WALL STREET, NEXT WEEK

Financial Astrology for successful investors and traders"   
 
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WALL STREET, NEXT WEEK: October 22, 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

WILL OCTOBER BE THE CRUELIST MONTH?
Last year, I believed the Spring 2001 lows would hold but they did not. I now think the 2001 lows were in September, not this October.  Economically, we had forecast a –2.4% 3Q 2001, and a + 0.74% for 4Q 2002.  The important point is that THIS IS THE INTERMEDIATE TERM bottom, and the world’s economies will slowly stabilize.  A US economy that is stronger than in 1999 is hardly bankrupt, although clearly more individuals and companies will follow Polaroid and Bethlehem Steel along the path to creative self-destruction.

POLITICAL ASTROLOGY 101
WAR PREVIEW: October 22[20<>25]-November 2 will bring a new phase/major victory in Afghanistan, albeit with a new round of terrorist reprisals. Mercury is going direct in the same degree that was rising on the beginning of 9/11 WTC disaster.  November 2 is the second pass of Saturn opposite Pluto.

BUY ON DIPS OR SELL ON RALLIES
In choppy markets, BUY and HOLD is not the best way to invest. In range bound markets, traders know BOTH to buy on dips and to sell on rallies.  As for investors, both at the end of December and now at the end of October, it is a good time to consider tax loss selling as well as 2002 stock buying. IT IS NOT A QUESTION OF GETTING EVEN. It is a question of whether the stocks you currently own are the right ones you want to own in 2002. Those you do not want to own, or those you do want to own but you feel are over priced, should be evaluated to be sold between now and the end of December.  You may also wish to use positional trailing stops for stocks that you are unsure about. 

KEYDATES:        OCTOBER 24
DJIA:                    9000<>10,000
NASDAQ:           1645<>1765
GOLD:                 Continue long term accumulation

Now THERE IS LIGHT AT END OF THE TUNNEL: Saturn-Opposition Pluto ends May 2002!
POSITIONAL TRADERS: markets will be HIGHER in November.
INVESTORS: FALL 2002, markets will be HIGHER than today.

2. We are currently preparing our 2002/2003 economic forecasts.  Stay tuned.

3. Outside of the obvious military contractors and anthrax fighters, this war stock market may provide many unusual investment choices.  For example, TASER [TASR] a provider of advanced less-lethal weapons for use in the law enforcement, private security and personal defense markets, has announced  Mesa Air Group will be the first airline to train its pilots to carry the ADVANCED TASER® M26 less-lethal weapon. Does that make MESA and TASR good intermediate term investments? I don’t know.  I do know, however, US Carpet dealers are reporting brisk sales of Afghan rugs. Customers are worried the military action in Afghanistan. They want only Afghan rugs because they think they won't be able to buy them anymore. Will this be because the US will win (or lose) the war?  I think not. I believe this is all war hysteria. The following is a true story:
“Got sent home from work, they found envelopes with white powder. You will love this: the person who found it was eating powder doughnuts at his desk. I explained that and they still sent everyone home. Gees.”

4. “Your money market funds get you 2.4 percent a year and you could have gotten about 13 percent or better during that three-week rally in stocks.''
Tobias Levkovich, Salomon Smith Barney
HW: Intermediate term that is THE point.

“Confirmation of a market turnaround came when investors finally began to pour out of stock mutual funds last month and moved into bond funds. The market is always is in transition between investors' mass fear and mass greed.”
James Dines, Dines investment letter
HW: We agree the basis for a strong rally and another future cycle of greed has already been set.

5. Psychology has driven U.S. stocks lately
"If you have a long-term view of the market, this is one of the best buying opportunities we'll see for years to come," Dr. Geist said. "If you don't believe that, take a look at any stock market chart showing the past 60 years. Severe market retreats, which make everybody so anxious, look like tiny blips in an upward-spiraling market."

Playing a Pullback Using Bollinger Bands
In these uncertain times, any trading edge you can get is worth having. Numerous market watchers continue to caution that a retest of the lows set on Sept. 21 is inevitable.

6. READER: How long have I been reading your stuff?  Since '96 at least, right?  I have had your bookmark for a loooonnnngggg time!  And now you are bullish!
HW: I am not bullish. However, over the intermediate term, I believe markets will be higher than currently.  Also, for the first time in many years, a number of quality stocks, e.g. GE under 35 were undervalued. That makes me a happy buyer.  However, just as a 5000 Nasdaq was way over-bullish, I saw DJIA 8800 as over bearish.  When the markets are much higher, I will seem to be bearish again. In truth, I will simply be following my cosmic value strategy. 

READER: As a positional investor, when you say  "timing your investments", do you mean that basically the best strategy is to buy and hold and maybe move out and than back into the market around tax selling time to take advantage of that (end of Oct and/or sometime in December) or do you feel that I could also be trying to take advantage of the more deeper corrections that occur occasionally, like the one on Oct 17?
HW: It is different for a positional investor vs. a positional trader.  The latter may rest in cash fully, while the former rarely is.  Everyone should always try to have cash on hand to take advantage of mispriced markets and stocks.  Generally , we look to step into markets when they are way down and reduce positional holdings when they are way up.

READER:  I would love to attend the 2002 conference, however, I notice that Mercury is retrograde at that time.  Hmmm, not great timing for traveling, or communicating.  Any chance the date will change?
HW: I do realize there will be some difficult aspects and may reduce it to Friday night and Saturday rather than 3 days long. However, our New York conference is an annual event, which celebrates the NYSE stock exchange birthday May 17. Therefore we endeavor to incorporate the astrological factors into the event, rather than to reschedule it.

READER: Over the last year -- I have been disappointed with your "Weekly Wall Street commentary."  Much of your commentary include remarks that are INANE, silly and irrelevant, for example, referring to business being down for "prostitutes," etc.  Or, other commentary that has nothing to do with the markets and financial astrology.  They are "filler" and far away from what I would hope to hear from an accomplished financial Astrologer.
HW:   I always appreciate feedback. In this case, I am proud that WALL STREET, NEXT WEEK has a unique style. Happily for me, it is well received by many thousands of people who read it. As for my ASTRONUT column, it is clearly marked, and many, including myself, enjoy its “Alan Abelson’s” style of humor.

READER: You are an astrologer; which I do have respect for but the continuous upbeat message (in a clearly and costly message you have given for me personally, CLN, AT&T etc.) does not help. You seem to think that after a 20-year period of more than a bull market that recommending further investment is wise.
HW:  Clearly, those two investments were not stellar. I could counter with dozens of very profitable investment ideas given at the same time. Be-that-as-it-may, I disagree with your main point. When times seem worst, they are often the best times to invest and conversely, when things seem best, they could be the worst.  Given Saturn-Pluto ending in May 2002 to be followed by a Jupiter-Neptune opposition, coupled with low interest rates, the fed flooding money into the system and the bottom for the intermediate economic cycle being mid-September to mid-October, I see this is an excellent time for long term investors.  Clearly there will be some rough moments this Winter, but to run away from markets is bad investing in my opinion.  Time will tell.

READER: I can't believe IHI price – it fell to 0.48 OTC today. Why oh why at this late stage is the price doing this. Is there something we don't know that is a negative re IHI? Ps I am worried that long-term investors will start to panic, well they already are.
HW:  I know of no unknown negative – there is nothing new but slow and steady company progress.  I believe it is more the activity of panicked shorts, rather than post 911 panic.  However, I have always maintained penny stocks act like “non-expiring options” or leaps.  I am as confident as ever, and perhaps more so, now that we are within months of production, that investors who jump ship may regret it.  However, if I am right, there will always be an opportunity for them to buy IHI* stock later at a $1, $5, $10 or higher depending on the realization of future company progress.  And like Microsoft, to whom IHI’s Bermuda chart has some astrological affinities, there was many years no wrong time either to sell and take profits, or to buy and hold. As for me, I continue to rate IHI a strong buy for long term emerging aggressive growth.

READER: Every week you continue to "shamelessly" promote IHITF!  Even though you've disclosed your relationship with them -- that doesn't give you license every week to have at least 2 questions on that stock.  You are using your newsletter in too self-promoting of a way.  In fact, I suspect that without your constant promotion, its daily volume of 50,000 shares would go way down.
HW: As to IHI*, I report on it for many subscribers and associates who do own the stock. After each visit, I often personally buy more.  I will likely do so yet again, after my meetings last week with Roger in Toronto.  Perhaps next year you will have a different view. Certainly, if the company realizes the potential I foresaw for it many years ago, you will.  It remains the single best aggressive emerging growth company story I know.   If you know of others with equally compelling paradigm shifting technology and horoscope potential, please let me know.

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(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                      
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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