Wall Street Next Week FEBRUARY 28, 2005

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

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WALL STREET, NEXT WEEK: FEBRUARY 28
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

3/10 New Moon 4:10 am ET
3/19 Mercury SR
3/20 Sun enters Aries
3/21 Saturn SD
3/25 Full Moon 3:59 pm ET
3/26 Pluto SR

2. DOW 11600 or SPX 1160 FIRST?
Astrologically, The first half of March is VERY dangerous marketwise. For how long will the December/January/February top hold? We don’t see a spring rally to Dow 11000 ahead of a fall to at least 10500 first. Financial markets are likely to remain volatile as global economic growth begins to slow further.

Why markets are precarious is clear from fundamental, technical and astrological perspectives:
the fundamentals are both the intermediate US dollar decline (although a short term counter trend can develop), and the stubbornly high price of oil. Accordingly, there are inflation risks given Washington is running a budget deficit of $430 billion and a balance of trade deficit of $600 billion. We have forecast $480 to $500 August gold before expiration and would continue to accumulate gold in the $410-$422 range if possible. The next raise of Fed rates will begin to affect the US economy unlike the previous hikes.

Technically we had a double top circa 10850 Dow, which is now retesting for a possible triple top.

Astrologically, we are entering the first of several very dangerous periods. The first dates begin March 1 and March 11-14, the Spring Equinox chart into the time around the April 8 solar eclipse. Thus either before the ides of March or the end of April, we expect to see a test of at least the January 2005 lows. As we are expecting further “behind the scenes” intervention, markets may not get much worse THIS time. However, looking ahead there are more Very trying times in 2005 and 2006.

INVESTING ADVICE Hedge part of your portfolio:
Sell covered April calls, buy out of the money April puts, short high flying stocks or put some money into a bear fund.

TRADERS:        Less choppy than last week. SHORT RALLIES.
INVESTORS:    March can test recent 2005 market lows.

KEYDATES:    FEBRUARY 28, March 1, 4
DJIA:               10,500 SUPPORT: 10888 RESISTANCE?
SPX:                1200 PIVOT 1216 RESISTANCE
NASDAQ:       S1 2035 S2 2020 S2 1985 PIVOT 2060
XOI:                R1 865 R2 900 R3 950

Market Marker Sentiment: First Bullish, then Bearish.
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
12/31/2003 EOD:    DJIA 10453   NASDAQ 2003 SPX 1111.
DIJA:                       1 ~ FV 0 UV; 5 offer 4%+ Dividends.
While the internal Stock Market astrology is mixed, the external risk potential is rather high.

3. EXXOM MOBIL OVERTAKES GE The title as the world's biggest company is passing from previous holder General Electric to oil behemoth Exxon Mobil. Exxon Mobil overtook GE when its shares outstanding hit $385.8 billion yesterday [2/18] at 2:30 p.m. — eclipsing GE's market value of $378.59 billion. Given the monstrous rally in energy stocks to date, the safest way to play now is alternative energy. Regardless of $60 oil or $30 oil, solar energy and wind power growth will accelerate dramatically this year and next.

WSNW subscribers can look to a newly updated premium post Energy next month.
All WSNW readers in the meantime may check the small cap alternative energy plays on our sister website seasonedspeculator.com that we are currently monitoring and watching.

4. Why global warming is not natural
“The debate about whether there is a global warming signal now is over, at least for rational people.”
Global temperatures could be set to soar
“THE Earth could be even more sensitive to global warming than we imagined. If carbon dioxide levels in the atmosphere double, as they are widely expected to do, the planet's temperature could rise by a huge 11.5 °C”

Leaving aside partisan politics, how can short term investors benefit from these potentially disastrous economic implications? The melting of the Arctic would obviously hurt the value of seaside real estate, but that is longer term. Short term, we expect increased air conditioner use. In the US, both Dow components GE and UTX have A/C divisions, while Fedders (FJC) is a purer industry play. In Asia, there is Daikin, Japan’s largest air conditioner maker and Korea’s LG Electronics. However, this is increasingly becoming a China Play. Is it a coincidence that Merrill Mulls Stake in Chinese Air-Conditioner Maker Chico group? I think not! China's air conditioner makers expect to increase prices amid continued industry consolidation from approximately 500 in the late 1990’s to 200 today. We believe the Haier group will be one clear winner.
Bottom line: We will be watching to see if FJC will be taken over by one of China’s industrial groups, especially after the forthcoming Yuan devaluation.

5. "To have a high proportion in U.S. assets is far from ideal so it's good to diversify."'
Mark Austin, head of currency strategy, HSBC Holdings
HW: That is an understatement.

"Any expectations of interest rate hikes in Europe have been put well back to the end of the year. I can't see any reason why anyone would be buying euros to invest in Europe."'
Simon Derrick, chief currency strategist, Bank of New York
HW: Short term, looking into March, you are correct. But intermediate term, there is the wealth preservation factor that today demands currency diversification.

"Greenspan is doing a good job of preparing American investors for what's ahead: We're in a period of rising interest rates and that's going to continue."
Thomas F. Lydon Jr., president, Global Trends Investments
HW: It is certainly well past due.

6. Grief for Risky Investments

Inflation-Deflation Tug

CORRECT: Meaning of NYSE's high short interest

7. READER: Do I see it in the future: 2006 interest rate above 4%? 2007 above 5%? and 2008 8%? Inflation of 10% in 2009/2010?
HW: Let’s take this one step at a time. US interest rates belong at 3.75 to 4% now. However, as soon as the Fed raises rates to 2.75 and above this month, the US economy will begin to react negatively. What a pickle.

8. HERE WE TALK ABOUT AFUND CLIENTS
Our forecast for IHITF in the current issue our THE SEASONED SPECULATOR is .50 by/before May.
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