WALL STREET, NEXT WEEK
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WALL STREET, NEXT WEEK: AUGUST 6, 2012
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

1. AUGUST MARKETS
2. UP STARS/DOWN STARS
3. GOLDEN OPPORTUNITIES
4. QUOTES
5. ON THE WEB
 
1.  WHAT A DIFFERENCE A DAY MAKES……….
Friday seems proof that the new market marker is positive.  If it were not about to change/be modified August 14, I would be a buyer in these markets.  However, Mercury is changing direction next week and that often changes the attitude of many market participants.  More to the point, we are near the top of a trading range Dow 12200/13200-13314.  Hence we are likely be short the market early in the week.  However, this will not be a straight line play.  Additionally we will be entering thinning August markets.
Advice: If you are playing/trading do so in short spurts- and P2 & P3 targets.  Holding long or short for the whole of August may accomplish little.
 
On a fundamental note (which we think will matter more after 8/8),while corporate earnings met previously lowered bars set by analysts, global weakness may force U.S. firms to further cut costs and guidance. The ratio of negative-to-positive Q3 forecasts is already the lowest since 2001. Analysts expect Q3 profit and revenue for S&P 500 companies to decline 0.4%.  A trend that is NOT friendly for market bulls.
 
LATEST URANUS/PLUTO “SURPRISES”
·         Knight Capital Markets Trading goofs
·         ½ of India loses Power
Many more such events are expected 2012-2015.
 
KEY DATES: AUGUST  8, 10 14
DJIA:              12200 SUPPORT 13200/13314 RESISTANCE
SPX:               1383/1393 DUAL PIVOT
NASDAQ:       2950 PIVOT
DEC GOLD:  1600 PIVOT 1650 RESISTANCE
DEC SILVER: 28 PIVOT  29.50 RESISTANCE
OCT OIL:        90 PIVOT 86 SUPPORT 93/94 RESISTANCE  
US$:                82/83 DUAL PIVOTS 81 SUPPORT 85 RESISTANCE
 
The new Market Marker is quite bullish despite or perhaps because of poor economic fundamentals.  This will be modified or change August 14th.
2011 CLOSE:           DJIA 12217 SPX   1257 & NASDAQ 2605 
2010 CLOSE:           DJIA 11577 SPX   1257 & NASDAQ 2652 
2009 CLOSE:           DJIA 10428 SPX   1115 & NASDAQ 2269
2008 CLOSE:           DJIA   8776, SPX   903 & NASDAQ 1577
2007 CLOSE:           DJIA 13264, SPX 1468 & NASDAQ 2655
2006 CLOSE:           DJIA 12463, SPX 1418 & NASDAQ 2415
2005 CLOSE:           DJIA 10717, SPX 1248 & NASDAQ 2205

DJIA:                         4 ~ FV 0 UV; 2 offer 4%+ Dividends 0 offer 5%+ Dividends.
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK

BOTTOM LINE: STAY LIQUID. Focus on safety.
 
2.  With the exception of Knight (KCG) which we felt was a “trading buy” on Friday (to P1 $5+), we didn’t agree with the markets’ view of the labor report.  So we are still standing aside except for occasional market “presents” such as KCG.
 
3. As Gold Prices Climb, This Options Trading Strategy Tells You When to Buy
 
Bullion is Now Being Priced for Collapse
 
While a short term bottom may be in precious metals, there is good reason to still wait a little longer with one finger ready on the trigger in most cases. 
There are of course some beaten down PM microcaps that are cheap enough now. For example, our client  Everton Resources (EVR-V) looks like it is about to break out above its $09.5 resistance and then become support with a next $.12 to .15 target.  If one compares the 2012 trading of two other DR gold companies-GQC-V and UGD-V, we believe this is also possible for EVR-V before 2015.  It seems likely a number of investors will reach the same conclusion!
 
4. “The jobs report is neither here nor there. There’s not enough evidence for the Fed to act imminently. At the same time, the numbers are not so good, which means that Fed could still do something. On balance, the number was decent.”
Mark Luschini, chief investment strategist for Philadelphia-based Janney Montgomery Scott,
HW: Decent if you don’t examine the fine print; however, given Mercury is still RX until August 8, Friday’s wild reaction should not be all that surprising.
 
“If you invest in it at these levels, you have to go in with eyes wide open.”
Matthew Eagan,  manager, Loomis Sayles Absolute Strategies fund
HW: While your quote refers to junk bonds, I think it is applicable to many more areas of global investing today.
 
“Unfair though it may be, an investor should continue to expect an attempted inflationary solution in all almost all developed economies over the next few years and even decades. The cult of equity may be dying, but the cult of inflation may have only just begun.”
Bill Gross,  co-chief investment officer, PIMCO
HW: Yes that is one of the several significant risks that potentially lies ahead.
 
5  Investors increase bets on who will win November election
 
Bull market not supported by VIX, sentiment
 
5 Summer Investment Tips From T. Rowe Price
 
6.  No letters this week.
 

 

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S: 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; $555 two years; Lifetime $1500. Weekly Email
Silver edition for market professionals: $1000 per year.
Gold Trading subscriptions $10,000 one year; $1000 Monthly. Weekly Email plus Daily Market Commentary
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(c) 2012 All rights reserved THE ASTROLOGERS FUND, INC  "Always a Stellar Performance"
wsnw@afund.com Phone 212/949-7275  32 West 39th Street 12th Fl  New York, NY 10018
Author: INVESTING BY THE STARS and THE STUDY OF ASTROLOGY
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.
DISCLAIMER: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS.
The Astrologers Fund Inc. accepts No Liability Whatsoever for Any Loss arising from Any Use of its Report or its Contents. The Astrologers Fund (AFUND) is not a registered broker dealer or a registered investment advisor. 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.

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