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YOUR WEEKLY ASTRO-TRADING PLAN
IN THIS ISSUE
Comment
Market Lunacy
A Sanguine Summers
Recession Opportunities
Military Money
The Economic Calendar
Astrological Dynamics
Spiritual Focus for the Week
Global Equities Markets
U.S. Equity Trends
Metal Markets
Financial Cycles Model Portfolio
Market Sector Strength and Weakness
Astro-Trading Gann Plan Calendar
Stocks to Watch
COMMENT: The stock market gained back some of
its lost ground last week,
but the overall trading environment remains quite treacherous. The
efforts of central banks in recent weeks to keep the markets afloat have
certainly had some effect, but as far as I can tell, there's still a
long way to go in rebuilding investor confidence. For the near term, I
am looking as much to the short side as I am to the long side in
uncovering potential trading positions. At the same time my longer-term
thinking is increasingly turning towards strategies for dealing with
even more severely troubled economic times ahead.
A LUNAR ECLIPSE
The biggest factor at work in the markets during the coming week is
likely to be Tuesday's Lunar Eclipse. It will be visible throughout most
of North and South America, especially in the western part of those
continents. The visible effects of the eclipse will start to be visible
at 4:51 a.m. EDT, but by the time the eclipse reaches its peak the Sun
will already have started to rise on the east coast of the U.S., so it
will only be visible there for about half an hour. Astrologically,
however, the eclipse is likely to have a fairly strong impact on both
the movements of the markets and on geopolitical events in general. It
is strongly linked to the horoscope for the reorganization of the New
York Stock Exchange in 1869 and to the horoscope for S+P futures, as
well as to the charts for the London Stock Exchange and the beginning of
operations for the Federal Reserve Bank. I thus expect to see some
potential turmoil in the markets in the trading days nearest the
eclipse. This could also be a profitable time to watch agricultural
futures closely, especially soybeans.
HOW CLOSE IS A REAL RECESSION?
I have long noted that the current woes in the financial markets are
just the tip of the economic iceberg, but it's interesting to note that
these expectations are now shared by none other than former Treasury
Secretary Lawrence Summers.
Appearing on ABC television on Sunday, Summers said that the risks of a
recession are greater now than at anytime since the September 11, 2001
terrorist attacks. This time, however, the downturn can be anticipated
because of the current spate of real estate, credit, and mortgage market
troubles.
"I do not think we yet would have a basis for making a prediction that
there will be a recession," Summers said on the program, "But I would
say that the risks of recession are now greater than they've been
anytime since the period in the aftermath of 9/11."
On the ABC "This Week" program, he noted the degree to which the economy
has been propped up in recent years by consumer spending, fueled by easy
credit in a real estate boom. With that real estate boom now over, he
said, "those processes-- the rising housing market, the greater credit
taken out of homes -- are going to go into reverse, to at least some
degree. So I think the risks of a downturn have surely risen."
Larry Summers headed the Treasury Department from 1999 to 2001. He
resigned last year as president of Harvard University and joined a Wall
Street hedge fund group last October.
PROBLEMS AND PROFITS
The possibility of an economic recession is never particularly welcome
news, but the ongoing cycles in the heavens and their up-and-down
manifestations in the markets serve as a constant reminder that
stressful situations always bring their share of opportunities as well.
As the trend toward a recession continues to unfold I will be directing
more of my fundamental research into those economic sectors that
typically do well in tough times, including repair services, alcoholic
beverages, rental services, cosmetics, gaming and casinos, pets and
pet-related products, and direct sales.
BOOTS AND BUCKS
Speaking of recessions, the US Army has recently taken action that
acknowledges the increasingly stressful economic times and has
discovered the importance of a single factor in revitalizing its sagging
recruiting numbers--more money. As jobs get hard-to-find, the military
looks increasingly attractive as an employment alternative, but with an
average annual pay check for new recruits at $17,400, the Army was
having big problems finding the manpower needed for the stepped-up
campaign in the increasingly unpopular war in Iraq. So about a month ago
it started offering sign-up bonuses of $20,000 payable to those recruits
who agree to being shipped out more rapidly to join the conflict. This
new strategy has brought in 3,814 new recruits, accounting for 92% of
the 4,149 recruits who signed contracts with the Army between July 25 of
August 13.
NEWS AND UPDATES THROUGHOUT THE WEEK
Check my website for the latest news and special offers; it's updated
several times each week. Go to www.TimBost.com
and click on "Latest
News." While you're there, check out the "Top Listed Site Astrology"
button for links to other astrological resources that may be of interest.
*****
THE ECONOMIC CALENDAR
The economic reports we will be watching this week include Existing Home
Sales, Consumer Confidence, ICSC-UBS Store Sales, MBA Purchase
Applications, the EIA Petroleum Status Report, the EIA Natural Gas
Report, Corporate Profits, GDP, Help Wanted Index, Personal Income and
Outlays, NAPM-Chicago, Consumer Sentiment, Factory Orders, Farm Prices,
Jobless Claims, and the Money Supply. On Tuesday the Federal Reserve
will release the minutes from its most recent Open Market Committee
meeting, and on Friday Fed Chairman Ben Shalom Bernanke will be in
Jackson Hole, Wyoming to speak at the Economic Symposium sponsored by
the Federal Reserve Bank of Kansas City.
ASTROLOGICAL DYNAMICS
The trading week gets underway under the negative bias of Sunday's
Cupido direct station and Mars/Cupido opposition, but there is very
little distinctive planetary energy on Monday to suggest a probable
market direction.
That picture shifts quite dramatically on Tuesday, however with the
Lunar Eclipse at sunrise on Wall Street. It is likely to stir up the
market action considerably, as will the Mercury/Uranus opposition about
an hour before the closing bell, an aspect which typically pulls prices
up for a couple of days.
The waning heliocentric Mercury/Neptune trine on Wednesday morning also
brings a positive influence to the market, but it is nevertheless a very
mild one, since the waning form of this particular planetary aspect is
much less potent than the waxing form. While I expect the positive bias
to continue that day, I'll be surprised if there's a dramatic move to
the upside, even in this volatile market environment.
On Thursday, however, the market mood is likely to shift to a more
negative tone, thanks to the ingress of heliocentric Mars into Taurus,
the waning heliocentric square between Mercury and Vulcanus, and the
heliocentric Mercury/Apollon conjunction. That downward bias is likely
to continue on Friday, with the heliocentric Venus/Uranus conjunction
coming into play an hour after the closing bell.
The weekend ahead of us will bring an extended break from market
activity thanks to the Labor Day holiday, which will close the markets
on Monday, September 3. During that break we will get a big astrological
event--the long-awaited ingress of Saturn into Virgo. While this
certainly heralds changes for the markets and the economy, I don't
expect to see an immediate manifestation occurring in the days just
after the Labor Day break. With Venus still in retrograde motion until
September 8, there is a strong likelihood that the financial signals
will continue to be mixed for the time being, making trading especially
challenging in this volatile and often confusing market environment.
Throughout this trading week I will be tracking heliocentric
fifth-harmonic planetary lines (H,72,N,-2) for the Earth, Mercury,
Venus, Mars, Jupiter, Uranus, Pluto, Zeus, and Admetos, using the
Fibonacci/Galactic Trader software from P.A.S. to follow the active
planetary support and resistance in real time.
Have a great week!
*****
SPIRITUAL FOCUS FOR THE WEEK
Many of history's most successful traders have clearly understood that
emotional equilibrium is the key to effective trading. Through Practical
Spiritual Astrology we have an opportunity to restore inner harmony,
enhance emotional balance, and make wiser choices in the markets.
The Lunar Eclipse of August 28 has one powerfully important message for
us: everything is sacred. All of our experiences, all of our feelings,
all of our thoughts and dreams are opportunities for us to acknowledge
the guiding presence of a perpetually loving Universe. No matter how
trivial or mundane our preoccupations may seem, each one contains the
seed of inspiration and enlightenment. This is truly something to celebrate!
"It is often said that before you die your life passes before your eyes.
It is in fact true. It's called living." -- Terry Pratchett
For more astrologically-based spiritual insights and a free subscription
to our monthly e-zine, be sure to visit
www.PracticalSpiritualAstrology.com.
*****
GLOBAL EQUITIES MARKETS
After devastating losses the previous week, stock markets in the Pacific
made an aggressive recovery last week, with Hong Kong leading the way.
Along with Singapore and Sydney, the Hang Seng recouped virtually all of
what it had given up the previous week. Tokyo, however, wasn't quite so
lucky; the Nikkei still has a long way to go to get back to its previous
highs. Meanwhile, the bourses in Europe posted some satisfying gains for
the week, while the U.S. markets managed to keep their heads above water
reasonably well.
Dow Jones Industrial Average -- up 2.29%
Dow Jones Transportation Average -- up 3.10%
Dow Jones Utilities Average -- up 2.34%
S+P 500 -- up 2.31%
NASDAQ Composite Index -- up 2.86%
Russell 2000 -- up 1.64%
London FTSE-100 -- up 2.57%
Paris CAC-40 -- up 3.84%
Frankfurt DAX -- up 1.75%
Sydney All Ordinaries -- up 7.35%
Tokyo Nikkei Index -- up 6.39%
Hong Kong Hang Seng Index -- up 12.43%
Singapore Straits Times Index -- up 7.63%
*****
U.S. EQUITY TRENDS
The positive price action in stocks last week did a lot to brighten the
overall outlook for U.S. equities, but was not enough to shift our trend
assumptions. The longer-term picture remains solidly bullish at this
point, but short-term and intermediate terms circumstances continue to
suggest that extreme caution is advisable in those time frames.
It looks like the Russell 2000 has just put in a double-bottom on the
daily chart, so we could be seeing a positive trend getting
reestablished in the near future. For the time being, however, the
Russell remains on an August 3 intermediate-term sell signal, with a
daily close above 851 required to flip this intermediate-term indicator
back to the buy side. The Russell is also on a July 24 short-term sell
signal, with a daily close above 834 needed to reactivate short-term
bullishness. From the long-term perspective, the Russell remains on a
November 14 buy signal, with a daily close below 668 needed to move our
long-term indicator for the Russell to the sell side.
With the S+P 500 we have now have a July 26 short-term sell signal in
place, with a daily close above 1506 needed to trigger a reverse
indicator back to the buy side. We still have an August 18, 2006 buy
signal in place for the intermediate term, conforming to our long-term
trend assumptions. A close for the S+P below 1219 will signal a
long-term bearish trend, with a close below 1364 turning our
intermediate-term indicator bearish.
For the NASDAQ Composite we are on a July 31 short-term sell signal, an
October 13 intermediate-term buy signal, and an October 13 long-term buy
signal. A daily close above 2632 will flip our short-term indicator back
to the buy side, with a daily close below 2331 needed to bring the
intermediate indicator back to the sell side and a daily close below
2027 required for a reversal of the long-term buy signal.
S+P 500 -- Long-Term Bullish; Intermediate-Term Bullish; Short-Term Bearish
NASDAQ -- Long-Term Bullish; Intermediate-Term Bullish; Short-Term Bearish
RUSSELL 2000 -- Long-Term Bullish; Intermediate-Term Bearish; Short-Term
Bearish
*****
METAL MARKETS
GOLD -- I noted last week that the bottom in Gold is likely to come in
prior to the 9/11 Solar Eclipse, and with the price action late in the
last trading week it looks like the 8/16 low may hold. Unless this
support is broken during the next couple of trading weeks, any remaining
pullbacks are definitely worth considering as buying opportunities. For
the long run I remain very bullish on Gold.
SILVER -- Although Silver gained more than 2% during the past trading
week, it's not too late to add a long position in this medal. As we
enter this eclipse cycle we are far more likely to see an even more
aggressive move to the upside in Silver get underway.
*****
FINANCIAL CYCLES MODEL PORTFOLIO
TRADES CLOSED DURING THE PREVIOUS WEEK: WTSLA, RSG.
We closed two trades during the previous week, with two winners bringing
us a net profit of $669.00.
We sold 2,000 shares of The Wet Seal, Inc. (WTSLA) at 4.10 on 08/20/07,
taking a profit of $300.00 (a 3.80% gain in 6 trading days).
We bought to cover 300 shares of Republic Services, Inc. (RSG) at 30.45
on 08/22/07, taking a profit of $369.00 (a 3.88% gain in 16 trading days).
*****
POSITIONS ADDED TO THE PORTFOLIO DURING THE PREVIOUS
WEEK: CPRT, WTS.
We added one long position and one short position to the Model Portfolio
last week.
We bought 9 January 2008 $30 calls of Copart Inc. (CPRT) at 2.25 on
08/20/07.
We sold short 400 shares of Watts Industries Inc. Class A (WTS) at 35.22
on 08/20/07, with an initial buy stop set at 36.55.
****
REVIEW OF PREVIOUS MODEL PORTFOLIO ACTIVITY
So far this year we have had a total of 103 completed trades, with 43
winners and 60 losers bringing us a total net profit of $2,523.00. The
largest profit for a single trade has been $2,775.00, with our winners
averaging $461.63; the largest single-trade loss has been $1,224.00,
with our losers averaging $307.73. The overall average profit per trade
has been $24.50, and the mean duration of our trades has been 10.2
trading days.
During 2006 we had a total of 177 completed trades, with 74 winners and
103 losers bringing us a total net profit of $9,881.00. The largest
profit for a single trade was $2,595.00, with our winners averaging
$473.04; the largest single-trade loss was $949.00, with our losers
averaging $247.31. The overall average profit per trade was $55.82. The
mean duration of our trades was 9.0 trading days.
During 2005 we had a total of 200 completed trades, with 79 winners and
121 losers bringing us a total net profit of $14,993.00. The largest
profit for a single trade was $4,884.00, with our winners averaging
$630.55; the largest single-trade loss was $956.00, with our losers
averaging $304.42. The overall average profit per trade was $74.97. The
mean duration of our trades was 10.4 trading days.
During 2004 we had a total of 213 completed trades, with 104 winners and
109 losers bringing us a total net profit of $48,913.50. The largest
profit for a single trade was $5,645.00; the largest single-trade loss
was $750.00; the average profit per trade was $229.64. The mean duration
of our trades was 10.3 trading days.
During 2003 we had a total of 176 completed trades, with 99 winners and
77 losers bringing us a total net profit of $51,717.00. The largest
profit for a single trade was $9,240.00; the largest single-trade loss
was $1,170.00; the average profit per trade was $293.85. The mean
duration of our trades was 10.1 trading days.
During 2002 we had a total of 195 completed trades, with 119 winners, 74
losers, and 2 break-even trades bringing us a total net profit of
$50,956.00. The largest profit for a single trade was $5,100.00; the
largest single-trade loss was $1,055.00; the average profit per trade
was $261.31. The mean duration of our trades was 12.7 trading days.
*****
CURRENT POSITIONS IN THE MODEL PORTFOLIO
Copart Inc. (CPRT) -- bought 9 January 2008 $30 calls at 2.25 on
08/20/07; currently 2.10. Hold.
General Electric Company (GE) -- bought 6 December 2007 $40 calls at
1.50 on 07/10/07; currently 1.85. Hold.
Noble Corporation (NE) -- bought 100 shares at 93.75 on 08/17/07;
currently 100.93. Raise stop to 96.85.
Randgold Resources Ltd. ADS (GOLD) -- bought 400 shares at 23.59 on
08/14/07; currently 23.64. Raise stop to 23.05 on a close-only basis.
Watts Industries Inc. Class A (WTS) -- sold short 400 shares at 35.22 on
08/20/07; currently 34.34. Lower buy stop-and-reverse to 35.15.
*****
MARKET SECTOR STRENGTH AND WEAKNESS
STRONGEST MARKET SECTORS LAST WEEK:
Copper; Steel and Iron; Aluminum; Major Airlines; Nonmetallic Mineral
Mining.
WEAKEST MARKET SECTORS LAST WEEK:
Wholesale Building Materials; Mortgage Investments; Surety and Title
Insurance; Recreational Vehicles; Manufactured Housing.
*****
ASTRO-TRADING GANN PLAN:
ASTROLOGICAL EVENTS DURING THE COMING WEEK
"I know in each moment I am free to decide."
Whether you are day-trading or just looking for optimum entry and exit
points for longer-term trades during the course of a particular trading
day, an awareness of the intraday astrological aspects at work can alert
you to significant opportunities and potential pitfalls. The events on
this weekly calendar are calculated for New York time, but are listed
around the clock and throughout the week so you can apply them to Forex,
to global markets or to events outside of your trading day as well. Note
that in order to save space this calendar excludes most lunar aspects,
which can also be important in moving markets as well.
August 26
Cupido direct station 00:43 EDT
Heliocentric Venus trine Heliocentric Poseidon 01:41 EDT
Heliocentric Earth biquintile Heliocentric Mercury 01:50 EDT
Mars trine Chiron 04:09 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Admetos 05:18 EDT
Mars crossing Universal Clock 24 Line 05:35 EDT
Heliocentric Mercury quintile Heliocentric Jupiter 06:46 EDT
Mercury conjunct 03/03/07 Lunar Eclipse point 07:19 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Apollon 12:31 EDT
Heliocentric Mercury conjunct Heliocentric Zeus 14:23 EDT
Moon crossing Universal Clock 24 Line 15:42 EDT
Sun contraparallel Chiron 17:53 EDT
Mars opposition Cupido 19:28 EDT
Heliocentric Earth trine Heliocentric Kronos 19:34 EDT
Mars in 24th Harmonic to Hades 20:04 EDT
Heliocentric Mars trine Heliocentric Pluto 21:32 EDT
Heliocentric Earth quintile Heliocentric Jupiter 22:20 EDT
Mercury in 24th Harmonic to Saturn 22:56 EDT
August 27
Heliocentric Venus sesquiquadrate Heliocentric Vulcanus 05:12 EDT
Mercury parallel Venus 05:56 EDT
Heliocentric Mercury trine Heliocentric Chiron 08:38 EDT
Mercury opposition 09/07/06 Lunar Eclipse point 11:02 EDT
Heliocentric Mercury semisquare Heliocentric Saturn 11:03 EDT
Heliocentric Mercury sextile Heliocentric Cupido 11:08 EDT
Heliocentric Venus quintile Heliocentric Pluto 13:57 EDT
Sun sextile Kronos 14:45 EDT
Heliocentric Venus sesquiquadrate Heliocentric Apollon 17:48 EDT
Sun in 24th Harmonic to Venus 19:23 EDT
Void-of-Course Moon 21:23-22:34 EDT
Heliocentric Venus quincunx Heliocentric Zeus 22:09 EDT
Mars square 03/03/07 Lunar Eclipse point 22:28 EDT
Mars biquintile Poseidon 23:31 EDT
August 28
Mercury quintile Kronos 01:14 EDT
Heliocentric Mars sesquiquadrate Heliocentric Cupido 01:53 EDT
Heliocentric Mars trine Heliocentric Saturn 02:15 EDT
Heliocentric Earth biquintile Heliocentric Zeus 02:29 EDT
Heliocentric Mercury quintile Heliocentric Pluto 02:41 EDT
Venus semisquare Kronos 05:06 EDT
Heliocentric Mercury quincunx Heliocentric Uranus 06:11 EDT
Lunar Eclipse Full Moon 06:36 EDT
Sun opposition 08/28/07 Lunar Eclipse point 06:45 EDT
Moon crossing Universal Clock 24 Line 08:39 EDT
Mars contraparallel Jupiter 10:13 EDT
True Lunar Node direct station 10:48 EDT
Heliocentric Mercury biquintile Heliocentric Venus 12:57 EDT
Mercury opposition Uranus 15:39 EDT
Heliocentric Mercury biquintile Heliocentric Admetos 17:11 EDT
Sun contraparallel Apollon 20:01 EDT
Admetos sextile Vulcanus 20:47 EDT
Heliocentric Venus quintile Heliocentric Admetos 22:12 EDT
Mercury contraparallel Uranus 23:42 EDT
August 29
Mercury biquintile Chiron 00:30 EDT
Mercury crossing Universal Clock 24 Line 02:52 EDT
Heliocentric Earth in 24th harmonic to Heliocentric Neptune 06:30 EDT
Sun conjunct 10/17/05 Lunar Eclipse antiscion 10:30 EDT
Heliocentric Mercury trine Heliocentric Neptune 10:45 EDT
Mercury semisextile Venus 11:12 EDT
Heliocentric Earth sesquiquadrate Heliocentric Mercury 12:24 EDT
Mercury conjunct 09/11/07 Solar Eclipse point 13:42 EDT
Heliocentric Venus semisextile Heliocentric Chiron 16:38 EDT
Heliocentric Mercury sextile Heliocentric Jupiter 17:34 EDT
Void-of-Course Moon begins 18:22 EDT
Heliocentric Venus square Heliocentric Cupido 21:59 EDT
Heliocentric Mercury biquintile Heliocentric Uranus 23:59 EDT
August 30
Moon crossing Universal Clock 24 Line 00:24 EDT
Void-of-Course Moon ends 00:24 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Poseidon 00:28 EDT
Mercury opposition 10/03/05 Solar Eclipse antiscion 02:30 EDT
Heliocentric Mars enters Taurus 04:35 EDT
Mercury quincunx Neptune 09:15 EDT
Heliocentric Mercury quincunx Heliocentric Admetos 11:17 EDT
Heliocentric Mercury square Heliocentric Vulcanus 13:24 EDT
True Lunar Node retrograde station 15:30 EDT
Sun sextile Poseidon 15:46 EDT
Sun contraparallel True Lunar Node 16:04 EDT
Sun opposition True Lunar Node 16:04 EDT
Heliocentric Mercury conjunct Heliocentric Apollon 19:26 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Zeus 21:32 EDT
August 31
Heliocentric Venus semisquare Heliocentric Mars 00:01 EDT
Heliocentric Mercury trine Heliocentric Hades 02:50 EDT
Mercury conjunct 03/29/06 Solar Eclipse antiscion 02:52 EDT
Heliocentric Earth trine Heliocentric Poseidon 06:44 EDT
Mercury contraparallel Zeus 08:32 EDT
Mars square 09/07/06 Lunar Eclipse point 10:41 EDT
Mercury semisquare Poseidon 11:49 EDT
Moon crossing Universal Clock 24 Line 15:44 EDT
Heliocentric Mercury sextile Heliocentric Pluto 15:34 EDT
Heliocentric Venus conjunct Heliocentric Uranus 17:08 EDT
Heliocentric Mercury semisquare Heliocentric Cupido 20:39 EDT
Heliocentric Mercury sextile Heliocentric Saturn 21:37 EDT
Venus opposition 02/07/08 Solar Eclipse point 23:14 EDT
September 1
Void-of-Course Moon 01:18-01:35 EDT
True Lunar Node trine Poseidon 01:41 EDT
Heliocentric Mercury enters Scorpio 05:49 EDT
Sun in 24th Harmonic to Mercury 14:58 EDT
Heliocentric Mercury opposition Heliocentric Mars 16:54 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Uranus 17:57 EDT
Sun parallel Venus 18:30 EDT
Mercury conjunct 03/14/06 Lunar Eclipse point 20:20 EDT
Heliocentric Mars semisquare Heliocentric Uranus 22:39 EDT
September 2
Mercury semisextile Apollon 02:04 EDT
Sun quintile Hades 02:19 EDT
Heliocentric Earth sesquiquadrate Heliocentric Vulcanus 03:54 EDT
Mercury trine Admetos 05:18 EDT
Mercury sextile Vulcanus 06:04 EDT
Heliocentric Mercury trine Heliocentric Kronos 07:08 EDT
Moon crossing Universal Clock 24 Line 07:22 EDT
Mercury in 24th Harmonic to Zeus 07:32 EDT
Saturn enters Virgo 09:48 EDT
Sun semisquare Apollon 10:03 EDT
Heliocentric Venus biquintile Heliocentric Apollon 10:04 EDT
Sun semisquare Vulcanus 16:56 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Venus 18:53 EDT
Heliocentric Earth quintile Heliocentric Pluto 18:55 EDT
Sun semisextile Zeus 19:32 EDT
Void-of-Course Moon begins 20:47 EDT
Mercury biquintile Neptune 21:57 EDT
While the weekly Gann Plan Astro-Trading Calendar acknowledges and
honors the work of legendary trader W. D. Gann, it only reflects a small
portion of the wisdom that Gann brought to the markets during the last
century. For more Gann Plan trading insights be sure to read the free
GANN PLAN TRADING LETTER. The current issue can be downloaded without
charge or obligation at http://www.gannplan.com.
Be sure to get your
free subscription when you visit the site; you'll be notified about each
new issue as soon as it is available.
*****
STOCKS TO WATCH: DECK, FLS, PETM.
Deckers Outdoor Corporation (DECK)
NASDAQ; optionable
First Trade Date: 10/15/1993; 09:30 a.m.
There's an interesting Saturn set up for DECK coming up, which under
normal circumstances would be likely to create a good buying opportunity
for this stock. But today's market brings us anything but normal
circumstances, and that certainly applies to this stock as well.
Typically we would look at the transit of Saturn to an angle in the
First-Trade horoscope and get ready to go long, but in this case that's
not the only Saturn action going on. Saturn starts by squaring the DECK
secondary progressed Ascendant on August 29, just after Tuesday's Lunar
Eclipse, which activates First-Trade Chiron. Then on September 5, just
after the Labor Day holiday has been assimilated into the market action,
transiting Hades will connect with secondary progressed Jupiter. Just
after that Saturn will conjoin the DECK First-Trade Midheaven on
September 6. And the action doesn't stop there. Saturn will
simultaneously form a square to solar arc Mercury and a sextile to
First-Trade Poseidon on September 9, a date which also puts transiting
Uranus in a quincunx to First-Trade Apollon and a quincunx to secondary
progressed Venus as well. Then, on September 16, we will see transiting
Saturn semisquare First-Trade Apollon and semisquare secondary
progressed Venus. That's a lot to take into account, but it looks like
unrelenting astrological negative pressure on this stock. And with DECK
still trading so near its all-time high, we won't hesitate to sell this
stock short near the start of the trading week. Our initial buy stop
will be set at 102.25.
Flowserve Corporation (FLS)
NYSE; optionable
First Trade Date: 07/23/1997; 09:30 a.m.
With FLS there's also plenty of reason to consider a short sale.
Transiting Uranus is currently conjunct the FLS First-Trade Moon, so
it's not surprising to see this stock recovering a bit from its dramatic
plunge earlier this month. Its advance has met some resistance on the
exponential 40-day moving average, however, so FLS is clearly not out of
the woods yet. This week's Lunar Eclipse is square the FLS First-Trade
Pluto, adding some pressure which is augmented by transiting Uranus in a
quincunx to First-Trade Mars and a sesquiquadrate to First-Trade
Poseidon. By September 2, during the Labor Day holiday, transiting
Saturn will conjoin First-Trade Venus, putting a further squeeze on this
stock's possibilities for expansion. On September 6 transiting Jupiter
will conjoin the First-Trade IC, ushering in the possibility of a rally
for FLS as Jupiter moves toward a conjunction with solar arc Pluto on
September 19. The anticipated action here is some further price
constriction followed by a push toward a short-term top, so our strategy
is to sell FLS short immediately, and then reverse our position to the
long side if and when we get stopped out of the trade. We will set our
initial buy stop at 74.25, or at about $3.00 above our entry point for
this trade.
PetSmart Inc. (PETM)
NASDAQ; optionable
First Trade Date: 07/23/1993; 09:30 a.m.
As PETM pushed through to its highest trading levels since early June on
Friday, transiting Saturn was forming an opposition to Saturn in the
PETM First-Trade horoscope. That planetary configuration may set the
stage for a little bit of a price pullback as the current trading week
gets underway, but any consolidating action at this point is likely to
be short-lived, thanks to the role of transiting Jupiter, which is also
getting into the act. Jupiter will be sextile secondary progressed
Jupiter on Tuesday as the Lunar Eclipse occurs, and will then form a
sextile to the solar arc Moon on Wednesday. As we move into the Labor
Day weekend. Jupiter will conjoin the First-Trade True Lunar Node, prior
to moving into a conjunction with the First-Trade IC on September 6.
Jupiter will also be square the PETM solar arc Saturn later in
September, but along the way the positive potential should also get a
boost from transiting Apollon trine the secondary progressed Midheaven
on September 12. This all adds up to a fairly positive outlook for this
stock, but we will wait until fairly late in the trading week to put on
our long position. Our initial stop will be set at 31.75.
*****
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