WALL STREET, NEXT WEEK
Financial Astrology for successful investors and traders"   
 
Subscription rates investing edition are $360/annual; $250 six month.
Subscription rates trading edition are $2000/annual; $1000 four months.
Platinum rates are $2500 per month; $25,000 annual.
Stop reading Wall Street, Next Week, last week: YES, I WANT  TO SUBSCRIBE  

WALL STREET, NEXT WEEK: JULY 25, 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

1. A TALE OF TWO CITIES: EBAY, IBM, GE VS. C, GM, MSFT
Better future earnings and their sustainability are needed to maintain current stock prices. If others are correct in believing that most corporate earnings are good enough and will continue to be so, one can remain blissfully long.  Personally, I cannot believe that. I see some “reality reporting” of inflation, quality of job growth, as well as terrorism fears more mainstream. In other words, SOONER OR LATER, 2 + 2 = 4.

While markets did reach our first Summer trading targets early this month, they did not “behave” as I expected after the 7/7 London bombings.  They remind me of when we were massively short just ahead of the Long Term Capital Management crisis.  But leaving conspiracy musing aside, this latest rally is just not fundamentally or technically justified.  Basically, it did not start from a solid bottom formation but as a snap back from terrorism.

Markets have a toppy “feel”.  Nasdaq is near strong resistance at 2200, especially with leaders GOOG and MSFT disappointing.  Short term, I would prefer to bet on 2100, ahead of 2300. I like position shorting around DOW 10640. I also don’t see much intermediate upside risk against me in SPX, i.e. under 3%.

The major “reason” for markets to rally, besides good earnings, is the FED pausing, or signaling that is it is ready to pause, on interest rate increase. But that would help markets ONLY short term as the US dollar would fall further on the news, increasing inflation pressures.  The FED is in a pickle of its own making.  It is only a question of WHEN, not IF, US investors will cease to believe that the US remains in goldilocks mode.
 

TRADERS: We are on WSNW Alert Sell 11D. Thanks to the Chinese and Cosmos, the US Dollar is losing both terrestrial and astrological support. How long before Nasdaq nuts will be crying in their beer, assuming they are not heavily margined and can still afford it!  Given 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: Unless you like to stay at parties until the very end, you should be raising cash levels.
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:        August 3
DJIA:                   10650 PIVOT
SPX:                    1235 R1 1240 R2 1250 R3   
NASDAQ:           2200 RESISTANCE
XAU:                   93 PIVOT 94 R1 95 R2 98 R3 100 R4 105 113 R5
US$:                    DISTRIBUTE/SELL
TIPS:                   ACCUMULATE

New Market Marker Sentiment coming early August.
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; 6 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. Alternative Energy
Whether Oil is $35 or $75 next year, investments in the global alternative-energy industry, including solar and wind power. is expected to grow from $20 billion a year to $100 billion over the next 10 years, according to the International Energy Agency.  Many SRI stocks in this sector have appreciated as much, if not more than their Oil sector equivalents.  Accordingly, we will be looking to accumulate more stocks in this sector after significant pullbacks.

To portfolio hedge a bull market, or conservatively play oil and gas, we continue to recommend Canadian Income Trusts, which provide hefty dividend yields above 11%.  Two current favorites are Enerplus Resources Trust (ERF) and Prime West (PWI). Being based in Canadian dollars, I expect a currency kicker of another 2%-5% ROI before the end of the year.

3. China Gives Green Light to Gold
China’s re-evaluation of the YUAN under last week’s FULL Moon is widely considered to be the beginning of another positive leg up move for Gold. We can almost taste some of our August gold forecast!

The Process of Elimination: A Speculation on Gold and the Credit Cycle
“Capital flows into gold under one scenario only: when the lack of investment returns elsewhere, the desire for safety, and the ascendance of a risk-averse psychology at large converge. In other words, investors come to gold through a process of elimination. It is an odyssey of discovery and realization that investment vehicles thought to be potentially rewarding are in fact filled with hazard and adversity.”

Beginning October 17, we will be cosponsoring with Arch Investment Conferences our first “AFUND Triple Gold” Conference at Le Parker Meridien Hotel in New York.  We plan to present quarterly until 2008, or when gold is $800, whichever comes first. While invitation only events for fund managers, investment bankers, brokers and other financial professionals, they will also be openly web cast.  To receive a free invitation, visit Arch Investment Conferences Invitation List.

4. SWAZILAND's King Mswati III has enraged his people by failing to pay ilobolo for his estranged wife, Inkhosikati Putsoana Hoala. The fifth of the king's 12 wives, they married in 1987 when she was 15. She then left school to marry the king. "His Majesty will appreciate my education skills are extremely limited," she says.  The news that the king had neglected to pay lobolo to her family was naturally met with shock and outrage as Swazi men are strictly bound by tradition to pay ilobolo, usually in the form of cattle or cash, to the families of their brides. Mswati's prime minister Jim Gama declined comment.
 
"He has disgraced the Swazis," said Celiwe Matsebula of Mbabane. "Swazis pay ilobolo to their wives, and this includes the king. But Nomsa Mabena, of Nhlangano said the King could not be judged. "You can't judge the king. He can do as he pleases."
Our take on the matter: As more and more resource addicted western companies look to Africa, remember to choose your company investments AND country very carefully.

5. "In the first part of the week, we're likely to have some consolidation or profit-taking after the strong move we've had since the April bottom,"
Michael Sheldon, chief market strategist at Spencer Clarke LLC.
HW: I’ll drink (bet) to that.

 “You're going to see earnings meet or beat expectations. The economy is really strong.''
Jason Graybill, comanager, Abner, Herrman & Brock
HW: Too bad. As with inflation statistic reporting, the emperor has no clothes. Still until later in 2006, it is POSSIBLE this fairy tale will be believed by enough people to keep markets above water.

"The dollar rallied when it wasn't supposed to. That was a bit of a surprise."
Russel Kinnel, mutual fund research director, Morningstar.
HW: I disagree. The US dollar was supposed to rally April, May and June. A rally beyond this summer is NOT expected, astrologically speaking, and that would be a bit of a surprise.

6. Feds Are Just Like Bernie
'The Labor Department said — presumably without a single bureaucrat snickering — that consumer prices didn't budge in June. And that followed a decline — yep, I said a decline — of 0.1 percent in May. Hold your noses because those numbers just don't pass the smell test... the American Auto Association calculates that gasoline prices have risen 21.5 percent since this same time last year. But the government swears gas prices are only 6.9 percent higher over the year"

CASUALTY OF WAR: THE U.S. ECONOMY
HW: This analysis does NOT include the longer terms costs such as the Veterans Administration, which make the total spending far greater than simply $764 Billion.

Gold price could triple by 2015 as resources dwindle
HW: Why not a double by 2008?

7. READER: Just re-reading your last couple of e-mail letters. I am largely in cash, but thinking about getting into the market (TSX Index and resources) again. This is usually a bad sign. I seem to have a knack of getting in just before a top. Are you still high on Canada?
HW: YES both intermediate and long term.  Nothing wrong with adding more gold stocks and energy income trusts (although oil markets could be toppy short term).

READER: When will TNXT bottom out?  It has been a disaster so far.
HW: Yes. Looking at their chart, August is a, and perhaps THE, key potential reversal time.

8. HERE WE TALK ABOUT AFUND CLIENTS

READER: I hope you have a low average [on IHITF].
HW: I agree, it would be wise to augment a lower cost stock base. IHI always progresses, albeit at always a far slower pace than my forecasts.  As it often the case, microcap investors often make the most money very early in the game, but also very late in the game, just before things finally jell.  Right now I am enjoying the tape.
READ THE SEASONED SPECULATOR
“Your source for outstanding 21st century small and microcap stock ideas"
 “Buy small, Win BIG!” 

S: in front of a web link indicates access is restricted to WSNW subscribers.
Subscribers please send your comments, questions and suggestions to Letters .
Silver Investing subscriptions $360 one year; new subscribers 6 month $250.
Gold trading subscriptions $2000 one year; $1000 four months.
Platinum edition subscriptions are $2500 per month; $25,000 annual.

"Can you afford NOT to have financial astrology in YOUR future?"
Stop reading Wall Street, Next Week, last week:  YES, I WANT TO SUBSCRIBE
*********************************************************************************************

PAST WALL STREET NEXT WEEK REPORTS
              FRIDAY 11 am listen to our Internet radio program TRADING BY THE  STARS.
(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.       
RETURN TO MAIN MENU