Wall Street Next Week OCTOBER 4, 2004

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

Subscription rates investing edition are $360/annual; $125/Quarterly.
Subscription rates trading edition are $1500/annual; $555 Quarterly.
Subscription rates money managers edition are $10000/annual; $3000 Quarterly;
Institutional rates are $3000 per month; $25,000 annual.
Stop reading Wall Street, Next Week, last week: YES, I WANT TO SUBSCRIBE

WALL STREET, NEXT WEEK: OCTOBER 4, 2004
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
7. AFUND LETTERS

1. ITS GETTING TIME FOR THE ANNUAL OCTOBER SCARE
Markets tend to alternate between periods of greed and fear. October markets are usually not bullish, but rather fearful. STAY LOOSE AND HIGHLY LIQUID UNTIL GOOD NEWS, A REAL MARKET DROP OR THE NOVEMBER ELECTION, WHICHEVER COMES FIRST.

STREET CHEERLEADING
Q4 2004, Standard & Poor's is estimating a 15.5% earnings gain for the S&P 500, a 21.5% increase for 2004. 12-month operating P/E is 17.9 vs 27.8 in March 2000. "With earnings- per-share expected to create a record high for 2004 and the market still off 27% from its March 2000 highs, aggregate P/E ratios have become more reasonable," says Howard Silverblatt, Equity Market Analyst at Standard & Poor's. "Investors are now paying much less for growth, as P/Es are more in line with historical values."
HW: Still, as a cosmic value player, this does not yet represent real value. Time will tell which of us is more right.

MORE IMF CHEERLEADING
The global economy should register its strongest growth in three decades in 2004 despite soaring oil prices according to the IMF’s latest World Economic Outlook. "This is a soft patch, not a sink hole," the IMF's chief economist, Raghuram Rajan, said of the late spring slowdown. The IMF predicted the United States will see its economy grow by 4.3%, assuming oil prices average $37.25 a barrel this year and next. Still even with oil prices in the $50 a barrel range, "we don't think the effect will be huge," said Rajan.
HW: Well Rajan I walk to work, so the direct effect of Oil prices hardly affects me except when I fly, use electricity, heat or A/C my home, eat or buy goods that require transport, etc. I suppose if I spend even more time online, I will hardly notice. Still, I cannot but wonder about your unwarranted (in my view) optimism. Federal Reserve Governor Susan Bies said "If oil prices get too high, then consumer spending will slow down and the overall economy will slow down." I am somewhat surprised you don’t agree with her (and me).

COSMIC NOTE: THE THIRD PRESIDENTIAL DEBATE OCTOBER 13TH OCCURS ON A SOLAR ECLIPSE- IT MAY BE THE KEY TO THE 2004 US PRESIDENTIAL ELECTION.

TRADERS: DAY TRADE, DO NOT POSITION TRADE UNTIL OCTOBER 13TH.
INVESTORS: STAY LOOSE AND HIGHLY LIQUID UNTIL GOOD NEWS, A REAL MARKET DROP OR THE NOVEMBER ELECTION, WHICHEVER COMES FIRST.

KEYDATES:        OCTOBER 5, 13
DJIA:                   10,000 SUPPORT/RESISTANCE?
NASDAQ:           1900 PIVOT

SIDEWAYS Market Marker Sentiment: Initial Worry, then Rally, ending Flat.
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
12/31/2003 EOD:    DJIA 10453   NASDAQ 2003 SPX 1111.
08/13/2004:           DJIA   9825   NASDAQ 1757 SPX 1064
FAIR VALUE:    DJIA <9640, NASDAQ <1750, GOLD > 410
DIJA:                    2 ~ FV 1 UV; Only 3 offer 4%+ Dividends.
While the internal Stock Market astrology, as in 2003, is mixed, the October risk potential remains high.

2. I had the pleasure of attending the UBS Global Life Sciences Conference this past week at the Grand Hyatt in NYC which featured nearly 200 leading companies in the life sciences industry. I was impressed by the presentations of four companies, which are likely to be included in our potential buy list in 2005. They are: Enzo Biochem (ENZ), Bausch & Lomb (BOL), Antares Pharma (AIS) and Guilford Pharmaecuticals (GLFD). I also added two stocks to our Health Sciences Watch list: Dade Behring (DADE) and Vital Signs (VITL). However, given the dramatic effect the upcoming US presidential election may have on the health care field, I plan to wait at least until after November 2 and perhaps as late as Q1 or Q2 2004 to act.

“September 24, Jupiter left Virgo, no longer bestowing its cosmic favor to many traditional healthcare companies. In addition, a Democratic election victory is highly likely to shakeup the health care sector. We plan to wait until after the election to make our 2005 healthcare sector stock decisions. In general, in Q4 2004, we look to accumulate upon weakness, both value stocks that will benefit from ever more increasing demands of cost containment and select Biotechs that continue to be blessed by Uranus in Pisces.”
WSNW subscribers can read more at our updated premium post: S: Healthcare Stocks 2004/2005.
Note: I plan another update to this post after the Rodman & Renshaw Healthcare conference the end of October.

I repeat our August 23 GOOGLE (GOOG) forecast: In November, GOOG will be trading below Friday’s close of 108. It has both difficult astrological aspects in October plus increasing future competition, e.g. New Company Starts Up a Challenge to Google. Given its October 1 rally above 130, Options players may wish to buy the out of the money November 125 (WE) or November 120 (WD) option, that would double or triple should our prediction come true. Of course, I don’t recommend betting the house on it, perhaps just enough to redo the master bathroom in marble….

3. The Grapevine Is Whispering; It Says Mondavi
Robert Mondavi [MOND] plans to sell its winery in Napa and its high-end wine business to focus on its inexpensive "lifestyle wines. "The Robert Mondavi Corporation said it would focus on its inexpensive wines like Woodbridge and sell its namesake winery as well as its high-end ventures. Since they are selling their family jewels, I see no reason to hold their stock. I would distribute it now and drink the profits with a better vintage wine.

4. "The market is building in an exceptionally large risk premium for some sort of catastrophic event possibly before the election because based on our models, earnings would have to drop 35 percent in order to justify current levels, which is worse than the Great Depression."
Edgar Peters, chief investment officer, Pan Agora
HW: But don’t THEY say the market is ALWAYS right? Hmmm.

“Hold on to your hats because inflation's coming. Gold will provide investors with a natural hedge position. The low inflation numbers coming out of the U.S. are starting to look farcical. How can continued, elevated raw-material prices not impact the cost of fabricated and value-added products?''
Jonathan Battershill, analyst, Hartleys
HW: Easy, by the use of fuzzy math.

“Once we get closer to the election, once energy prices begin to cool off a little bit, consumers will feel a little bit better about the pressure on their budgets. It's a temporary setback.''
Christine Callies, chief market strategist, Bessemer Trust Co.
HW: I agree. I don’t see it lasting more than two to three years, tops.

5. Bull market close to 2nd anniversary
“So the good news is that investors can make money in a world of low market returns. The bad news is they might be forced to do so for many years to come, if one other historical pattern -- the tendency of the market to post sharp gains for 16 years, then to muddle along for 16 years -- holds as some analysts think it will.”

Investing: Europeans Streamline. Will the Market Notice?
“Serge Pizem, head of European equities at AXA Investment Managers in Paris, said European stocks were trading at less than 12 times earnings for next year, based on a consensus of analysts' estimates. The comparable multiple for American stocks is 17, he said. "The difference in price-earnings multiples is quite big," Mr. Pizem said, adding that valuations have "definitely not" taken account of changes made by many European companies.”

Weak stocks trouble for Bush?
Health of the stock market has been good predictor of election.

6. READER: RE: $STAR PICKS AND PANS:
Are the values on a closing basis?
HW: Yes and no. If you are an active day trader who is watching a screen constantly, then it can be either. If you are more a positional and/or not watching a screen, then it is on a closing basis.
2. Re: TALK: 9/23 Entry 5.25:You have entered it, since the course is now under 5.25? Obviously it’s the opposite for shorts: The price must go above entry price?
HW: Yes and Yes. However, these are approximate numbers for WSNW readers who don’t have their own technical pricing system. Those that do, can use either our numbers to enter and exit, their own, or a combination of both, e.g. ½ at one ½ at another.

7. HERE WE TALK ABOUT AFUND CLIENTS

READER: All these hurricanes should be good for our company [IHITF]? Or is that too macabre?
HW: After four record hurricanes, there is obviously greater interest in the company. I would not be surprised to see a future press release with some good southern news in the not so distant future.

*********************************************************************************************************

S: in front of a web link indicates access is restricted to WSNW subscribers.
Subscribers please send your comments, questions and suggestions to Letters .
Silver Investing subscriptions $360 one year; new subscribers 3 month $125.
Gold trading subscriptions $1500 one year; $555 Quarterly.
Platinum edition for money managers $10000 per year; $3000 quarterly.
Institutional rate is $3000 per month; $25,000 annual.

"Can you afford NOT to have financial astrology in YOUR future?"
Stop reading Wall Street, Next Week, last week: YES, I WANT TO SUBSCRIBE
*********************************************************************************************

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
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 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 expected to resume by the Fall..
May 17 2004 Health Sciences Group (HESG) became an AFUND client and is paying $5000 bimonthly in free trading stock 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.
RETURN TO MAIN MENU