FINANCIAL CYCLES WEEKLY UPDATE #0408 – February 22-28, 2004 with TIM BOST

COMMENT: In last week’s letter we noted that the “New Moon on Friday, which combines forces with a heliocentric Venus/Hades conjunction that day and a Sun/Uranus conjunction on Saturday” was likely to provide an unsettling influence on Wall Street which could “make for a fairly turbulent atmosphere as the week’s trading comes to a close.” That certainly proved to be the case.
A glance at 5-minute bars of the Dow Industrial Average for the trading activity on Thursday and Friday tells the whole story. The blue chips surged upward at the opening bell on Thursday, following through on the aggressive pace that had been set earlier in the week. The Dow pushed ahead to new price highs, briefly getting above 10753 to hit its highest level since March, 2002. But a void-of-course Moon got underway with Mercury parallel Neptune at 12:33 p.m., and almost immediately prices began to reverse to the downside. A second effort at a price surge brought the average to 10751.45 before the action resolved in an intraday double top formation. Everything was downhill from there, with the Dow plunging 96 points from its intraday high and closing at 10661.99 for the day.
The sudden afternoon sell-off left many pundits and market commentators puzzled, especially the ones who weren’t tracking the astrological dynamics and watching out for the void-of-course Moon!
Following the New Moon early Friday morning, the Dow made a half-hearted attempt at a rally at the opening bell, but soon succumbed to the downward pressure which had been initiated the previous afternoon. The Mercury/Hades trine at 1:31 p.m. triggered a substantial intraday rally on Friday, pulling in some strong interest as traders returned from lunch, but it hit a brick wall prior to 3:00 p.m. when the heliocentric Venus/Hades conjunction made its influence felt.
One of the things that’s clear from the price action this week is that the March, 2002 DJIA high of 10673.10 is a significant one in terms of defining resistance for the current market. We need to get a couple of weekly closes for the Dow well above that level to confirm a continued rally. That resistance zone is reinforced by a heliocentric Poseidon line which is currently at 10804.75, so to be even more bullishly confident we would like to see solid price action above that level as well. In recent days some of the more seasoned market technicians have begun muttering about stocks being “overdue for a correction;” given the apparent strength of the resistance that the market has been encountering, we would consider corrective action to be a likely scenario at this time.
When we noted last week that one of our recent commentaries had been quoted in Barron’s, we didn’t mention the slight twinge of disappointment we felt when we saw that the notice failed to reprint one of our fearless forecasts, but chose instead to pass along some of our perspectives on the economy and its implications. Quoting from Financial Cycles a few weeks back, the Barron’s banner headline read “Higher prices at the pump aren’t just an inconvenience; they ultimately impact every part of the economy.”
Those words were originally intended to be more a reflection of common sense than an effort at market prophecy, but we ultimately wound up feeling quite gratified that Barron’s had selected them when the January Consumer Price Index figures were released last Friday by the Labor Department. The CPI jumped by 0.5% in January, its biggest increase in almost a year—and that surge was due almost entirely to increasing fuel costs, with gasoline up 8.1% in January alone! Of course the government also reported that the “core inflation” figure increased only a mere 0.2% —that’s the number which strips out food and energy costs, being based on the assumption that most American consumers don’t eat, don’t heat their homes, and don’t drive their cars. They can’t afford to!
Astute Financial Cycles readers who check our website regularly at www.TimBost.com have no doubt noticed some of changes and refinements that have been added in recent months. What hasn’t been obvious, however, is that a complete top-to-bottom makeover of the website has been in the works behind the scenes. It will not only feature a completely new look, but lots of significant new content as well, including daily updates for active astro-traders. We’re almost ready to cut the ribbon and open it up to the public. Keep watching these pages in the weeks ahead—you’ll be the first to know about the “grand opening!”


THE WEEK AHEAD

We’re back to a full trading schedule this week, and along with it there will be some significant earnings and economic reports to keep an eye on. About 550 companies will be reporting earnings, primarily from the retailing sector. We’re looking for earnings data from Campbell Soup (CPB), Lowes Stores (LOW), Clear Channel Communications (CCU), H&R Block (HRB), H. J. Heinz (HNZ), Home Depot (HD), TJX Companies (TJX), Kohl’s (KSS), and the Gap (GPS).
Two big areas will dominate the economic news this week: consumer confidence and housing data. We’ll get February Consumer Confidence reports from the Conference Board and from the University of Michigan, with the expectation that the downward trend in spending confidence will continue. We’re also slated for numbers on January Existing Home and New Home Sales, January Durable Goods Orders, the Q4 GDP, and Chicago Purchasing Managers report for February.
Astrologically, we anticipate a fairly bumpy week. The strong Uranian keynote that brought surprises to the markets late last week is likely to carry over into trading at the start of this week, thanks to the Sun/Uranus conjunction in right ascension and the Uranus apogee. With a Mercury/Pluto parallel in play, Monday’s trading action is likely to be accompanied by high volume. On Tuesday the Mars/Lunar Node conjunction could make for some hot market action triggered by important developments in mergers and acquisitions, but we’ll need to be cautious that afternoon as a void-of-course Moon and an applying Mars/Neptune square take over.
Wednesday is definitely the astrological focal point of the week, with geocentric Mercury and heliocentric Venus changing signs, the Mars/Lunar Node conjunction in right ascension, a Mercury apogee, a Moon/Mars occultation, and a heliocentric Venus/Kronos conjunction. Look for trends to bend! Thursday will feature a void-of-course Moon for the entire day, so we will get a welcome opportunity to watch the mayhem from the sidelines. Friday morning brings surprising news with a Mercury/Uranus conjunction in the works; the Venus/Pluto trine suggests that it will be well received by the markets, with the trading week ending on a positive note as we head for Saturday’s lunar apogee.
Have a great week!

*****


GLOBAL EQUITIES MARKETS LAST WEEK

U.S. stocks sold off broadly last week, but the pacific markets put in solid gains. Share prices were also higher in Europe except for Frankfurt, where the DAX made another stab at trying to break through the 4150-4175 resistance zone, but failed. This area of price resistance has been getting extra clout from heliocentric 24 planetary lines for Saturn and Admetos, so it will take a tremendous amount of energy from the DAX to extend its positive trend.

Dow Jones Industrial Average – down 0.08%
Dow Jones Transportation Average – down 0.84%
Dow Jones Utilities Average – up 0.20%
S& P 500 – down 0.15%
NASDAQ Composite Index – down 0.76%
Russell 2000 – down 0.90%
London FTSE-100 – up 3.14%
Paris CAC-40 – up 1.40%
Frankfurt DAX – down 1.17%
Sydney All Ordinaries – up 0.59%
Tokyo Nikkei – up 2.50%
Hong Kong Hang Seng Index – up 1.78%
Singapore Straits Times Index – up 1.55%


FINANCIAL CYCLES MODEL PORTFOLIO


POSITIONS CLOSED DURING THE PREVIOUS WEEK: RCKY, PLCM, SMG, SPLS, ASPT, FSII, RIMM, VMSI.

We closed eight portfolio positions during the previous week, with one winner and seven losers producing a net loss of $524.00.

On February 17 we sold 400 shares Rocky Shoes & Boots Inc. (RCKY) at 19.39, taking a loss of $464.00 (a 5.64% loss in 2 trading days).

On February 19 we sold 400 shares of Polycom Inc. (PLCM) at 22.20, taking a loss of $320.00 (a 3.48% loss in 21 trading days).

On February 19 we sold 200 shares of Scotts Company (SMG) at 61.00, taking a loss of $100.00 (a 0.81% loss in 9 trading days).

On February 19 we sold 400 shares of Staples Inc. (SPLS) at 25.50, taking a loss of $100.00 (a 0.97% loss in 9 trading days).

On February 20 we sold 500 shares of Aspect Communications (ASPT) at 17.56, taking a loss of $420.00 (a 4.57% loss in 8 trading days).

On February 20 we sold 1,000 shares of F S I International Inc. (FSII) at 8.20, taking a loss of $350.00 (a 4.09% loss in 13 trading days).

On February 20 we sold 200 shares of Research In Motion Ltd. (RIMM) at 90.40, taking a profit of $1,330.00 (a 7.94% gain in 13 trading days).

On February 20 we sold 200 shares of Ventana Medical Systems (VMSI) at 41.65, taking a loss of $100.00 (a 1.19% loss in 7 trading days).

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POSITIONS ADDED TO THE PORTFOLIO DURING THE PREVIOUS WEEK: BBX, LIN, MTSC.

We added two long positions and one short position during the previous week. We did not trade Ceradyne Corporation (CRDN) because it didn’t meet our price objective; we did not trade Igen International Inc. (IGEN) because the company was acquired by Roche Holding and the stock ceased trading.

We bought 500 shares of BankAtlantic Bancorp Class A (BBX) at 17.39 on 02/18/04, setting our initial stop at 15.28.

We bought 300 shares of Linens N Things Inc. (LIN) at 33.35 on 02/18/04, setting our initial stop at 30.18.

We sold short 400 shares of M T S Systems Corporation (MTSC) at 27.12 on 02/19/04, setting our initial buy stop at 27.26.

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YEAR-IN-REVIEW MODEL PORTFOLIO ACTIVITY

Based on the Model Portfolio’s composition at the beginning of 2004, featuring positions with an acquisition cost basis of $53,947.50 ($66,022.50 in long positions less short liabilities of $12,075.00), we reduced our cash holdings in the Model Portfolio to $46,052.50 on January 1. This returned the total portfolio value to $100.000.00 as we began trading in 2004.

So far this year we have had a total of 28 completed trades, with 9 winners and 19 losers bringing us a total net profit of $328.50. The largest profit for a single trade has been $1,522.50; the largest single-trade loss has been $464.00; the average profit per trade has been $11.73. The mean duration of our trades has been 9.5 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.

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CURRENT POSITIONS IN THE MODEL PORTFOLIO

BankAtlantic Bancorp Class A (BBX) – bought 500 shares at 17.39 on 02/18/04; currently 17.41. Raise stop to 17.20.

Centex Corporation (CTX) – bought 100 shares at 94.50 on 02/05/04; currently 99.76. Raise stop to 97.05.

Dana Corporation (DCN) – bought 400 shares at 22.25 on 02/09/04; currently 21.41. Raise stop to 20.99.

Inter Parfums Inc. (IPAR) – bought 300 shares at 27.20 on 02/11/04; currently 28.98. Raise stop to 26.30.

Lakeland Industries, Inc. (LAKE) – bought 600 shares at 16.50 on 02/09/04; currently 16.69. Raise stop to 16.41.

Linens N Things Inc. (LIN) – bought 300 shares at 33.35 on 02/18/04; currently 33.18. Raise stop to 31.99.

M T S Systems Corporation (MTSC) – sold short 400 shares at 27.12 on 02/19/04; currently 26.55. Lower buy stop to 27.01.


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ECLIPSE PORTFOLIO

Our Eclipse Portfolio is an experiment in longer-term stock market positions, as opposed to the more active trading positions in the Financial Cycles Model Portfolio, which we are currently holding for an average of 9.2 trading days. Although a long-term, “buy and hold” strategy leaves us very concerned about capital preservation and portfolio safety given current market conditions, we are always exploring alternative investment strategies.
The stocks in the Eclipse Portfolio all had First-Trade horoscopes featuring a Sun that was directly impacted by the November 23, 2003 solar eclipse. The portfolio includes only long positions, with stop-loss points set liberally to allow for broader price fluctuations while protecting the capital in the portfolio. When positions in the Eclipse Portfolio become sufficiently profitable we raise our stops to lock in profits accordingly, but our intention is to let our winners run as long as possible.
All the stocks in the Eclipse Portfolio were purchased on November 24, 2003, with a total initial investment of $21,345.00. On December 9, 2003, we closed two losing positions that hit our stops—Network Appliance, Inc. (NTAP – bought at 22.25; sold at 19.65) and Silicon Storage Technology, Inc. (SSTI – bought at 13.00; sold at 11.87); on December 16, 2003, we closed our position in J. B. Hunt Transportation Services, Inc. (JBHT – bought at 25.25; sold at 25.75); and on February 5, 2004, we closed our position in Medtronic, Inc. (MDT – bought at 44.25; sold at 47.50). In closing these positions, we took a net loss of $434.00 on the trades and added $17,391.00 cash to the portfolio.
Our sole remaining position in the Eclipse Portfolio is Teledyne Technologies, Inc. (TDY) – we bought 200 shares at 17.60 on 11/24/03; it is currently at 21.09. This week we raised our stop to 20.46.
With just one of our original five positions still active, the current equity in the Eclipse Portfolio is $21,609.00, for a gain of 1.19% since the portfolio’s inception.

*****


STRONGEST MARKET SECTORS LAST WEEK

Manufactured Housing; Memory Chips; Recreational Goods; Information & Delivery Services; Discount Variety Stores.

*****


WEAKEST MARKET SECTORS LAST WEEK

Gold; Consumer Services; Networking & Communications Devices; Steel & Iron; Staffing & Outsourcing Services.

*****


KEY ASTROLOGICAL EVENTS THIS WEEK

February 22
Heliocentric Mercury sesquiquadrate Heliocentric Mars 00:29 EST
Sun conjunct Uranus in right ascension 04:10 EST
Heliocentric Venus contraparallel Heliocentric Saturn 06:10 EST
Void-of-Course Moon ends 07:45 EST
Mercury parallel Chiron 16:31 EST
Mercury parallel Chiron in right ascension 16:34 EST
Heliocentric Mercury contraparallel Heliocentric Chiron 18:55 EST
Uranus apogee 20:30 EST

February 23
Heliocentric Venus in 24th harmonic to Heliocentric Saturn 01:49 EST
Venus parallel Jupiter in right ascension 02:57 EST
Venus parallel Jupiter 02:58 EST
Neptune square True Lunar Node 05:11 EST
Heliocentric Mercury trine Heliocentric Zeus 05:31 EST
Heliocentric Mercury sesquiquadrate Heliocentric Hades 05:34 EST
Heliocentric Mercury sextile Heliocentric Cupido 13:22 EST
Mercury parallel Pluto 15:22 EST
Mercury parallel Pluto in right ascension 15:27 EST
Mercury enters Pisces in right ascension 15:37 EST
Venus sextile Neptune in right ascension 16:10 EST
Mercury trine Kronos in right ascension 17:16 EST
Venus semisquare Uranus 20:01 EST
Heliocentric Venus sesquiquadrate Heliocentric Neptune 20:26 EST

February 24
Sun sesquiquadrate Apollon in right ascension 04:55 EST
Sun trine Saturn in right ascension 05:14 EST
Venus quincunx Jupiter in right ascension 07:44 EST
Mars contraparallel Neptune 08:44 EST
Mars contraparallel Neptune in right ascension 08:44 EST
Heliocentric Earth sesquiquadrate Heliocentric Chiron 09:37 EST
Heliocentric Mercury quincunx Heliocentric Saturn 10:19 EST
Mars conjunct True Lunar Node 11:19 EST
Void-of-Course Moon 13:54 – 16:30 EST
Mercury in 24th harmonic to Neptune 14:21 EST
Mars square Neptune 16:31 EST
Heliocentric Mercury conjunct Heliocentric Neptune 18:45 EST
Mars square 11/09/03 Lunar Eclipse Antiscion 19:24 EST
Heliocentric Mars opposition Heliocentric Pluto 19:37 EST
Heliocentric Venus contraparallel Heliocentric Uranus 20:05 EST
Heliocentric Mercury quincunx Heliocentric Jupiter 21:02 EST
Mercury parallel Poseidon 21:35 EST
Sun quincunx Zeus in right ascension 21:37 EST
Mercury parallel Poseidon in right ascension 22:01 EST

February 25
Heliocentric Earth sextile Heliocentric Poseidon 00:42 EST
Heliocentric Mars quincunx Heliocentric Chiron 00:44 EST
Heliocentric Venus enters Cancer 02:05 EST
Heliocentric Mars parallel Heliocentric Cupido 02:33 EST
Mercury enters Pisces 07:57 EST
Sun parallel Apollon 08:11 EST
Sun parallel Apollon in right ascension 08:35 EST
Mercury semisquare Venus in right ascension 08:48 EST
Mars conjunct True North Node in right ascension 09:03 EST
Mercury trine Kronos 09:13 EST
Sun trine Saturn 11:15 EST
Mercury apogee 13:46 EST
Heliocentric Mercury sesquiquadrate Heliocentric Venus 14:14 EST
Heliocentric Mercury sesquiquadrate Heliocentric Kronos 14:44 EST
Sun trine Poseidon 14:47 EST
Heliocentric Venus conjunct Heliocentric Kronos 15:19 EST
Moon occults Mars 21:05 EST
Void-of-Course Moon begins 21:55 EST
True Lunar Node direct station 22:03 EST
Saturn semisquare Admetos 22:41 EST

February 26
Void-of-Course Moon all day
Sun sesquiquadrate Vulcanus 02:48 EST
Sun square Cupido in right ascension 03:04 EST
Mercury trine Poseidon in right ascension 03:17 EST
Heliocentric Mercury in 24th harmonic to Heliocentric Uranus 03:56 EST
Sun sesquiquadrate Vulcanus in right ascension 04:07 EST
Uranus semisquare 12/04/02 Solar Eclipse Antiscion 04:37 EST
Heliocentric Mars sesquiquadrate Heliocentric Poseidon 06:09 EST
Venus semisquare Admetos in right ascension 09:15 EST
Mars trine Jupiter 10:12 EST
Jupiter sesquiquadrate 04/19/04 Solar Eclipse Point 10:43 EST
Sun contraparallel Venus 11:00 EST
Sun contraparallel Venus in right ascension 11:01 EST
Sun semisquare Chiron in right ascension 14:20 EST
Pluto quincunx Vulcanus 14:56 EST
Heliocentric Earth semisquare Heliocentric Vulcanus 15:07 EST
Mercury conjunct Uranus in right ascension 18:10 EST
Heliocentric Mercury sextile Heliocentric Pluto 20:04 EST
Heliocentric Earth semisextile Heliocentric Zeus 20:10 EST
Mars semisquare Kronos 20:14 EST
Neptune opposition 11/09/03 Lunar Eclipse Antiscion 20:16 EST
Heliocentric Venus trine Heliocentric Uranus 20:19 EST
Heliocentric Mercury semisextile Heliocentric Chiron 20:57
Heliocentric Venus parallel Heliocentric Cupido 21:07 EST
Venus semisextile Admetos 21:31 EST

February 27
Mercury conjunct Uranus 01:19 EST
Heliocentric Mercury trine Heliocentric Mars 03:50 EST
Venus sextile Hades 04:03 EST
Heliocentric Earth semisquare Heliocentric Apollon 04:16 EST
Void-of-Course Moon ends 04:22 EST
Heliocentric Venus parallel Heliocentric Mars 04:45 EST
Venus contraparallel Apollon in right ascension 06:35 EST
Venus contraparallel Apollon 06:51 EST
Sun quincunx Zeus 07:45 EST
Heliocentric Mercury square Heliocentric Admetos 08:36 EST
Venus square Vulcanus 11:09 EST
Heliocentric Mercury quincunx Heliocentric Vulcanus 11:28 EST
Venus trine Pluto 11:34 EST
Heliocentric Mercury sesquiquadrate Heliocentric Zeus 12:51 EST
Heliocentric Mercury trine Heliocentric Hades 12:55 EST
Heliocentric Mercury trine Heliocentric Apollon 15:02 EST
Sun semisquare Chiron 15:29 EST
Heliocentric Venus contraparallel Heliocentric Hades 16:17 EST
Venus semisquare Uranus in right ascension 16:37 EST
Mercury trine Saturn in right ascension 17:00 EST
Mercury sesquiquadrate Apollon in right ascension 17:29 EST
Sun sesquiquadrate Apollon 18:01 EST
True Lunar Node retrograde station 19:55 EST
Heliocentric Earth square Heliocentric Cupido 22:18 EST

February 28
Mercury quincunx Zeus in right ascension 02:37 EST
Lunar apogee 05:54 EST
Venus sextile Hades in right ascension 09:09 EST
Jupiter quincunx Neptune in right ascension 12:57 EST
Heliocentric Mars semisextile Heliocentric Admetos 14:12 EST
Mars conjunct 11/09/03 Lunar Eclipse Point 14:31 EST
Sun sextile True Lunar Node in right ascension 14:31 EST
Heliocentric Mercury sesquiquadrate Heliocentric Saturn 15:43 EST
Heliocentric Venus trine Heliocentric Poseidon 18:35 EST
Mercury square Cupido in right ascension 19:36 EST
Mercury sesquiquadrate Vulcanus in right ascension 19:41 EST
Mercury trine Saturn 20:21 EST
Mercury parallel Uranus 21:09 EST
Mercury parallel Uranus in right ascension 21:15 EST
Venus square Chiron 21:54 EST
Venus opposition Apollon 21:59 EST
Heliocentric Mercury in 24th harmonic to Heliocentric Neptune 22:28 EST
Mercury trine Poseidon 22:51 EST
Chiron square Apollon 23:04 EST

February 29
Mercury semisquare Chiron in right ascension 04:16 EST
Void-of-Course Moon 05:08 – 17:12 EST
Mercury sesquiquadrate Vulcanus 05:20 EST
Venus trine Pluto in right ascension 05:25 EST
Venus opposition Apollon in right ascension 05:31 EST
Cupido sesquiquadrate Vulcanus in right ascension 05:50 EST
Heliocentric Venus parallel Heliocentric Jupiter 05:57 EST
Sun square Cupido 07:36 EST
Pluto sextile Apollon in right ascension 10:19 EST
Heliocentric Mercury enters Pisces 10:50 EST
Heliocentric Mars semisextile Heliocentric Vulcanus 10:51 EST
Heliocentric Venus semisquare Heliocentric Admetos 12:03 EST
Heliocentric Mercury contraparallel Heliocentric Chiron 13:16 EST
Heliocentric Mercury trine Heliocentric Kronos 16:21 EST
Mercury contraparallel Venus 17:13 EST
Mercury contraparallel Venus in right ascension 17:16 EST
Heliocentric Venus in 24th harmonic to Heliocentric Vulcanus 18:27 EST
Mercury quincunx Zeus 21:01 EST
Heliocentric Venus square Heliocentric Zeus 21:38 EST
Heliocentric Mars conjunct Heliocentric Hades 21:39 EST
Heliocentric Venus in 24th harmonic to Heliocentric Hades 21:48 EST
Heliocentric Venus in 24th harmonic to Heliocentric Mars 21:52 EST
Sun contraparallel Jupiter 23:19 EST
Sun contraparallel Jupiter in right ascension 23:22 EST

*****


STOCKS TO WATCH: ANF, AKAM, MXO, MERQ, TKTX, WSFS.

Abercrombie and Fitch Company (ANF)
NYSE; Optionable
First Trade Date: 09/26/1996; 09:30 a.m.
Trading Strategy: ANF gapped upward last week on high trading volume; when it did so, it gapped over a geocentric 19.79 Chiron line. This is not the first time this stock has reacted to this planetary line; in fact, during the past couple of years it has repeated gapped over various increments of it—on 2/20/02, on 3/4/02, on 10/1/02, on 1/9/03, on 10/8/03, on 12/4/03, and on 2/5/04. With Friday’s low for ANF right on this line, we believe it will find support for its current price surge and continue upward, thanks also to the impact of transiting Jupiter conjunct the First-Trade Midheaven and the transiting Sun trine the First-Trade Sun. We plan to add a long position in ANF to the Model Portfolio this week, setting our initial stop at 29.24.

Akamai Technologies, Inc. (AKAM)
NASDAQ; Optionable
First Trade Date: 10/29/1999; 09:30 a.m.
Trading Strategy: Jupiter is currently transiting the AKAM First-Trade Midheaven and will soon conjoin First-Trade Venus. In April Jupiter’s station will keep it in a square to First-Trade Pluto for several weeks. All this adds up to a very positive picture for AKAM, so we will add a long position this week, setting our initial stop at 14.19.

Maxtor Corporation (MXO)
NYSE; Optionable
First Trade Date: 04/30/2001; 09:30 a.m.
Trading Strategy: Although there are some decent fundamentals behind this stock, the overall picture is a good bit weaker than shares that typically attract our attention. Transiting Saturn has just left the First-Trade Ascendant behind; while transiting Jupiter is currently conjunct the First-Trade Nadir as it nears a square with First-Trade Jupiter. Meanwhile, transiting Mars and the True Lunar Node are quincunx the MXO First-Trade Pluto, which might help explain the heavy insider acquisition this stock has seen in recent months. Our plan is to add a long position in MXO to the Model Portfolio this week, with an initial stop at 8.82.

Mercury Interactive Corporation (MERQ)
NASDAQ; Optionable
First Trade Date: 10/29/1993; 09:30 a.m.
Trading Strategy: There’s a lot going on with this stock. Jupiter is conjunct the First-
Trade Midheaven, of course, and transiting Poseidon is conjunct the First-Trade Sun. But transiting Cupido is also sesquiquadrate the First-Trade Moon, and transiting Saturn and Admetos are both quincunx First-Trade Mercury. A geocentric 23.47 Pluto line and a geocentric 19.69 Apollon line look like the most significant factors in the current support and resistance structure for this stock. In our estimation the positive factors outweigh the negative potential for MERQ, so we will add a long position to the Model Portfolio this week, setting our initial stop at 46.08.

Transkaryotic Therapies (TKTX)
NASDAQ; Optionable
First Trade Date: 10/17/1996; 09:30 a.m.
Trading Strategy: Talk about a challenging situation! Transiting Jupiter is currently conjunct the TKTX First-Trade Venus, but that’s just about the only bright spot for this stock. Saturn is sesquiquadrate the First-Trade Ascendant, while transiting Admetos currently conjoins the First-Trade Descendant and Uranus adds to the volatility as it sits on the First-Trade Nadir. TKTX recently tried and failed to break through its 50-day moving average, and with the 200-day ready to go next, this looks like a candidate for a short sale. We plan to sell it short this week, setting our initial buy stop on the geocentric 20.09 Chiron line at a price of 13.44.

W S F S Financial Corporation (WSFS)
NASDAQ
First Trade Date: 11/26/1986; 9:30 a.m.
Trading Strategy: This stock roared to new 52-week highs recently, only to find its momentum slow a bit at it worked to maintain a price above 50.00 a share. A geocentric 7.95 Chiron line has defined some key resistance; with a geocentric 7.90 Kronos line adding reinforcement. With transiting Pluto conjunct First-Trade Uranus, surprises have definitely been the order of the day. That transit will soon be opening up with a wider orb, however, and as it does so the opposition from transiting Hades to First-Trade Uranus will get stronger. At the same time we have transiting Saturn conjunct the WSFS First-Trade Descendant and transiting Admetos sesquiquadrate the First-Trade Ascendant. We’re looking for two more consecutive closes below 50.01 for this stock. When we get them, we will sell WSFS short, setting our initial buy stop at 50.88, in harmony with a geocentric 27.43 Neptune line.


FINANCIAL CYCLES (ISSN 1055-8527) is published by Taylor-Bost Consulting and edited by Tim Bost at 2831 Ringling Boulevard, Suite B-108, Sarasota, FL 34237 USA. Phone: 941-953-3545. Fax: 941-953-3732. Email: timbost@pipeline.com. Entire contents copyright 2004 Timothy L. Bost. No portion of this Weekly Email Update or its printed version may be reproduced without the publisher's written permission. Subscriptions to FINANCIAL CYCLES are $39.00 per month for weekly updates by email, payable by monthly billing to a major credit card. Advance payment options (by credit card, check, or money order) are $228 for 6 months, $432 for 1 year or $815 for two years. All subscriptions are payable in US funds only— Visa, MasterCard, American Express, Diners Club, and Discover/Novus accepted; please make checks or money orders payable to Taylor-Bost. PayPal is also accepted for online orders; send payment to PayPal@TimBost.com.

By providing a source of independent market analysis, the purpose of FINANCIAL CYCLES is to foster the growth of person-centered business and investment astrology; to enhance the development and dissemination of financial literacy and prosperity consciousness; and to explore the use of technical analysis and financial astrology in promoting an esoteric spiritual understanding of economic trends, geocosmic cycles, geopolitical events, and market movements. FINANCIAL CYCLES is a general interest publication which is prepared from astrological information, news reports, cycle projections, and market observations which are believed to be accurate and reliable, but which cannot be guaranteed. Portfolio and trading reports in this publication do not include taxes and transaction fees, which should be taken into consideration by prospective traders and investors. Even with accurate information, past performance is no guarantee of future results. Speculation in securities and commodities involves considerable financial risk, and readers who plan to invest or speculate in securities or commodities mentioned in FINANCIAL CYCLES have the complete responsibility for making themselves fully aware of all the risks involved before they invest. The editor may or may not have positions in the securities and commodities discussed in this newsletter, and the information in FINANCIAL CYCLES should in no way be understood or construed as a solicitation or an offer to buy or sell any products or securities, nor should the material published in this newsletter be considered buy/sell advice.

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posted by Tim Bost @ 2/22/2004 10:16:14 PM