1. NOVEMBER ASTRODATES
2. MARKETS
3. THIS AND THAT
4. QUOTES
5. EARTHLINK
6. LETTERS
1. 11/07 Mercury SD 9:28 pm
11/11 Full Moon
11/21 Sun enters Sagittarius 7:20 pm
11/25 New Moon
2. REAL IMPOSTERS OR ROYAL FLUSH?
INVESTORS SHOULD NOT BUY AND HOLD STOCKS IN 2001 THAT ARE:
1) Not Profitable
2) P/e over 55 if new economy or over 25 if old economy
3) More than 25% Morningstar
Value Appraisal
It seems that Iraq is adding currency trading to oil speculation as a major revenue source. It wants to be paid in Euros instead of US dollars when selling its Oil. Wonder if Sadam is a stealth WSNW reader?
ELECTION RECAP:
SELL Drugs Stocks for Gore victory (reverse for GW).
BUY Mexico for Bush victory.
If you are not SRI, either way, Defense stocks are likely to rise over
the next 10 days.
If there is no inflation, why is the Ukrainian government planning to increase pensions by up to 20 percent on December 1? Another increase is expected in April 2001. If you don’t see the connection, remember, we are living in a global village. J
After the 900-plus point fall on the TSE 300, its biggest intra-day
drop ever, one Toronto trader told Reuters
"These declines are indicators of what is going to happen in the future.
We are going to stay down and set a new trading range.”
The Astrologers Fund 2001/2 Thesis: We will continue to experience
more serial crashes, e.g. Nortel than parallel crashes, e.g. October 1987.
Be careful if your favorite stocks have not yet fallen. They may be an
accident waiting to happen.
ALL INVESTORS PLEASE NOTE:
WE ADVISE NO MARGIN DEBT PAST NOVEMBER 3RD!
KEY DATES: October 30, November 7
DJIA: -> 10640
NASDAQ -> 3600
3. We like long term, i.e. holding at least until January 2001, stocks such as GT and Xerox, which we have upgraded to an outperform. Price targets 14 and 24 respectively.
As for the Nortel crash, no surprise there. Thereafter, we bought it for a quick trading profit. Intermediate term, however, I prefer to hold rival Lucent [LU] and would only consider buying and holding Nortel [NT] in the low 30’s. Our only fresh investments in Canada pre-election, other than IHITF would be to buy and hold into 2001 Sun energy (SU) and Barick Gold (ABX) upon further weakness
4. “I think we're bottoming in Nasdaq. I'm looking to go to 4000 by
Thanksgiving and 4400 in December."
Steven Frankel, technical market strategist at Ladenburg Thalmann
HW: The cup is half empty, not half full. I will be gone well
before Nasdaq 4000.
"Looking at the market action generally, it looks like we are approaching
that capitulation phase when investors throw in the towel."
Luise Kliem, technical analyst, Comerzbank.
HW: This is a post election, not pre-election event.
"Everyone seems to want to hold U.S. dollars. Investors will eventually
come to a bullish Canadian dollar view; it's just a matter of time. It
doesn't make sense that the currency is this weak."
Jeff Cheah, Standard and Poor's MMS
HW: True. We rate the Canadian dollar an intermediate term buy/accumulate.
5. Please do not send mail to afund@aol.com. It should be sent
to wsnw@afund.com. Backup addresses are: afund@earthlink.com and
afund@cancall.com. If you wish to leave AOL, call 1-800-EARTHLINK
to open an EarthLink account. Please mention "AFUND" when you sign up so
I can receive a free months service. J
However, the real question is whether I recommend buying Earthlink
(ELNK) or selling AOL/buying ELNK. Haven't done the astrology, but
emotionally I am ready for either trade.
6. READER: Do you see IBM as a short term or long term investment?
HW: Both
READER: As far as your Top 10 list for long term investors on up/down
stars, do you advocate holding these THRU election eve although you said
something about selling by election eve.
HW: It depends on the stock and whether a trader or investor. While
these are longer term investments, once 25% profit has been reached, e.g.
Compaq and Intel, either take or protect profits. If holding, use stop
losses if moderately bullish or write calls if more realistic (bearish).
READER: I believe I read in one of you newsletters that the market will
be going up until after the election. Do you think it will begin
to go down as soon as the election is over or will it continue to look
good the rest of the year before it declines?
HW: Down after the election until circa ides of November then up again,
then ….. (to be continued)
READER: You predicted NASDAQ 3500 to 3600, and we are already about
there. We have small gains in LU and MOT. Do you think it’s already time
to start cashing in? My charts indicate that the final leg down would bring
NASDAQ to 2600 to 2800 sometime around mid-January. Does that seem reasonable
astrologically?
HW: Our advice is for investors to take some profits by next Friday.
[Active traders can wait until Tuesday, but that involves much more risk.]
However, after another correction, we expect at least one more year-end
rally/rotation in 2000.
READER: Why are you so bullish on IHI? Is this a quick fix or a long
term stock? Obviously you have its date of incorporation.
HW: Read our website
IHI Comments.
READER: I want to congratulate you for the call of the bottom,
the buying and the big bounce of the markets; you were the only one to
catch that. Wow!!!
I have a big question: Do you see a crisis in the Mexican Bolsa and
Mexican Peso in late 2000 and early 2001, like the one of 1995?
HW: We have not done any astrological work on Mexico since 1995.
However, if Bush wins, we could buy stocks like Cemex (CX) and Desc (DES)
for a quick rally. Otherwise, we might purchase a little TV under
$40.
READER: How do I buy the Euro?
HW: Easiest by buying Euro denominated stocks, e.g. RD, UL, DT or buying
Ishares of Euroland countries, e.g. Holland (EWN) or Germany (EWG).
You could also buy futures or cash depending on the size of your pocketbook
as well as your time and price objectives.
READER: Three questions:
1) What are you buying (sectors)?
2) Does this fit in with your earlier call for strength into the election?
3) Then what?
HW: 1. Depends on the client and time frame whether a trade or investment.
We have different criteria for each. All the moment, you can buy
almost anything and win. Of course you can simply buy IBM and not worry
whether a trade to 104 or a long term investment to 120-130. As we
wrote in WSNW last week: "Don't analysts do horoscopes anymore?... buy
IBM, buy IBM, buy IBM....
2. Yes. Don't forget today was Uranus SD and tomorrow is a New Moon
with Venus opposite Jupiter.
3. Then, we go short, but, of course, cover circa the ides of November
:)
Beginning 1/1/2001: Gold will be $1500 one year, $2500 two years
and $500 quarterly.
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