1. DECEMBER ASTRODATES
2. MARKETS
3. THIS AND THAT
4. QUOTES
5. ON THE WEB
6. LETTERS
1. 12/11 Full Moon 4:03 am
12/21 Sun enter Capricorn 8:38 am
12/25 XMAS Solar Eclipse 12:22p
2. HOLD AND HOPE
Last Monday Abby Cohen stated that stocks were more attractive than
they have been all year. That was true. She also said the market is “undervalued”
15%- that was only partially true. While Nasdaq 3500 is hardly value,
it is not totally insane, and is a reasonable price target to distribute
stocks. Sell them, stop them, or sell call options, depending on
the stock and tax consequence in each portfolio. In the meantime,
we continue to “buy on dips”. In January, however, we shift to “sell
on rallies”.
THE CUP IS HALF EMPTY
This year has shown the largest increase in airfares in history.
The price of a first-class stamp will rise to 34 cents. This is slightly
under this year’s 3.5% rate of inflation. Next year we forecast a
higher rate closer to 4%. Personal care services are expected to
increase 10% next year. More than 1/2 of that “growth” will be due
to inflation. For example, my barber is raising the price of my haircut
and shave by 7%! Our GDP growth forecast first quarter 2001 remains 1.18%
to 1.24%. However, the good news is that according to the WSJ, the weak
Euro makes a Villa on the Riviera affordable for many Americans now.
Go aristocratic Bobos!
Last week, Iceland Air announced several flight reductions in order to improve its finances, including an 8-15% reduction in winter services to North America. Clearly, Oil prices matter. We suggest you lower your thermostat and buy a good down comforter: Florida subscribers exempt.
OUR RECOMMENDATIONS
1) Look for bargain opportunities to add to core position,
2) Finish tax selling before yearend.
KEY DATES: November 28, December 1
DJIA: Resistance 10800/11000
NASDAQ: Resistance 3200/3499
GOLD: Trading Buy
EURO: Continue Accumulation
3. While most analysts are downgrading stocks, the contrarian Astrologers
Fund, Inc. is upgrading!
Daimler Chrysler (DCX) was upgraded from Sell to long term Accumulate
under 38.
Sony (SNE) was also upgraded from Sell to long term Accumulate under
73. See our discussion of Sony for young investors on istash.com.
Yahoo is getting its second upgrade this year (the first was from Dump
to Sell). Now Internet leaders Yahoo and Amazon are being upgraded from
Sell to intermediate term Under perform.
Amro Bank (ABN) was upgraded to a buy for Saturn/conservative portfolios:
12 month Target 25.
Earthlink (ELNK) vs. AOL. While we rate neither stock as more than a trading vehicle, we are very happy to have switched ISP from AOL to Earthlink. Our reward? Far fewer junk emails and NO porno instant messages. If you would like to get your first 60 days of Earthlink for only $1, call 1-800-Earthlink [327-8454] new members only. Mention both afund@earthlink.net and Code 400056872 before 1/31/01.
4. “US Stocks Recover in December… But get Slaughtered Through January/February,
2001.”
Rebecca Nolan, editor, Financial Astrology Newsletter
HW: In December and part of January that is the way we are also betting.
“If you were to follow the Presidential cycle, you could invest your
money in CD’s or T-bills most of the first two years, then invest in the
stock market most of the latter two years.”
Han Kim, Profiting in a Presidential Cycle, Working Money Nov/Dec 2000
HW: I will follow this advice on and off in 2000 and 2001, depending
on each month’s astro-indicators.
"Better late than never. Finally this OPEC crude is starting to show
up in the weekly stock numbers."
Phil Flynn, senior energy analyst, Alaron.com
HW: I believe Gore would have preferred it two weeks ago.
5. CBS.MarketWatch.com
- Erdman's World: Stagflation defense rides on the dollar.
HW: US Sept trade gap at record $34.26 billion. Guess which currencies
will tank?
The
Party Economy is Over
HW: Nah, its different this time!
6. READER: Am I nuts or are the put/call ratios neutral?
HW: I don’t know you well enough to comment if you are crazy, but we
are buying the market like crazy. While Monday was a red-letter day, it
ended the Nov 15-20 danger period for us. We see buying opportunities in
quality Value/Growth stocks. While astrologically it is not yet green,
it is no longer red and if wrong, the risk/reward is delicious.
READER: I'm interested in becoming a subscriber before the "price hike".
Is information available on what services are offered in the various types
of subscriptions, i.e. gold, silver, etc?
HW: Silver is for investors; Gold is for traders and Platinum if for
professional money managers. See our WALL
STREET, NEXT WEEK FAQ for more information.
READER: In sample newsletter, I've seen comments re: DJIA, NASDQ, but
nothing re: SP... In Gold, do you offer advice for SP futures traders?
HW: We do not give our SP futures advice in real time in Gold.
However, there is a daily market commentary for gold subscribers on our
website that includes SPZ buy and sell price levels and major daily (but
not intraday) timing information. Until January 1, the cost is only $300
for a trial gold subscription that should be far less than the cost of
one saved or made trade. If however, price is an object, this is
not the right service.
READER: What the heck is up with Celsion - originally recommended in
March at $8.00 with targets of 16,22/50, but now trading under $2.00?
I am a strong believer in their technology and bought as a long term investor,
but am wondering now whether I should lower my sights. I am curious
as to what your current long-term astrological forecast is for this company.
Is it still destined for the stars or is it time to lick my wounds and
move on?
HW: Celsion is something we don’t track astrologically, but fundamentally.
We will review this in February if its stock price does not move up by
then.
READER: Your explanation of "Market Marker Day" in the helpful hints
is "in the absence of other influences, astrological and news, that is
how the market is likely to act over the next market cycle". Can
you give some more explanation on "market cycle"? I have followed
some market cycle experts; my head is still spinning on the number of cycles
they came up with. Also Dec 26 is marked as a "Key Market Marker
Day". What is the difference with a Market Marker Day?
HW: We usually divide each year into 5-8 trading periods of tops and
bottoms.
Dec 26 is a Key Market Marker Day because it is adjacent to the big
Xmas Solar Eclipse and marks more than the next trading cycle, but much
of 2001.
READER: Have you done fibs or time analysis on T? Someone in my
office made the comment that, "It goes down every day." I usually
buy them when I hear that, but it looks ugly. I don't see any reason
to own it, but that's sometimes the best time to buy.
HW: I repeat: astrologically, it does well circa February.
We have just seen 18, where we would recommend buying/doubling up if you
already own this. I recommend buying as our risk/reward- a downside of
16 to an upside of 42 within 12 months is positive to us.
READER: I haven't received this coming weeks issue......I'm having
withdrawal symptoms....I need my WSNW!!!! HELP....
HW: Sometimes we do send it out on Sunday. Please remember I had to
be in Florida last week. I hope you were pleased with the results
of my visit as showcased by the Florida Supreme Court Tuesday. J
READER: As you mentioned, the NASDAQ could drop to around 2500. If that
happens, would you be buying IBM at about 80, CSCO at about 38, DELL about
20?
HW: Yes.
Beginning 1/1/2001: Gold will be $1500 one year, $2500 two years
and $500 quarterly.
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