1. SATURN/URANUS
2. QUALITY STOCK BUYING
3. QUOTES
4. INTERNET MONKEYS
5. LETTERS
Lots coming up cosmically. First there is Saturn/Uranus this weekend which could mark the end of NASDAQ record highs for a while. After Wednesday when Jupiter squares Neptune, it may be time to consider 1/3 profit taking in the Oil Sector e.g. Oil above 21. Then Alan (the short killer) speaks Thursday. More astrological landmines ahead circa the Lunar eclipse on the 28th.
Thursday we issued WSNW ALERT 38G. Despite a record close Friday, our pricing high circa DJIA 11,200 may or may not be broken decisively this week. Depending on earnings released next week, especially Monday with IBM and Microsoft reporting after market, we will continue this alert or regroup for next week's eclipse. Naturally if it does, the markets will test support next and perhaps as low as 10690 and SPU 1350.
The Euro exceeded our P2 target of 102.46 last week. While more downside damage is quite possible to the Euro through August and par tests (P3), it will be soon be time to start looking to invest in Europe, i.e. Holland long term for the Euro's recovery later this fall.
Key Date: July 19, 21, 26
DJIA: 10,690-11,200
Euro: Slow Accumulate
2. As per several reader's request, the following is the ENTIRE list of Portfolio 2000 world class company stocks that we plan on buying this summer AHEAD of any market correction:
3. European Central Bank Chief Economist Otmar Issing said the Euro
has "significant potential for appreciation." [and} said the Euro would
be "significantly stronger in the foreseeable future."
HW: We agree
Siebert, head of the Kiel Institute for World Economics and member of
Germany's council of economic advisers known as the `wise men,' called
a drop below $1.00 ``possible.''
``The comment doesn't sound very wise to me, but it was taken as an
excuse to sell the euro again,'' said Mark Bolton, the head of foreign
exchange trading at Bank Brussels Lambert. The euro could fall to 98 cents
in the coming weeks, he said.
HW: For long term investors, that would be a one BIG BUY
SIGNAL!
4. Raven, the dart-throwing monkey with her own Web site, showed
up many of Wall Street's finest with her 55 percent gain for the first
six months of the year. "It's all in the wrist action," stated Raven. A
Web site and index have been created to monitor her performance at Monkeydex.
HW: This concurs with our thinking about the intelligence behind
buying most Internet stocks today.
5. READER: My question is whether Sat/Ura on Monday causes overall market
decline or just shift from techs into cyclicals one more time before everything
goes down later?
HW: Good question, but remember Saturn/Uranus is exact this weekend
and is tight orb all this week and next.
READER: What is supposed to happen to the market in August? Isn't August
supposed to be a continuation of the July down trend, or are you expecting
a bounce back? How low do you expect this current move to go?
HW: By the end of August we should (almost) definitely be in a corrrection
phase.
Our DJIA Price targets are: P1 10690 P2 10,000 and
P3 8888.
READER: Playing devil's advocate.... If the Company {IHI} has
difficulties hiring "subs" to do work on their building, should we worry
about the same management running a company as large as this should be
once in full production?
HW: No, because that is the province of their co-venture partners,
NOT IHI.
Also... Once this market corrects (or crashes), wont that affect the
HOUSING & CONSTRUCTION market & therefore affect IHI growth?
HW: Perhaps, but more likely to IHI's benefit as they will provide
the lowest possible cost wtih the highest quality housing.
Last... Are you continuing to BUY at these levels (70 - 75 cents)
or do you see it going lower??
HW: I personally often buy when I have some spare cash.
Could it go lower? Always possible, but increasingly unlikely with
more and more factory progress.
READER: Since Neptune and Uranus are in Aquarius opposing your Leo Sun,
I could easily see how you would strongly lean to the contrarian side now.
Combine that with your previous success in calling tops you are liable
to become fixated in your view of an upcoming crash. I would
assume you have seen others who become entrenched in a particular viewpoint
and consequently lose the ability to generate alternate scenarios
HW: The only alternative scenario I forsee is congress allowing
Social Security money into the market. It is my HOPE that the market corrects
before that and stops this potentially disastrous move. Should it
happen, then the big correction will come by Spring of 2000.
READER: Just to play the Devil's Advocate, if the planets are such a
powerful indicator of things to come, how is it that the actions of a single
man (Greenspan, last October) can thwart their influence? Are we or are
we not an inextricable part of the cosmos? As such, are, or are not, the
planetary movements an uncanny reflection of our lives?
HW: No, he cannot "thwart" the cosmos, but he can apply his considerable
pressure at key points in time such as in October 98 and June 30th to temporary
advantage. This is HIS exercise of free will, although to my mind
poor judgement. Astrology shows the timing and the intensity of potential
market moves. Whether they are actualized or whether we personally made
a mistake in judgement is always an open question.
READER: What are your thoughts on reentering if one was stopped out?
HW: SOMETIMES YES, SOMETIMES NO. It depends on your trading system.
Was the stop primarily because of money management or because it invalidated
the trade? Every day, each trade should be reviewed freshly as whether
you wish to be in it or not. If the R/R and probability meet your
system requirements, then why not reenter: It is a new trade!
READER: I suggest having an index of terms for new users. Could
you please briefly explain what 'Price 1, Price 2, Price 3, P1, P2, P3
means in the Up Stars/Down Stars area.
HW: It is in our FAQ.
Please note if you have questions about our service, please check our FAQ
first and Gold subscribers should also read Trading
with WSNW Alerts.
READER: Has your position on Gold Stocks changed? Do you still
expect a summer rally? Also with a gold subscription can I get a profile
on a particular stock.
HW: Not yet, although current price levels are unhealthy.
We could see XAU 50, if XAU 60 strongly breaks. Fortunately, Oil
remains strong and the Sun is entering Leo on next Friday.
Specific advice on individual stocks comes only with platinum subscription.
However, if it is a stock of general interest and one we have already done
work on, we may comment on it here.
READER: Do you ever give a BUY signal??? These professional bears
have been soooooooo wrong since 87..91..95..you name the date..and they
keep making excuses...telling everybody its a mania..a bubble...a fantasy...a
this a that..and the market marches forward while they have BURIED their
readers.
HW: Yes, we do on specific stocks and we list "dangerous" dates (green
or UP days on our calendar). That is the Stock of the Month Club
province, many of which achieved 50%-100% profitability. We even highlighted
Phone.com, a recent internet bubble stock that quickly doubled, although
I personally could not pull the trigger. We also give Cadbury numbers
and he was very bullish until recently. As to the broad market, we
believe this summer has too great a probability of a serious decline.
So we are playing risk/reward (R/R) and probability and use each rally
as an opportunity to go short. For example, our latest line in the
sand at DJIA 11,200.
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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