WALL STREET, NEXT WEEK

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JULY 26 WALL STREET, NEXT WEEK:
1.  ASTRODATES
2.  MARKETS
3.  QUOTES
4.  BUBBLES DO BURST
5.  LETTERS

1.  7/28 LUNAR ECLIPSE 7:25 am
8/5 Mercury SD
8/11  SOLAR ECLIPSE 7:08 am
8/18  Pluto SD
8/23  Sun enters Virgo 9:51 am
8/24  Jupiter SR
8/26  FULL MOON 7:08 am
8/29  Saturn SR

2. While we were early, Saturn/Uranus was EXACTLY on time, apparently topping Nasdaq for 1999 to the day.
Our 5 stage market decline sequence of (1) July 1- US interest rate reversal,  (2) Saturn/Uranus-Nasdaq top, (3) July Lunar Eclipse - Asian crises?, (4) August Solar Eclipse - European crisis? and (5) Y2K is now 2/5 complete.  We took the opportunity last Wednesday to sell more stock and raise cash levels further in many client portfolios.

Monday last week, Microsoft (MSFT) warned that profit margins peaked and revenue growth would slow in fiscal 2000 from the 29 percent rate in the year just ended due to slowing demand for computers, fears over the Year 2000 computer bug and uncertain global economic conditions. In addition to being a no-brainer MSFT short at 100, this could have been your FINAL warning. Note for example, Amazon.com (AMZN) this week- I really don't think they needed to announce a stock split to reduce their price in half, if you get my drift!  THIS MAY BE YOUR FINAL WARNING!

For a scary but excellent view of August markets, I recommend all readers see J. F. Richard's strologically based column posted at France.  Frequently, these forecasts apply equally well to the S&P 500, the EURO STOXX 50 and other European exchanges as well as the CAC40.

Key Dates:    RED ALERT ALL NEXT WEEK
DJIA:    10,000 testing

3. Arch Crawford's 3 dates:
[1] July 26-28 TOP of a strong run-UP in Inflation Hedges in particular!

[2] Aug 11 = Solar Eclipse forming a "Grand Cross" with Mars opposing Saturn.
Nostradamus wrote 500 years ago about this date: "Terror will come from the skies...war will reign happily."
Looks much like the date Saddam Hussein attacked Kuwait - "There will be coercion, the use of force, a large explosion and heartlessness or cruelty."

[3] Aug 17 = One Grand Cross passes, another one forms = UNPRECEDENTED!

4. The US May trade gap widened to a record $21.34 billion. From Bubbles DO BURST by Samuel Brittan:
A Wall St crash around the turn of the century could inflict a good deal more damage than the previous crash of 1987....
According to HSBC Economics, the most likely forces to burst the bubble are a combination of further rises in interest rates - whatever Alan Greenspan may say today - and a falling dollar, both of which are expected in the second half of this year and in the first half of 2000. This should result in a growth slowdown this year and the risk of outright recession in 2001....
HW:  Be prepared.

5.  READER: Score one for you....Cela va san dire [It goes without saying].
HW:  Merci Bien.

READER: So much for 11,200 being the top. A little while back you asked 10,000 floor or ceiling? What do you think?
HW:   Same as before: 11, 200 was a probable top and before the end of Summer, so called "support " at 10,000 will have been decisively broken and 10,000 will be the ceiling.

READER: I, too, share your enthusiasm for IHITF, and, after studying the investment package have started an investment campaign. You speak of the stock possibly hitting $30. But, do you have a "timeline" for the stock hitting even $10?
HW: When the BC factory begins production-so next year is possible.

READER: Gold will go down to $200 before going up.
HW: Gold to $200?  Currently $255 support holding as well as the XAU holding 60. I would recommend covering your short and booking a profit this month.

READER:  As always I enjoy your site and the updates.  Have been reading it now for about 3 years.   We don't always agree, but you have made some great calls before.  Just curious about Cadbury.  I always think of you guys as Yin and Yang on the market!  Often going in separate directions!
HW: True, but currently we are both trading bears. If you are a trader, it is valuable to read Cadbury 3 times a week, so why not subscribe?

READER: You were 100% wrong to be short from June 20 through now.  I lost on all my S&P contracts thans in part to you.  Not only did you change your minds, but it was too late.... Give it UP!  The market is being manipulated beyond your wildest nightmares.
HW:  We have NOT changed our minds AND you criticized me too soon.  Are you confusing us with another financial astrologer? Trading is about taking losses and moving on.   We were a bit early and took some (heavy) trading losses, but these are being made up. In addition other markets such as Oil would have hedged trading positions. Of course the market is "manipulated".  That is something new?

READER: This market has made financial astrology look very bad. I know you are not alone as a financial astrologer that missed this in a big way. First it was July 1, then it was July 12 Yawn, yawn. Now its Saturn-Uranus. The people who have been predicting this huge fall, for how long now?... I do have a real respect for astrology so I am disappointed that in this instance it has been worse than worthless but actually financially dangerous as its signals, as determined by you and some others, were 180 degrees wrong.
HW: My mistakes are no indictment of astrology. Even a Leo is sometimes wrong but NEVER 100% wrong! In this case, we were just a wee bit early. Also, the US market is just ONE market, albeit a big one. Wrong about Oil? Wrong about the Euro? etc.  Please review AFUND PERFORMANCE.

Do you agree or disagree with Major Instability by Arch Crawford?
HW: I am bearish of course, but never as much as Arch.

READER: I have tried to get access to Portfolio 2000. I have a silver subscription. Can I get access to this?
HW: No, just the silver channels information. Portfolio 200 is a Platinum channel posting.

READER:  Since the market generally doesn't do what you say when Greenspan speaks, do you think 11,200 will hold?
HW: Yes.

READER:  I have X mutual funds in growth and aggressive areas. Would it be wise to convert them to money market funds? Also, the same question for my  retirement savings. I'm 51 years old  grew up poor and don't want to go back.
HW: You need to ask your financial advisor about this.  However, if you were my client, I would sell the aggressive funds in your IRA as there is no tax consideration involved.  The rest has to be measured against tax considerations and other issues (asset allocation, portfolio balance etc.)  We do provide this service should you wish us to manage your money for you (100K minimum). See Money for details.
PS Is it  not better to err on the side of safety, i.e. "Better to be safe than sorry?"

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