WALL STREET, NEXT WEEK
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WALL STREET, NEXT WEEK: JULY 18, 2005
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

JULY 18-22, 2005 IS A KEY PIVOT WEEK
Whether the ides of July have set an intermediate term market top (Dow 10640), markets players will wait until Alan chirps at least until Wednesday, and perhaps until earning seasons is over, before taking the Summer off.  Thereafter, Whither Equities: "The direction of the economy—and corporate profits—has rarely been so disputed. Is the “soft patch” history, or are we teetering on the edge of the abyss?"

EARNING SEASONS QUALITY AND FORECASTS
How different things are from last week. Bearish shorts, both seasonally and news oriented (London Bombings, record high Oil prices) were squeezed mercilessly.  The put/call ratio has now adjusted to a market peaking zone. 
UNLESS OIL DROPS BELOW $55, ONLY THE BRAIN DEAD CAN THINK IT WILL NOT SERIOUSLY AFFECT WORLD ECONOMIC GROWTH. Without more substantial good news ala GE and Apple, markets will Summer meander at best, or slowly deflate, if reason and logic come to the fore.  On the other hand, why would that happen just now?


HYDE PARK SOAPBOX: INFLATION FAIRY TALES
All I can say is that I invite everyone that believes the CPI and PPI is really 0% to buy into my new offering: The Brooklyn Bridge REIT.  Those of you that are waiting to first cash out of the Shangri-La fund, may only have a short wait: Next for GM – Buy one, Get one Free?  Perhaps, I am wrong and it is REALLY different this time: the US government can no longer measure inflation and job growth properly? I will not, however, believe the unbelievable. Neither should you.

TRADERS:  We recommended our final gold accumulation Friday.
We are currently cautiously short on WSNW Alert Sell 11D. Given recent market action and the strong cash positions of some rabid bulls, we intend to remain nimble traders. If need be, we will be stopped out and reshort again at appropriate astrological times and technical price points.

INVESTORS: My long term view is well known: focus on protecting against downside risk through most of the rest of 2005, and 2006 will be bleak. Finally, Make sure you own Summer Gold.

KEYDATES:    July 18, 20, 21, 22
DJIA:               10600 PIVOT R1 10640 R2 10700 R3 10784
SPX:                1225 PIVOT   
NASDAQ:       2175 RESISTANCE
XAU:               88 PIVOT 92 R1 95 R2 98 R3
US$:                DISTRIBUTE/SELL

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. Looking ahead, my question is whether 2006 will show less than 2% growth or be a classical recession?
PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK.
Before H2 2006, reduce indebtedness as much as possible, as quickly as possible. 

2. GE earnings certainly didn’t disappoint.  However, given its relatively rich valuation, it has been slightly under performing the broad market.  I expect this to continue.

We are now projecting the top Dow giant, Exxon Mobil [XOM] to soon begin to under perform. The reason is both fundamental and astrological. Another reason is the new ExxposeExxon Boycott Campaign launch by 12 environmental and public interest.

Our Q3 Dow forecast was for a high of 10640, which is EXACTLY where it closed Friday. Should markets move substantially higher, we will naturally revise our WSNW subscriber premium S: Dow post.

3. Until very recently, I have had little interest in Silver. Perhaps it is because I am a Leo, the sign that traditionally rules gold.  Perhaps it because in the US, Silver has been largely considered a second class citizen: “gold’s poor cousin” or  “poor man’s gold.”  Perhaps it is because until recently there have been very few pure silver plays and they have been even less profitable than gold companies.  But my views have been slowly changing.  I don’t know if it because Saturn has just left the Sign of Cancer (which rules Silver) or the after effects of attending a number of silver company presentations (SLW, SSSI, WTZ, SVM-TSX) and my resistance is just wearing down.

The Silver Market- Tips for the Prudent Investor
A classic precious metal like gold, silver was also used in coinage and utensils. These days, it is used more for jewelry and in the industrial sector, e.g. electronics and photography.  Many of the same arguments that are made for gold, can be made for silver. Demand is healthy and increasing. Additionally, Silver is consumed more than gold, which is mostly held for investment and jewelry. Also, unlike Gold, Silver is not a “political” metal. Plus most world government stockpiles are largely exhausted.

The three major positives intermediate term are:
1) Saturn having left Cancer.
2) The remaining barriers on gold and silver imports in India will be removed for individuals and small jewelers and
3) Barclays Global Investors is planning on marketing the iShares Silver Trust, the first ETF fund that tracks the price of silver.

Three negatives for Silver investing are: 
1) Under current US tax law; long-term capital gains on silver are taxed at the maximum rate of 28% because silver is considered a collectible.
2) Most Silver production is a by-product of other metal mining- hence most supply is less demand price sensitive.
3) Silver Prices are notoriously volatile.

SILVER vs. GOLD
Silver is to Gold much like NASDAQ is to the SPX.  It is smaller capitalized market so if you crave volatility, Silver’s for you!  Silver is more an Indian story than a Chinese one (Gold). Currently the Gold-Silver ratio is about 60-1, well below is long term historic ratio of 16-1.The China investment story is better known than the Indian one.  Perhaps after the Bear Stearns India Conference 2005 next month, I will be talking more about India as well as Silver! :)

Bottom line: It may be as true for Silver as it is for Gold. There is no real justification for its current low price.
If you wish to own Silver, I would suggest in a 1-16 ratio of gold holdings, i.e. ~1% of your portfolio vs. 16% for gold.
Note: Warren Buffet’s purchase of 130 Million Silver ounces in 1997 for Berkshire Hathaway was just a little less than 1% of the portfolio of his holding company at the time.  For more, visit the Silver Institute.
 
4. "Canadians are well known for their obsessions: hockey, curling, and beer, to name a few. But are Canadians also obsessed with vibrators? According to the 2004 Durex Global Sex Survey, the answer is a resounding yes: 39% of Canadians, both male and female, report already owning a vibrator. The ownership rate throughout the rest of the world is 27%."  WSNW subscribers interested in participating in the 2005 Global Sex Survey should note that Durex(R) is pledging to donate five condoms per respondent! As an added bonus, all respondents will be entered into a free prize drawing for a luxury vacation to South Africa including five days on a game reserve in Kruger and five nights accommodations in Cape Town. The second place winner will receive a flat screen TV.
What is the stock market translation of the above?
1) We maintain a strong buy on resource rich Canada into H1 2006.
2) Given our Rand view, we are likely to take a more active interest in South African companies later this year, and
3) We will maintain a hold weight on “old” line Asian TV manufacturers.

5: “There isn't a lot of bad news out there.''
Brian Williamson, a trader, Boston Co. Asset Management
HW: Not if you believe there is no inflation and that $55+ oil is cheap. Given last week’s market action, I am thinking of reselling shares in my dormant Brooklyn Bridge REIT.

"Economic data looks OK and now it's on to earnings season, and we think it could deliver an upside surprise to the market. I think one of our key themes here is looking at companies which have strong international exposure . . . these are wonderful growth opportunities."
Tobias Crabtree, portfolio manager, Leeb Capital Management
HW: I agree that India and China will be growing faster than US markets. Of course, there is also more downside risk in 2006 as well.

"The world is not as safe as we thought, and in such an environment, it is good to have gold in your portfolio.''
Frederic Panizzutti, senior vice president, MKS Finance
HW: No matter what your thoughts on safety are, having gold portfolio is good.

6. It's December. Do You Know Where Your Dow Is?

Big Stocks burdened by Problem That Won't Go Away
Small stocks are at it again. They have led the recent market rally, defying all the smart- money wisdom that said big stocks were overdue for a revival. This begins to look like a chronic thing.

Former Wall Street Whiz Kid Says Gold Equals Insurance

7. READER: Henry, I think, hope gold will recover next week after the shorts clean up today on EXP FRI. Or is this bearish trend to continue below 415?
HW: Saturn going into Leo tomorrow.
No need to worry unless the trend continues past Tuesday/Wednesday.  We would be buying again for the last time- now. After Tuesday/Wednesday, we become more technical and less time oriented short term in the gold market.

READER: Aug Gold:  Looks to have traced out 5 full waves into its 418.20 low.  If so, there should be a recovery bounce that targets resistance at 421, 424 and 427 as minimum retracements, with more upside possible.  418 can be used as an initial stop if venturing longs.
HW: I agree for astrological timing reasons- Saturn going into Leo tomorrow

READER: I'm curious if you've taken into account any effect the upcoming Mercury retrograde in Leo has (if any) on the price of gold in the heart of this summer.
HW: No, I have not considered it so far. It might be worth watching, especially the time of its going forward on August 15 to the August Full Moon on the 19th.

READER: Do you think TNXT.PK has found a support level at $0.025?  Is it a Buy at this level?
HW: It is as much a buy here, or at .01, as it was at .04 when I recommended it last as a highly speculative “E” play.  If the company survives, you will do very well.  If it does not, you will lose it all.

READER: [GOOG} Above $300.  It never went below its original trading price.
HW: This is not 2006. Have some patience. Anyway we are currently short from 306 (WSNW Alert Sell 11D), but if stopped out then will try again higher up until the inevitable reality strikes.

8. HERE WE TALK ABOUT AFUND CLIENTS
READER: When are you giving us an update on IHI? You seem ominously silent on that one. Is it all over for IHI? The annual report suggests that they probably are not going to last the current year.
HW: I am now waiting until August until after Roger returns from his current European and Middle East visit, to see if I need to incorporate any new and material changes.  There is more than enough good news out there, with the Hi-Rise projects and others, to NOT be concerned with fearing the worst. In fact, if you have been following the tape, you can see the obvious, and I believe smart, accumulation that is currently happening.

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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 INDEPENDENTLY INVESTIGATE AND FULLY UNDERSTAND ALL RISK BEFORE 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 Astrologers Fund Inc. Or Its Clients Usually  Holds Positions In The Stocks and/or Market Instruments 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 construed as 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.
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 April and May 2005 an additional $3500 fee was paid.
SFNM became a client of Henry Weingarten and Susan Hahn & Associates on March 17, 2005 and will be paying $3500 monthly [except July and August 2005] plus 100,000 restricted shares to be issued over a period of one year.       
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