WALL
STREET,
NEXT WEEK
FEBRUARY 3, 2020
FINANCIAL
ASTROLOGY
FOR THE SUCCESSFUL INVESTOR & TRADER
1. FEBRUARY
MARKETS
2.
UP
STARS/DOWN STARS
3.
GOLDEN
OPPORTUNITIES
4.
QUOTES
5.
ON
THE WEB
6.
LETTERS
Markets
are
testing key support areas again with no fundamental reasons to
buy on the dip
today (or Monday?). Little besides select biotech &
Precious Metals
benefiting. While SP 3150 probably will hold short term,
nothing wrong with
reducing more overall market exposure 10-25%. @tafund
28K
before 30K? Looking good! If so, the new 64K QUESTION:
HOW LOW IS LOW?
As
long as markets remain above SP 3150, MOMO BULLS are not worried
unless/until
DJIA 28K becomes a firm ceiling!
Should/when
markets drop
below SPX 3150 next support levels are circa 3125, 3065-3070,
and
3025-3030.
Will markets be higher in March?
Perhaps.
Will they be higher in [July to] August
2020- almost DEFINITELY
NOT!
OUR VIEWS
Stock valuations are generally unappealing [not
cheap] for most
stocks.
OUR CASH POSITIONS ARE CURRENTLY MAXIMUM!
We advise fresh IRA money should be left in cash
& we
recommended some more selling of 2020 portfolios into next
week.
Proper Valuations:
•
US$ 97-98
•
CNY < 7
•
SILVER
16.80-18.25
•
VIX
> 16
IMHO “Improper” Valuations
•
DJIA >
28000
•
SP >
3069-3150
•
NASDAQ >
8500-8800
•
TIPS
> 117
•
COPPER <
3.11
•
BITCOIN
>2400
•
GOLD >
1433
•
US
10 Year Bond < 1.70
•
Oil
< 52
FIRST
EPISODE
OF YOU BETCHA YOUR LIFE (SAVINGS):
Sell
SP
2954, Sell 2945 KACHING: Both Covered 2840!
SECOND
EPISODE
OF YOU BETCHA YOUR LIFE (SAVINGS):
Sell
SP
2888, Sell 2880 KACHING: 2812 & 2750 Buy Gold 1286,
1280 KACHING 1400,
1410
THIRD
EPISODE
OF YOU BETCHA YOUR LIFE (SAVINGS)
Sell
SP
2954, Sell 2964, & 3000; KACHING Closed 2940 & 2925 & 2925
Buy
Copper
270, 266 & 260 KACHING 280
2019
POSITIONAL
TRADING:
Copper
274,
266 & [292 Copper open from H1 2019] Still open
Buy
SPX
2860, 2900; KACHING SOLD 3030 & 3058
Short
SPX
3057 & 3088 & 3149 Still Open
2020
POSITIONAL
TRADING
Short
SPX
3230, 3240 & 3275
MARKERS
DJIA
SPX
NASDAQ
SILVER
GOLD
COPPER
BONDS
OIL
BITCOIN
CNY
|
2019
CLOSE |
28508 |
3231 |
8823 |
17.92 |
1523 |
2.80 |
1.86 |
61.06 |
7229 |
6.96 |
|
1/31/2020 |
28258 |
3225 |
9150 |
18.03 |
1593 |
2.51 |
1.50 |
51.63 |
9303 |
6.93 |
|
PIVOTS |
28500 |
3240 |
9200 |
18 |
1550 |
2.49 |
1.50 |
52 |
9000 |
7.00 |
|
RESISTANCE SUPPORT |
29000 28000 |
3300 3200/3150 |
9340 8800 |
18.37 16.88 |
1600 1484 |
2.80 2.50 |
1.84 1.465 |
58 50 |
9500 8000 |
7.03 6.82 |
KEY
DATES: February 3, 5
DJIA: 28000
SUPPORT?
SPX:
3231
PIVOT S1 3200 S2 3150
NASDAQ:
9000 SUPPORT?
GOLD:
1550
PIVOT S1 1540 S2 1500 S3 1480 R1 1568 R2 1608
R3
1650
SILVER: SUPPORT
16.50-16.80
RESISTANCE 18.20-18.80
OIL: 52
PIVOT
COPPER:
2.50
SUPPORT/PIVOT
US
10 year WATCH
BITCOIN:
9000
PIVOT
2019
CLOSE:
DJIA 28508
SPX 3231 & NASDAQ 8823
2018
CLOSE:
DJIA 23327
SPX 2506 & NASDAQ 6635
2017
CLOSE:
DJIA 24719
SPX 2673 & NASDA 6903
2016
CLOSE:
DJIA 19762
SPX 2238 & NASDAQ 5383
AFUND
Fair
Value: GOLD $1433
Reduce
risk
and Focus on Capital Preservation:
THINK
TRADITIONAL
SWISS AND PRESERVE CAPITAL: HEDGE AND PROTECT AGAINST DOWNSIDE
RISK.
AFUND SHORT WATCH:
Stock
selection
is important. When possible, we prefer to recommend stocks
sporting
strong cash flows, sound balance sheets & growing
dividends.
Active
well
managed portfolios should outperform index funds in 2020.
3.
Copper
remains highly undervalued. It was a pawn of the US/China trade spat. Now it
seems that
Chinese coronavirus is hugely hurting sentiment. Short term has
been bearish,
but longer term this remains a “deep pockets” BIG win.
Gold
bugs
are happy now that more generalist investors are beginning to
join the
party: However, we still see it as somewhat expensive just
now, albeit short term “justified”
due to Astro,
seasonal strength & Middle East.
We
believe gold valuations will largely sport at or above Fair
Value in this Year
of the White Metal Rat (2020).
Just
as
it was undervalued for a long time, it CAN and is likely to be
overvalued
for a LONG time. While fundamentally gold is currently
overvalued, in
much of the Fall, the astro is positive for gold.
We
advise
precious metal investors to pay attention to stock selection
and only
selectively add Q1 2020.
Gold
FV
$1433 = Commodity FV: 1388 + Currency FV: 1400 + Inflation
Metal FV: 1388 + Crisis
FV: 1556.
INVESTORS: We
plan to stay LONG
in
2020 (recommending a precious metal
sector buy/hold rating and
occasional hedging, selling or profit taking).
However
as
traders we may periodically short gold above $1555. For silver
our current
selling numbers remain $18.25 - $20.
We
will be happy to reBUY Gold cheaper ideally < 1450 &
Silver < 16.80
in Q2 2020.
4. “Elevated policy
uncertainty
usually leads to lower equity valuations and higher implied
volatility in the
months ahead of Election Day. The wide range of the various
candidates’ policy
views and the narrow range of polling and prediction market data
indicate a
particularly uncertain environment this year.”
Ben Snider, equity
strategist,
Goldman Sachs
HW: Uncertainty is
THE hallmark of
2020 markets.
“The
outbreak
of the coronavirus could drive large swings in Mainland China
and emerging Asia
growth in the first half but a much smaller impact on full-year
growth, if the
SARS episode is any guide.”
Bruce
Kasman,
economist, JP Morgan
HW:
We should
know how much by the Ides of February.
"We
spent
most of this week still with this kind of euphoric optimism
about the U.S.
market, and today [1/31/2020] that finally began to fade...
people are finally
starting to get concerned."
Michael
O Rourke,
chief market strategist, JonesTrading
HW:
Better late
than never.
5. Oil stocks are the
new tobacco, in
‘death knell phase,’
Healer
or sin stock? ESG funds split on whether cannabis
companies should be let in
6. THIS INTENTIONALLY LEFT BLANK
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ASTROLOGERS FUND,
INC
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Performance"
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310
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@tafund
Author: INVESTING BY THE STARS and THE STUDY OF
ASTROLOGY
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RESULTS.
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