FINANCIAL CYCLES WEEKLY #0428 – July 11-17, 2004 with TIM BOST

COMMENT: We were pleased to see that the “Market Watch” column in the current (July 12) issue of Barron’s reprinted an extended excerpt from last week’s issue of FINANCIAL CYCLES WEEKLY. Barron’s found our comments on global developments, economic news, and the U.S. political scene relevant, and we were grateful for their attention.
As Barron’s reported, we noted last week that the build-up of U.S. Naval forces in the Pacific could be an early warning of a show-down with China and/or North Korea just prior to the U.S. presidential elections in November. Indeed, as previous incumbents have learned, engaging in a military campaign or even just alerting the American people to the possibility of a conflict is often a sure-fire way to get reelected. For this fall’s contest, a new theatre of engagement could make hanging chads, disputed voter registrations, and Supreme Court politicking all superfluous.
But why stop there? Why even bother having elections at all if you can get away with avoiding them? A move like that may actually be in the works. As Newsweek’s Michael Isikoff has just reported, the Bush administration’s Department of Homeland Security and the Justice Department are currently developing plans for calling off the presidential elections altogether if they decide that terrorists are plotting to disrupt the voting process.
It’s certainly chilling to contemplate such a scenario, not so much because of the likelihood of a terrorist attack, but because of the pre-emptive powers the government seems ready to take upon itself. Presumably if the voting were cancelled it could be conducted at a later date, when the threat level had subsided. But such an occasion would also presumably find the electorate overwhelmingly supportive of the current Commander-in-Chief during a time of declared national crisis.
The basic notion seems to be that without unquestioning support for more preventive wars, the risk of domestic terrorist attacks will increase. Then, because of the increased risk of terrorist attacks, it will be necessary to cancel the elections. And in the absence of elections, the consensus of popular opinion can be assumed to be unquestioning support for more preventive wars.
The administration’s chief exponent of preventive warfare, of course, has been Dick Cheney, and given the Vice President’s recent behavior, it’s not entirely surprising that the administration is considering alternatives to holding elections. As Jeffrey Steinberg commented in the July 9 issue of Executive Intelligence Review, Mr. Cheney’s obscene outburst directed at Senator Patrick Leahy on June 22 “was but the most public display of the Vice President's mounting hysteria over accelerating pressure for his ouster from the 2004 Republican ticket.”
According to Steinberg, “While no one has yet officially suggested that Cheney step down due to a diagnosed early onset of Tourette's Syndrome, or some other medical problem, it is no secret around Washington that Cheney is now viewed by Karl Rove and other Bush re-election campaign strategists as a big and growing liability. According to one source close to the White House, private polls prepared for President Bush and Rove show that 9% of core Republican voters are planning to stay home on Election Day.”
Steinberg also says that the push to get Cheney off the GOP ticket accelerated on June 30 after Cheney made an appearance at a Major League baseball game in Yankee Stadium. “When Cheney's picture flashed on the scoreboard screen, spontaneous booing filled the stadium. Later that night, television host David Letterman cited the incident on his late night show, and joked that Cheney had ordered all of the people who were booing to be brought onto the stadium field, stripped naked, and forced to prance around with dog collars and leashes around their necks.”
In short, now that John Kerry has decided on a running mate, we may be seeing increased speculation about who the GOP candidate for Vice President will be. No matter how it all works out, this promises to be a very interesting election year, with plenty of news to keep track of.
By the way, it’s worth remembering that in spite of the opportunities for skewing the presidential elections in the U.S. and in spite of the recent installation of an unelected government in Iraq, there are still some places on the planet where the democratic process is still kicking. This weekend’s polling in Japan delivered a severe setback to Prime Minister Junichiro Koizumi’s Liberal Democratic Party, with the opposition group, the Democratic Party of Japan, scoring major gains in the House of Councilors. Public opinion about Japan’s weakening government benefits for the elderly, along with opposition to the country’s role in the Iraq war, apparently tipped the balance. With the election outcome, we could see some recovery in the Japanese stock market, which had sold off sharply prior to the voting.
Even Saudi Arabia is getting into the act. The notoriously undemocratic regime there has just announced that partial elections of local officials will be held this fall. The voting process is scheduled to begin on September 11, on the third anniversary of the destruction of the World Trade Center towers by terrorists from Saudi Arabia. So even if new foreign adventures or newly imagined terrorist threats keep Americans from the polls this year, there will still be some election returns to follow. It should be enough to keep the pundits pontificating, and perhaps the markets will even be able to pretend that everything is completely normal.
Have a great week!

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A NEW HOME FOR FINANCIAL CYCLES WEEKLY

Our office relocation is now complete! We’re still located in Sarasota, Florida, where we’ve been for the past 8 years, but have just completed a move into a more spacious environment that combines office and library with a very gracious, relaxing living space. Our Post Office Box (P.O. Box 1657, Sarasota, FL 34230-1657 USA) and website (www.TimBost.com) remain the same, but please note the following new information for your address book:
Street address: 2132 Beneva Road, Sarasota, FL 34232.
Phone: 941-921-2588.
Fax: 941-927-5798.
Email: tim@timbost.com.

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THE WEEK AHEAD

This will be an extremely busy week for earnings reports, making it difficult to separate the wheat from the chaff when it comes to market relevance. Some of the reports we’re anticipating include Brown & Brown (BRO), Stanley Furniture (STLY), SunTrust (STI), Tractor Supply Company (TSCO), Advanced Micro Devices (AMD), Bank of America (BAC), Bank of Granite Corporation (GRAN), Cathayh Bancorp (CATY), Cintas (CTAS), Dover Corporation (DOV), Fastenal (FAST), Franklin Covey (FC), Immucor (BLUD), Potlatch Corporation (PCH), QLogic (QLGC), Rambus Inc. (RMBS), Unisys (UIS), BB&T (BBT), Gannett (GCI), Intel Corporation (INTC), Johnson & Johnson (JNJ), Juniper Networks (JNPR), Media General (MEG), Republic Bancorp (RBNC), Apple Computer (AAPL), Harley-Davidson (HDI), Ruby Tuesday (RI), New York Times Company (NYT), WD-40 Company (WDFC), Telefonos de Mexico (TMX), Carlisle Companies (CSL), Cypress Semiconductor (CY), Dow Jones (DJ), Landstar System (LSTR), Marriott International (MAR), NOKIA (NOK), Pepsico (PEP), PMC-Sierra (PMCS), E. W. Scripps (SSP), Southwest Airlines (LUV), Wachovia (WB), Citigroup (C), Old Dominion Freight Lines (ODFL), Hasbro (HAS), Huntington Bancshares (HBAN), W. W. Grainger (GWW), and Boston Communications (BCGI).
The economic calendar for the week will feature reports on Retail Chain Sales, the Trade Gap, Export Prices, Import Prices, Business Inventories, Industrial Production, Capacity Utilization, Jobless Claims, and Consumer Sentiment. We’ll also get the Producer Price Index for June, the July New York Empire State Index, the July Philadelphia Fed Report, and the June Consumer Price Index. In short, it’s a week so packed with business and economic news that we suspect the net result will be for all the stories and reports essentially to cancel each other out in terms of market impact.
That leaves us watching the astrology for the week. It’s a bit of a mixed bag; we’ll have a void-of-course Moon throughout most of the trading day on Monday, with the lunar ingress coming just 15 minutes before the closing bell. Another lunar void impacts trading throughout the day on Wednesday. On both occasions there’s a need for extreme caution, if not a choice to abstain from trading altogether.
This week takes us into the New Moon on July 17; that’s a part of the lunar cycle that generally brings stock prices up. The other dominant planetary factors suggest a need for careful trading, however. Tuesday’s Mercury/Neptune opposition and heliocentric Venus/Neptune conjunction are both likely to bring blue chips up, but the outlook they bring to the broader market is generally negative, with choppy price action at best. The heliocentric ingress of Mercury into Scorpio on Wednesday brings a similar dichotomy—it’s quite positive for the Dow, but the outlook for small cap stocks at that point is essentially flat, with a slightly negative bias.
By the end of the week, however, the market picture is much more uniform. Thursday’s Sun/Chiron opposition and Friday’s face-off between Mars and Neptune both promise drastically lower prices for the broad market as well as the market bellwethers. The New Moon weekend may ameliorate the pressure somewhat, but our expectation is for any blue-chip strength that reveals itself early in the week to have vanished by the time Friday rolls around.

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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.

If we choose to express genuine love, we can cut through the fearful illusions that limit us, letting the past be the past as we move toward new beginnings.

"Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be cumbered with your old nonsense." –Ralph Waldo Emerson

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GLOBAL EQUITIES MARKETS LAST WEEK

Singapore and Sidney were the two bright spots in the world’s stock markets last week, with both exchanges showing modest gains. Elsewhere the picture was decidedly negative, with smaller-cap issues and transportation stocks in the U.S. especially hard hit. In Tokyo, the Nikkei gapped downward on three consecutive trading days in a bad case of pre-election jitters.

Dow Jones Industrial Average – down 0.68%
Dow Jones Transportation Average – down 1.85%
Dow Jones Utilities Average – down 0.73%
S& P 500 – down 1.12%
NASDAQ Composite Index – down 3.01%
Russell 2000 – down 3.26%
London FTSE-100 – down 0.60%
Paris CAC-40 – down 0.40%
Frankfurt DAX – down 1.61%
Sydney All Ordinaries – up 0.78%
Tokyo Nikkei – down 2.54%
Hong Kong Hang Seng Index – down 0.15%
Singapore Straits Times Index – up 1.23%

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FINANCIAL CYCLES MODEL PORTFOLIO


POSITIONS CLOSED DURING THE PREVIOUS WEEK: ATRX, HELE, PETM, SPLS, CGNX, UFCS, HANS.

We closed seven Model Portfolio positions during the past week, with 4 winners and 3 losers producing a net profit of $523.00.

On July 6 we sold 300 shares of Atrix Laboratories Inc. (ATRX) at 33.23, taking a profit of $162.00 (a 1.65% gain in 8 trading days).

On July 6 we sold 200 shares of Helen of Troy Ltd. (HELE) at 35.85, taking a profit of $26.00 (a 0.36% gain in 6 trading days).

On July 7 we sold 300 shares of Petsmart (PETM) at 31.00, taking a loss of $255.00 (a 2.67% loss in 5 trading days).

On July 7 we sold 300 shares of Staples Inc. (SPLS) at 28.35, taking a loss of $300.00 (a 3.41% loss in 5 trading days).

On July 8 we sold 400 shares of Cognex Corporation (CGNX) at 35.90, taking a profit of $1,160.00 (an 8.79% profit in 17 trading days).

On July 8 we sold 200 shares of United Fire and Casualty (UFCS) at 56.85, taking a profit of $70.00 (a 0.62% gain in 12 trading days).

On July 9 we sold 400 shares of Hansen Natural Corporation (HANS) at 21.00, taking a loss of $340.00 (a 3.89% loss in 1 trading day).

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POSITIONS ADDED TO THE PORTFOLIO DURING THE PREVIOUS WEEK: DWSN, HANS, LSTR, LOJN.

We added three long positions and one short position to the Model Portfolio during the previous week.

We sold short 400 shares of Dawson Geophysical Company (DWSN) at 24.50 on 07/08/04, setting our initial buy stop at 25.00.

We bought 400 shares of Hansen Natural Corporation (HANS) at 21.85 on 07/08/04, setting our initial stop at 21.00.

We bought 200 shares of Landstar System Inc. (LSTR) at 50.75 on 07/08/04, setting our initial stop at 48.64.

We bought 1,000 shares of Lo-Jack Corporation (LOJN) at 9.03 on 07/08/04, setting our initial stop at 7.75.

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YEAR-IN-REVIEW MODEL PORTFOLIO ACTIVITY

So far in 2004 we have had a total of 108 completed trades, with 51 winners and 57 losers bringing us a total net profit of $14,560.50. 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 $134.82. The mean duration of our trades has been 9.4 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 22.53. Raise stop to 22.10.

Daktronics Inc. (DAKT) – bought 400 shares at 23.50 on 06/17/04; currently 24.81. Raise stop to 24.35.

Dawson Geophysical Company (DWSN) – sold short 400 shares at 24.50 on 07/08/04; currently 21.15. Lower buy stop to 23.70.

Knightsbridge Tankers (VLCCF) – bought 500 shares at 18.69 on 05/14/04; currently 32.66. Raise stop to 29.98.

Landstar System Inc. (LSTR) – bought 200 shares at 50.75 on 07/08/04; currently 50.94. Raise stop to 49.95.

Lo-Jack Corporation (LOJN) – bought 1,000 shares at 9.03 on 07/08/04; currently 9.00. Raise stop to 8.75.

SurModics Inc. (SRDX) – bought 400 shares at 24.50 on 06/30/04; currently 23.23. Raise stop to 22.90.

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STRONGEST MARKET SECTORS LAST WEEK

Silver; Sporting Activities; Copper; Gold; Industrial Metals & Minerals.

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WEAKEST MARKET SECTORS LAST WEEK

Internet Information Providers; Manufactured Housing; Major Airlines; Internet; Diagnostic Substances.

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KEY ASTROLOGICAL EVENTS DURING THE COMING WEEK

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

July 12
Sun sesquiquadrate Cupido in right ascension 01:50 EDT
True Lunar Node semisquare Hades 04:31 EDT
Heliocentric Mercury quincunx Heliocentric Admetos 08:11 EDT
Heliocentric Mercury square Heliocentric Vulcanus 11:07 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Zeus 13:19 EDT
Heliocentric Mercury trine Heliocentric Hades 13:57 EDT
Heliocentric Mercury square Heliocentric Chiron 14:21 EDT
Heliocentric Mercury conjunct Heliocentric Apollon 15:17 EDT
Void-of-Course Moon ends 15:45 EDT
Pluto contraparallel True Lunar Node in right ascension 17:50 EDT
Mercury semisquare Kronos in right ascension 18:08 EDT
Mercury conjunct 11/09/2003 Lunar Eclipse Antiscion 18:19 EDT
Chiron semisquare Cupido 19:24 EDT
Heliocentric Mercury semisextile Heliocentric Jupiter 19:29 EDT
Mercury semisextile Jupiter in right ascension 22:09 EDT
Heliocentric Mercury semisquare Heliocentric Cupido 22:45 EDT
Heliocentric Earth semisextile Heliocentric Pluto 23:58 EDT
Mercury parallel Venus 23:59 EDT

July 13
Mercury parallel Venus in right ascension 00:02 EDT
Heliocentric Mercury sextile Heliocentric Mars 02:25 EDT
Mercury opposition Neptune in right ascension 02:33 EDT
Sun sesquiquadrate Uranus 07:07 EDT
Mercury opposition Neptune 07:33 EDT
Mercury square 5/04/2004 Lunar Eclipse Point 08:54 EDT
Sun semisextile Hades in right ascension 09:03 EDT
Heliocentric Venus conjunct Heliocentric Neptune 13:27 EDT
Sun sesquiquadrate Uranus in right ascension 14:40 EDT
Mercury semisextile Jupiter 19:42 EDT

July 14
Sun opposition Chiron in right ascension 01:53 EDT
Heliocentric Earth trine Heliocentric Admetos 07:39 EDT
Void-of-Course Moon begins 08:33 EDT
Mercury square 11/09/2003 Lunar Eclipse Point 09:33 EDT
Heliocentric Mercury parallel Heliocentric Apollon 10:38 EDT
Mercury semisextile Saturn in right ascension 10:41 EDT
Jupiter quincunx Neptune in right ascension 11:26 EDT
Sun square Apollon 11:55 EDT
Mercury semisquare Kronos 13:52 EDT
Heliocentric Mercury enters Scorpio 15:45 EDT
Sun parallel Vulcanus 16:09 EDT
Heliocentric Earth contraparallel Heliocentric Vulcanus 16:17 EDT
Sun conjunct Vulcanus 18:02 EDT
Sun parallel Vulcanus in right ascension 18:02 EDT
Sun conjunct Vulcanus in right ascension 18:03 EDT
Heliocentric Earth opposition Heliocentric Vulcanus 18:10 EDT

July 15
Heliocentric Mercury trine Heliocentric Kronos 00:28 EDT
Mercury contraparallel Neptune 00:30 EDT
Mercury contraparallel Neptune in right ascension 00:32 EDT
Heliocentric Venus sesquiquadrate Heliocentric Kronos 00:32 EDT
Sun sextile Admetos 00:51 EDT
Mercury trine Pluto in right ascension 01:05 EDT
True Lunar Node quincunx Cupido 01:35 EDT
Heliocentric Earth quincunx Heliocentric Hades 04:13 EDT
Void-of-Course Moon ends 04:40 EDT
Heliocentric Mars contraparallel Heliocentric Chiron 06:43 EDT
Heliocentric Earth conjunct Heliocentric Chiron 06:51 EDT
Sun opposition Chiron 06:58 EDT
Heliocentric Earth square Heliocentric Apollon 08:48 EDT
Sun sesquiquadrate Cupido 09:50 EDT
Mercury semisextile Saturn 10:45 EDT
Heliocentric Mercury parallel Heliocentric Uranus 12:04 EDT
Heliocentric Mars contraparallel Heliocentric Pluto 12:53 EDT
Pluto contraparallel True Lunar Node 13:38 EDT
Mars conjunct 11/09/2003 Lunar Eclipse Antiscion 14:01 EDT
Mercury square Admetos in right ascension 14:38 EDT
Heliocentric Venus quincunx Heliocentric Saturn 14:48 EDT
Mars semisquare Kronos in right ascension 15:04 EDT
Mercury sextile Apollon in right ascension 17:57 EDT
Venus parallel Mars 18:15 EDT
Venus parallel Mars in right ascension 18:18 EDT
Sun semisextile Hades 18:34 EDT
Heliocentric Venus contraparallel Heliocentric Admetos 22:52 EDT

July 16
Heliocentric Mercury trine Heliocentric Uranus 00:39 EDT
Heliocentric Earth trine Heliocentric Jupiter 05:57 EDT
Mars opposition Neptune in right ascension 05:58 EDT
Mercury semisquare Zeus in right ascension 06:59 EDT
Heliocentric Earth semisquare Heliocentric Cupido 11:11 EDT
Venus sextile Mars 12:50 EDT
Heliocentric Mercury semisquare Heliocentric Pluto 14:12 EDT
Heliocentric Mercury conjunct Heliocentric Poseidon 14:25 EDT
Mars opposition Neptune 18:25 EDT
Venus trine Neptune 19:23 EDT
True Lunar Node in 24th harmonic to Admetos 21:41 EDT
Mars semisextile Jupiter in right ascension 22:00 EDT

July 17
Mars square 5/04/2004 Lunar Eclipse Point 00:54 EDT
Heliocentric Venus in 24th harmonic to Heliocentric Uranus 01:06 EDT
Mercury trine Pluto 02:30 EDT
Heliocentric Mercury semisextile Heliocentric Zeus 05:33 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Hades 06:15 EDT
New Moon 07:24 EDT
Void-of-Course Moon 07:24 – 16:56 EDT
Heliocentric Mercury in 24th harmonic to Heliocentric Apollon 07:39 EDT
Mercury sextile Hades in right ascension 14:41 EDT
Heliocentric Mercury semisquare Heliocentric Jupiter 15:02 EDT
Heliocentric Mercury parallel Heliocentric Poseidon 15:48 EDT
Heliocentric Mercury semisextile Heliocentric Cupido 15:54 EDT
Mercury quincunx Chiron in right ascension 22:07 EDT

July 18
Heliocentric Mercury contraparallel Heliocentric Mars 03:16 EDT
Heliocentric Venus sextile Heliocentric Pluto 03:53 EDT
Heliocentric Earth parallel Heliocentric Cupido 05:35 EDT
Heliocentric Mercury parallel Heliocentric Pluto 10:40 EDT
Heliocentric Mercury parallel Heliocentric Chiron 11:04 EDT
Chiron contraparallel True Lunar Node 11:45 EDT
True Lunar Node contraparallel Chiron in right ascension 13:41 EDT
Mercury semisquare Zeus 16:54 EDT
Mercury semisextile Vulcanus in right ascension 17:00 EDT
Chiron trine Admetos 20:31 EDT
Mercury contraparallel Pluto in right ascension 22:36 EDT
Heliocentric Venus square Heliocentric Admetos 22:37 EDT
Mercury contraparallel Pluto 22:38 EDT
Mercury sextile Apollon 23:49 EDT

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STOCKS TO WATCH: BUD, CRDN, MNTG, RESP, USNA.

Anheuser-Busch Companies, Inc. (BUD)
NYSE; Optionable
First Trade Date: 04/18/1980; 10:00 a.m.
Trading Strategy: Saturn is currently transiting the BUD First-Trade Ascendant, setting the stage for this stock to break out of its current congestion in a move upward. We like the looks of transiting Venus conjoining First-Trade Venus and the First-Trade Moon, as well as transiting Mars getting ready to pass over First-Trade Mars, the First-Trade True Lunar Node, and First-Trade Jupiter in succession. Our plan is to add a long position in BUD to the Model Portfolio this week, setting our initial stop at 52.25.


Ceradyne Inc. (CRDN)
NASDAQ; Optionable
First Trade Date: 07/18/1984; 10:00 a.m.
Trading Strategy: Jupiter is crossing the CRDN First-Trade Ascendant as transiting Venus is closing in on the First-Trade Midheaven. This positive situation won’t last forever, but while it does our plan is to put on a long position for short-term price appreciation. A Saturn price line (G,24,N,0) provides lots of information about long-term support and resistance for this stock; we’ve found it interesting to compare it to a Saturn line calibrated in harmony with the First-Trade Saturn position (G,21.975,N,0) to fine-tune the picture a bit. We’ll enter our long position this week, setting our initial stop at 36.75.


MTR Gaming Group (MNTG)
NASDAQ; Optionable
First Trade Date: 12/07/1992; 09:30 a.m.
Trading Strategy: Choppy trading is likely to be the order of the day for this stock during the next week or two, with a slight bias to the downside emerging at that point. Behind the scenes, a Vulcanus line (G,10.69,N,0) has been offering considerable resistance. This factor, combined with Saturn’s upcoming transit across the MNTG First-Trade Descendant, suggests to us that a short position is in order. We’ll sell short into anything that looks like a price rally this week, setting our initial buy stop at 11.30.


Respironics Inc. (RESP)
NASDAQ
First Trade Date: 05/12/1988; 09:30 a.m.
Trading Strategy: Planetary lines for Jupiter (G,45,N,0), Saturn (G,27.175,N,0), and Admetos (G,43,N,0) have proven to be fairly reliable indicators of the price range for trading in this stock, especially recently, when all three planetary energies joined forces and provided a clear barrier to price movement on the upside. With transiting Saturn crossing the RESP First-Trade Ascendant this week, we expect that barrier to hold, with RESP continuing its price pull-back for another week or 10 days. In our book that’s a setup for a new upward leg later on, so we plan to add a long position in RESP to the Model Portfolio toward the end of this week. We will set our initial stop at 53.80.


USANA Health Science (USNA)
NASDAQ; Optionable
First Trade Date: 07/25/1996; 09:30 a.m.
Trading Strategy: The First-Trade horoscope for USNA features a tight conjunction of Chiron and the True Lunar Node. When we calibrate planetary lines for these two planets in accordance with those First-Trade positions, Chiron (G,19.025,N,0) and the True Lunar Node (G,19.06,N,0) give us a clear picture of the trading range for this stock. USNA failed to penetrate a Lunar Node line at about 32.50 a couple of weeks ago and has been in a pull-back mode ever since. Right now, however, transiting Jupiter is getting ready to cross the USNA First-Trade Ascendant, which leads us to believe that support for this stock will hold on the increment of the Chiron line at 27.35. We’re thus ready to add a long position to the Model Portfolio this week, setting our initial stop at the next-lowest Chiron increment, at a price of 25.48.

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FINANCIAL CYCLES WEEKLY (ISSN 1055-8527) is published by Taylor-Bost Consulting and edited by Tim Bost at 2132 Beneva Road, Sarasota, FL 34232 USA. Phone: 941-921-2588. Fax: 941-927-5798. Web: http://www.TimBost.com. Entire contents copyright 2004 Timothy L. Bost. No portion of Financial Cycles Weekly may be reproduced without the publisher's written permission. Subscriptions to FINANCIAL CYCLES WEEKLY are $39.00 per month for weekly issues sent 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 WEEKLY 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 WEEKLY 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 WEEKLY 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 WEEKLY 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 @ 7/11/2004 01:07:47 AM