SPECIAL EARLY EDITION MAY 24
1. JUNE ASTRODATES
2. JUNE MARKETS
3. 2000/20001 MARKET FORECASTS
4. ON THE WEB
5. QUOTES
6. CHICAGO
7. LETTERS
1. Keydates:
May 28 Jupiter Conjunct Saturn
June 2 New Moon 8:14 a
June 16 Full Moon 6:27 p
June 20 Sun enters Cancer 9:48p
June 23 Mercury SR
2. THE ASTROLOGERS FUND INC.: NOT a Market Maker, but a Market Breaker?
Is it JUST coincidence that that markets have been crashing precisely
from the time of the 8th Annual Astrology and Stock Market Seminar May
18th? You decide.
START TO PREPARE YOUR DREAM BUY LIST FOR LATE MAY/MID JUNE
While we are poised for limited buying, we are still in bargain hunting
mode. We will buy at prices we like, or may prefer to wait and simply do
short and intermediate term trades. For some portfolios, we will
buy a little now - "best in class" or relative value and invest more fully
during the annual October scare and before the pre and/or post US election
rally. FOMC wait until the end of month (June 28th) should keep the
market on somewhat tight trading range/downward bias:
Note: the next few days have a significant market risk similar to
October 87.
Please don't confuse bargain hunting with Real Value. Buying
relative value is OK, but a lot more blood is possible. Look to 1999 lows
for "how low is low" or to October 98 lows for some REAL semblance of value,
although they are unlikely to appear soon on a trading screen near you.
TRADERS: First Nasdaq covers of positional shorts between 2800 and 3000. Second cover, or TIGHTLY stop Nasdaq shorts above 2566 or the 50% give back from its highs. Some Potential Buy Points (BP) or Short Covering Markers follow:
KEY DATES: June 2
DJIA: S1 9799 S2 9500 S3 9000 S1
9799 R1 10000 R2 10200 R3 10400
NASDAQ: BP1 2921 BP2 2800 BP3 2566
JNJ:
BP1 76 BP2 67
BP3 60
T:
BP1 34 BP2 31 BP3
30
3. IT IS NOT WHAT YOU KNOW, BUT WHEN YOU KNOW IT.
Fearing the hostile interest-rate environment will continue for some
time, investors bailed out of the high-flying technology stocks in favor
of the more stable value stocks. Hmm, Saturn/[Leave] Square Uranus
[Technology] was followed by Jupiter conjunct Saturn (stable) in Taurus
(Value) in May. A rather obvious reaction, don't you think?
Wall Street, Next week subscribers can read some of our forecasts atMARKET
FORECASTS 2000/20001.
Non-subscribers: this will be posted in a public area in our website
later in June.
DEJA VU!
It is our view that May 2000 was the top of the current Real Estate
cycle. It appears that RCP agrees as Rockefeller Center is again up for
sale, although I think their astrologer advised them a bit too late!
The owners, Rockefeller Center Properties Inc. bought the buildings in
1996, saving them from bankruptcy. They had earlier sold the property
in 1989 to Mitsubishi Estate Co. for $1.5 billion at the top of the previous
Real Estate market cycle.
4. The dollar is going down! But against what? John Hathaway argues it is against gold: read JP Morgan to the Rescue.
The
bursting of the Internet bubble will ultimately lead investors to look
for common sense investment alternatives according to Robert Kleinschmidt
HW: We agree.
5. "Higher interest rates can't do anything but hurt Hong Kong.''
Michael Gitlin, Salomon Smith Barney
HW: Agreed.
"Valuation is in the eye of the beholder. Up until March, a lot of the
best and the brightest of the technology stocks were awarded extremely
high price to earnings ratios. Now the pendulum has swung the other way.
The market no longer finds that acceptable."
Mike Feeney, editor Wall Street Strategies
HW: Personally, I never have. It seems the market was "wrong" and now
it is finally admitting it.
"I think that there has been a complete shift in psychology,"
James Volk, D.A. Davidson Portland, Or.
HW: That is what astrology has been predicting no later than
May 2000.
6. Readers in the Chicago area may wish to attend my afternoon lecture at SAFTI 2000. For program details, Email saafti@iex.net, Fax (303) 989 5655 Call 303 989 5656 or visit www.saafti.com.
7. READER: You had predicted the end of the bull market by May 2000.
It hasn't happened although there are signs that the market psychology
may be changing. Will the bull market end later this year or is it ready
for the next upward leg?
Rebecca Nolan is predicting August to be the "meltdown" period. Do
you agree?
HW: Nasdaq certainly ended its Bull run, having corrected ~38% from
its March highs, and May is not yet over. I don't know if Rebecca
is right or wrong about August. It is not quite my view, although I would
hope she is right. We are just predicting one early October scare
and one strong rally after that.
READER: I read in a recent Wall Street, Next Week that you said some
companies will do well under Bush's lax Antitrust administration. Does
this mean that you predict and expect a Bush victory in November? I am
very interested in what the astrological configurations are for both the
Presidency and the Congress this year.........please elaborate as we are
only 6 months away.
HW: A coin flip and either candidate COULD win. We intend to
be covered with both oil and future technology stocks to benefit regardless
of either's victory.
READER: Is it possible for a women's investment club to buy into your
Jupiter position for $100,000 from our pooled money?
HW: Yes, although we do expect to be closing on the Astrologers Fund
family of mutual funds (with a minimum $10,000) investment shortly and
hope to be able to offer them to the public by October.
READER: I'm confused with Cadbury. Are the numbers you post for
Cadbury in futures?
HW: SPX cash.
READER: What's happening with IHITF and VUR.L? I am holding these
for the long run, but what's up (or not, as the case may be)? Didn't
really expect them to drop so far. Also, any direction with SSS, WAMX,
LDW, CELN, and AFTI? I still own shares. Are they a hold or
sell?
HW: Well, neither did we, and we are holding. Also holding SSS, WAMX
is a buy, LDW unsure, CELN holding and AFTI unsure and watching.
READER: Do you know of any reason why IHITF is back down???
You mind telling me your OPINION on whats going on? Still holding??
HW: Yes, broad markets are being creamed. I am still holding
and may buy again (even though I keep saying I wont) because I believe
in its future and see it as a countdown to later this Fall when we forecast
future technology to do very well.
READER: Based upon the way the market has been behaving, it doesn't
look like it's seen the bottom yet. However, it also doesn't look like
the tech stocks are going to get slaughtered as badly as you had predicted
earlier. You thought that some of the stocks with better horoscopes like
IBM might bottom near their 52 week lows, and second tier techs might drop
to 102 week lows.... Even with another bear leg dropping the NASDAQ to
2700, it's unlikely that any of these stocks will even approach these numbers....
This is not going to happen in a short timeframe.... It will take months,
or even years ... unless the NASDAQ crashes to 1750, which could, of course,
happen. Also, you had been predicting a DJIA drop to 7000, but now believe
it won't be that steep. That indicates some of the buyback points need
to be adjusted upward.... Please update these as soon as possible, because
we are interested in buying back in, but we need to understand the pricing
prospective and the time frame.
HW: We still see significant downside risk, but I am ready to commit
some funds- just not yet. Until then, we are not updating much.
However, certain DJIA stocks effectively reached these low numbers, such
as JNJ, KO, T, and MO.
READER: What is your dream list for the end of May? I'm starting
to work on mine.
HW: Anything of good value, e.g. MET, SPLS, XRX. when close to 52 week
lows. For the overall picture, WSNW subscribers should visit our
updated 2000/2001
Market Forecasts. Note: This will be publicaly posted next later in
June.
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