1. FOMC MARKETS
2. THIS AND THAT
3. QUOTES
4. ON THE WEB
5. AFUND CANADIAN CLIENTS
6. LETTERS
CLONED PIG COULD SUPPLY HUMAN ORGANS
According to the scientific journals Nature and Science, pigs are a
very promising source of donor organs. Aside from the bioethical
implications, there are compelling potential market issues to consider.
With more and more investors filled with "pig" organs, how will Value continue
to have any meaning? Will "buy, buy, buy" replace "eat, eat, eat"?
However, well before then, post-election 2001, we do expect a US economic
slowdown. This should require still more FED engineering, i.e. interest
rate increases next week or later this year or next.
This week Alan is DA man! Money is expected to move only after his FOMC meeting. If he takes the easy path, a brief relief rally is expected that could last until Labor Day. If he takes the tough path, it could move down for a few days. Thereafter, traders delight until MidSeptember. Either way, after FOMC 8/22, traders are expected to follow the "yellow brick road"- to follow the Trend until Friday's close.
The US trade deficit climbed to a record $30.62 billion in June. With soaring oil prices, July and August could be even bigger than this 50% shameful rise over 1999. We also note that bilateral gaps with China and Canada hit new heights. We believe Canada will fundamentally continue to outperform the US into 2001. While we continue to have a buy on the Canadian dollar, we believe a 11,000 TSE is one big Nortel fantasy. Sure it can go to 12,000, as can the DJIA. Then again, pigs can fly, can't they? As to the soundness of many mainland Chinese companies, investors beware.
KEY DATES: AUGUST 21, 22
DJIA:
Follow the trend, then Sell (or Double Sell)
TSE 300:
11,000 Floor/Ceiling fight
2. Suicides in Japan rose to a record high for the second straight year, driven up by health problems and the nation's prolonged economic slump, the government reported Friday. I hope my continued calls for selling Yen and the Japanese markets is not a contributing factor. If so, there is hope this trend will reverse before long.
3. "If the P/E ever came back down to the area where it used to
be [35 Vs historical average of 15], then it would represent a drop of
about 50 percent in the S&P index.''
Ray C. Fair, professor of economics, Yale University
HW: Hmm, but I thought it was different this time.
"Everybody used to talk about the go-go 80's like they
were so wonderful. Well, the 80's were like child's play. It is ridiculous
now."
John Tortorella builds swimming pools for the rich and
famous in the Hamptons.
HW: Yes, but just wait until 2002.....
In the United States, it has become almost an article of
faith, a kind of mathematical certainty, that returns of stock holdings
will reliably persist at somewhere between nine and 12 percent. This is
utter nonsense."
Henry Kaufman
HW: Who am I to argue?
4. Want to find out when earnings are due? Try
Corporate Earnings Calendar
For The Upcoming Week.
5. I have been in Vancouver all last week, primarily meeting with client companies: IHI (IHITF) and CANCALL, aka Screenphone (CCCA.O)*. I am SUPER fired up with the future potential of these two client companies. I plan on publishing my astrological forecasts (with company permission) on both of these clients on my website shortly.
International Hi-Tech Industries has taken far, far longer than my original (and often revised) forecasts. Still, after hearing IHI's robotic vendor FANUC progress report presented on IHI day, I am more convinced than ever that my faith will be vindicated THIS YEAR, THIS DECEMBER. IHI shareholders (and potential investors) please note: IHI plans on updating its website weekly starting next month.
As to Screenphone, this simple and useful alternate Internet appliance is potentially a BIG winner. Aggressive small cap investors and speculators may wish to begin tracking the fundamental developments here.
6. READER: So do you believe the Dow is going to take a severe hit or
hold up? The Dow and NASDAQ of course have been often very divergent over
the last number of months.
HW: Both. First, we see a strong down/low in Mid September through
early October. Then a DJIA rally.
READER: What does TSE stand for? And does Rebecca Nolan have a
web-cite? If so, what is it?
HW: TSE = Toronto Stock Exchange.
Rebecca's website is Financial
Astrology.
READER: Where do I go to buy it [CCCA]* -- OTC?
HW: This company trades on the Canadian OTC. You should telephone
your broker and ask them to CALL their Canadian desk for a current BId/Ask.
Recent trading has been as low as .10 Canadian or as high as C$.25.
Therefore you may be able to buy this stock for as little as little as
$.10 or as much as $.25 US depending on upcoming supply and demand.
READER: Well, IHI will just have to go straight to Nasdaq!!!
HW: Perhaps, or you may see it on Toronto first or Nasdaq Canada, and
then Nasdaq US.
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