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1. FULL MOON
2. AFUND UIT
3. SILVER
4. MUNDANE ASTROLOGY 101
5. 1000 PT DROP
6 LETTERS
Friday we "felt" the market peaking and joyfully watched as stock after stock on our screen flashed red (go short) like marchers in the old Russian May day parades. With less than 45 days of the bull market to go, we do NOT advise putting ANY fresh money into the market. Just the opposite; take profits, because as the old saw goes, "If you ignore your profits, they just go away". As soon as 8060 establishes itself as the market ceiling (whether before acting as a floor to new highs or not), it's bye bye market. We cannot too strongly recommend that ALL investors meet with their financial advisors to "crash" proof their portfolios.
We are currently short 3 of 6 planned entries. The next is just before the Full Moon on the 11th (Clinton Crisis?). This includes lots of techs e.g. AOL, HWP IBM and just recently INTC. Similar to DLJ's GM recommendation at 66, (AFUND buy 55), we feel their recommendation of INTC is also too early. Our INTC number is 68 OB, but NOT before late Spring/early Summer if you wish to hold intermediate term. Last week we suggested shorting INTC at our P2 target of 88.
Key date: February 11
DIJA: P1 8060 P2 8000 P3 7908 R1 8260
2. One of the more interesting "proofs" of financial astrology is its potential use in Unit Investment Trusts. These passively managed funds are held for a period of one year. In January and May we issue sample UIT's in units of $500,000 with a 2% management fee i.e. ~$490.000 to invest. Being astrologers, we naturally chose 12 stocks and our 02/06 benchmark from December 31 is as follows: DIJA up 3.55; AFUND UIT up 10.96%. Portfolio content from our 1998 forecasts is:
AJL, BA, BUS, CAT, COSFF, ECO, GM, ITA, KF, NOVL, ORCL, OXHP.
3. Kudo's for Warren Buffet's astrologer. Earlier this year WB bought US bonds near the lows; now he owns 20% of the silver market and Silver is making new 10 year highs. Of course, don't you wonder why WB is not buying stocks at today's sky high prices?
4. Re: Tuesday's Mars-Pluto Square, the classic murder/violence aspect:
A) Ms. Tucker, 38, received a lethal injection Tuesday night, making the pickax killer the first woman to be put to death in Texas since the Civil War and the first to executed in the United States since 1984.
B) Boris Yeltin warns of WWIII if US invades Iraq. Didn't realize he read WELCOME TO PLANET EARTH (http://alive.mcn.org/greatbear/). Their current issue front page story is: "Preventing Another 1914 - Jupiter's Exact 83 Year Cycle Links 1914 to 1997."
5. I am sure by now you've heard about renowned psychic Sylvia Browne's recent prediction of a market fallout in March, I think she said in the third week? Do you think this likely? What about March 19th as the first 1000+ point move?
MARCH 13, 1998
My guess for your "prize" relative to the 1st (-) 1,000 DJIA down CLOSE day is October 2000.
6. When do you think we will see 6,500 on the DOW??
HW: Before the Summer.
Henry, How can you be so bearish when the markets seemed to have traced out a contracting triangle since August 97. This implies a strong thrust to new highs. DOW 8600-8900 seems to very possible.
HW: Easy, I like to sleep soundly at night. Investing in the US market in 1998 is like investing in Asia in 1997; not likely to be very rewarding. We said to be OUT of HK before the end of August and it dropped 50%; we now say to be OUT of US markets ahead of March/April expiration before a drop of 20%+.
You write: "If you believe as I do, 6500 before 8500, then don't rush even for Portfolio 2000 stocks and wait for CPQ <23 1/2. " I noticed Portfolio 2000 has been referred to very frequently. What is it? You also write: "Discuss with your financial advisor whether you should be holding long term AFUND MAJOR shorts such as HWP or AOL." I already covered my Feb 90 Put for AOL seeing that time value lost the most once it turned into the expiring month. I lost a total 600 US$ in both your calls based on the 1/22 alert. A little disheartened being a subscriber for only 2 weeks. I always think it is 'MY' problem. I never look at horoscope in the newspaper but is there an impact caused by the investor's astrology him/herself? I am an Aries. Does it tell you anything? Happy New Year. (Kung Hei Fat Choi)
HW: Portfolio 2000 stocks are my answer to Warren Buffet - our long term institutional buys that we intend to be holding after the millennium. Aries are known to be impatient. (1) You should not follow blindly any advisor, including me. (2) Successful trading is about risk/reward, probability AND money management (accepting losses) . We have planned 6 positions for a major down move which may or may not happen. 3) Finally, let us hope our chart contacts are not afflicted and you may do better next time. Gun ho sun tree (May you prosper).
I got this (WSNW Alert 27A) at 4:19, TOO LATE!
HW: Email is NOT what it used to be. It was sent at 11am in order to arrive before market close. However, like a late broker fill, sometimes you do better and sometimes you don't. In this case, you would have had a better entry the next morning.
What do you mean by "Whoaaa" in reference to a possible close above DJIA 8060? This was a bit cryptic for me. Does it mean "Watch out below" or something else like "All bets are off, the market is going higher"?
HW: Both. If the market stays above 8060, it COULD become a support area for an attack on all time highs. Either way, this phrase of the bull market is over in less than 45 days. Many traders may NOT wish to enter high risk/reward trades with even probability. Shorting ahead of March/April options expiration is highly risky, as many money managers want to see an all time high BEFORE exiting the market BIG time.
Am very concerned about direction and strength of market. Cadbury's numbers looking real good right now. I really wish you guys would be in agreement.
HW: Chris recommended closing short and intermediate long positions on Friday.
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