Wall Street Next Week APRIL 19, 2004

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

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WALL STREET, NEXT WEEK: APRIL 19, 2003
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

THE GLOBAL ECONOMY IS SET TO SLOW
UN economists are forecasting that the world economy is expected to grow by 3.7% in 2004. However, the 100 economists from 60 nations said in their "Global Economic Outlook 2004" that the strong pace of recovery that started in the second half of 2003 is expected to wind down in the second half of 2004. Furthermore, IMF, OECD say US budget deficit threatens recovery. "The US government's budget deficit came under fire on Wednesday from two global institutions saying a plan to halve the record gap by 2009 may not be enough to stop long-term damage to the world...”

H2 April 2004 69% of the US market cap announce earnings. While most are positive, forward views are correctly cautious and ALMOST ALL “GOOD” NEWS IS ALREADY BUILT IN. Last week financial and tech shares declined, while investors sought safety in consumer staples, energy and health care, which have historically done well as interest rates first rise. With few exceptions, even tech stocks that tripled their quarterly profits barely rose or dropped as investors acknowledged that current Nasdaq pricing is simply too high. The market's subdued reaction to earnings reflects gains that were expected for the first quarter. Moreover, I believe most earnings we see next week are likely to be PEAK earnings for H1 to Q3 2004!

SOLAR ECLIPSE MONDAY
FIRST DOW BUY: 9800? 9600? 9400? FIRST NASDAQ BUY: 1900? 1800? 1750?

With Nasdaq street fighting to hold its head above 2000, has our forecasting of the H2 April 2004 correction begun or will it wait a bit longer for this week’s earnings? Given that Monday’s eclipse adds more Iraq/terror potential danger than usual, we prefer to stand aside and/or be short/hedged.

HYDE PARK SOAPBOX: Americans to celebrate 34 years of Earth Day.
“Let's make Earth Day not only a day to reflect on the environment and become aware of the environment, but let's also use this day to make a pledge to the environment. Let's make Earth Day a little like New Year's Day when you make a commitment to yourself to change some bad habit, such as quitting smoking, or start a good habit, such as getting exercise three times a week. On Earth Day we should all make a small commitment to the Earth such as, "I will start to recycle my trash," or "I will take cloth bags with me to the store…."

TRADERS: Nasdaq is in danger of becoming a falling knife this next week.
INVESTORS: Short term [H2 April 2004], the probability favors the bears.

KEYDATES:       April 19, 20
DJIA:                   Dual pivots: 10347 and 10500
NASDAQ:        S1 1920 S2 1900 S3 1800 2000 Pivot
GOLD:            Accumulate
TIPS:                   BUY

MARKET SENTIMENT IS NOW STRONG OPTIMISM, PAUSE, THEN SLIGHT PROFIT TAKING
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
12/31/2003 EOD:    SPX   1111 DJIA 10453 NASDAQ 2003.
FAIR VALUE:        DJIA <10,000,    NASDAQ <1900, GOLD > 400

2. Inflation is good for TIPs and gold, right? Yes, even though COMEX gold fell below $400 as investors rushed to take profits after its 15-year high earlier this month. Last week, we bought more TIPs and continue to recommend WSNW subscribers increase their holdings under 104. We are now also placing Gold stocks back on our 2004 Watch list for accumulation on a short term breakdown [XAU <95] and/or as a trading buy on positive momentum [XAU >100].
WSNW Subscribers who are active investors and traders may wish to review our S: 2004 WATCH LIST weekly.

Amid signs of lingering economic weakness, the Bank of Canada trimmed its key interest rate by a quarter point to 2%. "The Canadian economy continues to adjust to developments in the global economy," said the bank. "These include stronger world demand, higher commodity prices, the realignment of world currencies, including the Canadian dollar, and the intensified competition, together with the new trading opportunities, coming from emerging-market economies. These developments require shifts in activity among sectors and create a need for adjustments by many businesses. Monetary policy is facilitating these adjustments by supporting aggregate demand, with the goal of keeping the economy near its full potential and inflation on target.”
WSNW subscribers may wish to periodically review our newly revised S: 2004 CANADA premium post after any significant global stock market correction for Q4 2004 out performance.

3. After ending 2003 on a high note, luxury consumers stepped back slightly in their overall confidence with the March 2004 Unity Marketing Luxury Consumption Index at 97.8, compared with a baseline of 100 in January. "Luxury consumers started the new year feeling very positive about their financial well-being, but that moderated during the first quarter 2004," says Pam Danziger, president of Unity Marketing. "These consumers are heavily invested in maintaining their luxury standard of living and do not spend anywhere near to their capacity” said Thomas Bodenberg, statistician for Unity Marketing, and added "Despite conflicting economic news, and the uncertainty in the marketplace caused by the Iraqi conflict, the 97.8 index shows merely a minor deterioration in confidence and purchase intentions toward luxury goods and services.” We prefer to be cautious and avoid the luxury retailers sector including our perennial spouse favorite Tiffany (TIF). We continue to recommend TIF distribution into Q3 2004 until its stock approaches 30, OCO a sales improvement in Japan, reversing its latest 7% drop.

4. “Even the bears would have to agree earnings are pretty good. Earnings are coming in, in almost every case, at or above expectations.''
Robert Doll Jr., president, Merrill Lynch Investment Managers
HW: Please don’t put bull words into the mouth of bears. They only exceeded the [incorrect] low estimates of analysts. The best news is behind us in earnings, say most Bears, and I agree.

“The market is showing characteristics of a speculative top as indicated by the appearance of broadening patterns. This is indicative of a market that is manically moving on rumors with wild swings of both price and volume. While the crowd still appears very optimistic, the wild rallies should be viewed with sober caution and suspicion. Hedging speculative long positions may be a prudent way of navigating this wild ride.”
Martin Goldberg, Market Wrap, Financial Sense online
HW: I agree.

"I think you're seeing some struggling because people are saying 'Geez, if interest rates rise that soon, that's going to be a drag for the stock market. That's why you're seeing a rotation into what we'd call safer stocks. ... They have safer earnings growth, stronger balance sheets, less debt, and may be less impacted by rising rates."
Janna Sampson, director of portfolio management, Oakbrook Investments
HW: Yes, that is the mainstream Wall Street view.

5. Greenspan races the rate clock

Broaddus Says Hiring Picking Up, Inflation Risk Low

Outlook on gold and mining stocks

6. READER: The strong US dollar will bring foreign investors back to our stock market...
HW: It wont be staying strong for long. This is another intermediate term opportunity to sell it, NOT buy it.

READER: Easy money Al is determined to keep our asset bubbles alive. However, at some point, the bond market will decide otherwise and Greenspan (and the housing market) will be dragged along kicking and screaming. History has shown that asset bubbles end very badly and I don't see how this time will be any different.
HW: Unfortunately, neither do I.

READER: Regarding real estate, do you think Saturn in Cancer will cause real estate prices to drop on a global scale or is it just for the US? Depending of the respective chart of course I guess. If we look at Eastern Europe and some select locations in Western Europe, I think market rise could last another 10/15 years over here.
HW: Real estate, as the saying goes, is more about “location, location and location” than timing. I also like the Baltic republics, but am not in a rush to buy real estate in 2004 while Saturn remains in Cancer.

READER: Re: what's happening here (in the U.S.) is not that "the rich are getting richer and the poor are getting poorer. Everyone, but especially people in the lower income quartile, is enjoying an increase in their standard of living."
Considering that just about the only people paying any taxes in this country are the so-called rich, I would have to agree. We now live in the only country in the world where the poor are fat and the rich are thin.
HW: One sad reason is that they really can only afford to eat junk food, given the high, and rising cost, of more natural and organic food.

READER: I previously renewed for another 3 months but decided now to renew for 1 year. Thank you
HW: Thank you. Other quarterly WSNW subscribers please note: This also saves you 28% per year.

7. HERE WE TALK ABOUT AFUND CLIENTS

READER: The one way IHI could get off the ground is to prove their system superior and that would be to focus also on getting those permits for the Apartment Complexes in Vancouver. The share price is just shocking. I know you are doing everything.
HW: That (and more) is being done. I view IHI stock as a classic value anomaly in the markets- It is currently vastly undervalued just as the A$ is today at $.73 US. While it seems that the latter will move back up faster closer to its value [>76.50] than IHI, I see both as superior intermediate and short term investments, respectively.

READER: Leaving Astrology out of it, practically do you think Roger is nearing actually getting the orders signed and moving or is your concern GROWING?
HW: My frustration level and my personal involvement is growing more than my concern. Should his current efforts not succeed short term, I am actively exploring intermediate term alternatives that could be implemented for eventual success on an as needed basis.

READER: If the price ever moves up, there will be a lot of overhead resistance. Long tough road ahead.
HW: It depends on Why and How IHI stock moves. Most small cap stocks moving up too fast on fragile news, retrace then retrace 1/3 to ½. However, if UP on good news and followed by more good fundamental news, a wide arrow can take off.
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