Wall Street Next Week JUNE 7, 2004

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

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WALL STREET, NEXT WEEK: JUNE 7, 2004
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

1. MARKET RED ALERT to June 16; MARKET ORANGE ALERT UNTIL JULY 11

While markets climbed a wall of worry last week given some “unbelievably robust” economic reports, the external risk remains horrific. The Saudi terrorism incident, which killed western oil workers, plus the high profile departure of Tenet, are sample flavors of the Pluto-Mars and Sun-Saturn aspects respectively. We have long been referring to them as astrologically dominant this month.

Planet Venus Will Cross Face of Sun. June 8 Venus crosses directly in front of the Sun. My personal astrological speculation is that it may not be positive for the stock market, although it could help bonds.

TRADERS: Trend follow Monday. Friday’s PPI report could be a dozy.
INVESTORS: Before the June Ides, I believe investors will know why we have been recommending extremely high cash positions.

KEYDATES:        JUNE 8, 9, 10, 11
DJIA:                   10,250 PIVOT
NASDAQ:           1966 PIVOT
Australian$:           THIRD ACCUMULATON

MARKET SENTIMENT IS NOW WORRY AND SOME FEAR, BUT NOT PANIC.
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 <9800,    NASDAQ <1800, GOLD > 400
While the internal Stock Market astrology, as in 2003, is mixed, the external risk potential is horrific!
If you were unhappy about markets March 2000 and September 2001, don't expect to be singing in the rain JUNE 2004!

2. One interesting observation of the annual NY Institutional Gold Conference last week was the large number of presenting diamond companies. Note: Diamond investments often perform better in good times, in contrast to gold, which usually performs best in “bad” times. We found three diamond companies of potential interest: Diamond Fields (DFI), Diamond North (DDN-V), an aggressive microcap play in Canada’s far north and former AFUND client Mountain Province Diamonds (MFVI), for which we have a 2005 price target of $1.75 to $2.25. I recommend accumulating MPVI under $1.25, if possible.

One of the show’s speakers, Ian McAvity, editor of Deliberation on World Markets, felt that by 2005 (2006?) gold would break out of its current range and re-approach $500. His key watch number is 455 Euros, based on his long term technical charting, when gold would go independent (of currencies) and potentially ballistic.

“Having sold Gold stocks once this year, we are back in accumulation mode. Gold demand is rising in emerging economies, especially India and China, which are becoming two of the largest gold-consuming nations. While gold is acting more and more like a currency, it also is a traditional safe haven inflation hedge.
Thus I believe EVERY investing portfolio should have some gold allocation in H2 2004 and 2005. While we remain big US dollar bears, one potential 2005 short term positive for the US dollar is pending legislation which would give U.S. international companies a one-year tax holiday to bring home foreign earnings at a 5.25 percent tax rate instead of the 35 percent corporate rate. We recommend gold traders keep an eye on its progress.”
WSNW Subscribers may wish to review more of our updated S: Mining Stocks 2004 post [quoted above] whenever the gold bug is biting them.

3. The condom ambulance is coming to Sweden
“From Friday, June 4, amorous couples can call the telephone number 696969 and a white van featuring a large red condom with wings as a logo will deliver them a packet of 10 prophylactics.” While this is an interesting story, our 3 Swedish stock watch universe, consisting of Electrolux (ELUX), Ericsson (ERICY) and Volvo (VOLVY), is not of current interest in 2004 given our ratings of market perform to ELUX and VOLVY and under perform for ERICY.

4. "A positive catalyst would have to come from some breakthrough in the oil, Iraq, bin Laden issues but I don't think it's going to come from just the domestic side."
Joe Liro, equity strategist, Stone & McCarthy Research Associates
HW: I agree, and that is why I remain far more pessimistic than the TV talking heads.

“You have a tug of war between higher oil prices and employment. Those negative factors are very important, but will be trumped by a strong labor market.''
Leahey, a senior economist, Deutsche Bank Securities
HW: I don’t agree about the strength and especially the quality of this jobs recovery.

"This is a very Goldilocks number - not too hot or too cold. It was just what we needed. It lets us contend with the other issues in June with a fairly strong economy behind us."
Christopher Wolfe, global head of equities, J. P. Morgan Private Bank.
HW: While this is not what you meant, I believe those numbers are a “fairy tale”!

5. Healthy-Living Stocks For High Returns

Economist.com | Global house prices
Australia's housing bubble could be the first to burst. It won't be the last.

Five major trends and how they play in your portfolio

6. READER: You stated on the radio talk show that there will be a feature article about AFUND in Barrons. What monthly issue will this be in?
HW: We are mentioned on page 11in this week’s (June 7) edition PLANETS SAY IT’S PAYBACK TIME.

7. HERE WE TALK ABOUT AFUND CLIENT
We have placed the astrological data on our newest client Health Sciences (HESG) on our website: Health Sciences.

READER: Regarding the [IHI] AGM, from an investor’s standpoint, is it really worth participating?
What is the exact date anyhow?
HW: It is not necessary, but always a pleasure (with an excellent following barbecue) if you want an excuse to visit beautiful Vancouver BC. It will take place on Monday June 28, 2004 at 10:30 am.

READER: RE: IHI Bid and Ask Prices
The Canadian exchange shows bid ask of .20 and .23 in Canadian dollars, which is equivalent to .15 and .17 in U.S. dollars. However, the OTCBB shows bid and ask of .15 and .20 in U.S. dollars. Why is there a difference of .03 between the ask prices for the Canadian and OTC exchanges?
HW: Generally speaking prices on the Canadian side are cheaper. However, US investors must buy on the US side even though IHI trades on both exchanges. Canadian and other foreign investors, will usually find buying on the Canadian side less expensive. However, there are some times, including last week, when the US side was cheaper for example, on Friday June 4th one could BUY IHI stock for .15 on the US side but would have to pay .22 on the Canadian side!
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PAST WALL STREET NEXT WEEK REPORTS
FRIDAY 11 am listen to our Internet radio program TRADING BY THE STARS. (c) 2004 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 13-15, 2005 Eleventh Astrology & Stock MarketConference NYC
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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 has been an AFUND client since 1994 and is currently paying monthly $2,500 consulting fees and $500 for banner ads on our website. May 15, 2002, an affiliated company, Susan Hahn & Associates became IHI’s media representative with a monthly fee of $1500.
April 1, 2004, Karma Media (KRMA) became an AFUND client and paid $2500 in April and May. Contract should resume in late Summer.
May 17 2004 Health Sciences Group (HESG) became an AFUND client and will be paying 15K shares of free trading stock (approximately $2500 monthly for six months) as a consulting fee.
Please read our Disclaimer for more information and note that my clients and I are shareholders and may act in the open market.
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