WALL STREET, NEXT WEEK
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WALL STREET, NEXT WEEK: MARCH 7
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

OUR MARCH FORECAST: Astrologically, the first half of March is VERY dangerous marketwise.
Bulls won a tactical victory last week despite two market scares: The Korean Central Bank announced it would be reducing US$ holdings and $55 Oil. For the week, markets ended up 100 Dow points but only 5 Nasdaq points. While investors grew more confident about the economy and corporate earnings, some sanity prevailed with increased money inflows into the SPX vs. NASDAQ distribution selling. 
Personally, I remain risk adverse as I am still worried about real inflation and higher interest rates. There will be an effect on corporate profits and inflation due to record high oil prices.  While some traders believe $50 could become a floor, I am not so sure. $60 is no longer out of the question and March 16 is the key date for that. More significantly,  March 11 is our primary Key Bear date (into March 14) that could be rather dramatic. Will the US trade deficit be the first, second or third largest on record?  It is quite scary no matter how you (dis)count it. We have long maintained the risk to the stock market is more from external factors such as this or other events, as astrologically the market’s horoscope is mixed as it was in both 2003 and 2004.

64K Questions:
How large is the stock overhang at Dow 11,000?
Will March 11-14 stop the current trading stock market pattern from changing into a trending one?

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


HYDE PARK SOAPBOX: MORE CHAMPAGNE AND MORE GRUEL?
Greenspan Says Current U.S. Budget Policy and Deficits Are `Unsustainable'.  Maybe, but according to the WSJ, CEO bonuses at 100 major US corporations grew 46.4%. At the same time, the Office of Champagne, USA reports that 20,257,824 bottles of Champagne were shipped to the US in 2004, an increase of 6.8% from 2003. This marks the third consecutive year of growth in Champagne shipments to the U.S. "We believe that as the U.S. wine market continues to grow, Americans will increasingly incorporate Champagne into their lives," offered Meghan Dotter, Office of Champagne, USA.

Also at the same time, the increasingly hour glass US economy is seeing increasing poverty and still-lagging employment.
Reporting on the forgotten issue of welfare reform, the Nieman foundation at Harvard University asks if deficiencies in welfare reform increased poverty, hunger and food insecurity in America.

Could the problem be ignoring champagne in the food stamp program? I think not, but then again has there been any real debate on poverty in America today?

TRADERS:          MARCH 11-14 IS COMING!

INVESTORS:      We are still ready to begin buying AFTER MidMarch bottoms.
 
KEYDATES:    March 10, 11, 14
DJIA:               10750 SUPPORT? 11000 RESISTANCE
SPX:                1200 SUPPORT? 1225 RESISTANCE   
NASDAQ:       2030 SUPPORT? 2100 RESISTANCE
XAU:               98 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
DIJA:         2 ~ FV 0 UV; 5 offer 4%+ Dividends.
While the internal Stock Market astrology is mixed, the external risk potential is high
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2. At the 16th Annual NYC Wall Street Analyst Forum last week, I was impressed by the precious metals and mining arena. As WSNW readers know, this is one of my five favorite 2005 sectors.  I was introduced to Royal Gold (RGLD) and NovaGold Resources (NG).  Both are now on our buy list for any pullback or breakouts, given their recent run ups.  I also briefly introduced an old client of mine, Mountain Province Diamonds (MPVI).  It looks promising to (re) buy MPVI on a pull back to the bottom of its Bollinger band, circa 1.35, for a move to first 1.75, and then possibly its 52 highs. (The latter would be probable IF our August gold forecast for 480 is correct.) As I mentioned in my MPVI company introduction, unlike gold, Diamonds are also a “good times” metal, not just “bad times” as gold most often is. Therefore, MPVI may be an appropriate hedge holding for some small cap portfolio allocation.

Enzo Biochem (ENZ), which as WSNW readers know is one of our favorite biotechs. A former stock of the month club pick, it is once again in our buying range under $16 [$15.03 to $15.57 ideally]. In you are in a buying mood, we believe ENZ will provide above market returns. Personally, we are planning to look at it the week after next, although it was recommended on Friday for WSNW Gold subscribers.

3. I HOPED TO BE PRINCESS 'DIE'
“A New York woman who claimed to be a Saudi princess as she ran up a $1 million credit card debt says she was in fact trying to commit suicide by shopping. The statements of Antoinette Millard, 41, were part of her defense against a lawsuit by American Express, which sued her for repayment…"I went berserk. I didn't care," Millard said in court filings. "I just wanted to die. It was suicide by spending."… She said among her reasons for wanting to die with a splash was that she had been sexually harassed at her workplace, suffered from bi-polar disorder, and was traumatized watching people die in the Sept. 11, 2001, terror attacks. She concluded she shouldn't be held accountable for all the charges because she's manic-depressive and couldn't control her own actions.  She also counter-sued American Express, alleging they coerced her into a flexible payment arrangement. The suits were settled this month, but financial arrangements were not disclosed. “
Given our forecasts for both higher interest rates in 2005 and record bankruptcy filings in 2006, we will be downgrading American Express (AXP) from a “Market Out Perform” to “Sector Out Perform” 

4. “There is an inflation risk, not an inflation problem. There are pressures in the supply chain and some of these are beginning to bubble up.''
Ken Mayland, chief economist, ClearView
HW: Given gold is very cheap inflation insurance, this is one reason we will be BIG buyers of any March/April gold price correction.

"Capital expenditures are developing a head of steam. First-quarter GDP is going to be well above 4 percent, maybe 4.5 percent."
former Fed Governor Lyle Gramley, economic adviser, Stanford Washington Research
HW: 2005 Q1 GDP will be lower and Q2 2005 lower still, while 2006 will be under 2%, perhaps under 1%!

"I think the market is little relieved that he hasn't hinted so far at a more hawkish Fed. But that could change."
Peter Cardillo, chief strategist, SW Bach
HW: Yes it could, but I don’t believe they can afford to just yet, although there are good reasons they should (like defending the US dollar).

5. HERE'S WHY INTEREST RATES ARE GOING UP THIS SPRING
“SAY goodbye to low interest rates, at least for a while. Borrowing costs should be going up this spring — maybe even by a lot. But then they will likely head down within a few months.”

Lex live: Bond markets
"Walking on a tightrope without a safety net is a scary experience. Right now, however, that is what many bond investors are doing....
In the long term, that implies someone will inevitably get hurt. In the short term, however, it also means that investors urgently need to scrutinise the fine print of any issues. Investment banks are frantically scrambling to win any issuance business they can while conditions remain favourable. That, coupled with an investor dash for yield, creates a potentially dangerous mix."

Beware of Tiger Telematics, KFX and Wynn Resorts
“Each year I wave a red flag to warn against stocks selling for more than 100 times revenue, a multiple I consider ridiculous. Since 2000, I have issued warnings on 25 such stocks. Twenty- one of them declined over the next 12 months.”

6. No interesting questions this week.

7. HERE WE TALK ABOUT AFUND CLIENTS
Last week, TNXT was placed on the Nasdaq Regulation SHO Threshold Security List.  This basically means illegal shorts have been caught and are now on notice.  This may result in forced future buying to cover, i.e. a minor positive for the stock.
                                                                                               
IHITF’s Technical chart continues its slow and steady improvement.
We repeat last week’s IHITF forecast in the current issue our THE SEASONED SPECULATOR is .50 by/before May.
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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"
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Author: INVESTING BY THE STARS, THE STUDY OF ASTROLOGY,TRADING BY THE STARS (01)
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