1. MARKET COMMENTS
2. SECTORS: GOLD, OIL & SPIRITS
3. QUOTES
4. DAILY MARKET COMMENTARY
5. LETTERS
Consumer confidence in the US economy rose in June to its highest level in more than three decades, as Americans show few signs of ending a spending spree due to the rising stock market. And when will this gravy train stop? In our view -- between this week and the July 28th and August 11th eclipses. And since when is the FED hiking interest rates GOOD news? No hint of inflation on the DAY OIL hit an 18th month high?
President Clinton obviously has a great future when he leaves the White House: as a script writer in Hollywood! Who could write better fiction that the US debt disappearing by current actions by 2020? Next year, when the US dollar is tanking, people will wonder how anyone could have believed such nonsense.
There are many positive expectations for a summer rally. This is obviously
not our view. In fact, such expectations perversely can lead to the market
decline we are expecting in July. Philip Roth wryly defined a bear
market as occurring "when fundamentals analysts are WRONG by overestimating
corporate earnings." Those expectations are in place. Example:
Starbucks Corp.<SBUX.O> on Wednesday warned that its profits would fall
short of expectations. The news crushed Starbucks stock. A taste
of what to expect from now on: corrections of 25% and more in a day!
Are you prepared? How?
Have lots of cash AND NO buying on margin!
Key Dates: July 12
NASDAQ: P1 2500 P2
2200
P3 2000
Bonds:
P1: 6.24%
2. At first glance Tuesday's Bank of England's gold sale seems like a nonevent. Some aspects however, such as Mars Jupiter Neptune T. Square and Saturn Square Nodes does not bode well for the Pound (but is that not one "desired" result to weaken the Pound?) or Britain. If gold holds as expected, then a major rally is likely to be underway next week.
Oil prices rocketed to an 18-month high on Wednesday after another unexpected drop in US crude oil stocks and signs of growing demand for gasoline. NO inflationary pressure here....Energy stocks should outperform with relative safety.
Remy-Cointreau, the French wine and spirits group reported a surge in champagne sales as demand rose in anticipation of millennium celebrations. With Jupiter/Neptune aspects assisting and no SRI prohibitions against alcohol, then this sector of the beverage industries is a fairly safe refuge bet for several months.
3. 'The markets are going through a transition to where 6 percent on
the long bond is no longer viewed as a ceiling but a floor.''
said Richard Cripps, chief market strategist at Legg Mason Wood Walker.
HW: Jupiter/Neptune strikes again!
"3 of the WORST ASTRO-DATES this Century take place in the next 7 weeks!
If the economy is going to sink, IT WILL BE VERY SOON!" Arch Crawford
HW: Are you sure it hasn't already just without press?
4. Regarding
the Daily Market Comment:
-What does SP stand for?
S & P 500. Either SPX which are cash or SPU [Z,H,M] which
are S&P futures September, [December, March or June].
-Where do I find the SP numbers described in the helpful hints page?
Any good Internet data information provider gives SPX numbers free
and SP futures free 15 minute delayed or current for a fee. Email
data
provider if you wish to know the one we are currently using.
-What do the colors on the calendar signify (right now they are red,
orange and blue)?
RED means a down day, Green is an up day, Orange is a volatile day
with a downwards bias but bear traps are possible. Blue is just our
background color-no special meaning.
-What is the difference between the multiple listings for some of the
stocks on the Star Picks and Pans? (Yahoo.)
P1, P2 and P3 are a first, second and third potential price entry.
If you are in agreement with the trend (either up or down), join at P1.
If you have a contrary position, put in a stop at either P2 or exit at
P3. Alternately, if you agree, you can add at P2 and P3 depending
on your trading system.
-Would you please explain how to use the field of green at the bottom of the page just before the daily comment. There is a zero next to "SPH Longs" which suggests to me that it cannot be an SP number. It means we are not recommending NEW long positions (except special situations).
5. READER: [You say]" Position yourself before next weeks
full moon?" I am a new subscriber and no nothing about astrology
other than I believe in it. What effect does the full moon have on
the market?
HW: HIGH VOLATILITY. In this case, ahead of the full moon, I believe
it is a good idea to sell stocks that you don't want to hold ahead of a
20% correction possible within the next two weeks to 2 months.
READER: I'm curious about your Q&A section in your new IHI posts
indicates production in Sept/Oct. Production will not occur until next
year. According to the June 2 news release, "Assuming that the investors
who have agreed to purchase treasury shares fulfill their commitments by
the end of June, the Factory will be open at the end of the year for the
new millennium and will start receiving down payments for projects in early
November 1999."
HW: This is the not the first time that IHI has been delayed.
The point is progress albeit slowly!
READER: I just signed up for a trial Platinum service. In you
web page you state that Platinum investors can get a review of their individual
portfolios. How do I do this?
HW: FAX it to us at 212 949 7274
READER: I am an investor in IHI. I understand that the SEC in concert
with NASDAQ is implementing new measures to vet the companies listed on
the NASDAQ's OTC BB. I also understand the deadline is 1 July 1999. Please
let me know if IHI will be in compliance by that time. Finally, I understand
that companies that are not in compliance will be delisted and put on the
pink sheets. Any information you may have on this would be greatly appreciated.
HW: Not to worry......IHI does make the appropriate filings with the
above mentioned authorities and is current with those filings. This is
a most welcome move by the SEC. The new Rules are intended to ensure that
investors in OTCBB securities have access to reliable and current information
about the issuers of these securities. The Eligibility Rule provides that,
in order for a security to continue being quoted on the OTCBB, the issuer
must be required to make periodic filings and be current with those filings.
A similar rule for foreign equities became effective on April 1, 1998. This rule requires foreign securities not registered with the SEC under Section 12 of the Exchange Act to be delisted from the "NASD OTC BULLETIN BOARD." Since IHI's shares of common stock are registered pursuant to Section 12(b) of the Act and IHI is current with its filings under the Act, IHI is, therefore, in compliance and was so well in advance of the new rule.
READER: What are the measures you use for shorting the market?
What about Nasdaq 100 index options and Nasdaq whole index itself? It seems
to me you always recommend S&P 500.
HW: Our clients that use all kinds of short instruments, ranging from
cash to futures to options. We give both DJIA, SPX and SPU markers. Choose
whatever trading instruments you have good Synastry with, are comfortable
with, have a good track record with.
READER: When the 60 minute guy asked you what the Dow Jones industrials
will be on 12/31/99, your answer was 7001. Were you serious?
If so, approximately, when will the decline start. All my investing
is through my company's 401K plan. My money is currently in an S&P
500 index fund. I expect a market nose dive as Y2K approaches. I
would just like to get out before I lose my ass.
HW: If you were my client, your index fund would be sold pronto.
READER: If Saturn Sq. Uranus isn't until July 18th, why is July 1st
such a critical day?
HW: Trade secret.
READER: I believe you predicted that the DJA would drop by this years
end to 7001. When do you believe this downtrend will begin? And what
is the reversal date to get in on this move if one was to short the DJA?
HW: We are looking for this entry period on or before July 1.
While there could be a rally on Fed Action/in action, we want to be positioned
ahead of the July 4th USA Solar Return Birthday.
READER: I think Greenspan just gave the market a gift it didn't
need-neutral bias.
The question is does a correction just bring us back to where we were
three weeks ago-which is about a 10% Nasdaq decline - or does the market
get hit beyond that, or hit at all?
HW: IF it get hits as we expect, further than 10% of course.
Subscribers please send your comments, questions and suggestions to
Letters.
"Can you afford NOT to have financial astrology
in YOUR future?"
Stop reading Wall Street, Next Week, last week: YES,
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