1. POST ECLIPSE MARKETS
2. UP STARS/DOWN STARS
3. TELECOMS
4. QUOTES
5. STOX.COM
6. LETTERS
Assuming the August 11th Eclipse strikes before the end of the month, 11,200 will hold as the 1999 DJIA ceiling. Again we ask how low is low? US bond yields reached our P2 target of 6.25% and then retreated on Friday's PPI report. Was it the time or yield to buy and hold? NOT quite yet. We would prefer to invest at 6.40% later this fall. However, this is primarily for North American portfolios, as the US Dollar will be falling intermediate term and therefore US Bonds will not be very desirable for most international investors.
Red Hat (RHAT) IPO'd on Wednesday's eclipse. I don't think that was very good timing, but just one more management mistake. This could portend their competition will eclipse them within one year unless they change dramatically. Hopefully, it will be another Linux competitor and NOT the son of Bill Gates. In any case, investors beware, you can look forward to buying RHAT stock for less than 1/2 the price well before the millennium bug strikes twice.
A 1000 point DJIA drop thought form is being energized. One technician thinks a break of 10,500 support would crack it to 9500. Personally, I believe a break of 10,000 is needed first (in the absence of compelling news). Should this happen, be prepared to take a relaxing coffee break. The stock market will close for one hour (before 2:30 PM) if it drops 1050; if it drops 3200 DJIA points, IT WILL CLOSE FOR THE REST OF THE DAY! For more circuit breaker information.
KEY DATES: August 18, 24, 25
DJIA: P1 10500
P2 10400 P3 10,100
GOLD-XAU: P1 75, P2 89, P3 100
BONDS: 6.12% - 6.41%
YAHOO: Sell to 100.
2. While US stocks are still pricey, we are beginning to see a
number of trading buys flashing across our market screens. These
are primarily for small and midcaps stocks as we prefer to buy US Blue
Chips at least 20% cheaper than present .
One notable exception shortly will be
DOW DOG MO, the only DJIA stock with the classical 5% yield buy signal.
We believe it will be at least 20% higher next year (above 42). Of course,
buying Philip Morris implies you are not SRI and that you don't mind passively
assisting in wholesale murder. So IF morals are NO object and you worship
easy money above all, get ready to accumulate this one over the next 60
days. Alternately, you could consider buying long term MO call options
to lessen any conscience. [Indirectly you would be slowing MO's rise as
market makers eventually would short the stock after selling too many calls.]
Real Technology Bargain hunting begins at 38% and 50% for Technology
stocks and 68-90% for Internet stocks.
As for most new technology stock purchases, my current advice is DON'T.
If you have profits, take them. If not, don't average down, but cut
losses!"
For Summer/Fall 1999 buying specials, subscribers should visit UP Stars/Down Stars for our price recommendations and targets. Current and future plays include: Sunoco (SUN), HA-LO Industries (HMK), Covance (CVD), Hecla Mining (HL) and numerous REITs. Subscribers will be emailed our August STOCK OF THE MONTH CLUB pick over the next two weeks.
3. ATT, the largest US telephone company, could be hurt by tougher competition in the long-distance telephone market, Barron's reported last week. Well Duh! We recommended dumping it at our May Astrology and Stock Market Conference at more than 57. Intermediate term, we are lukewarm on most phone stocks today and rate this sector just slightly better than pure technology plays. Even Motorola, our 1999 star, we have downgraded from a strong buy to barely a market perform (After it hit 100 of course!). As for their Iridium sink hole, all I can say is I hope they fired their corporate astrologer for that messy timing. The only two new trading buys we are waiting for are IDTC and RCNC on dips. We expect these to be take over targets similar to our 1997-99 Frontier Play. If ATT is well below 40, that could be a different story.
4. "Rising profits will drive European stocks about 10 to 15 percent
above current levels by the end of the year,' said Walter Schmidt, Gerling
Investment manager in Cologne.
HW: In 2000 yes, in 1999 a rather iffy bet.
"The influx of low-cost and super-low-cost PCs over the next couple
of years could have an overwhelmingly depressive effect on average unit
prices.'' Merrill Lynch analyst Steven Fortunain.
HW: That plus Y2K plus Saturn square Uranus should be more than enough
reasons for you to sell some, if not all, personal computer shares ASAP!
5. We are please our latest corporate client STOX.com has consented to allow us to share information on how we work in their astrological corporate strategic planning. This will be updated on our web site at Corporate Astrology. Naturally, I may be a bit prejudiced if I forecast that this company has a high probability of being at least a double or triple play winner. As they are currently a high risk microcap Internet play, it should be bought ONLY with speculative RISK capital you can easily afford to lose. You may wish to simply track their progress rather than participate. If you are an experienced microcap trader or investor who wants to play a winner, I would suggest you begin doing your Due Diligence research by calling their Investor Relations contact John Kirk 1-800-797-9999 X136.
6. READER: Great to see GOLD moving lately!!!! Keep up the good
work!
HW: Yes, we will be happy when back to 289+.
READER: I would like to mention that, before July 1st I almost joined
your services for $500 then, now $1000, but I was a disappointed that Dow
run to 11,300, not only disappointed, it was a painful experience in my
trading account. TODAY, I am saying to you congratulations, for 10707,
1302 and 121. I should have paid you the $500!!
HW: Hardly too late to sign up. $1000 should be less than the
profit of one good Yahoo short or OEX trade.
READER: What is your time line for the gold market? If one were to purchase
gold stocks now, when would you think the sell period would be? How does
this relate to the 5-5-2000 lineup of planets in the sign of Taurus - which
presumably favors gold?
HW: I would sell whenever I don't think the golds will outperform against
other potential investments, taking any tax consequences into account.
That could be this October or perhaps next May, but this is not yet a decision
we are making until the XAU is above 89.
READER: I am a new subscriber and have noted references made about IHITF,
however I have not been able to locate much of any information about the
company. I would appreciate anything you may be able to tell me,
or direct me to an appropriate source so that I may be able to make an
informed decision regarding a possible position. Thank you.
1) Visit International Hi-Tech Industries's
website and/or call 1-800-838-8090 for an investor package,
2) Read our collected IHI's
posts on our web site.
READER: INTC (Intel). I have a trading chart Mar 1 1989.
Am I missing something here? Natal Merc 16 deg Aquarius, Natal Pluto
15 deg Scorpio. Shouldn't this be a great short up here at its all time
high, coming up to this Aug 11th Solar eclipse?
HW: Monday's AMD announcement was certainly a shock that Intel is not
being first with seventh generation chips. But is that the right
chart for Intel? According to Bill Meridian's Planetary Stock Trading,
its first trade chart is August 7, 1981 at 10 am NYC. Still, technically,
76-79 is a comfortable short to 66 short term in my view.
READER: Insane Behavior - With an eclipse, the grand cross etc. astrology
signaled a big sell off. But the void of course moon often indicates dumb
purchases. Lot of buyers out there. This looks like a knucklehead bull
rally to me..... But I think the new "height" just gives it new momentum
to fall when it turns down.
HW: I hadn't realized that the Moon has been "void of course"
all these last few years! :)
Don't worry: before oil is $25 a barrel, someone is bound to notice
signs of inflation!
Subscribers please send your comments, questions and suggestions to
Letters.
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in YOUR future?"
Stop reading Wall Street, Next Week, last week: YES,
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