Wall Street Next Week OCTOBER 25, 2004

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

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WALL STREET, NEXT WEEK: OCTOBER 25, 2004
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

1. 11/08 Saturn SR
11/11 Uranus SD
11/12 New Moon 9:27 am
11/21 Sun enters Sagittarius
11/26 Full Moon 3:07 pm
11/30 Mercury SR

2. IS IT TIME TO BARGAIN HUNT OR RUN FOR THE HILLS?
Will the US market have made their 2004 lows by October 27/28, or will they be lower after the election? Smart investors will BEGIN to accumulate stocks later this week, but will have plenty of money on the sidelines to buy any November stock market weakness.

AFUND INVESTOR POST ELECTION ADVICE:
SHOULD BUSH WIN: SELL ANY RALLY AND THE US DOLLAR; BUY GOLD AND CANADA.
SHOULD KERRY WIN: ACCUMULATE ON ANY WEAKNESS; BUY CANADA.

Regardless of who wins, it should continue to be a sideways market intermediate term.
Therefore, while macro economic views are important, more important will be the quality of individual companies and their individual prospects for the most successful stock investing in 2005.

Readers may wish to review our Investing for the 2004 US Election post.

HYDE PARK SOAPDBOX: THE US DOLLAR
International investors added to their holdings of U.S. assets in August at the slowest pace since October 2003. The US Treasury also reported September purchases of U.S. securities fell to the lowest level since 1998, when Russia defaulted on its debt. There is increasing concern about the sustainability of the huge U.S. trade and current account deficits. With foreigners buying fewer U.S. Treasuries, stocks and other dollar assets, the large trade deficits will place strong downward pressure on the U.S. dollar. Today the total is still above the roughly $55 billion of monthly inflow the nation needs to offset its account imbalance. But worldwide there are more articles advising overseas investors to Protect your assets from a US dollar collapse. With a Bush victory, gold is likely to quickly move past $434 resistance to $450 and then rally towards $500 in 2005/2006. This is not my wish. While a Leo with a natural affinity for gold, I prefer a Kerry victory for increased fiscal prudence.

GUEST HYDE PARK SOAPBOX: FirstAlert 10/20: What, Me Worried?
” Alan Greenspan is not worried about the record consumer debt level, he’s not worried about future interest rate hikes, he’s not worried about inflation, he’s not worried about a recession, he’s “concerned” but not worried about high home prices, and he’s not worried about unusual peaks in personal bankruptcy. Bankruptcy spikes represent “pockets of distress.” Since it’s not his household, the Fed chair, speaking to American bankers, said he is clearly not worried. His lack of worry about so many concerns may have contributed, along with the rising price of oil, to the drop in the stock market yesterday.   It’s difficult to tell if the Chairman is speaking as an economist or as an ostrich.”
HW: By blowing his credibility now, should we really need him, who will listen? How sad.

TRADERS:         SHORT BARGAIN HUNTING & Our Hedge of the Week is BUY GOLD/SHORT OIL.
INVESTORS:    BE PREPARED TO BEGIN BUYING AS EARLY AS OCTOBER 27/28.

KEYDATES:       OCTOBER 26, 27, 28, 29
DJIA:                   9825 PIVOT
NASDAQ:        1900 S1, 1880 S2 1862 S3

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 = 416
DIJA:                    4 ~ FV 0 UV; 4 offer 5%+ Dividends.
While the internal Stock Market astrology, as in 2003, is mixed, the external risk potential is still high.

2. WOW. Thanks to Mark, AIG is, after many long years, finally fairly valued. So are 3 other Dow stocks. Still, cosmic value investors like myself prefer to buy undervalued stocks, of which I see none today among the 30 Dow.
WNSW readers can visit our premium channel for our latest updates on the S: DJIA.

We expect to email our October Stock of the Month club picks to WSNW subscribers later this week.

3. Riga Business School in Latvia has received IQA (International Quality Accreditation) from CEEman. This will help it in ITS goal of becoming the focus of business education in the Baltics and competing with the business school in the west, according to the Financial Times. While I believe the most enterprising students will opt for their MBA from Wharton, this does suggest to me that long term global investors investigate Latvian ADR’s. Currently I would recommend any Latvian investment portfolio allocation be split evenly between Latvian Shipping Company and Latvijas Unibanka. As for the Olaines Kimiski-Farmaceitiska Rupnica, it is hardly my first choice of global pharmaceuticals. I prefer to place my Pharm sector money on Pfeizer and Merck on further weakness (~25?), but ONLY after both the US presidential election and the inevitable class actions suits.

4. “A lot of companies have adjusted their expectations down for 2005 and people aren't going to take that very nicely. What people want to know is what the price of oil is going to be and who's going to be president. Until we get those things resolved, we're sort of in limbo.''
Douglas Ober, manager, Adams Express Co. fund
HW: It isn’t hard to guess with which president the price of oil will be higher, is it?

"We are still overweight equities, but it is as much because we don't like any of the other asset classes."
Michala Marcussen, associate director of strategy, Societe Generale Asset Management
HW: What has been wrong with parking short term funds in Canada and Australia?

“The dollar is under pressure on lots of factors - trade deficit data...rising oil prices, a fall in equity prices and uncertainty ahead of the U.S. election,"
Jenny Pollock, senior economist, AIB Group Treasury
HW: This makes a lot of sense to me.

6. How will the US Presidential Elections Impact the Dollar?
“Fundamentals dictate that the dollar will remain on a downward path regardless of a Bush or a Kerry victory. Expectations — whether they be for the “soft dollar” status quo in the event of a Bush win, or for stricter tax laws for corporations under a Kerry victory — should contribute to a lower dollar in the run-up to the election. But the issue is one of degree, not direction.”

11 stocks for a lurking bear market

The real oil shock
“Traders and some analysts expect the price of oil to run up to $60 or even $70 a barrel in the next month or two. That may well happen. Momentum is intense, and it's notoriously hard to pick the top for a commodity in the midst of a runup.
But some of the smartest observers think that though prices could move higher in the very near term, an oil price above $50 a barrel is ultimately unsustainable.”

7. READER: Word is that if Bush wins the election things will continue as is in the currency market, but if Kerry wins, then you will see the mother of all corrections occur in the currency markets...So the risk might be being long end of next week
HW: I agree if Bush wins, the US Dollar will continue to lose value more rapidly. If Kerry wins, the US Dollar and the economy will become stronger, although it is a great mess to work through. Should the Dollar rally, then I would reverse thereafter and short it again, especially in the month of November.

READER: Could you please tell me where I can buy your book - Trading by the Stars? I looked for it on amazon.com and could not find it.
HW: I have not published the manuscript. I use it as my teaching manual when privately training traders and market professionals how to integrate astrology into their toolbox.

8. HERE WE TALK ABOUT AFUND CLIENTS
We are ready to buy upon pre or post election weakness. Long promised reports coming soon!
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