FINANCIAL CYCLES WEEKLY UPDATE #0427 – July 4-10, 2004 with TIM BOST

COMMENT: Mixed messages. Contradictory commands. Psychologists have known for decades that self-contradiction is a powerful mechanism for personal and social control. When it occurs on its own in an individual, it’s indicative of mental or emotional imbalance. When it’s imposed by another person or organization, it’s a tool for manipulation and misdirection.
The basic construct is a simple one. Just give someone information that contradicts itself, yet that implies or demands some sort of coherent response from the recipient of the information. In the classic brainwashing scenarios that employ this technique, an unwilling victim is repeatedly given contradictory orders, for example being commanded simultaneously to sit and to stand, until the confusion and tension build to a level sufficient to break down emotional resistance and the ability to exert independent will. Then, with the victim in a completely stressed-out, completely malleable state, a new, coherent command is given. It’s typically not something that the victim would ordinarily obey, but since it offers an alternative to the stress and confusion, the victim usually complies.
At first mixed messages can sometimes actually seem amusing. The old Three Stooges courtroom comedy comes to mind, with Curly wearing a bowler hat as he’s about to be sworn in as a witness. When he’s told to remove his hat, he does so with his right hand, since his left hand is laid on a Bible for the ceremony. Then, when instructed to raise his right hand for the oath, he puts his hat back on so he can raise his hand. “Take off your hat!” the bailiff barks again, and Curly complies, only to return the bowler to his head when he’s again asked to raise his hand. The ensuing routine, with the staccato barrage of conflicting orders coming from the frustrated bailiff and Curly’s increasingly exasperated efforts to comply, is hilarious entertainment. It’s also reminiscent, in a not-so-hilarious way, of many situations on the current political and economic scene.
Alan Greenspan is a case in point. As the quintessential Pisces, he’s able simultaneously to expound both sides of an argument in such a convoluted, confusing way that when he speaks even the most astute Fed watchers are simply left wondering what it was he really meant. And when the Fed actually takes action on interest rates, it is seen at one level as a relief, not because it’s necessarily the best monetary policy, but because it adds at least some small sense of purpose and direction to Mr. Greenspan’s cryptic utterances.
Or take the U.S. military prisons where Iraqis have been detained. There have clearly been contradictory orders in place: “Do whatever it takes to soften up the prisoners so we can get vital intelligence to prevent further resistance” and “Observe the rules of the Geneva Conventions and exemplify the responsibility and humaneness that make America the envy of the world.” Whether the contradictions were unintentional or deliberate, and where they originated in the American chain of command, is open to debate. The end results, however, are appallingly obvious.
The same mixed message technique is used for general public consumption. During this current Fourth of July holiday, for example, the American public is told to be on alert for terrorist attacks that are likely to bring deadly and destructive explosions to threaten us, while at the same time we are encouraged to get out in public, demonstrate unafraid self-confidence, and celebrate this great occasion with fireworks explosions of our own making. While the level of stress provoked by these contradictions no longer sends us to the hardware store in search of extra duct tape, it does make us marginally uneasy—and markedly more susceptible to further warnings from official sources or emergency orders from authorities.
Even the lobbyists and special interest groups have gotten into the act. The U.S. Chamber of Commerce promotes a pro-business agenda and urges the support of American free enterprise, yet Chamber of Commerce President and CEO Thomas Donohue said last week in a speech to the Commonwealth Club of California that he believes American companies should outsource more high-paying jobs to India and China in order to strengthen the U.S. economy. His stance baffled many commentators, including analyst John McCarthy of Forrester Research. “Endlessly debating whether offshoring is good or bad is pointless,” McCarthy said. “It’s like debating whether you’ve had a good trip on the Titanic while the iceberg comes into view. The jobs go offshore today and the economic benefits don’t come around for years.”
And geopolitical endeavors certainly aren’t exempt. They often utilize the mixed message approach on a grand scale. According to the June 30 Straits Times from Singapore, the U.S. is currently sending seven aircraft carrier strike groups to a rendezvous point just off the coastline of China as a part of its Operation Summer Pulse 04 Fleet Response Plan, which is designed to “demonstrate the ability of the Navy to provide credible combat around the globe.” According to the Straits Times, the expected rendezvous in late July is being viewed by Beijing as a direct threat, “a suspicion reinforced by reports that Taiwanese forces are slated to join in the drill.” Washington seems determined to confront “Beijing’s repeated warning that it will use force, as a last resort and whatever the cost, to stop Taiwanese independence.”
The Straits Times notes that the number of carrier strike groups (CSGs) simultaneously deployed by the U.S. is an indicator of the seriousness of a situation, with one CSG sometimes sent to a trouble spot as a gentle reminder of U.S. presence and concern. In 1996, when things got tense after China test-fired missiles near Taiwan, the U.S. sent two CSGs to the area. “In a combat situation, it deploys three to four, which was what it did in the Gulf War in the early 1990s and the recent Iraq war.
“But never before has it sent in peace time seven CSGs to the same theatre.
“The implications for China are grave.”
At the same time, of course, the U.S. is promoting enhanced trading status for China and the Chinese have just dispatched a coast guard vessel to help the U.S. patrol international fishing zones in the Pacific. The contradictions and the brinksmanship suggest that a very stressful show-down may be in the works, most likely with Korea as the surrogate arena for the conflict and most likely just before the U.S. presidential elections in November.
But even international affairs pale by comparison to economic news when it comes to mixed messages. Nothing else seems to have the same intrinsic potential for stress and confusion. Last Friday’s report from the Labor Department is a good example. It showed that 112,000 new jobs were added to U.S. payrolls in June. According to President Bush, that was evidence that the U.S. economy is booming. Mr. Kerry’s take was exactly the opposite, however. Based on the same numbers, he seemed to feel that the trend in jobs is a disaster, mainly because the forecasts had been for more than 250,000 new jobs in June.
In such cases, where there are obvious political motivations for interpreting economic numbers in totally contradictory ways, we’ve found it best to pay attention to the markets. After all, there’s typically a remarkable amount of wisdom in the consensus opinion of crowds, and the markets are a daily meter of that consensus. So when the Labor Department report came out and the stock market tanked, we figured that for once we had a final answer.
Oddly enough, reaching that conclusion offered us a surprisingly stress-free way to move into an enjoyable weekend and to get ready for a productive week ahead. Much of our focus as traders is on learning to pay attention to what the market is trying to tell us, and as it turns out, that’s a skill with many unexpected fringe benefits.
Have a great week!

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THE WEEK AHEAD

With the year’s Second Quarter behind us, it’s time for earnings season to get underway again as we move out of the Independence Day holiday break. This week we’ll be looking for reports from Abbott Laboratories (ABT), Burlington Coat Factory Warehouse (BCF), Creative Computer Applications (CAP), Fleetwood Enterprises (FLE), Horizon Health Corporation (HORC), Metron Technology (MTCH), Parke Electrochemical (PKE), Printronix (PTNX), Rehabilicare (REHB), Stolt Nielsen (SNSA), Troy Group (TROY), Vasogen (VSV), Pacific Continental (PCBK), Infosys Technologies (INFY), SONUS Pharmaceuticals (SNUS), ALCOA (AA), Accenture Ltd. (CAN), International Speedway (SCA), Genentech (DNA), Yahoo! (YHOO), A. Schulman Inc. (SHLM), Hancock Holding (HBHC), Mercantile Bank Corp. (MBWM), Posco (PKX), Grupo Casa Saba SA de CV (SAB), Pepsi Bottling Group (PBG), Crucell (CRXL), and General Electric (GE). Although earnings for the Second Quarter are generally expected to be strong, with Yahoo! And ALCOA leading the way this week, there will be some areas of decline as well, most notably GE, where analysts believe that profitability has declined slightly.
In a week shortened by the July 4 holiday, there won’t be too many economic reports to follow. We will be looking for the ISM Services numbers, as well as Jobless Claims, Consumer Credit, and Wholesale Inventories. From Canada, we’ll be getting reports on Building Permits, New Housing Prices, and the Labor Force Survey. Members of the Federal Reserve will be hitting the rubber chicken circuit to defend last week’s Fed rate hike: J. Alfred Broaddus Jr., president of the Federal Reserve Bank of Richmond, will be in North Carolina; Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City, will be in Omaha; and Fed Vice-Chairman Robert W. Ferguson Jr. will be in New York.
The environment has been a lot more favorable for IPOs recently, which may explain why there’s a rumor floating around that Arabic satellite channel Al-Jazeera is considering going public. According to sources cited by the German newspaper Handelsblatt, Al-Jazeera shares could be traded on the Doha stock exchange within the next two or three years. If that happens, the IPO could be even bigger than Google!
The astrological dynamics this week include three days that are dominated by void-of-course Moons. The first, Monday, is a holiday that exempts all market action in the U.S. from consideration anyway. Lunar voids also impact the entire trading days on Wednesday and Friday, so our plan is to take a lot of time away from active trading this week! On Wednesday the transneptunian planet Apollon makes a direct station; look for a strong possible impact on U.S. Treasuries. Thursday’s Sun/Saturn conjunction is an annual event that typically brings blue chip stock prices down for about a week to 10 days.

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SPIRITUAL FOCUS FOR THE WEEK

The greatest traders of all time have understood that emotional balance is the key to successful trading. Through Practical Spiritual Astrology we can align ourselves to the kind of inner harmony that enhances emotional balance.

Expressing ourselves with greater energy and integrity, this week we can reach new levels of clarity in being who we truly are.

"Reason often makes mistakes, but conscience never does." –Josh Billings

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GLOBAL EQUITIES MARKETS LAST WEEK

Except for parts of the Pacific, markets around the world lost ground last week, with U.S. equities suffering across the board and European issues demonstrating surprising weakness. The rate increase by the Federal Reserve had little effect on U.S. markets, however—it was the disappointing economic news later in the week that many market pundits blamed for the American market decline.

Dow Jones Industrial Average – down 0.86%
Dow Jones Transportation Average – down 0.57%
Dow Jones Utilities Average – down 0.34%
S& P 500 – down 0.80%
NASDAQ Composite Index – down 0.93%
Russell 2000 – down 0.85%
London FTSE-100 – down 1.93%
Paris CAC-40 – down 1.53%
Frankfurt DAX – down 0.36%
Sydney All Ordinaries – up 0.24%
Tokyo Nikkei – down 0.50%
Hong Kong Hang Seng Index – up 0.28%
Singapore Straits Times Index – up 1.87%

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FINANCIAL CYCLES MODEL PORTFOLIO


POSITIONS CLOSED DURING THE PREVIOUS WEEK: EASI, KNGT, MATW, MXIM, TRMB.

We closed five Model Portfolio positions during the past week, with 2 winners and 3 losers producing a net loss of $124.00.

On June 28 we sold 200 shares of Engineered Support Systems (EASI) at 56.20, taking a loss of $210.00 (a 1.83% loss in 5 trading days).

On June 28 we bought to cover 300 shares of Knight Transportation (KNGT) at 28.00, taking a loss of $180.00 (a 2.18% loss in 11 trading days).

On June 28 we bought to cover 300 shares of Matthews International Corporation (MATW) at 32.75, taking a loss of $150.00 (a 1.55% loss in 7 trading days).

On July 1 we sold 200 shares of Maxim Integrated Products (MXIM) at 50.35, taking a profit of $220.00 (a 2.23% gain in 20 trading days).

On July 1 we sold 400 shares of Trimble Navigation Ltd. (TRMB) at 27.33, taking a profit of $196.00 (a 1.83% gain in 9 trading days).

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POSITIONS ADDED TO THE PORTFOLIO DURING THE PREVIOUS WEEK: PETM, SPLS, SRDX.

We added three long positions to the Model Portfolio during the previous week.

We bought 300 shares of Petsmart (PETM) at 31.85 on 06/29/04, setting our initial stop at 31.25.

We bought 300 shares of Staples Inc. (SPLS) at 29.35 on 06/29/04, setting our initial stop at 28.00.

We bought 400 shares of SurModics Inc. (SRDX) at 24.50 on 06/30/04, setting our initial stop at 21.70.

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YEAR-IN-REVIEW MODEL PORTFOLIO ACTIVITY

So far in 2004 we have had a total of 101 completed trades, with 47 winners and 54 losers bringing us a total net profit of $14,037.50. The largest profit for a single trade has been $5,250.00; the largest single-trade loss has been $750.00; the average profit per trade has been $138.99. 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

Advanta Corporation Class B (ADVNB) – bought 600 shares at 16.85 on 06/09/04; currently 23.10. Raise stop to 21.70.

Atrix Laboratories Inc. (ATRX) – bought 300 shares at 32.69 on 06/23/04; currently 33.60. Raise stop to 33.23.

Cognex Corporation (CGNX) – bought 400 shares at 33.00 on 06/14/04; currently 37.10. Raise stop to 35.90.

Daktronics Inc. (DAKT) – bought 400 shares at 23.50 on 06/17/04; currently 24.58. Raise stop to 23.98.

Helen of Troy Ltd. (HELE) – bought 200 shares at 35.72 on 06/25/04; currently 36.97. Raise stop to 35.85.

Knightsbridge Tankers (VLCCF) – bought 500 shares at 18.69 on 05/14/04; currently 29.42. Raise stop to 27.49.

Petsmart (PETM) – bought 300 shares at 31.85 on 06/29/04; currently 31.88. Raise stop to 31.65.

Staples Inc. (SPLS) – bought 300 shares at 29.35 on 06/29/04; currently 28.76. Raise stop to 28.35.

SurModics Inc. (SRDX) – bought 400 shares at 24.50 on 06/30/04; currently 24.01. Raise stop to 21.72.

United Fire and Casualty (UFCS) – bought 200 shares at 56.50 on 06/21/04; currently 57.30. Raise stop to 56.85.

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STRONGEST MARKET SECTORS LAST WEEK

Aerospace/Defense Products & Services; Diversified Communications Services; Oil & Gas Drilling & Exploration; Nonmetallic Mineral Mining; Silver.

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WEAKEST MARKET SECTORS LAST WEEK

Wholesale Drugs; Business Software & Services; Auto Parts Stores; Manufactured Housing; Department Stores.

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KEY ASTROLOGICAL EVENTS DURING THE COMING WEEK

July 4
Heliocentric Mercury contraparallel Heliocentric Apollon 00:53 EDT
Heliocentric Venus in 24th harmonic to Heliocentric Neptune 00:54 EDT
Heliocentric Mercury semisextile Heliocentric Mars 01:31 EDT
Heliocentric Mercury square Heliocentric Pluto 02:07 EDT
Heliocentric Mercury semisquare Heliocentric Poseidon 02:37 EDT
Mars quincunx Uranus 03:27 EDT
Heliocentric Mars trine Heliocentric Pluto 07:29 EDT
Mercury square 04/19/2004 Solar Eclipse Point 08:26 EDT
Heliocentric Mercury trine Heliocentric Admetos 09:23 EDT
Mercury enters Leo 10:52 EDT
Heliocentric Mercury sextile Heliocentric Vulcanus 11:44 EDT
Heliocentric Mercury trine Heliocentric Chiron 13:28 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Zeus 13:28 EDT
Saturn in 24th harmonic to Kronos 13:44 EDT
Heliocentric Mercury square Heliocentric Hades 13:57 EDT
Heliocentric Mercury conjunct Heliocentric Jupiter 14:55 EDT
Heliocentric Mercury semisextile Heliocentric Apollon 15:04 EDT
Mercury square Poseidon in right ascension 18:27 EDT
Heliocentric Venus enters Aquarius 19:16 EDT
Void-of-Course Moon begins 22:15 EDT
Mars sextile Zeus 22:51 EDT
Heliocentric Jupiter semisextile Heliocentric Apollon 22:55 EDT

July 5
U.S. Markets Closed for Independence Day Holiday
Chiron opposition Vulcanus in right ascension 02:34 EDT
Mercury semisextile Kronos 04:44 EDT
Mercury in 24th harmonic to Saturn 05:46 EDT
Mercury parallel Vulcanus 07:35 EDT
Heliocentric Earth semisextile Heliocentric Neptune 08:16 EDT
Mercury parallel Vulcanus in right ascension 08:20 EDT
Heliocentric Venus contraparallel Heliocentric Hades 10:51 EDT
Heliocentric Venus quincunx Heliocentric Kronos 12:37 EDT
Void-of-Course Moon ends 14:26 EDT
Sun sextile Jupiter 14:58 EDT
Mercury sesquiquadrate Pluto in right ascension 19:07 EDT
Mars in 24th harmonic to Vulcanus 20:13 EDT
Venus sesquiquadrate Chiron in right ascension 22:50 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Neptune 22:58 EDT
Heliocentric Venus contraparallel Heliocentric Saturn 23:17 EDT

July 6
Sun sextile Jupiter in right ascension 04:23 EDT
Venus semisquare Vulcanus in right ascension 05:23 EDT
Heliocentric Mercury enters Libra 06:06 EDT
Sun quincunx Neptune 08:55 EDT
Mercury square True Lunar Node in right ascension 11:54 EDT
Heliocentric Mercury square Heliocentric Kronos 12:57 EDT
Mercury sextile Zeus in right ascension 14:07 EDT
Heliocentric Mercury parallel Heliocentric Jupiter 19:57 EDT
Mercury trine Cupido in right ascension 20:04 EDT
Mercury contraparallel Cupido 23:50 EDT

July 7
Void-of-Course Moon 01:29 – 19:03 EDT
Mercury contraparallel Cupido in right ascension 00:37 EDT
Heliocentric Mercury contraparallel Heliocentric Zeus 02:48 EDT
Mars trine Cupido 05:21 EDT
Heliocentric Mercury trine Heliocentric Venus 05:28 EDT
Heliocentric Mars square Heliocentric Admetos 06:37 EDT
Mars semisquare Hades 07:46 EDT
Heliocentric Mercury quincunx Heliocentric Uranus 08:05 EDT
Mercury opposition 5/16/2003 Lunar Eclipse Antiscion 09:00 EDT
Mercury sesquiquadrate Pluto 10:46 EDT
Mercury semisquare Hades in right ascension 11:17 EDT
Apollon direct station 11:30 EDT
Heliocentric Venus semisextile Heliocentric Uranus 11:56 EDT
Sun quincunx Neptune in right ascension 12:54 EDT
Mars square True Lunar Node 13:11 EDT
Mercury square Poseidon 14:08 EDT
Mercury quincunx Uranus in right ascension 18:03 EDT
Heliocentric Venus contraparallel Heliocentric Vulcanus 19:02 EDT
Heliocentric Mercury semisextile Heliocentric Poseidon 19:49 EDT

July 8
Sun in 24th harmonic to Kronos 01:07 EDT
True Lunar Node quincunx Zeus in right ascension 02:29 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Admetos 03:29 EDT
Mercury quincunx Uranus 04:40 EDT
Heliocentric Mars semisextile Heliocentric Vulcanus 05:32 EDT
Heliocentric Mercury semisquare Heliocentric Mars 06:12 EDT
Heliocentric Mercury conjunct Heliocentric Zeus 08:04 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Apollon 09:48 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Jupiter 11:27 EDT
Sun conjunct Saturn in right ascension 11:40 EDT
Sun conjunct Saturn 12:37 EDT
Heliocentric Earth opposition Heliocentric Saturn 12:46 EDT
Mercury sextile Zeus 13:19 EDT
Heliocentric Venus semisquare Heliocentric Pluto 15:24 EDT
Heliocentric Venus square Heliocentric Poseidon 16:24 EDT
Heliocentric Mercury sextile Heliocentric Cupido 16:26 EDT
Mercury sextile Venus in right ascension 16:57 EDT
Mercury in 24th harmonic to Vulcanus 21:53 EDT
Heliocentric Mars semisquare Heliocentric Zeus 22:19 EDT

July 9
Markets Closed in Argentina
Heliocentric Mars quincunx Heliocentric Chiron 02:44 EDT
Heliocentric Mars sextile Heliocentric Hades 02:59 EDT
True Lunar Node direct station 06:11 EDT
Sun parallel Hades 07:02 EDT
Heliocentric Chiron quincunx Heliocentric Hades 08:37 EDT
Void-of-Course Moon begins 08:51 EDT
Mercury trine Cupido 09:28 EDT
Sun parallel Hades in right ascension 09:44 EDT
Mercury semisquare Hades 11:30 EDT
Mercury square True Lunar Node 12:32 EDT
Heliocentric Mars sextile Heliocentric Apollon 13:20 EDT
Chiron quincunx Hades 14:34
Heliocentric Venus parallel Heliocentric Cupido 13:59 EDT
Heliocentric Earth contraparallel Heliocentric Hades 14:59 EDT
Jupiter quincunx Neptune 17:08 EDT
Heliocentric Mercury trine Heliocentric Neptune 21:38 EDT
Heliocentric Venus trine Heliocentric Zeus 21:49 EDT
Heliocentric Venus sesquiquadrate Heliocentric Hades 23:07 EDT
Heliocentric Venus in 24th harmonic to Heliocentric Chiron 23:17 EDT

July 10
Void-of-Course Moon ends 03:51 EDT
Sun quincunx Pluto in right ascension 05:22 EDT
Heliocentric Venus sesquiquadrate Heliocentric Jupiter 08:03 EDT
Heliocentric Mars semisextile Heliocentric Jupiter 11:57 EDT
Heliocentric Venus sextile Heliocentric Cupido 17:41 EDT
Heliocentric Mercury parallel Heliocentric Zeus 17:45 EDT
True Lunar Node retrograde station 18:16 EDT
Heliocentric Mercury square Heliocentric Saturn 18:28 EDT
Mercury conjunct Mars in right ascension 18:39 EDT
Mercury conjunct Mars 19:55 EDT
Sun sextile Admetos in right ascension 20:04 EDT
Sun parallel Saturn 21:19 EDT
Sun parallel Saturn in right ascension 21:29 EDT
Heliocentric Earth contraparallel Heliocentric Saturn 21:46 EDT
Heliocentric Mercury contraparallel Heliocentric Jupiter 23:33 EDT

July 11
Sun square Apollon in right ascension 01:18 EDT
Heliocentric Earth semisquare Heliocentric Uranus 02:44 EDT
Mercury parallel Mars 05:59 EDT
Mercury parallel Mars in right ascension 06:03 EDT
Mercury parallel Admetos 09:05 EDT
Mercury parallel Admetos in right ascension 09:37 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Uranus 10:47 EDT
Heliocentric Earth square Heliocentric Mercury 13:50 EDT
Mars parallel Admetos 15:21 EDT
Mercury sextile Venus 16:35 EDT
Mars parallel Admetos in right ascension 16:48 EDT
Void-of-Course Moon begins 19:29 EDT
Heliocentric Mercury sextile Heliocentric Pluto 23:19 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Poseidon 23:40 EDT
Sun quincunx Pluto 23:53 EDT

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STOCKS TO WATCH: DWSN, HANS, LSTR, LOJN.

Dawson Geophysical Company (DWSN)
NASDAQ
First Trade Date: 04/21/1981; 10:00 a.m.
Trading Strategy: Pluto (G,20.28,N,0) and Poseidon (G,20.48,N.0) have given us the strongest planetary support and resistance zones for this stock in the past, but they have done little to slow its forward momentum in the past few months. DWSN is currently working its way toward another Pluto line, which it may be able to penetrate, at least temporarily. What’s different this time is the fact that transiting Saturn will conjoin the DWSN First-Trade Ascendant in a few weeks. We expect that to slow down the progress this stock is making, so our plan is to add a short position to the Model Portfolio near the end of this week, unless we get two or more consecutive closes above the Pluto line at 24.00. Our initial buy stop will be set at 24.50.


Hansen Natural Corporation (HANS)
NASDAQ
First Trade Date: 12/06/1985; 09:30 a.m.
Trading Strategy: Saturn is currently crossing the HANS First-Trade Descendant, and the stock’s rapid advance has slowed down a bit to create a buying opportunity. We also have transiting Hades semisquare the HANS First-Trade True Lunar Node; when this transneptunian made it previous closest approach to the Node, at its station last September 24, it set the stage for a break-out from a seven-week trading range. We also currently see some positive potential in the HANS First-Trade Sun receiving a square from transiting Jupiter and an opposition from transiting Venus during the next couple of weeks, so we plan to add a long position in HANS to the Model Portfolio this week, setting our initial stop at 21.00.


Landstar System Inc. (LSTR)
NASDAQ; Optionable
First Trade Date: 03/05/1993; 09:30 a.m.
Trading Strategy: With transiting Jupiter in opposition to the LSTR First-Trade Sun, this stock has added a little extra energy to the price surge it has been exhibiting in recent months. This is the third pass of the opposition; on the two previous occasions it took place, in mid-November and late February, LSTR followed up the aspect with a nice upward move. Another factor at work right now is a square from transiting Poseidon to the LSTR First-Trade Moon; this aspect was also exact during September and October of last year, which was another time that set the stage for some solid price action. This stock has been moving upward at lunar speed—Moon (G,90,N,-2)—but Pluto (G,90,N,0) and Poseidon (G,90,N,0) have provided significant support/resistance in the past. Each time LSTR crosses an increment of that Pluto line (which it’s doing now), it stalls a bit in its upward progress, but each time that happens LSTR ultimately penetrates the line and continues upward, usually more quickly than the time before. We are thus ready to add a long position in LSTR to the Model Portfolio this week, setting a generous initial stop on the Poseidon line at 48.64.


Lo-Jack Corporation (LOJN)
NASDAQ
First Trade Date: 08/23/1985; 09:30 a.m.
Trading Strategy: With transiting Saturn currently crossing the LOJN First-Trade Midheaven, it’s not surprising to see this stock struggling a bit in its efforts to break through to new price highs. Our take on the technical picture for LOJN is that it’s not showing a double top at all, but is rather poised for a big price move upward. We’ll find out soon enough; at this point our plan is simply to add a long position to the Model Portfolio toward the end of the week. We’ll set our initial stop at 7.75.


FINANCIAL CYCLES (ISSN 1055-8527) is published by Taylor-Bost Consulting and edited by Tim Bost at 2132 Beneva Road, Sarasota, FL 34232 USA. Phone: 941-953-3545. Fax: 941-953-3732. Web: http://www.TimBost.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; to subscribe go to http://www.TimBost.com/newsletter/subscribe.html.

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 @ 7/04/2004 02:05:43 AM