Wall Street Next Week June 4, 2001

WALL STREET, NEXT WEEK

Financial Astrology for successful investors and traders"

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WALL STREET, NEXT WEEK: June 4 2001
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

1. KUDOS TO THE ASTROLOGERS FUND
The government has revised first quarter 2001 growth to 1.3%. Last Fall we forecast 1.2% and 0.3% for the current quarter.

BE CAUTIOUS AHEAD OF B-DAY: RAISE CASH – TRADE MORE
Thanks to double digit growth in the money supply and politicians who believe only the WWII generation will sacrifice individual comfort for the greater good, markets are once again beginning to act manic.

One 3-cent example: Recently TIVO reported a wider first-quarter loss of $1.20 VS $.66 in the year-ago period. As most analysts had expected a $1.23 loss, TIVO shares jumped as much as 44 percent in unusually heavy volume. Rampant speculation from penny stocks to Nasdaq is beginning to reappear.

STAY MARRIED
There is much social good in the latest tax cut. For one thing, who would consider divorce before the Fall only to receive $300 instead of $600 in cold hard cash from their government rebate check? Lawmakers hope that all this money in people's pockets will help revive the slumping economy. Personally, I am having a difficult time deciding between buying a new Land Rover or a time-share in Monaco. (Prospective) Subscribers may wish to use their windfall to (enter) upgrade or extend their Wall Street, Next Week subscriptions.

This month we recommend raising intermediate term Cash levels and (re) buying gold for hedging.

KEYDATES:    June 4, 6, 8
DJIA: 11,000 Pivot
NASDAQ: 2200 Floor tests
US BONDS:    Continue distribution
EURO:    Accelerate long term accumulation

2. We have begun rebuying gold again for a long term hedge against the US Dollar future decline.
Specifically, we like Placer Dome [PDG] at 11. Our trading target is 13; our investing target is 14. We also like resource giant BHP given our belief that the Australian Dollar will increase in value and that once merged with U.K.-based Billiton to become the world's largest minerals and metal company, BHP will have a giant advantage over its competitors. Our targeted buys are around $22.25 with a P1 target of 25.

3. Disney, one of my emotionally favorites shorts, seems to have come up critically short with "Pearl Harbor." Read The Best Years of Our Lives.[http://www.nytimes.com/2001/05/26/opinion/26RICH.html?searchpv=nytToday]. Politicians on both sides of the aisle seem to forget “it was fought over something more blessed than the right to guzzle gas…. Both parties have reversed J.F.K. Their mantra is: Ask not what you can do for your country, but rather what your country can do for your stock portfolio benefit package." Why would anyone who is not goofy pay more than $30 for a stock that is worth less than $20? Seems like a cheesy stock purchase to me!

Whether you like to sing, have sex in the shower or just want to get clean, Westin wants you to experience their new heavenly bath (a custom-designed speakman shower with two heads to provide more power and wider water coverage). "A terrific shower is the most important service a hotel can provide." according to Barry Sternlicht, CEO of Starwood. Despite Jupiter moving into Cancer this summer and Starwood Hotels (HOT) being undervalued [it is worth $45], I am not sure I can invest in a company whose CEO values showers that highly. At value pricing or better, I would prefer to own Marriot (MAR), Extended Stay (ESA) or Club Med (CLMDY).

4. "The rising prices of gold and gold stocks also confirm the growing market consensus that the Fed may be easing too much. I'm more concerned about the potential for another speculative bubble in the stock market."
Edward Yardeni, chief investment strategist, Deutsche Banc Alex. Brown
HW: A reasonable concern after May 2002.

"Our inflation concern is the complete lack of fear of inflation. [Stocks are too expensive] if all this monetary easing translates into even a modest increase in inflation."
Doug Cliggott, chief equity strategist, J.P. Morgan Chase
HW: Above DJIA 10800 and NASDAQ 2500 (2200?), they are definitely NOT cheap.

"I certainly don't think the market can go up at the rate it has over (the past) month and a half. While I think the stock market will be higher than it is now on December 31, we'll have months we'll be down."
Edward Hemmelgarn, Shaker Investments
HW: Nasdaq yes, Djia no, Spx maybe.

5. Heavens offer star-crossed euro no respite.[http://biz.yahoo.com/rf/010531/n2474726.html]
HW: We are glad to see the story, even though we disagree with all three astrologers.

The Good News Bears.[http://www.thestandard.com/article/0,1902,24717,00.html]

6. READER: Gold spiked waaaaay up and now it's re-traced. Do you believe Gold will have a strong run-up in JUNE? And how long do you recommend holding it?
HW: We bought some PDG recently at 11.01 for a P2 target of 14. Alternately, I may take 15-20% profit. However, gold could blast out of orbit after the US$ falls drops. I recommend owning gold only as long as the US Trade deficit is greater than $150B and my wife keeps insisting I make more money (inflation).

READER: I am not a specialist of the Nasdaq as you, but it seems to me that it could go very much higher in June.
HW: I agree about Nasdaq, but plan to exit many Nasdaq positions after that.

READER: I am also bullish on GOLD. In fact I have been for more than a year. Henry do you remember that I told you about a year back that I expect GOLD to touch a level of 400 in a years time or about that much? I still stick to my bullishness on GOLD. It will safely breach the US $ 318 level in next nine months or so. Also US $ 400 level is not very far away. It is just a question of time.
HW: While I don’t remember this specifically, I have no doubt it is true. After all, some of the smartest money mangers, traders and analysts are subscribers. The fact they subscribe alone proves it! ;)

READER: I see you have this Friday [May 25] as a red day. From my experience and studies that I have read the Friday before a US long weekend is almost always up. May I ask your thoughts on this?
HW: I prefer to follow astrological indicators over seasonal ones that “everyone” knows. Also. traders will prefer to be flat (sell) over a long weekend and the news is likely to be "bad". Whether I am right remains to be seen. [I was!]

READER: Is it possible to subscribe to any newsletter for stock market info you have available on a daily basis.
HW: Yes, our gold traders edition includes a daily market commentary. The cost is $500 for 3 months or $1500 per year.

READER: Out here in California the public is looking en masse at converting homes and businesses to solar power. What do companies like Siemens (makes solar panels) and Rolls-Surrette (makes batteries for solar power storage) look like? It's been suggested that solar is going to be a huge booming business in the near future, given the energy crunch and abhorrence of nuclear power plants.
HW: Solar Power is most certainly a growth industry, but we have yet to identify the real winners. Companies like Astropower (APWR) will grow more than 30% annually but are overvalued. I have yet to discover the “Microsoft” of the industry.

READER: In the next 12 months from now what is a realistic price target for IHI?
HW: It is hard to say. I would love to see $30 so I could collect my Dom Perignon champagne, but it could be that $5 or $10 is more realistic. Watch its stock movement in June and September, when IHI* is under very favorable astrological influences.
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PAST WALL STREET NEXT WEEK REPORTS
Thursday, listen to our ABS radio program TRADING BY THE STARS. (c) 2001 All rights reserved. The Astrologers Fund "Always a Stellar Performance"
wsnw@Afund.com 212/949-7211 Fax 212/949-7274 370 Lexington Avenue, Suite 416 New York, N.Y. 10017-6503
Author: INVESTING BY THE STARS, THE STUDY OF ASTROLOGY,TRADING BY THE STARS (01)
May 17-19, 2001 Tenth Annual Astrology & Stock MarketConference NYC

DISCLAIMER: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS.
The Astrologers Fund Inc. Accepts No Liability Whatsoever For Any Loss Arising From Any Use Of Its Report Or It's Contents. The AstrologersFund Inc. Or Its Clients Usually Holds Positions In The Stocks and/or MarketInstruments Mentioned And May Buy Or Sell At Any Time Without Notice depending on market conditions and personal financial conditions. This InformationIs 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 construedas advice designed to meet the investment needs of any particular investor.
ALWAYS CHECK WITH YOUR LICENSED FINANCIAL PLANNER OR BROKER BEFORE BUYING OR SELLING ON THE RECOMMENDATIONS OF THE ASTROLOGERS FUND Inc.
* IHI is an AFUND client.
** We will be reporting on Cancall (O.CCCA) aka Screenphone in July. This is a company that I received 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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