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1. RIGHT AND WRONG
2. TRADING WITH WSNW
3. STOCK REVIEWS
4. LETTERS
Will it really be 8500 before 6500 instead of 6500 before 8500? Didn't think it would be possible given the world situation. Either way, it is almost definite that the US/European markets will follow Asia in less than 36 days, with increasing probability each day left in our countdown. As to trading the stock market, I am very glad I was also trained in the futures markets. Today the US stock market is less a stock market than a futures market or Chicago's revenge on NYC for being a second city. As to investors, whether the market gets to 8500 first really doesn't matter, taking profits does. It should NOT be " buy, hold and then buy some more."
Assuming another Gulf war, we do NOT see a major flight into the US dollar, but a better Gold play this time. US Bonds would gyrate (volatility). This is not being sold as a war America will win - and that will be bad, politically AND economically.
Last winter, when the oil sector was still flying, I wondered how it would come down to earth as astrologically the Saturn/Neptune aspects suggested. One answer was a combination of classic supply and demand, (increased oil reserves) and reduced Asian demand. This is not a sector I follow actively. In fact my last major oil call was January 9, 1991 when we issued a five star OIL Buy (our trading system goes from 1-3 stars!). Still, Oil seems rather cheap at $16, and while $14-$16 is possible, I would rather be long to technical resistance of $18 over the next 10-14 days. Commodity traders may wish to dust off their Oil charts - I plan to.
Key Dates: February 16 (Asia) and February 26 (Eclipse).
DJIA: P1 8260 P2 8060 P3 7908 R1 8500
BUY: GOLD, OIL
2. Here are the ABC's of profiting with WSNW Alerts:
A. TRADING RULE ONE: NEVER PLAY AGAINST YOUR SELF! Use WSNW Alerts as a second opinion or signal confirmation of your trading system.
Note 1: If you break Rule A, do it only for one day ( and night), unless the trend is your friend.
Note 2: If you believe our views are counter trend, don't play or play only P2 and/or P3 positions to reduce risk of loss. Similarly, buy options only at P2 or P3, while futures or stock buying and selling can be done at P1 using appropriate risk/reward parameters and money management.
B. PLAN AND IMPLEMENT PRECISE ENTRANCE AND EXIT STRATEGIES
Note: I may personally recommend a position long term like Korea (KF) and hold it in our UIT, while simultaneously selling Korea or the KF at a trading top in our Global Opportunity Hedge fund. We may advise a day trader to exit put options, while suggesting an intermediate term trader add to his/her short positions.
C. Break rule 2 ONLY when market conditions justify it, and ONLY if you can afford the additional possible losses.
Next time: Investing with WSNW
3. Oxford Health Plans (OXHP)
We continue to believe February is Oxford rehabilitation month. On Jan 31 a rumored takeover preceded Price's investment announcement and a new head. As soon as the old king is beheaded, watch Oxford move. Financial Astrology, what a concept!
AMERICA ON LINE (AOL)
Perhaps my chart contact with this company is not favorable to my financial health. Still, I continue to believe AOL, like Netscape in 1997, has no clothes. Will the market agree with before May 4? Stay tuned. I will.
4. Why is this market still soaring?????
HW: Money Flows, aka classic pyramid scheme. It currently takes 13.4 billion net inflow into mutual funds (buy and hold players) to keep the market EVEN. January was 18 billion, but we project February, March and April should be below 13.4!!!
Just a guess. March 13th, 1998. Don't think it will be 1000, more like 500.
HW: Good guess. If you are right, your prize may be a job offer from us :)
What is a Triple Sell?
HW: One Buy or Sell for short term traders
Two Buy or Sell for intermediate term traders
Three Buy or Sell for long term traders or investors
See our WSNW ALERTS FAQ for more info.
Re: IHI Thank you! Six years, instead instead of three, to a billion dollar company is OK by me. We shall continue to hope that Rached makes it.
HW: Yes it will be very FORTUNE-ate for us both when he does.
From WSNW you mentioned 6 entries for shorting the market have been planned. But why don't you simply reduce it to 2 or 3 and don't start to short until March/April since this is going to be the period for DJIA to tops and expire. In that sense you wouldn't have to enter the market so early as you did for the first 3. So that you wont suffer loss for now, and even have greater profit.
HW: Very good question. First, the magnitude of the move is SO great, that I wanted to continually hammer the point home to investors. Second, for some stocks e.g. IBM and some markets e.g KOREA, these times were the best entrance. Third, I don't want to miss this one!
None-the-less, I believe I have not communicated well, which may have caused some of my readers unnecessary losses. My thinking is primarily as a global hedge strategist. I am not primarily an options player, but may recommend selling stock, shorting stock, in addition buying and selling derivatives. If last week the DJIA was up, it was up FAR less than Asia was down. Our basic strategy is to BE LONG STRONG STOCKS AND MARKETS and SHORT WEAK STOCKS AND MARKETS. While the US to date has not been weak, it is WEAKER than Italy, the number 1 of 20 major world markets and one of US market hedges. Clearly, this cannot be implemented outside of hedge funds. Therefore you will note beginning with this issue, I will try to better differentiate between Trading and Investing. As to being early - well our trading motto is: BE THERE FIRST. This means sometimes we have to wait for the world to catch up. We just have to make sure we don't get killed by being the first at the party. On a risk/reward and probability basis, thanks to the advantage of using financial astrology, we remain standing tall.
There is talk going around that Clinton will use New Moon as period to launch attack on Iraq, 'under cover of darkness'. Could it be?
HW: Yes. US military astrologers historically favor Solar eclipses such as the forthcoming February 26 New Moon to "time" air strikes. cf Gulf War Solar Eclipse January 15, 1991. Personally, however, I believe it will have as much to do with Monica L and Kenneth S as with Saddam H, but that is another story.
John Crudele in the NY Post reported on a pattern developing in the Clinton scandals that could provide an opportunity for traders: "Whenever there is a new revelation of wrongdoing, Clinton immediately goes on TV and - eschewing questions - talks about how well the economy is doing. The stock market almost always rallies for a day and dies down the next day." Latest example was Tuesday's 115 record breaking gain.
Watch for a big drop in the Dow on February 10th. Also, significant loses between Feb.17-26.
HW: Our dating February 11/12 worked in Asia, but not for the DOW. We are on full Short Alert EVERY DAY for the next 36 days. However "significant loses"? We should make BIG MONEY when markets crash, as we are are hedged with puts buying and call writing as well as shorting stocks and indices. When markets rally, we should make or lose only a little by virtue of owning High Beta stocks and daily dancing the futures markets.
In your WSNW 2/7 you answered my question about you and Chris being not in tune. You wrote that he was issuing a sell signal for this weekend. In your free sample issued of Chris, sent yesterday I do not see him becoming BEARISH, for other then a small correction, it appears quite the contrary. He wrote ;" the market appears long term bullish". Henry, I am confused or am I ot reading something correctly. >>
HW: No, but note the lack of buying on the short term and intermediate term. 11/12 was another key date for us - see Asian markets. I don't worry about money flows and options premiums if they are against me AS LONG AS THEY ARE NOT MAJORLY AGAINST ME.
If I wanted to do your AFUND UIT but didn't have $500,000 for you to handle for me - I could invest an equal amount in the 12 stocks you recommend and get the same results (although smaller) - right? Do these 12 look good now or after April?
HW: 1. New Portfolios are created each month to take maximum advantage of new opportunities of fallen angels.
2. In May we publicly issue another to present at our NYC conference, which will be previewed to WSNW subscribers.
3. Our January UIT is already up 15%. However, it is only designed for 25%+ due to the conservative nature of UIT investing.
4. I believe you can get similar results with a smaller portfolio using the diversification strategy of 12 stocks. Certainly at $250,000 and perhaps even less depending on the commission structure.
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