1. MARKET REALITIES
2. FINANCIAL ASTROLOGY 101
3. BUSINESS UNUSUAL
4. FINANCIAL ASTROLOGY FORUM
5. QUOTES
6. ON THE WEB
7. LETTERS
1. Last Tuesday, the Fed said the rapidly growing economy
"could foster inflationary imbalances that would undermine the economy's
outstanding performance.''
Some believe the Fed will come right back with another 50 basis point
hike on June 28, or maybe a 25 point hike. They see an aggressive Fed raising
rates as high as 7.5 percent by year end. Other Fed watchers expect
a 25 basis-point move at the June or August meeting, depending on future
inflation data over the next six weeks. We are just waiting for 6.80%
on the 30 year. Are we there yet?
If P/E levels return to near historic averages, the NASDAQ would be under 2,000 and the Dow around 6,000. However, if George W Bush gets his way, this may never happen. He would like to reform social security to allow workers to invest some of their payroll taxes in stocks and bonds. "Without reform, our younger workers face a great risk." This is better for older workers, rather than younger ones, as this would let them retire and exit the market at much higher prices by encouraging more new and bigger fools to follow.
Kudos to Howard Lutnick Cantor Fitzerald's CEO for setting up a new service where gamblers will be able to bid on stock prices without actually buying or selling stocks or options. Unfortunately, the biggest dealer in US treasuries initially will be operating only as a London bookie. While betters will wager on anything from sporting events to the elections to Miss Universe pageants, the focus will be on the direction of stock prices. If much of the gambling element leaves the market, then perhaps we can finally get back to the business of investment. Of course, what about payoffs to CEO's ahead of scheduled news events? Can you imagine a Russian gangster with a heavy bet on a company about to give it's quarterly profit projections "suggesting" to its president that it look more like his bet unless he would prefer a "one way boat trip on the Volga"? Hmmm....
Next weekend, we will be posting some of the highlights of our May 18th seminar on our web site. Currently I am looking for bargain hunting opportunities in the stocks we follow. While we are READY to pull the trigger at a moment's notice, I still prefer to wait and see until next week or shortly thereafter if need be.
KEY DATES: May 22, 25/26
US Bonds: -> 6.80%
NASDAQ: R1 3500
R2 3666 R3 3816
DJIA: 10577 Pivot
EURO: Buy .88 to .90
US$: Begin Distribution or Intermediate Term Hedging
program
2. The 20 year Jupiter/Saturn conjunction on the 28th in the sign of Taurus is beginning to manifest signs of intelligent life in the investment community. We believe common sense will slowly prevail and for some time Value will begin to out perform Momentum Investing. We also expect to see diminished expectations.
As an example of lowered expectations, just last week the six pals of NBC's Friends who had wanted $1 million per episode -- up from the $125,000 per they currently earn, actually settled for only a 500% wage increase to $750,000 a show!
Boo.com became Europe's first big Internet casualty. Obviously there
is more to come. To quote Internet incubator Michael Whitaker: "This helps
destroy the mystique that business-to-consumer companies can operate outside
normal business principles. More than 70% of current Internet -related
companies will go out of business within two years."
HW: Like I always say, short the IIX and sell your HHH!
3. We are happy to be featured Monday Morning 5/22/2000 on CNNFN Business Unusual, 8:30 am. Our IN THE MONEY CNN Interview on Friday was rescheduled due to a conflict with the press conference of the Illinois 185.5 million dollar winner for next week-May 25 same time and just after Uranus goes SR.
4. The financial astrology forum moderated by Phil. Crocco is being offered as a central location where all interested parties, from many sites, can gather together and discuss the topic of financial astrology and related minutia.
5. "Technology stocks are under pressure because they still have extremely
high valuations. Six months ago, people said it didn't matter what they
cost; you had to own them anyway. Now there's a sense that what you pay
for a stock really does matter."
William Meehan, chief market analyst Cantor Fitzgerald.
HW: Even more so after the May 28th Jupiter/Saturn conjunction.
"The bubble is in the process of bursting now. There are no new highs
in store for Nasdaq. We are beginning to see disappointment on the part
of investors who are not feeling the urge to buy on the dips anymore."
Alan Newman, technical analyst H.D. Brous, Great Neck, NY
HW: We agree. May 13th was the final pass of Saturn Square Uranus.
6. Bears will love http://www.bubbleeconomy.com/
For one view of THE IMPORTANCE OF THE ALIGNMENTS OF THE NAKED EYE PLANETS.
7. READER: Congratulations Henry - right again!
HW: Yes...
READER: Will the Dow ever hit your target price of 7001? Or for that
matter, do you expect it to ever go below 10,000?
HW: Yes to the latter, increasingly less likely to reach the former;
although I have yet to give up totally.
READER: If a big stock like Ericcson [ERICY] is already down to 19 and
change, also due to a recent stock split, how far down could it go since
it is a very rich company?
HW: With a P/E greater than 84 and a 52 week low of 6.59, it easily
could drop to 13 or below on bad news. Of course, maybe it won't.
READER: re: WSNW ALERT 41B Sell what? Buy puts? Sell stock? Short? Is
there another part of this message I need to read?
HW: We presume an experienced audience and different traders use different
instruments. Remember also this is a two part timing signal to sell.
The second, and less risky, comes after Tuesday's news and before Wednesday's
close.
READER: I am a subscriber for your Silver Service. I wished to access
the WSNW Alert 41B on the day it was posted to the web, i.e. on the 15th
May, but did not quite know how to do that.
Is it meant for the Gold and Platinum subscribers only? Please clarify.
HW: Yes. While we post examples of this information publicaly on the
web, it is for Gold (trading) and higher subscribers. Daily updates are
then posted on the Gold daily market commentary.
READER: Please notify me of the date of the 2001 seminar, as it is too
late for me to attend this one.
HW: Our 9th Astrology
and Stock Market Seminar is scheduled for May 17-20, 2001.
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