Wall Street Next Week February 5, 2001

WALL STREET, NEXT WEEK

"Financial Astrology for successful investors and traders"

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WALL STREET, NEXT WEEK: February 19, 2001 FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

1. MARKETS
2. UP STARS/DOWN STARS
3. ASTRONUT
4. ASTROLOGY/STOCK MARKET SEMINAR
5. QUOTES
6. ON THE WEB
7. LETTERS

SPECULATION FEVER
Thank you Alan for re-igniting speculation fever. Give the economy a pill (interest rate cuts), but don’t cure any structural economic problems. Just wait until late Spring/Summer. Besides, 2002 does not look great to me. Watch how the markets will react first to the Summer Solstice Eclipse, then again the Saturn-Pluto opposition series starting November and ending May 2002.

However, that is then, and this is now. We continue to have a number of mixed astrological and technical signals, which promise more choppy markets. THE NEXT TIME the DJIA breaks 11,000, it could signal a short-term positional base, NOT a ceiling. However, a definite failure would be a good intermediate short/sell signal.
Our trading advice is to take small profits frequently, rather than bigger profits less frequently.
Our investing advice is to buy quality fallen angels like NT, CSCO and DT. Then close your eyes and just hold them for the pre-tax rally.

One classic sign of the end of the bull market is when bears throw in the towel. Often mistaken for a bear (I am not, but a cosmic value investor, i.e. realist,), we have been recommending buying (as well as selling). However, thankfully, unlike the herd, we currently believe the markets are likely to be down much of the second half of the year. We are trading March on the up side to the tax season- does that make us bullish? Is the end near or far? Stay tuned for exciting times as Alan uses his third bullet March 20. Remember he ONLY has a six gun. PS Bush only has a two barrel shot gun which he has yet to use.

MILITARY INFLATION
Wholesale prices surged 1.1 percent last month, while the "core" rate of inflation jumped 0.7 percent, the U.S. Labor Department reported Friday. We track more than one inflation index as the government’s CPI chronically under reports. Our quality of life inflation index (QLI) measures how much it costs to live as well as last year. The military budget inflation of 14.5 billion addition to last year’s 296 billion comes to 4.89% only slightly under the QLI index of 5.2%. Military salaries are scheduled to rise to 3.9%. Bush wants 4.6%. I believe most workers deserve 4.6%. So join the military or speak to your union/boss!

KEY DATES:    February 23
DJIA:    11,000 Floor/Ceiling Test
NASDAQ:    2500 Floor/Ceiling Test

2. Big down moves for Nortel (NT) makes us want to buy this stock under 22. Short term targets are 30; Intermediate term 34 and long term 38.
WSNW Subscribers can review past 2001 UP STARS/DOWN STARS ratings.

3. DANISH DOWNGRADE: The Faeroe Islands' decision to hold a referendum on May 26 on whether to seek independence from the Danes is not especially troublesome. Earlier attempts in 1906 and 1946 were rejected in similar referendums. Of serious note is that Danish tax authorities have revoked a stripper's right to deduct the cost of breast implants from her taxes. One 29-year-old stripper, Pia Damen, spent 20,000 kroner on the surgery. "To me they are work tools. I mostly use them for work.” Under Danish corporate tax law, investments to improve or maintain facilities for running a business are tax deductible. However, national tax authorities objected and rejected the deduction. We think this bodes very badly for the Danish business community as a whole. Where will it stop? Will Windmill manufacturers lose out as well? Naturally we downgraded Denmark earlier past month and recommended first distribution or selling of some Danish assets of the KFX circa 340-350. Not only do we believe it will move to 300 before 400, but it is likely to go lower still.

The US Army is changing slogans from "Be all you can be" to "An Army of one." This, despite the fact that their old slogan is the No. 2 commercial jingle of the century, behind only McDonald's "You deserve a break today." Why not combine forces with: “You deserve Macdonalds: Food for the Army.” Until then, MacDonald’s (MCD) remains a short term avoid and an intermediate term buy on weakness, for investors who don’t realize you become what you eat.

4. May is a beautiful time to visit NYC. What better excuse to visit than our NY CONFERENCE 2001 May 17? Register early and save money. Attend and perhaps you will make much more with our recommendations

5. "It looks to us like you're starting to get that bottoming phase."
Andrew Barrett, technology strategist, Salomon Smith Barney
HW: Despite some difficult astrological aspects coming up, short term I believe you are right.

"Investors are looking for companies with real earnings and are starting to pay attention to them when they find them. The companies that have been losing money are still under pressure and are likely to continue that way."
Jim Oberweis, president Oberweis Asset Management
HW: Like Jupiter/Saturn of May 2000 said: go back to old-fashioned investing: buy companies that make a profit.

"One week we are battered because there is very little earnings visibility,". "But on the other hand, for investors willing to look out longer -- six to 12 months -- clearly the stars are coming into alignment in terms of the economy bottoming out, earnings improving and lower interest rates."
Richard Cripps, chief market strategist, Legg Mason Wood Walker
HW: I wonder if Richard is a Tropical or Sidereal astrologer? I don’t quite see the same stars.

6. TheStreet.com: Make a Bundle on the S&P's Rejects
19 stocks were dropped from the S&P 500 index last year while 47 new ones were added. The stocks added lost an average of 15.5% from the date of their addition through February 12th - and the ones kicked out gained an average of 44.5%!

7. READER: You said in WSNW 12 Feb: “We expect a second wind for the market when it will again climb the wall of worry until a repeat of Spring 2000 Frothiness”
1. What month/time do you expect the frothiness?
2. What do you think NASDAQ and DJIA will climb to?
3. How does this frothiness coincide with your comment that May 2001 is going to be one of the low's of the year?
HW: 1. April 2. DJIA 11165-11665; Nasdaq 3000-3500; 3. April precedes May.

READER: Great call on long-term investment choices in Oct. I was beginning to lose faith in your system, especially in T, in Dec., but they have really turned around and come back faster than the rest of the market. Also, at the time, in response to my email, you said something about not expecting to time market bottoms perfectly which I was doing. As always, my expectations get me into more trouble than anything else.
HW: Perfection is for academics, not investors or traders.

READER: Any reason not to do another round of LU? We did well with in last time. If you feel it's a good trade, what entry price do you recommend this time?
HW: It is being too poorly run at this time. It will recover with a good new president. However, under 15 is acceptable, but I would prefer buying Cisco or Nortel for a trade instead.

READER: Do you still like Csco at 29.65? Shit, I liked it at 50!
HW: YES! However, I didn't like it at 50.

READER:I was a little bit surprised of your positive forecasts about two days ago, especially for Nasdaq.
HW: This is very short term-between now and April tax season in US. We foresee it up briefly, then down, then UP, then, post Tax time. down again.

READER: I've heard several astrologers say that the US real estate market (especially in over-valued markets like San Francisco --where I live) will experience a deep decline -- similar to what the NASDQ experienced last year. When this year do you see a drop occurring? For how long? When would you be a buyer of real estate? I want to buy a new home and could use your Astrological perspective.
HW: I am planning on buying circa June. Interest rates should be .50% lower then and the markets will be experiencing problems. Alternately, August or next May may also be good depending on the specific area and type of housing involved.

READER: When to sell T? Some time ago you mentioned in WSNW that T should be up in February. I bought in November at 20.29 and today it is 22.76. Is later in February going to be better for T than now, the 13th? I'm looking to sell when it is the proper time.
HW: Yes, I think so. Put a trailing stop in and you may be able to get closer to 25 or better later this month.

READER: Does your recommendation to sell on Wednesday or Thursday apply to NT, DT and CSCO?
In that case we would be out of these trades by next week. Do I understand this correctly?
HW: If trades YES; if intermediate term investments, NO.

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Thursday, listen to our ABS radio program TRADINGBY THE STARS. (c) 2001 All rights reserved. TheAstrologersFund "Always a Stellar Performance"
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* We will be reporting on Cancall (O.CCCA) aka VuScreennext month. This is a company that I own 2 million shares (free)with 10million additional shares optioned at .02. I have also bought inthe openmarket for clients and myself. Naturally I am MOST eager to seethem becomeVERY successful. RETURN TO MAIN MENU