Wall Street, Next Week is our weekly Email/Fax newsletter.
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1. ECLIPSE AHEAD
2. BONDS
3. CANADA
4. MSFT PART I
5. LETTERS
September 6th's lunar eclipse lies ahead ready to Tripp up an otherwise bullish seasonal rally into Labor day. Of course, if you feel you missed the fun, there is always Hong Kong next week..... On the other hand, we may finally start to dip into Japan then or at least cover short positions... Institutional traders: Stay tuned.
The Big question for investors is whether September will be an up or down month... the answer is yes. We may still have SOME madly bullish day traders and internet pigs, but with a generally poor earnings reporting season for the THIRD QUARTER IN A ROW, the secular trend continues down.... Be very selective in buying.
KEY DATE: September 4
DJIA: S1 8300 S2 8000 S3 7908 R1 8500 R2 8600 R3 8800
2. Our call for a record US bonds move in August has borne fruit. Bonds will continue to demand respect with 5.50 - the intermediate term attracting pivot for some time. This bodes well for the myth of no inflation - ask the tooth fairy. We have both inflation (Jupiter/Neptune) AND deflation (Saturn/Neptune). It just depends on your life style, ie. whether you JUST live in the virtual world of computers and communications or the REAL world.
BEAR MARKETS AND INTEREST RATES
Market chge Int Rate chg
1921 - 1929 +461 -35
1987 - 1998 >+461 >-35
Historically, almost every speculative mania has ended when interest rates were at multi-year lows. Each ended with a multi-percentage decline and economic devastation. You think it will be different this time? Not if your are Indonesian or Russian or don't have a well hedged portfolio!!!
3. Fretting about the Loonie's swoon? The Canadian dollar is continuing its downward spiral, dropping past C$1.55, well past our P1 target of .065 U.S. with more to come! The Canadian dollar plummeted almost one U.S. cent on Wednesday alone to finish at its lowest close since the currency was introduced in 1858. It WILL get MUCH worse before it gets before (already two GDP negative growth), with 1.60 and 1.65 our P2 and P3 targets respectively. Thereafter in 18 months to 24 months it will be better. Remember to be prepared to buy WHEN THERE IS BLOOD IN THE (BAY) STREETS.
4. "640K ought to be enough for anybody." -- Bill Gates, 1981
5. This might sound like a crazy idea, but I wonder if anyone's ever thought of proposing a "merger" to the USSR? It works for huge corporations, so why not for countries too? They have tremendous resources and just need some solid government management systems like we could provide. I could see the headlines now - "WORLD SUPER POWERS TO MERGE".
HW: I hear some Goldman Sachs whizzes are working out the details right now... their only problem is that those pesky ex-commies refuse to play ball.
Q: Re: August 25 Wall Street Alert 32C SELL! What is this prediction based upon. Do you have a wave count? Or is it based on market weakness? I am curious to know?
Q: 1: Financial astrology plus
2. Proprietary pricing formulas plus
3. Favorable Risk/Reward parameters
I have been in this business for 12 years . I am fascinated and I needed a new perspective. How often will you be in touch and how do I get to ask questions.
HW: Weekly. I try to answer questions of a general nature to all readers. We also offer a gold subscriber service ($3500 annual) which includes answering personal questions.
I have subscribed but do not know how to access the current issue on the web site. I have received the alerts, but was I supposed to get a password for access to the web site. If so I have not received it. Please advise.
HW: You must email me for your password. Next year, instead of raising prices for all subscribers, we plan on having 3 classes - silver (investing), gold (trading) and platinum (money managers). We feel this will better reflect the diverse needs of our subscribers. Furthermore, investors do not require and I believe SHOULD not, focus on the day to day markets. Naturally anyone extending their subscriptions for one or two years will be locked in on the old (1998) rates.
Correspondence 03/01/98:
"Therefore, please do not bother sending any more content to StockHouse.... it will not be posted from now on. As for content regarding Canada, I predict you will tell investors to get out of
Canadian markets as fast as possible.... and that's advice we in Canada would rather not listen to."
HW: Ignorance is hardly bliss in the stock market. You are doing a great disservice to your readership. I have no problem with your discontinuance which is hardly unexpected given your previous attitude....
"Can you afford NOT to have financial astrology in YOUR future?"
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