1. SEPTEMBER ASTRODATES
2. FALL MARKETS
3. THIS AND THAT
4. QUOTES
5 LETTERS
1. 9/13 Saturn SR
9/13 Harvest Full Moon 3:37 PM
9/23 Sun enters Libra 1:28 PM
9/27 New Moon 3:53 PM
2. SEASONAL TRENDS
Should investors argue with "mother nature"? Seasonal trends
call for a decline into an early fall low with a September or October low
for US equities. Most financial astrologers I know agree. Investors
continue to bet that technology shares will be best placed to weather high
energy costs and slower U.S. growth. A reasonable bet, just NOT at Nasdaq
4000+.
The Verizon strike ended with workers receiving wage increases of 12% over 3 years. This is only slightly above REAL (not reported) inflation. With Oil prices reaching for the moon, I continue to believe that 6.80+ is still a likely bond target. Despite the election, or perhaps because of election politics, if OPEC decides not to increase Oil production at their October 10th meeting, the DJIA is bound to tumble below 10,000. Why is "energy conservation" being ignored? Supply and Demand rules commodity markets. If you cannot increase the supply, why not reduce the demand in an environmentally friendly manner?
Gold mining stocks are near 52-week lows and most analysts do not see the mood of the market changing any time soon. With Gold so low, contrarian investors like me wish to buy more. If you are a value player (buy low, sell high), that is. This is why on Wednesday we made Homestake Mining (HM) our August Stock of the month pick. Of course if you are a trader, use close stops. Note: If you do not play the currency market, buying gold is an easy (and hopefully profitable way) to hedge against the future fall of the US$.
These are the dog days of August. Many Wall Streeters are on vacation. As will I next week, and so should you.
KEY DATES: August 28, 29 September 8/11
NASDAQ: 4000 Floor/Ceiling Testing
GOLD: Buy
3. Only 1% of 23,000 US stock ratings were classified as "sell" or "under perform" according to a recent First Call/Thomson Financial Study. Amazing.
Financial Astrology received a big mention in the Swiss Financial Journal CASH, August 11, 2000. Read WENN MARS UND URANUS SICH BEGEGNEN, KOMMTS ZUM CRASH. This article features some world famous financial astrologers including yours truly.
September Stock of the month picks, if any, will be most likely highly speculative "special situations." This is because we are expecting a potential BIG move down in September. We may also choose a distressed security that seem to have little to lose." Possible picks include: COREL (CORL) and one likely M Picks include AFUND client CCCA.O.* In contrast, our October pick is likely to be Blue Chip.
Another stock on our watch list is LOJACK (LOJN). This will take advantage of an unfortunate trend - a continuing, and I believe accelerated, destruction of the American Middle class. As one example, DaimlerChrysler is now offering a car for security-conscious U.S. drivers - an armored Mercedes sedan. Until now, Mercedes-Benz sold armored cars only in Europe, Russia, Brazil and Mexico. ''Americans already spend a staggering $90 billion a year on security services and devices,'' Robert F. Allan, manager of special vehicles for Mercedes-Benz US ''There's room for the market to grow.''
4. "There won't be any seasonal increase in gold prices, even if jewelry
demand picks up at the end of the year. Gold is still in a down trend,
and I see nothing to make the price go higher.''
Donald Eckert, head of precious metals trading, Chase Manhattan Bank
HW: We disagree. For one thing, how about a drop in the US$?
"It's scary to think what's going to happen if a cold snap hits the
U.S. this winter.''
Tsutomu Toichi, director, Institute of Energy Economics
HW: Yes, imagine a renewed call for alternate energy usage such as
Solar Heating, and maybe even use of the "C" word- Conservation!
5. READER: Any thoughts on buying Dec. gold futures at this point?
Or do you see in going down further?
HW: I would buy now with a tight price AND time stop.
READER: I own a large position of COMS at cost basis of $17.
Should I sell this position based on your 44B sell alert?
HW: No. This is a general trading sell alert of which there are 1 to
3 per month. We DO however expect a major decline next month, followed
by a strong rally. Whether to sell an individual stock depends on
your overall portfolio strategy. While I don't track COMS per se,
I do note it has already been beaten up considerably, so any selling of
this stock should be based on YOUR fundamental view of its future profitability
going into 2001.
READER: Any recommendations on what to play short term in accordance
with your predictions on the market over the next 3 weeks after the FOMC
meeting? Or is this info. just provided to gold subscribers?
HW: Short term trading is covered with Gold and Platinum subscriptions.
Intermediate and Long term investing is for Silver Subscribers. That being
said, we are expecting a bigger down move than up move, but as this covers
the Labor Day holidays, not with great volume or conviction.
READER: Would it be correct to assume you feel IHI will one day go to
30.00 etc. DO you feel Canall will start moving in next few months big
time - you know like Under did?
HW: I have long said, when more investors see what I foresee about
the future of my client IHI, it will not be a $30 stock but a $100 stock.
Given projected $1 share earnings per factory, that could mean within
5 years of the BC factory opening more than $25 per share earnings! When
I spoke to the FANUC representative "lamenting" about the snail pace of
IHI factory construction, it being "4 years late," his unofficial response
was that IHI was "15 years too early." He also stated that they may
not have been able to achieve the continuous Robotic automation they will
in 2001 as the state of Robotics only recently advanced enough to achieve
it.
As to Cancall*, I view its first trade chart having more of a similar Jupiter influence from August until February 2001 to that of DCHT, than UNDR. However, like all AFUND clients, I don't play stock games, but view them as FUNDAMENTAL plays. This one is VERY high risk, but also VERY high reward. If it reaches its potential-the sky is the limit. As soon as the company posts its progress on its web site, I would track it closely. Naturally with my extremely large personal position, I am rooting for it. It is possible I may also take an internal position here beyond my limited role of financial astrologer and strategic planner with my other companies, so I cannot say too much except that this company excites me.
READER: Is there any place I can get some info. on Cancall?
HW: You can find recent trading history at the TSE
Web site; their stock symbol is CCCA. The Cancall web site should
be up within a week at www.screenphone.net
which
will over time provide more information than just "They sell screenphones
or alternate Internet appliances."
READER: How did the IHI picnic go? I hope the stock is ready to
take off - baby needs new shoes.
HW: As usual, the food was first rate and a good time was had by all.
I believe after seeing the factory progress and hearing supplier updates,
investors attending are looking forward to a Merry Christmas indeed.
I should be over my jet lag shortly and will then post my reasons why I
agree. Until then, rest assured that IHI stock could increase enough
to pay for at least one pair of shoes.
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