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ASTRO ECONOMICS® STOCK MARKET NEWSLETTER
A Resource for Choosing Stocks That Will Outperform
the Market
Volume 15 - Issue 5 Published by Astro Economics, Inc. May 1, 2010 |
UP, DOWN, UP
The pattern in the next few months looks like ‘swing time’. The market dropped over 200 points on the Saturn opposition to Uranus April 27. That pattern repeats July 26-30. Further ‘down dates’ can be expected around the Full Moon/Lunar Eclipse June 26 which forms a Grand Cross in the solar system with the planets Sun/Mercury, Moon/Pluto, Jupiter/Uranus and Saturn. The expected ‘up dates’ are 6/8/10, 8/29/10 and 1/4/11 on the Jupiter/Uranus conjunction. (See paragraph on New Sectors for Summer.)
STEEL PRICES SET TO SOAR
According to the headlines in the 3/31/10 issue of the Financial Times, global steel prices are set to leap up to a third, pushing up the cost of everyday goods from cars to domestic appliances, after miners and steel makers agreed to a ground-breaking change in the iron ore price system. The top ore miners stand to profit in the short term from the new price system. One executive estimated that the profits of the big three producers, Vale (VALE), Rio Tinto (RTP) and BHP Billiton (BHP), would be boosted by at least $5 billion this year. This fits the pattern forming this summer as Jupiter moves into Aries on June 6. Steel prices as well as most Basic Materials should do well.
A NEW CYCLE, URANUS IN ARIES
History repeats and cycles repeat so we can look back at the last Uranus in Aries cycle (1927-1935) and get a clue to what may happen in this current cycle (2010-2017). In 1933, the Glass-Steagal Act banned banks from dealing in stocks and bonds (it was repealed in 1999). Can we expect parts of the original Glass-Steagal Act to be part of the new financial reform bill? In 1933, the Hawley-Smoot Tariff Act brought foreign retaliation against US trading policies which were thought to have further intensified the Great Depression. Our present Federal Reserve Chairman, Ben Bernacke considered an expert on the causes of The Great Depression, is most likely advising against raising tariffs on foreign goods. In 1933, the prohibition (on alcohol) was repealed. Could this cycle bring the repeal of the prohibition on marijuana? In 1933, the Public Works Administration (PWA) was established. It built Fort Knox, the gold depository in Kentucky, the Boulder Dam in Colorado, the Lincoln Tunnel connecting New Jersey and New York and the Federal Trade Commission Building in Washington, DC. Congress also established the Civilian Conservation Corps. (CCC) which planted trees, cleaned beaches and campsites, restored historic battlefields and dug drainage ditches, thereby employing the depression’s unemployed. And the Works Progress Administration (WPA) supported artists, musicians, actors and writers. If the current level of unemployment continues, will similar programs be instituted? In 1934, the Securities Exchange Act forming the Securities Exchange Commission (SEC) was established as well as the Federal Communications Commission (FCC). In the news today, the SEC is actively pursuing Goldman Sachs in civil litigation for defrauding investors using derivatives and Credit Default Swaps; also other companies suspected of using deceptive practices. Will the FCC deal with the ‘fairness act’ opening ownership of radio, TV and newspapers to more than the present five major owners? Other events of the previous cycle include: establishment of Vatican City in order to separate religion from the Italian state government (Will the Vatican continue to be in the news?); the planet Pluto was discovered in 1930 (Will another planet be discovered?); the first large scale Jewish-Arab violence (1928) took place at the Wailing Wall in Jerusalem (Will the Arab-Israel peace accord be ratified in this new seven-year cycle?); penicillin, nylon and radar were invented and first used in 1928-1935. Aries is a very inventive sign. With Uranus’ journey in that sign it could bring not only new products and ideas but also cures for diseases, more powerful microscopes, telescopes, and new energy fuels.
NEW SECTORS FOR SUMMER
Electronic/Military Systems and Defense, Basic Materials, Building/Heavy Construction, Leisure/Gaming Equipment are some of the sectors that should move up this summer as Jupiter and Uranus enter the sign of Aries on June 8. This conjunction could “jump start” the markets if they have backtracked between now and then. Any new IPOs (Initial Public Offerings) that come on the market around that time will have Jupiter/Uranus in Aries and should have a better-than-average chance of success. This same pattern in 1983 began the long-term bull market of the ‘80s and ‘90s. Many of the tech companies formed (incorporated) at that time continue to do well and may get an added boost. If these sectors move up this summer, then we should expect a pullback late fall and a move up again in 2011.
TRADERSFORUM2010
The Traders Library sponsored the prestigious Trading Legends Forum in Chicago last month to honor trading legends. It also provided a platform for today’s top traders, both traditional and alternative methods in trading techniques, such as Japanese Candlesticks, Elliot Wave Theory, Fibonacci and more. My subject was Planetary, Fundamental And Technical Analysis, A Winning Combination. For further information on books and DVDs available, visit www.traderslibrary.com. Did you know that Ralph Elliott, the originator of the Elliott Wave Theory, said in the 1940s that we were in a long Bull Market until 2012? Now that is long-term forecasting!
OUT WITH THE OLD AND IN WITH THE NEW
On Election Day, Nov. 4, 2008, transiting Saturn opposed transiting Uranus, the first of five such oppositions (Jan. 30 through Feb. 11, 2009, Sept. 15, 2009 and Apr. 26, 2010). The last of these oppositions between Saturn and Uranus will occur July 30, 2010. The market did drop over 200 points Apr. 27, 2010 and on the first two passes, so this is a possibility. And probably even more so with the opposition being part of a T-Square pattern involving Mars/Saturn, Uranus/Jupiter and Pluto, all within 0 to 3 degrees of cardinal signs. But more significant, this is definitely an indication of new beginnings. OUT WITH THE OLD AND IN WITH THE NEW!
GOLD
Looking at our top winners for April, notice that all of our Recommended Gold stocks made substantial gains: Iamgold (IAG) up 21%, Silver Wheaton (SLW) up 19% and Goldcorp. (GG) up 16%. If the Basic Materials sector moves up this summer, then the commodity of gold could do well. The other sectors to do well last month were Internet Content and Computer Software..
APRIL TOP WINNERS
STOCK |
Last month (03/28/10)
PRICE |
|
|
Gain % |
Medfast |
24 |
32 |
33% |
Iamgold |
14 |
17 |
21% |
Silver Wheaton |
16 |
19 |
19% |
Baidu.com |
602 |
711 |
18% |
Longtop Financial |
30 |
35 |
17% |
Salesforce.com |
75 |
88 |
17% |
Netlogic Microsys |
30 |
35 |
17% |
Apple Inc. |
232 |
269 |
16% |
Goldcorp |
37 |
43 |
16% |
F5 networks |
62 |
71 |
15% |
Asiainfo Holdings |
27 |
30 |
11% |
Changyou.com |
30 |
33 |
10% |
OVERALL TOP WINNERS
STOCK |
PRICE |
PRICE |
Gain % |
| Baidu.com |
132 |
711 |
439% |
| Green Mountain Coffee |
24 |
77 |
221% |
| Google |
168 |
530 |
215% |
| H M S Holdings |
28 |
55 |
96% |
| Cognizant Tech Sol |
48 |
52 |
95% |
| Ebix |
9 |
17 |
89% |
| Medfast |
17 |
32 |
88% |
| Asiainfo Holdings |
16 |
30 |
88% |
| Priceline.com |
151 |
272 |
80% |
| Research in Motion |
42 |
72 |
71% |
| Cerner |
54 |
89 |
69% |
| Mercadolibre |
31 |
52 |
68% |
| Hi-Tech Phamacal |
15 |
25 |
67% |
| Vanceinfo Tech |
15 |
24 |
60% |
| SXC Health Solution |
44 |
88 |
57% |
| Salesforce.com |
56 |
88 |
57% |
| Quality Systems |
43 |
66 |
53% |
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