WALL STREET, NEXT WEEK
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WALL STREET, NEXT WEEK: MAY 9, 2005
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

RIPLEY’S BELIEVE IT OR NOT
·    The Fed's assertion that longer-term inflation expectations remain "well contained." That must be true because my medical insurance rates were only raised 18% this year, compared with 12% last year, etc, etc.

·    According to Standard & Poor's, companies that pay dividends posted a total return of 18.35% percent in 2004. That compares with a 13.65% return for non-payers. We expect the same relative out performance in 2005, e.g. DVY. However, remember that a number of struggling companies such as General Motors are likely to cut dividend payouts.

THE MARKET POWER OF THE FED
No government agency is more careful about the statements it releases than the Federal Reserve, where a single word can move financial markets. But did it really goof on Tuesday by dropping the sentence, "Longer-term inflation expectations remain well contained."?  Why did it take the Fed one hour and 45 minutes to alert reporters by saying the missing sentence "was dropped inadvertently."
 
Fed officials asked news agencies to report the dropped sentence before Wall Street stock trading ended at 4 p.m. EDT.  Was it because the Dow was down 46 points five minutes before the close and the Fed was worried? Right after this “correction” it surged into positive territory.

“They are very, very gently warning the markets that they are concerned about inflation; this statement continues the pattern of sugar-coating all the bad news," according to  Ethan Harris, senior economist at Lehman Brothers.
HW: Doesn’t the Fed KNOW that sugar is bad for your health?


TRADERS: While we are expecting another rally beginning sometime next week the question remains: how high can markets go? Based on current news, they will have great difficulty taking out DOW 10500 and NASDAQ 2000, even if there is good news from Csco and Dell. After all, Oil is comfortably above $50 and Wednesday twin deficits numbers will encourage foreign investors to invest until AFTER the inevitable: A real US decline!

INVESTORS: While we will be on another TRADING BUY next week, we are also on an INVESTING DISTRIBUTE/ SELL into strength May. Markets will reach another intermediate term peak at the end of this month or early June, then we expect another test down especially for NASDAQ

HYDE PARK SOAPBOX: WASHINGTON IS FIDDLING WHILE AMERICA BURNS (GAS)!
GLOBAL ALERT: Accelerate Energy Conservation.

FACTOID: Foreign holdings reached a record high 53 percent of total privately held public US debt in early 2005.

KEYDATES:    May 10, 11
DJIA:               10350 PIVOT
SPX:                1155 S1 1160 S2 1165 S3 1172 PIVOT 1180 R1 1188 R2 1200 R3   
NASDAQ:       1960 R1 1980 R2 2000 R3
XAU:                85 PIVOT

Market Marker Sentiment: First Bullish, then Bearish.
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
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 high. Looking ahead, my question is whether 2006 will show slow growth less than 2%, no growth, or turn into a classical recession.
PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK.

2. Canada's Competitive Advantages
The Economist Intelligence Unit states that Canada will be the best place in the G-7 to invest and do business between 2005-2009. We agree. Furthermore Statistics Canada said on Friday that more people were working in April than in March, lowering the unemployment rate to 6.8%, the lowest jobless rate since December 2000.

And it gets even better! May is Better Sleep Month in Canada. The Better Sleep Council Canada will be telling Canadians about the importance of sleep to good health. The Better Sleep Council Canada reminds all Canadians to make time for a bi-annual bed check: a better quality mattress and foundation when regularly replaced improves the quality of life of sleepers. Surprisingly, one in 10 Canadians confesses they've never done a bed check -- evaluated the condition of their mattress, that is. And for another 20% of the population, it's been over a year!  Given that Canadians are likely to sleep better this month, as well as US markets will hold up, its time for global investors to relook at increasing their Canadian content of their portfolios 5%.
WSNW subscribers may review our newly updated premium post: S: Canada 2005.

3. Japan's Cabinet ministers will not wear neckties and jackets during Cabinet meetings and regular press conferences from June to September to save energy. As reported in the Mainichi Daily News, Chief Cabinet Secretary Hiroyuki Hosoda said the ministers would not wear neckties to conserve air conditioning energy. Ministers reportedly plan to ask Diet politicians “to follow suit with the lack of suits.”
We applaud this leadership by example (especially in contrast  with US politicians.) With lower energy bills and therefore less drain on their balance of payments, it is no wonder 1) the YEN has been rising and will continue to rise intermediate term vs. the US Dollar and 2) the Nikkei 225 will outperform vs. US markets into 2006.
WSNW subscribers may wish to review our newly updated premium post: S: Japan 2005/2006 for more.

4. "Is it time to dust off the R word. My answer is, 'No'. But it’s not too early to worry."
Hugh Johnson, chief investment officer, Johnson Illington Advisors
HW: GMTA.

"Right now, people are overpaying for bonds, and underpaying for stocks,"
David Kelly, chief economist, Putnam Investments.
HW: I only half agree. People are also overpaying for stocks.

“Payrolls will disappoint on the downside. I advise to keep it simple, own cash.''
Enzio Von Pfeil, director, Commercial Economics
HW: While they did NOT disappoint, your advice to have cash is right: Cash will be KING in 2006!

5. Buffett tells shareholders most stocks are overpriced
"The tidal wave of dollars America is shipping abroad to buy oil and manufactured goods and the IOUs offshore interests are buying from Uncle Sam to fund the nation's deficit spending are likely to cause disruption for the United States, Buffett cautioned - particularly in a global economy where wealth is building up in the hands of what he called "hair-trigger" investors."

What You DON’T Want to Do With Your Money
“When the Fed tells the world it has quit raising rates -- and the slow creep of earnings per share growth via stock repurchasing tells the value buyers that stocks are cheap relative to bonds, cash and anything else -- we get the fourth-quarter rally. Until then, you have to:
Hunt stocks with a rifle, not a shotgun… Stay out of index funds and other instruments of mediocrity AND use rallies to get out of Skinny Dipper and the "Big Hat, No Cattle" cyclical stocks.”

Gold “buy” signal pops up
"The gold to XAU ratio indicator tells us to buy gold shares when it’s above 5.0... the average annual one-year holding period return for stocks in the XAU has been 38.4%. The ratio currently stands at 5.08."

6. READER: You said "Remember this is a Trading Buy, but an Investing Distribute".
Are you saying "Remember this is a Trading Buy, not an Investing Distribute"?
HW: No. I am saying this is BOTH a Trading buy and an Investing Distribute, the former now at the beginning of the May, the latter at the end or shortly thereafter.

READER: Apparently a lot of participants are bearish on Gold shares until HUI 150 reached. I guess these views are maybe too bearish, or too consensus and we should buy now? http://www.gold-eagle.com/editorials_05/mchugh043005.html
HW: My advice is: Accumulate gold now into June.  Gold is a portfolio hedge today, but a major trade this summer. 

7. HERE WE TALK ABOUT AFUND CLIENTS

READER: Today [TNXTE] traded on 0.04 USD on a high volume. Serious problems again, or an extremely nice bargain?
HW: It is the "E" factor. I think a nice bargain for some very high risk/reward capital here.
READER: What is the "E" factor?
HW: It is the risk/reward opportunity that comes with an “E” listing or late filing. Given Sarbanes-Oxley compliance costs and difficulties, it is increasingly common for small and nano-caps today.  For some companies this can be an early warning sign, while for others such as TNXTE IMHO, it signals both an unbelievable trading opportunity and high risk investing bargain.

easons. [Note: April 29 was a nice up day and likely the beginning of the first MMD rally.]
 READ THE SEASONED SPECULATOR
“Your source for outstanding 21st century small and microcap stock ideas"
 “Buy small, Win BIG!” 
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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)
DISCLAIMER: This report is for informational purposes only. 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 Information is  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.
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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.
SFNM became a client of Henry Weingarten and Susan Hahn & Associates on March 17, 2005 and will be paying $3500 monthly plus 100,000 restricted shares to be issued over a period of one year.       
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