WALL STREET, NEXT WEEK

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WALL STREET,   NEXT WEEK: August 6, 2001
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

SPECIAL EARLY EDITION AUGUST 2

HOW DIFFICULT AND DANGEROUS IS THIS AUGUST?
VERY!  Be cautious, very, very cautious.  If you are taking high risk positions with your portfolio or still using significant margin, then be very, very scared, too!  A poor US economy is not yet a thing of the past. The Federal Reserve may need to lower interest rates again if economic performance is weaker than anticipated, Fed Chairman as Alan Greenspan keeps saying.

I say: weaker than who anticipated - you or me Alan? I believe 2Q growth was .45% and still forecast a –2.4% GDP drop for the current Quarter.
PROTECT:  Raise cash, place protective stops, write covered calls, buy puts.
This past week we saw how high the market can go short term; Next week, we may know how low.

IT’S NOT ALMOST OVER; ITS JUST BEGINNING
Most companies laying off staff today are exercising more bad management on top of their poor forecasting and planning. Wall Street is continually heartened by government reports showing that consumer spending continues to exceed income. Soon, very soon, consumers will curtail their spending habits. “Consumer optimism in the U.S. economy “unexpectedly” fell in July amid rising job losses from such companies as Lucent Technologies Inc.” reported Bloomberg. How can this be unexpected? How???  Hence, we are very worried. While Markets do climb a wall of worry, we will continue to worry at least until August 8/9.

BUY ON DIPS OR SELL ON RALLIES?
BOTH! - The former for “A” Stocks; the latter for dogs.  Do not rush. Investor prayers to Fed Alan for dog day relief August 21 will have little lasting effect.  This will represent a fairly good trade, but in more cases far from a good long term investment opportunity.

KEY DATES:        AUGUST 8
DJIA:           S1 10,150 S2 10,000 S3 9800
NASDAQ:        S1 1950 S2 1920  S3 1800
US BONDS:    Accelerate distribution
NIKKEI        Continue long term accumulation

I WILL BE INTERVIEWED ON CNNFN THIS COMING FRIDAY AUGUST 10 AT 2:30 PM ET.

2. We recently gave up on ATT.  We had waited and waited as we knew  it had superb astrological aspects early this year. But that they blew it  once again, and that its stock would only rise 40% with that much cosmic assistance, we did not conceive of.  We finally sold out after being disgusted watching the incompetence and arrogance of their top management in a recent interview.  We are planning to do a Euro-Swap with Deutsche Telecom, similar to our recent Motorola to Nokia. FYI: We are rather glad we did given Motorola’s recent inability to forecast its future.  If ever an industry needed good financial astrologers, it is the Telecom sector. As for DT, we are hoping for a testing of $20 as our buy signal.  As for AWE, it is outperforming, and we plan to sell at 20.50 OB.

IHI* MILESTONE: From my book INVESTING BY THE STARS (page 178):
“Coming transits include the Jupiter-Uranus conjunction of February 16, 1997, exactly on the IC of the IHI Bermuda chart.”
This is the DAY that Kahalil of International Trade Circle was introduced to IHI.
One part of my initial astrological work for IHI was based on Astrocartography. I then proposed several corporate offices/major profit centers for IHI: These included New York, Luxembourg AND the Kingdom of Saudi Arabia/UAE.  If you are an IHITF shareholder or prospective shareholder, I advise you read their current press release of July 26 VERY carefully. On the basis of this company news, we officially upgraded our IHI strong BUY to aggressive growth small cap (from aggressive speculation).

3.  The lights are still on at Lucent HQ, but it's only one fluorescent bulb per cubicle instead of the usual four. The free coffee is no more. The once manicured lawn at headquarters need care, but they won’t pay for a gardener. It's necessary for us to make sure that every dollar we spend on expenses is a necessary dollar to spend," spokesman John Skalko said.

Coffee at company’s meetings IS necessary for improving corporate morale. Obviously management can't see the forest for the trees. "These are tough times and we're in a fight. It's a tough fight," Skalko said. To date, Lucent is responding as a loser. Our communications director, a coffee aficionado agrees. She believes any company that removes a coffee perk will have more lethargic workers early in the morning and therefore will obviously fall further behind in highly competitive industries. While Lucent stock is beaten up and likely to go up intermediate term, if only on buy out rumors, we recommend reducing positions and Selling on rallies above 10 or better.

As all serious Nordic watchers know, Helsinki last week experienced its largest power cut in 15 years. Almost all of Helsinki was reportedly without power for half an hour after lightning struck a power cable in the east of the city. The power cut also affected the metro, the trains and the trams.  Clearly a sign from Heaven, we sold more of our July STOCK OF THE MONTH CLUB 2001 Nokia (NOK).  Perhaps we will buy it back cheaper after B-Day.  Perhaps we were just being superstitious and foolish. Time will tell.

4.  "A lot companies have taken huge charges and have had big layoffs. Some people think the bottom is here."
Rashad Barajakly, analyst, Williams Capital Group
HW: For some stocks yes, for others not so. Let’s look again after August 8th.

"We're in a profit recession, and it's not going to end. It's got another quarter, maybe two quarters, of life left."
David Sowerby, market strategist, Loomis Sayles
HW: Two or Three by my count.

"There's a reality setting in that earnings haven't been particularly good."
Terry Diamond, chairman, Talon Asset Management
HW: Well, Duh!

5.   "Despite increasing demand, we continue to avoid traditional computer companies that are primarily equipment manufacturers since hardware continues to become more and more commodified.  Increasingly, competition will be brutal; especially as the consumer electronics companies such as Sony continue to make inroads.  The exceptions are those like IBM that derive substantial revenue from software and services, the two subsectors we continue to like.  Unfortunately valuations are sky high.  Similarly, despite soaring usage of the Internet, we prefer to avoid new purchases in this subsector as well until there is some value semblance."

How true were our forecasts last year!  Now, however, pockets of value are being created.  Cosmic Value investors will reap their rewards by holding fast to their principles until closer to the end of the Saturn-Pluto oppositions in May 2002. Many TMT will get a 10-20% daily pop on outperforming diminished expectations. We will Sell them unless they remain undervalued and are likely to outperform the markets longer term, e.g. IBM.
All WSNW subscribers are advised to review our stock additions and deletions and updated price forecasts for 2001/2002 in the computer and telecom sectors at:
AFUND 20 Telecom Stocks 2001/2 and AFUND 20 Computer Stocks 2001/2.

Similarly, Platinum subscribers may see our latest views and price targets at FINANCE Stocks 2001-2002 and Media Stocks 2001-2002 .

6. READER: Saw you on Unsolved Mysteries last evening. Great job! For me, the mystery WAS solved.
HW: Thank you.

READER: What gold stocks would you recommend?  Price target? Or do you recommend just buying gold?
HW: I prefer physical gold and especially view December Gold futures as having a very advantageous risk/reward ratio.  I preferred unhedged midcaps such as PDG and GG on the stock side.

READER: Do you see any reversal in Lucent anytime in the next few years?
HW: Before or after it is bought out?  The stock will go up, but we advise selling any significant rally.

READER: [re: B-Day1:] Interesting as I have a Lindsay count that is up at that time which would say FREE FALL starting July 25 or 26th.... amazing.... great minds think alike..
HW: Or perhaps have a similar connection to the great CPU in the sky.

READER: Good job done by you on IHI*. Congratulations for your Astro-Inputs for this company!
HW: You are welcome

READER: Henry, do you now agree with me that NASDAQ could touch 1492 level ? Charts did indicate this level a couple of months back and they strongly reflect the same now.
HW:  Still don’t see 1800 broken nor 1600, but we are obviously in one of two VERY dangerous periods these next two weeks.

READER: I read your piece on IHI recently, having bought it on your site's recommendation @.75 late last year. Since then it got up to .82 and back down into the .60's. I've yet to see it reach near or over a dollar. I hope it won't take too much more time.
BTW, if one were interested in buying one of their houses, when do you think it will be possible to do so -- turn of the year?
HW: Impatience is a great enemy of successful investing and trading.  There is too much demand for a single home order to be accepted unless you are a developer higher up on the queue with an order for 500 or more. 2003 is more realistic for a single order.
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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.
INVESTORS ARE REMINDED TO PERFORM THEIR OWN DUE DILIGENCE BEFORE MAKING ANY INVESTMENT DECISION. ALWAYS INDEPENDENLY INVESTIGATE AND FULLY UNDERSTAND ALL RISK EFORE MAKING ANY INVESTMENT.
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) over the summer.    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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