1. ASTRODATES
2. JULY BUY/SELL/HOLD
3. QUOTES
4. IHI
5. LAST CHANCE BEFORE PRICES INCREASE
6. LETTERS
1. 7/12 New Moon 10:24p and Mercury SR
7/18 Saturn Square Uranus
7/21 Jupiter Square Neptune
7/23 Sun enters Leo 2.44a ET
7/28 LUNAR ECLIPSE 7:25a
7/29 VENUS SR
SIGN OF THE TIMES
Citibank brokerage services are requiring all trades to have 100% cash
balance. Their reason? "By establishing this 100% cash requirement,
we will ensure that valued clients like you have sufficient resources to
cover trading activity."
Not too subtle a warning is it? MY TRANSLATION:
FINAL INVESTING WARNING: REDUCE MARGIN DEBT AND BE HIGHLY LIQUID.
LAST WEEK was a short term top. On the summer solstice market marker day, the DJIA and Bonds were down and this represents the Zeitgeist of the next market period. However, the Nasdaq and S/P's were both up. A segmented market is possible, although I do not believe probable. Bond yields are rising and will trigger more market selling. First order of business is to SELL anything you want to sell ahead of a 20% market correction.
JAPAN is almost finished with an up move and is therefore a great short. Speaking of being finished, how many more Clinton advisor will exit his sinking ship? Janet Yellen, chairman of President Clinton's Council of Economic Advisers is following the recent departures of two other key Clinton economic advisers, Treasury Secretary Robert Rubin and Federal Reserve Vice Chairman Alice Rivlin.
What will the intermediate future of most Internet and technology stocks
be like? Study the price chart of IOMEGA (IOM), but reduce the time scale
by a factor of 12, i.e., 3 years = 3 months. Enjoy the fruits of
buy and hold!
HAPPY FULL MOON MONDAY
Key Dates: June 28, 29 30, July 1
DJIA:
10,000 SUPPORT TEST
EURO:
P1 Buy 102.46
BONDS: P1 Buy
6.24%
JAPAN:
SELL
2. JULY STOCK OF THE MONTH pick considerations are: Drug tester Covance (CVD), SL Green (SLG) and the near death undertaker Loewen (LWN). Subscribers should visit our UP STARS/DOWN STARS posts which will be very active over the next few weeks.
3. ''Our study shows the Standard & Poor's index is 40 percent
overvalued, and a fair value would put it in the area of 1,000 and put
the Dow around 7,400,'' said Don Hays, chief investment officer for Wheat
First Union in Richmond, Va.
HW: A bit generous for "fair" value but certainly within range.
"Iomega is a great example of what happens to parabolic rises
in stocks," Rick Berry, an analyst at JP Turner & Co. said, referring
to the stock's meteoric rise and fall since 1995. "I think the Internet
stocks will be analogous to Iomega's journey over the last year."
HW: AMEN.
4. Last week our favorite long term speculation IHI announced 3 more factories contracts. Next is the announcement of equipment ordering. It has taken sooo long, but the fundamental trend is finally clear. Price action is sure to follow.
5. READER: The market keeps going up. Do you really think the market
is going to tank?
HW: Of course we think so and as we have written here many times before
July 1:
40% CASH AND DEFENSIVE FOR THE SUMMER. Whether right or wrong,
it is the best way to act in our opinion.
READER: Can I upgrade my subscription to gold using the $150/3 month
trial? Does the money I have already paid count?
HW: Yes we apply a 3/5 credit (the ratio of silver to gold subscriptions).
Note: next Thursday, Gold subscriptions double in price and many subscribers
are extending their subscriptions now to take advantage of this.
READER: I'm a veteran trader, mostly long-term. I want to subscribe
but I'm not clear which subscription to choose -- silver or gold.
About all I really need are entry and exit points, both short term and
hopefully, long term, for shorting the major indexes and perhaps some of
the tech indexes. Which sub would give me this kind of information?
Thanks for your help!
HW: For intermediate and long term investing, SILVER is fine. For active
traders, we suggest GOLD.
However since Gold subscription pricing is doubling this month and
the difference is only $200, i.e. $300 Vs. $500 I would just go for the
gold.
READER: Would it be a correct assessment to say there is more likelihood
of a larger correction in the September/October period than July. This
market is irrational-ignoring any bad signals and ploughing on ahead-however
with that in mind one wonders if we will carry on in this sort of manner
until the September/October period where the Y2K should help a sharper
fall?
HW: We could have 20% this next month. But this is all theory,
the point is to be prepared in both July AND October.
READER: I have 10k in the Internet fund (wwifx) and was told by my brother
to sell by mid may (he reads your newsletter) but did not. Now tech stocks
have dropped -- should I hang in there or get out before I lose everything?
HW: If you were my client, I would sell it at once. What is the
REAL value of an Internet stock like street.com with 51,000 subscribers,
2 milllion in revenue and more than 1 billion market capitalization? AFTER
it drops 90% TO 100 MILLION, it is still vastly overpriced at 50X revenue.
READER: Can you give us a little reason why you purchased [Loewen (LWN)]
like why you suggested Sun
HW: I have a STRONG PLUTO and like the risk/reward and therefore buy
giant companies that are almost dead. It they revive, they go up 3-10 times.
If they die, like an option, I only lose the original cost.
READER: can you tell me when the Internet bubble will totally burst?
HW: Have a little patience, it is in process!
READER: Seems you are now recommending HWP. If so why? do you believe
anything has changed from astrology perspective?
HW: We are not recommending it per se. We are suggesting a buy from
much lower numbers.
READER: So the good news comes re IHI and the price goes down-there
are some very logical investors out there!
I was getting a bit concerned. You had mentioned earlier this year
that IHI had gone from a high risk category to an aggressive growth category
and wondered if you had lost a tiny bit of confidence in them of late re
the company finishing this year going into commercial production and the
share price ending up at higher than this.
HW: NO. You must also look at the Canadian price V.IHI as well
as IHITF. There was only a small sale at the end of the day. You
should track how often the bid and ask is hit during the day. Today
was mostly buying and therefore a good reaction. We were pleased!
READER: Nasdaq 100 just broke thru to all time high...21 June date given
as key date turned out to be highest point rise in history of Nasdaq...Tech
EPS looking very strong for July reporting...still sticking by 1 July disaster
day?
HW: YES OF COURSE AT LEAST UNTIL JULY 2ND! Thereafter comes Saturn
Square Uranus on the 17th -- so perhaps there is an extra two weeks, but
that is NOT my bet.
READER: What does your daily market commentary consists of? How detailed
is it?
HW: Our daily market commentary is one short paragraph update of US
markets and comes with a calendar of projected red and green days, key
support/resistance numbers, daily risk analysis for long and short traders
and some stock/options and SP and DJIA future trading ideas.
Subscribers please send your comments, questions and suggestions to
Letters.
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in YOUR future?"
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