Wall Street Next Week NOVEMBER 15, 2004
WALL STREET,
NEXT WEEK
Financial Astrology for
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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. MARKET TOP OR SKY’S THE LIMIT?
Markets have effectively reached one of three possible 2004 tops. The second
P2 is SPX 1200-1210 area, while the third or P3 target is of such Market bulls
as Steve Forbes, who expect 2004 to be well above SPX 1250. While we
are confident about the intermediate direction of the US dollar and economy,
we are less confident about its short term movement. We believe that at least
one more downward test is required for any effective move higher. Given
this, and that the external risk remains high, except for a few special situation
stocks, we will stand aside next week. If markets rally past options expiration
Friday, we will have no choice but to party, but will do so at least partially
hedged, and with both eyes watching the exit.
TRADERS: Take/protect short
term profits by Tuesday.
INVESTORS: If markets rally strongly, we will play
some of the value laggards.
KEYDATES: NOVEMBER 16
DJIA:
10,500 PIVOT
SPX:
1068 PIVOT 1085 R1 1205 R2 1250 R3
NASDAQ: 2095 RESISTANCE
GOLD: 2004
Trading Target 449
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;
3 offer 4%+ Dividends.
While the internal Stock Market astrology, as in 2003, is mixed, the external
risk potential is still high.
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I will interviewed on Street Signals Saturday November 13 9-10pm on Business
Talk Radio.
StreetSignals™ an Investrend Broadcast (www.investrendbroadcast.com) production
is net archived.
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2. One reason gold is now at a 16 year high is that it is the cheapest insurance
against the declining US dollar. As gold moves closer to $450, we will be
closing intermediate term trades. However, those investments which are
long term hedges WILL be maintained as we see gold shooting for the magic
$500 in/by July 2005. Furthermore, by the end of the year or closely
thereafter, the new Streettracks Gold Trust (EFT) should be listed on the
NYSE. This should bring in plenty of new yellow buyers.
Canada's Power Book - 50
Top Income Trusts have been among the outstanding 2004 value plays. They
will largely remain so in 2005, even though many analysts believe the C$
is almost ready for a short term correction. If so, we would be doing fresh
“buy and hold” buying under .8140.
Buy a G.M. Car at 0% Now, Get the Same Deal in 5 Years
Lock 'n' Roll," will give shoppers who buy a car and qualify for zero percent
or low financing rates the same deal on any new G.M. purchase before the present
financing runs out and is good for a total of 10 years. Given that most of
the profit in GM, is from their financing division, and also that it remains
challenged for many obvious reasons, despite its rich dividend, this stock
should be largely avoided in 2005, except for short term trading opportunities.
3. UNECE Predicts
Robot Explosion. I have long said there has never been a labor shortage,
but a robot shortage! The US military, along with homeland defense
groups, are investing and researching heavily in this sector. Likewise ,medical
robotics is a big growth area, and by 2007, domestic-service and entertainment
robots will represent multibillion-dollar markets. As we see 2006 or
2007 and not 2005 as the year of the robot, we continue to research but will
wait to buy robot and automation stocks such as Adept Technology (ADTK),
Computer Motion (RBOT), CRS Robotics (ROB-TSE), FANUC (FANUF) and Integrated
Surgical (RDOC).
4. "Gold remains very strong both due to external factors - the U.S. deficit
and the election of George Bush - and internals, including continuing firm
demand in places like India, where people buy a lot of gold at Diwali, and
in China, which has liberalized its gold market."
Ross Norman, director, The Bullion Desk
HW: Like they say, “only gold is as good as gold.”
"The outlook for gold is positive and we have broken through some critical
resistance levels."
David Holmes, vice-president, RBC Capital Markets
HW: Yes, but I don’t believe “They” will allow it past $450 just yet.
“We still think the Fed will skip at the December meeting. Three hundred
thousand jobs a month is not sustainable, and I don't think the Fed is going
to act based on that report.
Phil Orlando, manager, Federated Large Cap Growth Fund
HW: Most analysts agree with you that the Fed would rather not play the
Grinch that stole Christmas this year.
5. Economist.com
| The dollar
Pessimists
will have to wait, as housing boom rolls on
Sometimes They Do Ring
A Bell
6. READER: Maple vs. Dollar: US Dollar sure taking a beating against the
Canadian Maple.
HW: I choose to look at it the other way- Hooray for Canada!
READER: Just now the value of GOOG is about 170. Lets say in a day or two
it reaches 175.A put November with strike price 170 will then cost about 2
USD. In a week with a fall which can very well be 14% it will go to 150.That
10 double. Very speculative. Interesting?
HW: Yes, an interesting speculation. Of course GOOG can go as high
as 205-225, although its top is more likely in. I am also beginning to look
at shorting CME now that it is hitting the magic $200 overvaluation.
7. HERE WE TALK ABOUT AFUND CLIENTS
Over the next two to six weeks, we will be getting ready for our annual
AFUND microcap 5 January effect play.
READER: With IHI in a downward holding pattern for more than 10 years, don't
you think maybe something is wrong with the natal chart that you are looking
at?
HW: The key IHI chart is the Bermuda, not Vancouver chart. Also, assuming
I have not been looking at things upside down, it still offers several more
winning possibilities. Only such a very strong natal microcap chart could
keep ticking after so many years. The next time frame possibility is
very soon: this upcoming month.
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BY THE STARS, THE STUDY
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May 13-15,
2005 Eleventh Astrology
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