Wall Street Next Week NOVEMBER 8, 2004
WALL STREET,
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WALL STREET,
NEXT WEEK: NOVEMBER 8, 2004
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL
INVESTOR AND TRADER
1. NOVEMBER MARKETS
2. UP STARS/DOWN STARS
3. ASTRONUT
4. QUOTES
5. ON THE WEB
6. LETTERS
7. AFUND LETTERS
1. “Intermediate Term, the 2004 US Presidential election is only One
of Seven Market-Driving Forces in 2005. The others are Terrorism, Iraq,
Oil, Valuation, Interest Rates and the Economy. Just as Democrats and Republicans
were roughly and highly evenly divided, so are market Bears and Bulls today.
The former see the cup as half full with continued worries about the three
"I"s: Iraq, Interest Rates and Inflation that will result in further economic
slowdown and reduced corporate profits overall in 2005. The latter, while
acknowledging that there are many dangerous and difficult challenges ahead,
view the post October 25 markets not as a bear market rally, but as the beginning
or continuation of filling up a half empty economic cup. The two sharply
different worldviews are likely to continue to clash in 2005. In such a market,
it is not so macro economic views but the quality of individual companies
and the individual prospects that should determine most stock buying in 2005.
Furthermore, active trading and/or frequent profit taking is required in
order to sustain portfolio growth…”
WNSW subscribers can read our full 2005 Stock Market Forecast which will
be posted on our website later this week. Others may read it at no
charge January 1, 2005.
GUEST HYDE PARK SOAPBOX: GMI's World
Poll
"GMI's World Poll indicates the rest of the world views America's Iraqi intervention
as arrogant and selfish," said Princeton University Professor Douglas S.
Massey. "Because of their frustration, U.S. unilateral action will not only
isolate it politically, but economically too, depressing worldwide demand
for American products and services." Key findings include: 20% of foreigners
are less willing to buy American-made products until the U.S. alters its
foreign policies and 67% of foreigners believe U.S. foreign policy is guided
by “self interests" and "empire building".
A direct correlation exists between how closely foreigners associate companies
with the U.S. and the likelihood they'll avoid purchasing their brands. For
example: 43% of foreigners won't purchase Marlboro cigarettes and 33% will
avoid the Barbie doll. "A decrease in purchasing is more likely if products
are closely associated with America and there's a good non-American made
substitute," commented Dr. Mitchell Eggers, COO at GMI. American companies
such as McDonald's [MCD] and American Airlines [AA] are therefore likely
to see decreased international sales.
TRADERS: A Day Trading Week.
INVESTORS: Markets will have peaked ahead of Friday’s Full Moon for the month,
or will be moving towards SPX 1200-1250. A hedged long/short portfolio
will modestly make money in either case.
KEYDATES: NOVEMBER 8, 10, 12
DJIA:
10,400 PIVOT
SPX:
1168 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.
October Lows: DJIA
9660, SPX 1090 & NASDAQ 1899
FAIR VALUE: DJIA <9660, SPX<1090
& NASDAQ<1899, GOLD = 440
DIJA:
3 ~ FV 0 UV; 4 offer 4%+ Dividends.
While the internal Stock Market astrology, as in 2003, is mixed, the external
risk potential is still high.
2. AFUND INVESTOR POST ELECTION ADVICE:
SHOULD BUSH WIN: SELL ANY RALLY AND THE US DOLLAR; BUY GOLD AND CANADA.
The US Dollar is at record lows, while gold is trading at its highest level
since August 1988, when it reached US$449. While periodic profit taking
is always prudent, at the moment, the trend continues to be our friend.
As gold WSNW subscribers know, we have been playing Google (GOOG), as our
favorite short much like we did Yahoo in the past. After two false starts
(similar to our previous Yahoo plays), our latest sell at 199 did quite well
last week after Google shares had their largest ever single-day decline after
UBS analyst Benjamin Schachter recommended clients reduce their holdings.
Shares fell 8.3%, or $15.35, to $169.35. Will it go below 108 as previously
forecast for November?
AFUND FORECAST 1: In November, GOOG will be trading below Friday’s
close of 108.
AFUND FORECAST 2: GOOG will trade below its offering price of 85 in
2005.
While it doesn’t seem likely, it is still possible. Whether on target
or not, we expect to bring home the bacon on this one.
3. Spam offering cheap Rolex watches has reportedly topped the list of the
most frequently sent messages over the last couple of weeks. Rolex has replaced
Viagra as the most common word in spam. The official manufacturer of Rolex
has said that the watches are not sold by mail order, only through authorized
dealers. We see two trends here. First, there continues to be
no rush to buy Dow Drug stocks Pfizer [PFE] and Merck [MRK] until the class
lawyers are foaming at the mouth or MRK is under 25 and PFE below 26, whichever
comes first. Second, it may pay to check out fashion and luxury watch
manufacturers that may benefit from Jupiter’s recent move into Libra such
as Swatch [SWGNF] and Bulgari (BULIF).
4. "The real issue for investors is whether the economy slows significantly
next year, and how fast corporate profits grow."
FT Lex Column
HW: After the election euphoria is over, that is one of the major stock market
determinants.
“Rather than looking for entry points, investors should be looking for exit
point right now.
Michael Painchaud, research director, Market Profile Theorems
HW: That is the big question whether short term markets will peak under Dow
10500, or whether they will go to 10700 or even higher. Personally,
I see the cup as half empty and not half full.
“It's difficult to see where pressure can be brought to bear on the president
to narrow the budget deficit.''
Steve Pearson, head of currency strategy, HBOS Plc
HW: That is why all of uss Dollar bears are growling.
5. Bush
Win Seen As Boon to Many Industries
Voting
Over, but Market Pressures Remain
“The same fundamental issues that have been pressuring the market will remain
into President Bush's second term, analysts warn. A record budget deficit
makes further tax incentives for consumers unlikely, an enormous trade deficit
is pressuring the U.S. dollar and energy prices remain at uncomfortably high
levels. Terrorism is still a concern, corporate earnings are decelerating
and interest rates are on the rise, with another hike expected when the Federal
Reserve meets Wednesday.”
Greenspan:
Playing the Fool Or the Scoundrel?
6. READER: RE: condolences to all Americans re: the election
HW: Today we have been selling the US dollar and buying gold which
is going first to $450 and then $500 in 2005/2006.
READER: Gold up again and this assures that US dollar going down more.
HW: Yes, sad isn’t it?
READER: Thought you might like to know: Pfizer is spelled Pfizer.
HW: Yes. Thank you. Obviously my Pfeizer came from its symbol PFE.
7. HERE WE TALK ABOUT AFUND CLIENTS: HESG, IHITF and UAMA.
READER: See the stock [UAMA] is going up! Good for you!
HW: Good for UAMA shareholders!
READER: I intend to buy UAMA as fast as you have done an astrological analysis.
Is it recommended to set a stop loss in such a company? Let say you by it
on 0.18 cent. If you set a stop loss by 0.16 such a small company can very
well several times go down to 0.15-0.16.You will get heavy losses. Have you
said anything on entry, target etc on HESG? Astrology? Stop loss?
HW: As for UAMA, stop losses have to be 50% since it trades under $.25 (currently)
and one is buying this stock for at least a double. I think you could have
a starter position ahead of the analysis, but the analysis is key for me
whether to sell if/when it doubles/triples or to add!
We believe Health Sciences [HESG] has an extremely powerful “January effect”
move ahead. HESG is a trading buy under .70 to $1-1.10. It is
an investing buy under .85 to ?. As for stops, this depends on whether you
are a trader or investor. Microcap stops are bigger than on larger stocks
(8-20%) due to their volatility and potential profit. I would say 10-20%
for trading purposes and 25-40% for investment purposes, depending on what
price target you are holding your investment for.
READER: Not looking good for the home team [IHI].
HW: One would have to say almost all the risk is NOW gone from the stock.
It is a good thing that it acts like a non-expiring option!
Reader: Which horoscope charts are you looking at when you mentioned the
Thanksgiving time period below?
“Please note, astrologically speaking, the time period just before and after
Thanksgiving, is another BIG cosmic opportunity for Roger and IHI.”
HW: Roger’s.
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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
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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.
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.
Since October 13 2004, United American Corporation (UAMA)
became an AFUND client paying $2500 monthly plus 250,000 shares of free
trading stock 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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