WALL STREET, NEXT WEEK
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WALL STREET, NEXT WEEK: FEBRUARY 14
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

1. February markets should remain mixed.  We see little reason to buy, and more reason to sell.  The question of budget politics will determine whether the 2005 top is in. The Powers That Be may wish to prop the markets for a couple of months until Social Security reform is passed.  Regardless, until the Ides of March, we find market risk unacceptable for unhedged portfolios.

HYDE PARK SOAPBOX: TWIN BUDGET AND TRADE DEFICTS
President George W. Bush’s new budget projects a record $427 billion deficit.  How likely is it that Congress will really pare it back that much? Even so, it is already affecting the efforts to control noxious weeds in Montana. For years, Montana counties have worked hand in hand with the Bureau of Land Management (BLM) to control the spread of noxious weeds. "The outlook for the future doesn't look favorable," said Greg Albright, BLM's Montana public affairs officer. "If I could look into a crystal ball, I'd say our budget situation won't improve in the foreseeable future. It may get worse.”

To make matters even worse, the US trade deficit of $617.7 billion was another all-time high: 24.4% above the previous year record. The trade deficit, coupled with low U.S. savings rates, has US debt now 50% owned by foreigners.  Sadly, the United States even rang up a deficit in farm goods as food products hit a record. Expect record political criticism of President Bush's economic policies. Economists worry that these trends, now equal to  6% of the economy, isn't sustainable. THEY AREN’T!

TRADERS:       The Usual Option Week expiration games.  We are maintaining our “Sell on Rally” short term trading mode. 
INVESTORS:   We remain patient and in globally opportunistic mode.
Our small cap trades (not investments) remain in trailing sell stop mode, as 2005’s “January effect” has been happening in early February.

KEYDATES:    FEBRUARY 22, 23
DJIA:               10784 PIVOT
SPX:                1200 PIVOT   
NASDAQ:       2055 PIVOT
GOLD:            413 SUPPORT 428 RESISTANCE
OIL:                46 PIVOT

Market Marker Sentiment: First Bullish, then Bearish.
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
2004 CLOSE:            DJIA 10784, SPX 1211 & NASDAQ 2175
2003 CLOSE:            DJIA 10453, SPX 1111 & NASDAQ 2003 
DIJA:                         1 ~ FV 0 UV; 5 offer 4%+ Dividends.
While the internal Stock Market astrology is mixed, the external risk potential is still high.

2. “I am writing this on the Chinese New Year, inspired by the resignation of HP Chairwomen Carly Fiorina. We naturally responded gleefully with an immediate upgrade of HPQ from "Under perform” to "Accumulate on Weakness."  As we believe that both Nasdaq has seen its highs for the year circa 2200, and that the expensing of options will ‘reduce’ computer software and Internet company profits, that is about as strong a recommendation we can give until Nasdaq is at least below 2000.”
WSNW subscribers can view our newly updated premium post S: AFUND 2005 12 Computer Stocks.

3. Employees fired - for smoking
“A United States health care company has fired seven workers who refused to quit smoking. Michigan-based Weyco Inc's new policy bans its staff from smoking - even away from work - to cut health care costs…. While Americans enjoy workplace protection from discrimination by race, gender, religion, creed, national origin and other factors, federal law does not necessarily protect workers for other activities.”  What investors want to know is how this may affect Dow component Altria Group (MO). A favorite of non-SRI fund managers, given its relatively low p/e under 14 and a relatively rich 4.5% dividend. These and similar risks seem already factored in.  We continue to rate MO a defensive slightly above market perform, but personally, we continue to Avoid. 

4. “Unless government officials can tame the animal spirits of consumers that are addicted to spending, this trade deficit will not go away.''
Christopher Rupkey, chief financial economist, Bank of Tokyo-Mitsubishi
HW: Don’t hold your breath.

"The dollar has shown some weakness, and as a result we've also seen a pickup in gold-related shares, which have experienced a significant amount of selling over the past several weeks."
Michael Sheldon, chief market strategist, Spencer Clarke
HW: We agree it is smart to accumulate Gold over the next few months.

“The Fed is the only central bank in the world that will be tightening a lot this year. Yield differentials will start to matter, especially for Japan.''
Stephen Jen, UK head of global currency strategy, Morgan Stanley
HW: The dollar will strength on 2.75, but will it make it to 3 before Summer?

5. Warren Buffet and Bill Gates do not a mania make

Are Large-Cap Stocks Really Undervalued?  

Decline Over?
HW: If not Q1 2005, it will be by Q2 2005.

6. READER: Re: The word for “rooster” has the same pronunciation as “luck” in Chinese language. When they have to kill 100,000 roosters because of avian flu.... SELL!
HW: It seems the markets agreed with Wednesday dropping 60 DOW and 20 NASDAQ.

READER: Re: VOIP What do you think about NTOP, VOIP and YAKC.
HW:  I like YAKC (partially because of its Canadian component) and also my new VOIP carrier TRIN longer term. I have also been watching a small cap British and now American standard telephone opportunity XFNE intermediate term.

7. HERE WE TALK ABOUT AFUND CLIENTS
After IHI has made .30 its short term floor, and not ceiling this month, it is (astro) logical to expect .50 and $1 as the next two price targets assuming IHI keep progress according to its current business plan. Therefore, this is a good time to decide: Exactly how much cheap[Under .40C$/.33 US$] IHI stock do I wish additional, should it go to .50 and $1 in 2005?  Do the math.

READER: What is the horoscope date that you are using for TNXT?
HW: November 13, 2003 for the first trade and 2:25pm February 13, 2004 Dover Delaware for the Incorporation chart.

READER: IHITF or TNXT: Which one is the better buy at the moment if one had to choose between the two of them?
HW: I like them both at THIS time.  Very short term, there seems to be less risk with IHITF, but possibility less reward than TNXT. Longer term, there is likely to be more reward with IHITF. So this is like asking me to choose my wife and a new girlfriend. :)  I like both!
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PAST WALL STREET NEXT WEEK REPORTS
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(c) 2005 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.
May 17 2004 Health Sciences Group (HESG) became an AFUND client and paid $5000 bimonthly in free trading stock for six months as a consulting fee.
From October 13 2004 to January 6, 2005, United American Corporation (UAMA) became an AFUND client agreeing to  pay $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.
In January 2005, TNXT became a client of Henry Weingarten as well as a client of a related entity THE SEASONED SPECULATOR. The initial contract was for 3 months for $10,500 with Target Publishing, Inc for a variety of investor and brokerage awareness services. Later 50,000 shares of TNXT were added to the contract for additional consulting services.          
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