1. MARKETS
2. UP STARS/DOWN STARS
3. ASTRONUT
4. QUOTES
5. ON THE WEB
6. LETTERS

DO YOU JUST WANT TO “GET EVEN” in 2001?
The stock market has often bottomed within one month of the first rate cut reversal. That is why many fund managers are relatively bullish six to nine months ahead.
[As astrologers, we know that August, with its first of three Saturn Pluto squares, is astrologically the KEY time to watch for possible confirmation]
Naturally, it helps when many people are bearish (they have already sold).
It also helps if there is plenty of cash around and stock valuations (P/e ratios and value pricing) are cheap, not just reasonable. So assuming it is NOT different this time, (usually a reasonable assumption and THE preferred way to bet], some stocks have already bottomed or will by February. Others will wait until August [or 2002/3],  while others such as Internut stocks will crash and burn again later this Fall.
In other words, stock selection in addition to market timing will remain key throughout 2001.

What is different this time, is that the incoming administration [unconsciously?] may help to create thought forms to manifest a full-blown recession. Is it really so necessary to give tax cuts to needy billionaires?  Will they succeed? We expect economic reports to often be worse than expected in contrast to the previous administration.  Does Bill Gates just want to get even with his net worth last year? More likely, like most market professionals, he wants to get ahead, not just end up even.  Will Bill Gates become the world’s first trillionaire before Bush leaves office?
What, me worry? Stay tuned and stay cautious.

Key Dates:  January 16, 17
DJIA:   Trading Down, then Up.
NASDAQ:  Pivot 2640

2. Most of the problems in the Wintel computer box industry is NOT due to the economy.  It is the problems users have in upgrading PCs (wasting up to a full day per machine thanks to Microsoft Window’s inability to simply transfer drive information) and Intel’s poor pricing and introduction of the “application challenged” Pentium IV.
We see ADV MICRO DEVICE [AMD] continuing to gain market share as the industry’s AVIS (“we try harder”). We rate it an intermediate term BUY until it reaches its value pricing of 23.

Hewlett Packard, which we though most analysts overrated last year, seems to be overly fried. A DJIA stock trading under 31 - 20% under value -  merits an Upgrade from “Sell” to Outperform with a target price of 34 for Traders and 37-39 for those with a longer term investing horizon.

Germany's annual GDP growth was 3.1% in 2000, which is their highest annual growth recorded since 1991.Given that the Euro is trading at the lower band of our trading range (.93 to 1.05), we look more favorably at a number of German Blue Chips viz a vie their US counterparts.  However, many are, surprise, surprise, overvalued currently.  Nonetheless, we rate the German I shares (EWG) an Outperform at the current pricing of 18 ½ to 20.

We are once again upgrading the Internet sector from “Sell” to “Watch” now that the IIX has broken 250 and is currently below 300.
The best of the breed, Yahoo, is on Watch to be upgraded to “long term Accumulate” under 18, its cosmic value.
The new AOL started trading Friday at 9:31:27am with 200 shares at 48.05.
With a cosmic value of 31, we start our rating with an Under Perform short term to be upgraded circa May 2001 OCO 31 to an Out Perform.
WSNW Subscribers can review past 2001 UP STARS/DOWN STARS ratings.

3. Ottawa is promising to aid Mushuau Innu children in Davis Inlet, a poverty-stricken island village in the remote northern Labrador region of Newfoundland.  With a total population of just over 600 people, 154 of the 169 children aged 10 to 19 have attempted sniffing gasoline fumes. Seventy of them are chronic sniffers.  While there are no easy solutions to help cure native Indian children addicted to sniffing gasoline, this potential new price insensitive market bodes well for undervalued Oil refiners such as Val and Sun. We believe these stocks should continue to outperform in 2001.

Latest Economic Indicator: A Depression Doll is Hot informs us that Kit is wildly popular. An $84 dollar teaches a child an obvious lesson about thrift.  The major question is what does this foretell of 2001 markets?  One classic indicator, Spring fashion, translated the super short mini into the January 3 Nasdaq rally. Is Kit foretelling the Saturn/Pluto squares August 2001 to May 2002?  If so, could Toys R us (TOY) match ETOYS (ETYS) market performance?  Probably not, but it may be wise to leave this out of your portfolio until Summer just in case other Great Depression virtues like saving more and spending less catch on with today’s parents.

4. "Will there be a recession? There doesn't have to be. By cutting taxes and reducing federal regulations that stifle economic growth, we can ensure a strong economy and a prosperous America for many years to come."
House Majority Leader Dick Armey
HW: I agree there doesn't have to be, but that sounds EXACTLY like a prescription that could precipitate it. My advice is don't do it

"Wall Street is a world of extremes. It's funny. Most analysts do a pretty decent job, but they always seem to be a little behind, a little late to the party."
Gannon, senior vice president, Sun America
HW: I don't find it comical that most analysts have not been trained in financial astrology, and hence are usually behind the curve.

5. “The question for global managers is whether to Asia with or without Japan. The political situation this coming year will be a big factor in the financial markets as well as the poor state of its economy. While we still rate Japan an Avoid throughout early of 2001, we believe it will once again become a high flyer in 2002/2003.  Less than 116, the Yen is a long term Accumulate. However, we are ideally looking for 119-122 and a Nikkei much closer to 12,222 before we get really excited.” That doesn’t seem to be on the horizon before Mid-March at the earliest. WSNW subscribers interested in the land of the rising Sun should periodically read our new silver post: Japan2002.

FYI - Roger Rached did an informative 25-minute interview on CEOCAST.COM (free registration) on 01-04-01.  Thought you might want to pass it along to your subscribers.
HW: One does not have to twist my arm to help spread the good word about International Hi-Tech Industries, one of my two favorite speculative goldmines. Interested readers can listen at: IHI CEO Interview.

It’s written in the stars. Astrologers see tough 2001 for economy, Wall Street.

6. READER: Greenspan [A Pisces] eases within 2 mins of Venus entering Pisces. Which means that when Mercury hits same degree  (Jan 31 FOMC meets next) will be important as will when the SUN hits same degree Pisces which will be Feb19th... wild huh?
HW: I guess he was feeling good and he just decided to share.

READER: That is very great news from IHI!  Do you know when they expect to begin production?  The batter is at the plate and the homerun is coming.
HW: This Winter, and I believe more a home run, grand slam. [See Disclaimer, if necessary].

READER: I know GE has this incredible natal chart, but I'm somewhat concerned about their continued nose thumbing at the environmental issues, e.g. latest Hudson River notoriety.  How does that affect GE's chart?
HW: It inclines this SRI money manager to short its stock rather than to buy it. Despite our forecast for meeting its financial goals in 2001, we believe it will Under Perform intermediate term. Also, GE executives are not currently welcome at the Water Club in Manhattan.  That could change if their next CEO is more environmentally friendly, as well as help repay karmic debts. It might even improve the top and bottom line.

READER: Previous emails of your newsletter were unreadable.  I do know the reason for this. I would download them and there would nothing in them, only address headers.
HW: Again, this is a recent problem with “caring” AOL and their buggy 6.0 Version only.  Subscribers can read the current issue of WSNW from our premium website posts 30 minutes after we email it to subscribers.

READER: Re: Your Baron’s article: "A very happy bear" if Nasdaq gets to 3500??
HW: Because if the Nasdaq market gets that high in the first half of the year, I can stop buying selectively as we have been recently and just stay a bearish short.

READER: How do I register for the conference in May?  And how much is it?
HW: Conference registration info at NY CONFERENCE 2001.
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