1. ASTRODATES
2. Y2K INVESTING
3. QUOTES
4. BLOOMBERG TV
5. MOVING
6. LETTERS
1. 1/6 New Moon 1.14 P
1/11 Saturn SD
1/20 Lunar Eclipse/Full Moon/Sun enters Aquarius
2. The US government is said to be trying to further reduce inflation numbers by taking more items that go up out of the CPI and substituting cheaper goods and services. With the price of Chestnuts by Rockefeller Center rising 25% this year, instead of chestnuts, they would price peanuts! Even though money managers eat at the Four Seasons, eventually, all the CPI may be monitoring is the price of McDonald's happy meals. On a positive note, the price of antivirus software has dropped significantly - to $0 including free virus signature updating. We recommend down loading Computer Associates InoculateIT Personal Edition at http://antivirus.cai.com before January 1, 2000.
Despite soaring bond market yields (we are forecasting .50 rate increase) and the US trade gap widening to a new record, Nasdaq's Alfred E Neuman investors pyramided to another record close. Now the BIG question is whether Money Managers can keep bonuses if the FED tightens its bias on Tuesday or if market mania will last until the Fed rate hike in February?
Sandwiching December 21's FOMC is Monday's Jupiter SD and Wednesday's
spectacular Winter Solstice Full Moon, to be followed by Y2K fears and/or
reality. Despite strong seasonally positive influences, the next few day's
trading will NOT be easy. From our Gold market commentary:
The next 6 trading days are maximum risk to both long and short
traders. Therefore either stare at a screen and don't go to the bathroom,
or stand aside. Alternately, take V3 positions (either way) using
reasonable stops. Cadbury went short at 1429 SPX. (1434 Stop).
We are positioned for next year, but can't decide if we have seen the January
effect already, or whether it is still to come...."
Key Dates: December 20, 22, January 3
DJIA:
Down or Slightly Up and then Down
Bonds: P1
6.44 P2 6.50 P3 6.80
US$:
Intermediate Term Sell!
2. With this our last WSNW report for the century, we ask: IS YOUR PORTFOLIO READY FOR Y2K? Will it be a Happy or Unhappy Y2K? While nothing may happen, to ignore Y2K totally is equivalent to not buying fire or theft insurance on your home.
If nothing happens, the market could rally as it is did on 9/9/99.
Alternately, it may fall considerably. Either way, buying into one
of our 2000 themes, SURVIVAL OF THE FITTEST, is prudent. Also,Y2K could
last several months as some Y2K fixes may be worse than the disease. The
FBI discovered some cases of foreign agents installing malicious code into
Y2K fixes....
As usual we are emphasizing capital preservation with large cash
allocations in all our portfolios, as well as seasonally higher January-effect
stock weighting.
3. "The 30-year bond is a problem and should be a problem for
the market. There is certainly room to be worried with rates back up here."
Barry Hyman, market strategist Ehrenkrantz, King Nussbaum
HW: Unfortunately for US citizens, it is a small room.
"Fears of riots are massively overblown. Our bananas do not
have chips and are fully Y2K compliant." Enrique Goossens Paraguay computer
specialist.
HW: I wonder if they REALLY tested them thoroughly? :)
"Most traders are in disbelief of the economic numbers. We keep waiting
for the truth."
Matt Frymier Banc of America Securities trader
HW: I hear it is coming RIGHT AFTER Godot arrives!
4. We will be interviewed live on the Bloomberg Millennium Plan TV show 12:30pm EST Monday, December 27th and then rebroadcast on News Year's Day.
5. As we planned in 1995, we are moving our office next week. While telephone, fax and email addresses remain the same, our new snail address will be: 370 Lexington Avenue, Suite 416 New York, NY 10016. Numerologically, the numbers 1 and 11 should be favorable to this Leo. Note: Our retail book division will be initially open to the public Mondays, Wednesdays and Fridays 12-6pm.
6. READER: I was very pleased with your 2000
FORECAST. My question is will the market correct before May 2000?
And by how much?
HW: We think it will. Cosmically and terrestrially, markets have
been "triggered" for a correction. We are recycling our old December 31
price target until then.
Note: our 2000 forecast will be posted on our web site for non-subscribers
after the new year.
READER: I predict the day [1000 pt drop] will be Jan. 25, 2000. The
solar eclipse Feb. 5, 2000 tells me of a radical change in the financial
markets. I believe this eclipse will trigger that of Aug. 11, 1999.
HW: I won't bet against you.
READER: With complete due respect, [Americans] see only the US as
the whole world. Re Y2K, it is widely known that many countries outside
the US are way behind re complacency and a lot of banks and companies in
those countries have links with US banks and companies and if severe problems
happened in any of those situations, it could most definitely affect the
US.
HW: I agree.
READER: Just had a look at the chart for stox.com. The volumes accompanying
the rise are substantial. It looks like it could clean out 6 and maybe
meet7ish!
HW: Technically, I see 5 and 6 as its new primary and secondary
support. With 6 becoming the new base, its stock will look next to 10 or
higher. In a securities research report I just read, stox.com was rated
as a "buy" with a 12 month target price of $12 per share
READER: I have seen it many times over the last 15 years-you give
people a rip roarer of a pick and never hear a word. One bad one and you
know the end of the sentence.
HW: Oh yes, that is one reason I am not a stockbroker. I have not
received one complaint about DCHT's 400% move last month or Stox.com 100%
one either. Unlike some, when Jupiter/Saturn kicks in, I believe I will
continue to have happy clients and subscribers.
READER: Read Y2K
Paranoia or Greenspan Exuberance - this maybe the Y2K problem that
knocks the stock market down. Alan Greenspan cant leave this money out
there. Once 1/1/2000 is here, then what? In 1987 when the stock market
took a dump, one of the reasons supposedly was that the Fed drained liquidity.
HW: Alan came in with a stock market crisis in 1987 and may leave
with one this summer if he continues to allow himself to be pressured to
ignore economic reality, i.e. asset [stock and housing] inflation.
READER: When do you think we will see the first uplift in IHI price
again?
HW: Technically the stock is oversold and ready to move up 20-25%.
Fundamentally, it is waiting on the news of Robotic equipment installation
and plant production. So we expect one move before February and another
about four months later. Astrologically, I wish the company was working
from the Bermuda chart and NOT the Vancouver one, but that may change in
2000.
READER: Could you let WSNW readers know when you are updating report
on IHI?
HW: Last week they received 1.5 million in new bank financing. I
am waiting for the robotic equipment leasing and ordering to be announced
before updating.
READER: It should be interesting to see if DCHT goes to 2 or 1.50
first this time.
HW: To me it is more interesting whether it reaches 2 in December
or January and how long it will take to get to 4. You may wish to
read Ram Capital Management's December 17 DCHT
Report- it makes a strong case for a $10 stock price in 2000.
READER: Sorry to disagree with you Henry, but as I chart the Nasdaq
and NYSE every day, I see tons of really good aspects continuing well into
March and even April I do see MAY as a problem however. The Nasdaq and
NYSE have different charts, so why don't you separate them?
HW: I never mind intelligent disagreements. I agree that May is
certainly the most challenging time next year from the astrological point
of view. Given the number of global markets we already cover, I am
loath to take on even more work at this time. However, it is something
we are considering in addition to offering more day trading recommendations.
If Nasdaq is still above 3000 this summer, we most likely will.
Happy Holidays and best wishes for the New Year of 2000. NOTE: No newsletter issue next week- Next WSNW issue is January 3.
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,
I WANT TO SUBSCRIBE
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