1. MARKETS
2. THIS AND THAT
3. QUOTES
4. ON THE WEB
5. LETTERS
HOW HIGH IS UP?
Patience was rewarded when investors picked up Microsoft at 50 or Intel
at 36 as we had long "promised." It was amazing for me to see trading buys
last week flash on my computer screen for the first time in years on stocks
such as Yahoo (at 50) or overpriced Nokia at 30. However, we do not believe
the good times will last far into 2001, and perhaps not even post election.
Consider some of the following:
* The effect of high Oil prices on the economy of most countries.
* Labor will demand a minimum of 4% pay raises (as well they should)
to keep up with the higher price of home heating and gasoline.
* US corporate credit quality fell for the 10th straight quarter. Downgrades
outnumbered upgrades by nearly two to one. Not since 1989, when a credit
crunch helped trigger a recession, has the situation been so bad according
to Moody's Investor services.
* Both corporate and individual and tax revenues will shortfall due
to lower earnings and stock market losses respectively.
INVESTORS SHOULD BUY AND HOLD ONLY STOCKS FOR 2001 THAT ARE:
1) Profitable AND
2) P/e under 66 if new economy and under 33 if old economy.
The average cost of a Manhattan apartment fell 7.7% in the third quarter of 2000 to $789,225 from $854.704 in the previous quarter, the highest ever recorded. You may recall we suggested May 2000 as a top in the hot real estate market. We advised sellers to hurry and buyers to wait. We still recommend sellers to DO IT NOW and buyers to wait. Patience is starting to pay off. Actor Val Kilmer has reduced the asking price of his New Mexico vacation retreat to 2.15 million from 2.5 million! I have often asked: "Can you afford NOT to have Financial Astrology in YOUR future?" Well, if you want to buy this 4,428 sq. foot adobe bat cave, you know the answer.
Key Dates: October 26, 27
Nasdaq: P3 3600
DJIA: Pivot 10200 10,000 Support/10,500 Resistance
US Dollar: Continued long term selling
Euro: Continue long term buying
Korea: Accumulate
2. My Yahoo Finance Vision Interview will be archived on their web site for one week in case you missed me live last Thursday afternoon.
Don't Wall Street analysts look at company horoscopes anymore? Under 100, buy IBM, buy IBM, buy IBM. Quick trade to 110 and longer term to 121.
Honeywell (Hon) and UTX did not seem like that great a stock merger to me. GE is a better partner. If I owned Honeywell, I would be selling Monday 50-55. I wanted to buy UTX and some readers did as this is one favorite for 2001. We had hoped to do so at relatively bargain prices (under 58?) Monday. No can do, but we continue to recommend accumulation under 66.
Next week marks the official beginning of the January small cap rally!
Don't forget the Astrologers Fund's motto: "Be there first!" If you
play the penny stock/microcap market, you have less than 90 days to double
your money (or lose your shirt).
PS Can you guess our two favorite microcap buys this week ? Prizes
to be announced shortly! :)
3. "Everyone thinks stocks are never going to go up again, which is
one of the classic signs of a bottom. We think with all the damage
that has been done that we are getting close."
Scott Marcouiller, market strategist, A.G. Edwards
HW: Right on THIS TIME, but what about next time? Maybe everyone
will be right then!
"Regulation FD will change the dynamic of surprise. We are getting back
to the (early) 1990s phenomenon of companies just announcing results. It
is up to the analysts to forecast."
Scott Rosen, research director, I/B/E/S
HW: Regulation FD going into effect Oct. 23 is good news for financial
astrologers and also good for shorting bears as more companies will miss
future Wall Street profit estimates because analysts can no longer rely
on corporate guidance for their forecasts.
5. Stagflation or Inflation by John Crudele
THINK TWICE BEFORE BUYING THE DIP
From Trendy Scandanavia: Woman
Robs Bank with Axe After Stock Crash.
HW: She is obviously NOT a Wall Street, Next Week Subscriber!
6. READER: Congratulations - spectacular market timing.
HW: Our precise forecasts for October 12 down, October 13 up, October
18 down, turn and rally into October 19 is a good as it gets.
Thank you for the Astro posts. You certainly saved my a**.
HW: What can I say?
READER: Henry, I'm one of the last of the Astro believers (even though
I've known Arch Crawford for years and respect his work). You and
Arch were right on with your sell calls a few weeks back. If you're
correct on the buy, you might have turned a non-believer into one willing
to take a second look. (And if that isn't a sign of a bottom, I don't know
what is!)
HW: Time to make the donuts.
READER: I hope your prediction of NASDAQ 3500-3600 is correct. If so,
then what?
HW: Stop loss, take profits or write leaps.
READER: The most significant turning point is a cluster of cycles and
a Fibonacci date of October 26-31st. In sum, after a further rally
early next week expect more selling. After option expiration week
next week, I expect a crash to begin. Do not be surprised if the
DOW hits 9500 and the Nasdaq hits 2500. Use this early rally to exit
long positions and prepare for the crash.
HW: Dates to watch. We believe the market is down the day after the
election, but I am not sure if it will stay down as you propose. I am currently
preparing my 2001/2002 Market forecasts.
READER: Have you spoken with Roger recently? Any news as to which
JV partner will get the first few factories? I like the picture updates
on the web site. Let's us who have supported IHI for all these years
feel like progress is real this time. Do you know what the timing
for the delivery of the second manufacturing line is?
HW: This should all be revealed shortly to the delight of IHI supporters
if our October astrological forecasts for the company are accurate.
READER: How are things going at Screenphone*? Do you foresee any news
re announcements starting to occur late this year. Are you still closely
involved?
HW: Yes, very heavily involved. Progress is slower than I would
like, but I am most hopeful
READER: How would this strategy work..... buy and set stops about 10
percent below, and have another buy order in at about 25 percent below.
If there's a crash and subsequent recovery, you could make out well. What
do you think of that idea?
HW: Perhaps, although 10 and 20 percent respectively might work better
READER: What biotechs are attractive for next week besides STEM?
Is there anything else you prefer more? I think you are right about telecoms
next week. I am getting another one of those intuitive/physic senses
the last 2-3 days about several telecoms like I did when VZ was at 40 a
month or so ago and shot up to 52.
HW: We also like Celsion (Celsion), but possibly even stocks
like Amgen may do well.
READER: Let me have your comments on "AMAZON.COM". As I told you earlier
by Q2 2001, they will go burst - Chapter 11. Jeff Bezoz is doing "Cuckoo
Business". His revenue model is not commensurate to generate earnings to
pay a whopping US $1.5 Billion Debt.
HW: Probably a good merger candidate first with Priceline (PCLN), and
then later for Chase (CMB). :)
READER: So what on earth is going to happen to T? You have it on your
recommended list but it has been nothing but a disaster. Nothing that M.
ARMSTRONG does seems to work. I have looked at the astrological chart of
the co. and it didn't even respond to some excellent transits. SO WHAT'S
UP?
HW: Patience. We continue to believe it will meet our 12-18 month goal
of 42. That is what we bought it for, not for a trade.
READER: I take it that you are talking about Sun Microsystems (SUNW
- currently at 116 1/16) in todays daily commentary rather than Sunoco
(SUN - currently at 28 3/4))
HW: Yes, SunW is a sell for us, while Sun WILL be a sell for us whenever
it reaches are 32-34 price target.
READER: I read WSNW 45a - the part about "if IBM does not break 105,
be alert and scared". Are you implying that the market could really
crash ALOT more? All my tech investments -T, INTC, MOT, LU, PKD -
were bought at your recent target values (plus I own Walmart and PFE and
have not used margin yet). I was planning on them being LONG Term
Investments, but am wondering if there is a point at which I should think
about selling them if tomorrow is a 'scary' day. Any advice you can
give me?
HW: Dont worry about tomorrow; worry about post election markets.
You can then using trailing stops to protect profits, write leaps or simply
take your profits.
Beginning 1/1/2001: Gold will be $1500 one year, $2500 two years
and $500 quarterly.
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"Can you afford NOT to have financial astrology
in YOUR future?"
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