WALL STREET, NEXT WEEK
Financial Astrology for successful investors and traders"   
 
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WALL STREET, NEXT WEEK: AUGUST 1, 2005
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

1. 8/4 New Moon 11:05 pm ET
8/15 Mercury SD
8/19 Full Moon 1:53 pm ET
8/22 Sun enters Virgo 8:46 pm

2. OPTIMISM IS STILL AROUND: MBA Releases Long-Term Economic Forecast
Despite the drag caused by spiking energy costs, the United States will see "robust economic growth" of an average of 3.5% through 2007, according to the Mortgage Bankers Association (MBA).

AND THE TRUTH IS?
·    "This month's decline in Consumer Confidence is no cause for concern," says Lynn Franco, Director of The Conference Board's Consumer Research Center. "The overall state of the economy remains healthy and consumers' outlook suggests no storm clouds on the short-term horizon. Even the steady upward tick of fuel prices at the pump has done relatively little to dampen consumers' spirits.” or
·    Yet US Consumer Confidence falls amid high Fuel Prices U.S. consumer confidence unexpectedly [emphasis mine] fell this month from a three-year high as gasoline prices surged to a record.

BRAIN DAMAGED INVESTORS: IS BEING RATIONAL IN AN IRRATIONAL WORLD RATIONAL?
According to the WSJ, new findings in "neuroeconomics" have found that " brain damaged participants are more willing to take risks that yielded high payoff and they were less likely to react emotionally to losses”.  So they made more money [short term].  Researchers hope neuroeconomics could explain bubble manias and investor panics. [I thought they were astrologically based: the interactions of Greed (Jupiter) and Fear (Saturn)]  This reminds me of a study in 2000 comparing buying all the stocks on NASDAQ that made money vs. buying the stocks of companies that lost money; their stock returns were higher with the latter [short term] “losers”.

However, while brain damaged players did well in the study, they did not generally perform well when it come to making financial decisions in the real world. Three of the four brain-damaged players experienced personal bankruptcy. So maybe I have made an error in calling most NASDAQ momentum investors (not traders) crazy. Perhaps I should be more PC in the future, and refer to them only as “brain damaged.”
NASDAQ 2100 BEFORE 2300! NASDAQ at 2200 today compares to NASDAQ at 4000 (or 5000) some years ago. We will continue to place short bets.

TRADERS:  We recommended our final gold accumulations until the ides of August. We remain 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: 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.


HYDE PARK SOAPBOX: THE NEW ASIAN CENTURY
The US economy today will decline in future as the British did last century. The British had their Boer War; ours is Iraq. Then the British in giving Commonwealth countries their freedom removed their peg to the Pound. We are having linked countries with linked currencies such as China remove their dollar Peg.
The Hong Kong University of Science and Technology (HKUST) has just launched a science camp with world renowned physicists to deliver lectures. Over 80 undergraduate students from the Chinese mainland, China's Hong Kong and Taiwan, together with 50 Hong Kong Physics Olympiad winners, will have the opportunity to exchange views with the physics maestros. HKUST President Paul Chu said he was encouraged some of the world's best scientists and students to gather with a unity of purpose, namely, to advance scientific research and education. Contrast this with US arts, cheerleading and sports camps and it is any wonder that Chinese language studies are globally increasing at an exponential rate?

KEYDATES:    August 3
DJIA:               10650 PIVOT
SPX:                S1 1220  S2 1210  S3 1200  1240 R1 1244 R2 1250 R3
NASDAQ:       2175 RESISTANCE
XAU:               90 PIVOT 93 R1 95 R2 98 R3
US$:                DISTRIBUTE/SELL
TIPS:               BUY 104 OB

NEW Market Marker Sentiment ACTIVATES THIS WEEK.
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. 

3.  SustainableBusiness.com announces the 2005 SB20 list - The World's Top Sustainable Business Stocks. To choose the 20 companies that make up the list, SustainableBusiness.com asks five leading social/ environmental investment analysts to select the companies that stand out as the world leaders in terms of both sustainability and financial strength.  "Our goal is to create a list that showcases the top public companies leading the way to a sustainable society," says Rona Fried, Ph.D., SustainableBusiness.com CEO and Editor of Progressive Investor.

Given that the Dow 10650 zone is a possible top for Q3 2005, we recommend a small 10% to15% reduction in AFUND Global 10 Portfolio exposure.  Q4 2005 bullish optimists alternately may prefer to write October covered calls up to 40% exposure.
WSNW Subscribers may wish to review the current S: AFUND Global 10 Portfolio composition.

4. Let your body do the downloading
IBM tried, but gave up on using the body's electrical current, but Japanese researchers say arms and legs will soon replace computer cables. Nippon Telegraph and Telephone (NTT) is developing a system called the Red Tacton, which uses the body's electricity so that music and films could be downloaded in seconds via your elbow. Researcher Hideki Sakamoto said the Red Tacton chips will be embedded in machines and contain a transmitter and receiver built to send and accept any form of data stored in a digital format. He said one example of the application would be for someone to shake hands with a new contact, and every detail that would normally appear on a business card will leap across your arms and download itself to your mobile phone. The first commercial appearance of Red Tacton is expected next year, The Times of London said.
We see this as yet another reason to under weight IBM. Additionally, we are taking this news as a first accumulate signal for NTT, with its cheap 10 p/e.

5. Never mind the price, gold still dazzles Asia

It has been pointed out by more than one Silver-loving WSNW reader, that because Silver is an industrial metal as well as a precious metal, it differs significantly from gold as follows: Silver can be considered a “good time” as well as “bad time” metal play. Whereas Gold usually performs better as a safe haven asset, while Diamonds are often paired and hedged for more favorable economic conditions.

GOLD INVESTING 101
The gold/XAU ratio is most often 4 to 5. Currently it is 4.73. When it is lower, gold stocks tend to be expensive and it may be time to sell them. When the ratio is 5:1 or more, then gold is usually considered 'low' or gold shares tend to be viewed as relatively cheaper and a Buy.

5. “We think it is going to get better.  Corporate America has better finances than any time in the last 30 to 50 years, and the market looks cheap. How can I make the case any stronger?”
Milton Ezrati, market strategist, Lord Abbett & Co.
HW: By sharing whatever it is you are smoking to those of us who think differently.

"A directionless market is usually a down market."
Ed Peters, chief investment officer, PanAgora Asset Management
HW: That is just what I like to hear.

“You're grossly penalized if you miss. And to get any upside you have to have really beaten the numbers.''
Simon Clinch, director of U.S. equities, F&C Asset Management,
HW: Sounds like a classic overvalued market reaction.

7. Profits Head Homeward, But Where Are The Jobs?

Terrorism Risk and Your Portfolio
HW: My answer is to own some gold as portfolio insurance.

Shadow Government Statistics
“Government data are biased in politically correct directions and increasingly have diverged from common experience and reality since the mid-1980s. Inflation and unemployment reports are understated, while employment and other economic data are overstated, deliberately.”
HW: This website deals with the history and the nature of government manipulation of major economic data. Read it and weep.

8. READER: Re Arch Investment Conferences: We plan to present quarterly until 2008, or when gold is $800, whichever comes first. 
I am hoping this is your first and last all at the same time.
HW: Well I have $800 coming AFTER 2005. However, should it be reached earlier IN 2005, we would hold annual (not quarterly) conferences until gold is $1000 or 2008, whichever comes first! J

READER: Under "Four Reasons Gold Stocks Are About To Rise" there are two references to the XAU breaking out.  Also, further down the page Mr. Weingarten says that he has looked at the horoscope of XAU. The XAU is dominated in market-capitalization terms by mega-hedging companies.  As the climate for gold is more favorable now, many of these companies are unwinding their hedged positions.  They are selling their gold at current market prices rather than at lower hedged prices.  This fact is what will make the XAU increase.  May I respectfully suggest that a better measure would be the HUI index, which is comprised exclusively of unhedged gold stocks?  Any breakout in the HUI would reflect an increase in the price of gold rather than an increase due to previously hedged companies now selling the gold at higher market prices.
HW: First, I use the XAU because more institutional investors use it as a benchmark. Second,, their p/e tend to be slightly more down to earth. Thirdly, I like them more precisely for the reason you mention- they are continuing to unwind gold forward options and hence the XAU should move up over time for that reason alone.

READER: Is Gold responding the way you thought it might?
HW: It is too early to tell. The critical time frame of most interest begins next week or in August.

READER: Are there any Canadian bank stocks that you especially like both short and long term?
HW: I haven’t been tracking them closely short term as Banks and Financial Sector stocks do not usually outperform with increasing interest rates. They are also not my favorite sector longer term, given my views for Q2 2006 on.  I believe that the Bank of Nova Scotia (BNS) is both well positioned and well run. It sports a reasonable p/e under 14 and a decent 3.5% yield.

9. HERE WE TALK ABOUT AFUND CLIENTS 
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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.
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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.
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