactly how much of the metal the bank will want to hoard in its reserves. If the bank takes in less than the separate European banks presently hold, inventory from bank vaults will continue to flood the mark."
HW: Old news already factored in the market. If Gold stays near current levels, 1/2 of the world's mines are unprofitable and could close. This would dramatically reduce supply and cause the price of Gold to rise. We are gold bugs and took to heart the advice given at the last Gold show in New York: " When you feel Gold/Gold stocks can't POSSIBLY go any lower, buy 50% of your allocation. When prices drop further again, buy with the other 50%!"
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