Wall Street Next Week October 15, 2001

WALL STREET, NEXT WEEK

Financial Astrology for successful investors and traders"

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WALL STREET, NEXT WEEK: October 15, 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

OCTOBER AND DECEMBER TAX LOSS SELLING
Tax loss selling represents an annual opportunity for investors to pick up high quality bargains that have been over highly valued in the recent past. We recommended this with a number of stocks ranging from General Electric [GE] to Citicorp [C]. Over the next two weeks, markets may again offer cosmic value investors similar opportunities. Have your 2002 buy list ready and be prepared to revisit it in December in case you miss out now. WSNW subscribers should review our AFUND GLOBAL 12 list for bargain global blue chip accumulation.

KEY EARNING REPORTS
10/15 MSFT
10/16 IBM, INTC
11/05 CISCO

Earnings watch begins in earnest next week. Markets should be choppy and range bound for the next two weeks. We see another 5% possible on the upside, but not the DJIA above 10,000 in October. We will likely reduce stock exposure slightly in order to have cash on hand to buy quality stocks if there is another investor panic

How much will the market rally when Ben Laden is taken out/captured? 300 points? 400? 500? Interesting question, no?
How much will the market drop on continued terrorist attacks? Probably far less than the market will rally on good war news.

FINANCIAL ASTROLOGY 101
Saturn (security) opposition (opposed by) Pluto (Terrorism). As we wrote in our AFUND 2001/2 Stock Market Forecast , “ Watch security and defense to move to center stage. Consider yourself warned and act appropriately.”
NY Times: Craving a Comfort Zone notes various Jupiter in Cancer responses including: ”products associated with cocooning, like candles and DVD players, are experiencing a spike in popularity…. People want to sew, create and get back to basics…increase in sales of candy, soup, peanut butter, frozen cakes and ice cream….Another bit of old-fashioned Americana that appears to be making a comeback is bowling.”

Since the Asian situation is likely to be very volatile for the next six months, we will be posting fortnightly trading and investing opportunity updates for our India Web Page.

Note: I will be in Canada next week visiting clients and expect to update our WSNW subscriber postings of AFUND Canada 25 Portfolio upon my return.

KEYDATES:        OCTOBER 16,17, 19
DJIA:                  9860/10,000 Resistance
NASDAQ:            1800 Resistance
CANADIAN $:    Continue intermediate term accumulation

Now THERE IS LIGHT AT END OF THE TUNNEL Saturn-Opposition Pluto does end May 2002!
POSITIONAL TRADERS: Buy quality tax loss selling for a HIGHER November.
INVESTORS: FALL 2002, the markets will be HIGHER than the October lows.

2. Morbid investors who appreciate the death aspect of 911 may look to make money from funeral homes such as Hillenbrand Industries (HB) or the cremation penny stock Neptune Society (NTUN). I prefer the French food group Danone [DA]. I not only prefer their products, e.g. biscuit and bottled water, but they have also reaffirmed targets for 5-7 percent sales growth and a rise in operating margins. Many analysts consider the stock a haven amid an economic downturn. We rate this a long term accumulate under 22 with a 12 to 18 month target of 26-28.

3. According to the NY Times article At Security Companies for the Rich, Flush Times
“Rich American are sending their chauffeurs to counter terrorism driving school, ordering security audits for their children’s private schools, traveling on the Metroliner with armed bodyguards and hiring investigators to conduct background checks on their gardeners, nannies and cooks. Clearly the number one beneficiary of the Saturn-Pluto aspects is the defense and security industry as we forecast long ago. But I don’t recommend another Internet-like frenzy, buying every stock whose name includes the words “defense” or “security”. Our two current favorite long term defense plays are Checkpoint Software (CHKP) and Boeing (BA).

As a special service to all WSNW subscribers, we are excerpting below from our April 1, 2002 edition on handling homeland security. It is my hope that this may save our readers money by not having to hire overpriced security experts: Off handedly, ask your cook three questions:
1) Do you know how to make Hoomos or Kibee?
2) Do you cook with box cutters or toenail clippers?
3) Are you now, or have you ever been, a member of al Qaeda?”
PS If your cook answered yes to the second part of Q2, I suggest you fire him/her immediately for sanitary, not security reasons! The reason: since October 8, the FAA is now allowing nail clippers on board flights, while restricting new items such as baseball bats, hockey sticks, golf clubs and cork screws. We are current researching how these new airline safety rules may affect not only the sports world, but also the French wine industry!

4. "The market is holding up in the respect that we are settling into a trading range. We are right around where we were before the Sept. 11 date when we had the capitulation."
Barry Hyman, chief investment strategist, Ehrenkrantz King Nussbaum
HW: Except now we are post-capitulation with far lower interest rates. Plus panicked investors feel foolish and poorer for their fears. All three new factors are somewhat bullish longer term.

“Expectations of business are worse than they were a month ago and the stock prices in many cases are higher. I find that a little troubling.''
Bob Smith, manager, T. Rowe Price Growth Stock Fund
HW: We are near the bottom of the business cycle and markets anticipate further growth. Given many stocks were undervalued, the fact they are now higher is not troubling at all. In fact, if markets were NOT higher than just after 911, THAT would be a little troubling.

5. READER: I'm looking for collapse to new lows in equities into mid Oct.
HW: As you know, we don’t see the September 21 lows of DJIA 8063 and Nasdaq 1357 taken out in 2001.

READER: Re: IBM you're dreamin…. back up to m/a line... 84.30 target still intact.
HW: I also “dreamed” it would go to 100, from 90.50, which it did. My new “dream” is that it will go to 104, and then 112. Just a question of whether it will be retest 95, not 84.30 first.

READER: About a year ago I clipped a news article, which said that many Wall Street fund managers consult professional astrologers in the course of their analyses, and they had been told that a (U.S.) stock market crash was likely in January 2002. After Sept. 11 I put my retirement funds in money markets - my nerves can't take this! Of course, the market is now up where it was before 9/11! I am trying to decide if I should stay in cash or get back in. If you believe there could be a crash, I don't want to risk choosing the right stocks, I'd rather sit on the sidelines.
HW: We see no reason to panic. January 2002 is likely to be a difficult month. However, the market has already experienced one crash. Over the next 12 months, after the completion of the Saturn-Pluto cycle, markets will be a little higher than currently. It will take good stock selection to make good money. If you are concerned, then stand all or partially aside until you are more comfortable.

READER: Did I hear you right that IHI.V* has about 6 million shares being shorted? That's going to be one big buying surge when calls are covered.
HW: Yes, that is what I also believe!
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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 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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