Wall Street Next Week October 8, 2001

WALL STREET, NEXT WEEK

Financial Astrology for successful investors and traders"

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WALL STREET, NEXT WEEK: October 8, 2001
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

AFTER OCTOBER MARKETS TARGET PRE-911 LEVELS, THEN WHAT?
We continue to believe global markets are targeting pre-911 levels, e.g. DJIA 9605 and Nasdaq 1695. This would represent the first (or second) of many victories to come in WWWIII. However, we don’t see US markets much higher than 9861 pre-October 19, short of a Gulf War rally type of victory next week. Let us not forget there will be loss selling in October, as well as December. We believe this will take place later in the month, rather than this next week. We will basically remain long until post 911 levels and are prepared to begin switching horses (stocks) the week after next. Until then, “buy and hold” is the way to stay.

KEY DATES:        October 16, 17, 19
DJIA:                   9000-9605
NASDAQ:          -> 1695+
Canadian $            Begin intermediate term accumulation

Now there is LIGHT AT END OF THE TUNNEL: Saturn-Opposition Pluto does end May 2002!
POSITIONAL TRADERS: Markets will be HIGHER in November.
INVESTORS: FALL 2002, the markets will be HIGHER.

2. Given the Canadian dollar sale, we continue to recommend three old favorites for additional accumulation:
Celestica (CLS), GoldCorp (GG) and International High Tech Industries (IHITF)*.

World gold producers, reeling from two decades of depressed prices, are beginning an annual $200 million marketing campaign. The initiative will attempt to stimulate consumer demand for gold jewelry. "We've all seen what marketing dollars do for diamonds, Gucci and Coca-Cola," said Randall Oliphant, CEO of Barrick Gold. Given that Gold is preparing to take out $300 shortly, we will continue to trade on the long side and distribute circa XAU 68.

3. CNN.com - More sex, less sleep: U.S. attack reactions vary
“Sexual activity is up. Flying is down. Gas mask sales are soaring. People are gorging themselves on candy and ice cream but also ducking for cover at the smallest noise. The thought of driving into an underground parking garage can be chilling…. Pepper Schwartz, a University of Washington sociologist, said there are many reasons people have sex during crises and predicted a "baby boomlet" would follow nine months after the attacks but one not nearly as big as the baby boom that followed the end of World War Two. “ In addition to handgun sales spiking up 500% post 911, clearly both contraceptive manufacturers as well as Gerbers foods will benefit short and long term respectively. The best way to play this trend (outside of “participation” J) could be Toys ‘R’ Us (TOY). While this recommendation is a bit early, we rate TOY a long term accumulate under $18.10.

“It is not different this time.” Sales of religious books spiked up during the 1991 Gulf War. Bible sales rose 27 percent for Family Christian Stores. Books on prophecy there were hardly selling before Sept. 15, now sales are up 80 percent. "People are unsettled and unsure and they want to know how events like this play in the bigger picture," said Rolf Zettersten, vice president of Warner Books, an AOL Time Warner company. "They turn to authors who can interpret scripture and prophesy to find some kind of comfort and explanation." Is this enough reason to buy and hold AOL? We think not and rate it an under perform until January and suggest selling/distribution between 38 and 40.

4. “We are going into a period right now in which I think the market has more potential on the upside than the downside.''
Ned Riley, chief investment strategist, State Street Global Advisors
HW: Most certainly.

"Whether we've seen a bottom is the big question, and I don't think we have."
Ralph Acampora, director of technical research, Prudential Securities
HW: I disagree and think we have. If not, we will almost definitely before the end of October.

"I'm sure we are in a recession, probably a relatively deep and extended one, but they are part of business life and we are prepared."
Warren Buffett, chairman, Berkshire Hathaway
HW: I don’t consider an economic slowdown that ends by May 2002 “extended”, nor is far less than a 5% drop “deep.”

5. What to do with my $.10 stock?

$340 Gold

6. READER: Do you pay any attention to a void of course moon when you buy or sell, or make decisions about same?
HW: No.

READER: May I please ask you to tell me what data do you use for your forecasts? I am not asking for the Patterns you are looking for in this data. I am simply asking what planet/star/sun/moon data are you looking at to make your predictions.
HW: Read my INVESTING BY THE STARS for hints. However, much of my financial astrological work is proprietary at this time.

READER: IHI --price today - how disappointing especially for the company and where they are at. This catastrophe that has happened in USA, how much do you think it will affect positive increases in IHI price as they do indeed near commercial production. Realistically as they announce first order next month what price do you anticipate now end of this year?
HW: Current IHI prices are absurd and insane. Anyway, I am buying a little more IHITF* for myself in October, November and December as they remain on schedule for commercial production.

READER: I have a couple of questions regarding IHI. When does IHI expect to see the first foreign factories to be built, and will IHI receive a certain percentage of the profits when they are in operation? I do wonder why so many foreign licenses have been sold but but as of yet no one is building any new IHI factories ?
HW: 1) In 2002, one to three foreign factories should be built.
2) Yes, IHI* receives 51% of the profits from all factory joint venture partners.
3) They cannot build another factory until the first factory in Vancouver is in production. It is fully built and the last of the equipment ordered arrives end of November. First orders are are to be announced in October.
However, remember it can take up to 2-3 months for a brand new technology to be fully integrated and functioning. So I don't expect new factories to be built until Q1 or Q2 2002.

READER: I'm STILL trying to get $100,000 back to invest with you. I had to sell my house quickly and then to get another in an area I would want to live in, I put $85,000 equity in it. Now I'm thinking maybe I should sell while interest rates are low, buy something little that I could rent out later, and have the $100,000 to invest with you. Do you think the real estate "bubble" is next?
HW: The real estate market IS slowing down. Many think the bottom will come in the Spring. As astrologers, we know that there is danger until at least May 2002 when Saturn is finished opposing Pluto. However, thereafter, Saturn enters into Cancer in June 2003. Note what Saturn is doing to the Telecom industry while transiting the Sign of Gemini! So the danger can last longer. My own thinking is that I am looking to buy in Spring 2002. Certainly there is a great danger of a “hard landing” that includes a real estate bubble end. As a rule of thumb, I recommend selling (if you haven’t already) if you don’t need it. Much does depend on location, location, location.   As to your specific case, there are other issues to consider such as taxes, the value of home ownership, personal desires, etc. I recommend giving me a phone call to discuss this further.

READER: I understand your use of Pivot in trading, but what does “Nasdaq Pivot 1680<>1700” mean?
HW: Rather than a single pivot, i.e. to buy above 1700 and sell below in day trading, this means that last week we began with the advice to be short below 1680 and long above 1700. Between 1680 and 1700 on Nasdaq we recommend no action.

READER: As per my Astrology Guru - Mr. Vivek Seth:
"Situation will be turbulent worldwide as a fallout of Flight 911 till May'2002. Various aspects with Saturn, Mars and Dragonhead Formation are not favorable for the world at large and especially Asian and West Asian region. Situation will look as if the events are under US Control, but will fizzle out in March/April'2002. Some thing unexpected can happen in March/April'2002, which will affect the world markets. The scenario worldwide will improve only after June'2002 onwards".
HW: Be that as it may, there are many, many profitable trading and investment opportunities well in advance of Spring 2002.

READER: I was wondering if you follow earnings warnings and earnings reports and put them into you calculations/projections. Last earnings month (July) there seemed not only to be a large reaction to the earnings but also what companies were projecting for the next quarter. If so, do you mind me asking when this month do you feel we'll get past most of the negative weighting on the Nasdaq-type company earning reports and/or do you feel they'll have much of an impact?
HW: Yes I do look at them at times and believe that poor 3Q earnings are already mostly built into current pricing.
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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"
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Author: INVESTING BY THE STARS, THE STUDY OF ASTROLOGY,TRADING BY THE STARS (01)
May 17-19, 2001 Tenth Annual Astrology & Stock MarketConference NYC

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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.
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* IHI and YJT are AFUND clients.
** From Cancall (O.CCCA) 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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