[Astrologers Fund, Inc (212) 949-7275]
(please address all flames to jan)
The "big one" next week? Since before Nov, I have maintained that
investing in the US in 98 was like investing in Asia in 97. I forecast that
Hong Kong would fall before the end of Aug 97 and that the US would correct
in the Mar/Apr 98 option period. Not much longer to wait. Assuming the
market closes below 8060 next week as forecast, I am taking a vacation.
Even in our favorite Big 3 market Europe, we suggested profits on one
full position (1/3, up from previous 12%), ahead of next week. So while
buying on dips has worked to date, we prefer to sing "bye bye market" to
"buy buy market".
Astrology + Common Sense = Cosmic Sense.
US equity funds took in an estimated $3.05B in the 3 days, ended Feb 26,
for a monthly rate of $19.7B. Equity fund assets grew to $2.20T from $2.14T
in the prior week.
Bottom line, it now takes $13.51B (up from 13.4) to keep the market even,
so far so good for the bulls. But money flows can be fickle. All it could
take is one more eclipse and presto, negative money flows.
On Friday, investors mindlessly bought on rather bad new to push the
market up 125 Dow. Now just imagine how far and fast it can fall? We
expect a number of major US companies to report earnings as disappointing as
Intel (INTC) and Motorola (MOT) did last week and have fully positioned
ourselves accordingly until the end of Mar and Apr options expirations.
Key dates: Mar 9 - 13.
Dow: 8060 or less! |
