WALL STREET, NEXT WEEK

"Financial Astrology for successful investors and traders" 

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WALL STREET, NEXT WEEK: OCTOBER 30, 2000
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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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PAST WALL STREET NEXT WEEK REPORTS
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(c) 2000 All rights reserved. The Astrologers Fund "Always a Stellar Performance"
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Author: INVESTING BY THE STARS, THE STUDY OF ASTROLOGY, TRADING BY THE STARS (01)
May 17,2001 Ninth Annual Astrology & Stock Market Conference NYC 
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The Astrologers Fund Inc. Accepts No Liability Whatsoever For Any Loss Arising From Any Use Of Its Report Or It's Contents. The Astrologers Fund Inc. Or Its Clients Usually Holds Positions In The Stocks and/or Market Instruments Mentioned And May Buy Or Sell At Any Time Without Notice depending on market conditions and personal financial conditions. This Information Is In No Way A Representation To Buy Or Sell Securities, Bonds, Options Or Futures. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor.
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* We will be reporting on Cancall (O.CCCA) aka VuScreen next month. This is a company that I own  2 million shares (free) with 10 million additional shares optioned at .02. I have also bought in the open market for clients and myself. Naturally I am MOST eager to see them become VERY successful.
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