1. MAY ASTRODATES
2. MAY MARKETS
3. QUOTES
4. MAY CONFERENCE
5. LETTERS
1. May 4 New Moon 0:12 a
May 13 Saturn Square Uranus
May 18 Full Moon 3:34 a
May 20 Sun enters Gemini 1:50p
May 25 Uranus SR
May 28 Jupiter Conjunct Saturn
2. MAY RED ALERT, RED ALERT
MAY 3 The Sun, Moon, Mercury, Venus, Mars, Jupiter and Saturn will all be in the sign of Taurus: It's time to think: money, money, money. By the 5th, May highs are likely. Within two weeks, a retesting of the 2000 lows is probable.
Astrologically, May is one hell of a month. One conservative response and alternative to selling stock is to hedge part (25%) of your portfolio by selling Diamonds (DIA) or Spiders (SPX) or 50% with the Nasdaq 100 Cubes (QQQ) for heavily tech portfolios. This market timing gesture will protect 25-50% of a down move, but the cost is 25%-50 of any appreciation. The trick is exactly WHEN to unwind. Consult with your professional financial advisor or broker to find out if this is appropriate May strategy for you.
One sign of markets correcting has been the fall of the Mighty Microsoft from grace. MSFT reached our first 80, our P1 target, then P2 of 75 and P3 65 recently. It may take a 50% retracement to 60 before we can expect to see any real buying. Now will it really correct to 50 or under? According to Morningstar, it is only worth about 24. Generously double that to 48 and you would still be paying twice as much as it is WORTH. We will be talking a lot more about this next month after our conference presentation.
Last May ATT was 55 and we forecast it would under perform the market
and rated it an avoid. Friday it closed at 45 7/8 and had a Morningstar
value rating of $26. Astrologically it is under mixed to favorable influences
. Their big gamble on cable may or may not pay off. While ATT will
be a good long term defensive/value buy 34-41, its upside appreciation
is limited along with its downside risk. (WSNW Subscribers see our latest
DJIA
ratings).
The timing of their AWE spin off on the day of a seriously poor inflation
report in a notoriously volatile time shows ATT leadership still thinks
it can call the TUNE, but in truth is still NOT in tune with today's world.
AWE, the ATT spin off on Thursday has revenue of 7.6 billion and a loss
of 321 million. We expect it to break its 52-week lows (29 1/2) shortly.
By the way, Lucent has made their first BIG strategy error in abandoning
their core manufacturing competitive advantage. Lucent, LU is only
worth 20, so why pay more than 40? This is an auction folks, and
the game has changed - it's time now for Value to shine.
Government reports state the Cost of Child-Rearing Rose by 2 Percent
last year. Are children "worth" 2% more than last year, or is this
yet another sign of rising inflation?
KEY DATES: May 3-5
NASDAQ: P1 3600 P2 3400 P3 3200
DJIA: S3 9800 S2 10,000 S1 10,200
R1 10,500 R2 10,800 R3 11,000
MSFT:
S1 66 S2 60 S3 50
4. "The HARMONIC ENERGY is extreme between MAY 8-10, and MAY 17-19.
This would indicate the most probably time-frame for a major sell-off,
or an explosive up move if the market has already sold off dramatically
into these two time periods."
Market Timing Systems
HW: I agree. Those are 2/4 of our four forecasted big May moves.
"At present all signals are in place for the Euro to post a serious
collapse into the May 11-13 period. In the event the mid-May timing
inverts, this scenario is merely postponed for the latter half of May.
The preferred Euro price target is 0.8800, or a decline of 6.8%"
Sam Hewitt
HW: Great call.
"The euro is undervalued and destined to grow.''
Italian Prime Minister Giuliano Amato
HW: We agree.
4. If you will be in NYC area, hope to see you at our MAY18th SEMINAR.
5. READER; The three indices... the DJIA, NASDAQ and S&P 500
are all hanging in there slightly above their 200-day moving averages after
having momentarily plunged below them when the market tanked. Do you think
this indicates that the bear might be over?
HW: NO because we believe they will ALL break within the next three
weeks.
READER: I have been into view Wamex.com
site. It's pretty impressive. Henry are you as keen on it after May as
you were earlier in the year?
HW: Their product launch is July 4, 2000 and a Nasdaq listing is expected
shortly. Clearly both events will build strong potential momentum for the
stock. Until then, all is informed speculation. I believe
they do have a real shot at success, and Wamex may be the first reason
for me personally to go partially electronic in my trading. However,
my mind is focused on May and the broad markets now. I will be updating
AFUND companies reports after that.
READER: I bought many stocks like CIRC and now they are very low, is
there any chance that the NASDAQ may surge?
HW: Of course anything is possible. We believe the Nasdaq market
will be down again before it is up again. IF you bought VALUE you
will be fine, if you bought AIR, then I would worry.
READER: Not only is IHITF continuing to drop, but the volume has
dried up. What's going on?
HW: Down movement on high volume is bearish. Down movement on low volume
can be a bullish contrarian signal, and is usually no cause for great worry.
READER: CELN is ridiculously low but doesn't seem to be rebounding.
Would you recommend buying here or should be wait until after the probable
May melt down?
HW: I believe $4 is a good price. I recently just bought some at $5
as my intermediate target is 7.50 to 8. If a Celsion is purchased
as an investment, you can always buy a half position now. IF a short
term trade, however, I might wait.
READER: You indicated in your recent Computers Forecasts that value
buys for BAANF and CORL were 6 and 8 respectively. They are both well below
those levels. Does that mean you recommend buying them now?
HW: Yes if you are a long term buyer. Baanf is more risky but
should benefit from Euro appreciation next year. CORL we are hoping
to scalp a little lower closer to 5, given our assumption the market will
correct within the next three weeks. If however, you are bullish
RIGHT NOW, then CORL is a better intermediate term buy.
READER: I can't believe that people put their money into the Nasdaq
thinking it will be immune to Interest rate hikes amongst other things.
HW: I also suffer from the delusion that people sometimes act rationally.
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