FinancialCyclesWeekly.com #0451 -- December 19-25, 02004 with Tim Bost

COMMENT: As we move into the holiday season, we're looking back on a year of real congestion in the equities markets. Since January 1, it hasn't been particularly profitable to have your money in blue chip stocks--the Dow Industrials are just up 1.9% so far this year. The broader markets have done a little better, with the S&P 500 up 7.4% and the NASDAQ up 6.6%, but those aren't really numbers to rave about, either. While our approach of short-term position trading based on financial astrology, technical analysis, and tight money management has not brought us quite the same return that we have seen in previous years, we are still decidedly pleased with the results we've been getting. While it's always easier to reap profits in more sharply trending markets, our approach generates returns that are consistent enough to leave us optimistic about the prospects for the year ahead.

FED MOVE BRINGS NO SURPRISES

Short-term interest rates now stand at 2.25%, thanks to the Federal Reserve's increase of 25 basis points last Tuesday. The Dollar backed off a bit on the day following the announcement, but recovered later in the week, with the Saturn support zone we have described in recent issues still holding strong for the Dollar Index.


WHITE HOUSE SOFTENS ECONOMIC FORECAST

Now that the presidential election is over, the Bush White House has dampened some of its enthusiastic forecasts about an economy that's "turning the corner." In a report issued late last week, N. Gregory Mankiw, the chairman of the White House Council of Economic Advisers, predicted that economic growth for the U.S. would be even slower in 2005 than it has been in 2004, in spite of an anticipated slight improvement in the employment picture and a drop in the rate of inflation.


YET ANOTHER TRADE RECORD

The huge U.S. trade deficit has gotten so much attention this year that it's hardly news any more, but that didn't stop it from setting another set of records this past week. According to figures released by the government, the deficit hit a new high of $55.5 billion in October, with a 0.6% increase in exports being overwhelmed by a 3.4% increase in imports. The goods deficit with China also hit a new record high, climbing to $16.8 billion; the deficit with OPEC countries is now at $7.2 billion, also a new record.


DEMOCRACY IN STRANGE FLAVORS

The much-touted election that was held recently in Afghanistan, which resulted in Hamid Karzai being sworn in as the new President with Dick Cheney and Donald Rumsfeld looking on, had an interesting similarity to the elections scheduled for Iraq in January. In both cases, certain political parties have been kept off the U.S.-supervised ballots.

When the voters went to the polls in Afghanistan, the Taliban and its sympathizers, along with all other parties and individuals opposed to the U.S. occupation, were banned from participation. Among them was Gulbadin Hekmatyar, the most important leader of Afghanistan's Pushtun majority, since he had been branded a "terrorist" in 2002 for speaking out against the U.S. invasion. In short, while the Afghanistani people got to vote, the American authorities made it clear who would not be elected. That's not to say that the elections weren't a popular event, or that the Afghanistanis would have actually voted in the Taliban, but the prohibition did make a victory much more likely for President Bush's hand-picked candidate.

In Iraq, the word is already out that the citizens will not be allowed to vote for candidates from the Baath Party, which includes some of Saddam Hussein's cronies. Again, it hardly seems likely that this group would be victorious in a general election, but its exclusion doesn't provide much of a convincing argument for the legitimacy of the voting process, and it may explain why the Iraqi insurgents don't seem particularly eager to get to the polls.

In both situations, of course, what is really taking place is a fairly standard wartime scenario. The conquerors get to define what democracy is for the conquered country, even if it tastes a little funny. But even so, these things are worth thinking about, especially since they have an impact on the economic front. It currently costs the United States about $1.6 a month to keep Hamid Karzai in power, and the ultimate price tag in Iraq is anybody's guess.

****


THE WEEK AHEAD

Earnings reports for the week will include Intermagnetics General Corporation (IMGC), American Healthways (AMHC), Jabil Circuit Inc. (JBL), Arrow International (ARRO), Bear Stearns Companies (BSC), Gtech Holdings (GTK), Progress Software (PRGS), Morgan Stanley (MWD), Christopher & Banks Corporation (CBK), Factset Research (FDS), Applied Signal Technology (APSG), General Mills (GIS), Paychex Inc. (PAYX), Solectron Corporation (SLR), FSI International (FSII), Intervoice-Brite, Inc. (INTV), Manugistics Group Inc. (MANU), Research In Motion (RIMM), Merix Corporation (MERX), ATI Technologies (ATYT), Cognos Inc. (COGN), A. G. Edwards Inc. (AGE), Conagra Foods (CAG), Micron Technology Inc. (MU), Global Payment Technology (GPTX), Palmsource Inc. (PRSC), RSCS Connection (RESN), Tibco Software (TIBX), Red Hat Inc. (RHAT), and American Greetings Corporation (AM).

The markets will be closed on Friday for the Christmas holiday. With the shortened trading week and many traders feeling that they're in much need of a break, we're looking for significantly lower volume this week. It will also be a fairly light week for economic news, but we will get a look at the November figures for Consumption, Personal Income, New Home Sales, Durable Goods Orders, and the Leading Indicators, as well as the December Sentiment Indicator from the University of Michigan and the revised numbers for Third Quarter GDP.

Mercury returns to direct motion this Monday, and in doing so it may weaken the impact of the year-end Santa Claus rally in stocks somewhat. The week also brings the Winter Solstice on Tuesday and heliocentric Mercury changing signs on Wednesday. The most important astrological resonance for the week is likely to be evident in heliocentric reckoning, with sixth harmonic factors getting some of the strongest play from the Earth, Mercury, Venus, Uranus, Pluto, Hades, Apollon and Kronos. We'll be tracking the planetary lines for these planets (H,60,N,0) throughout the week. Thursday, which will be the last active trading day of the week, promises to be particularly interesting. A void-of-course Moon will generate inconclusive action until shortly before noon in New York, and then a heliocentric Venus/Uranus trine kicks in to add a strong positive note to the trading just before the close. It could present some excellent opportunities for short-term profits.

Have a great week!

*****


SPIRITUAL FOCUS FOR THE WEEK

The greatest traders have all understood that emotional balance is the key to successful trading. Through Practical Spiritual Astrology we have an opportunity to restore inner harmony, enhance emotional balance, and make wiser choices in the markets.

Just when things seem to be the most challenging, we have sudden opportunities to imagine new creative potentials for ourselves. If we have the courage to clarify our dreams and to begin actively bringing them into manifestation, we can experience a true rebirth of the Divine Spirit in our hearts.

"That which the dream shows is the shadow of such wisdom as exists in man, even if during his waking state he may know nothing about it... We do not know it because we are fooling away our time with outward and perishing things, and are asleep in regard to that which is real within ourself." --Philipus Aureolus Paracelsus

*****


GLOBAL EQUITIES MARKETS LAST WEEK

With the exception of Paris, most of the markets we have been following managed to post some gains during the past week. Australia put in an especially strong showing.

Dow Jones Industrial Average -- up 1.01%
Dow Jones Transportation Average -- up 1.76%
Dow Jones Utilities Average -- up 2.94%
S&P 500 -- up 0.52%
NASDAQ Composite Index -- up 0.34%
Russell 2000 -- up 1.56%
London FTSE-100 -- up 0.06%
Paris CAC-40 -- down 0.62%
Frankfurt DAX -- up 0.18%
Sydney All Ordinaries -- up 2.15%
Tokyo Nikkei -- up 2.99%
Hong Kong Hang Seng Index -- up 0.65%
Singapore Straits Times Index -- up 2.07%

*****


FINANCIAL CYCLES MODEL PORTFOLIO


POSITIONS CLOSED DURING THE PREVIOUS WEEK: AD, UPS.

We closed two Model Portfolio positions during the past week, with 2 losers producing a net loss of $135.00.

On December 17 we sold 300 shares of Advo Inc. (AD) at 35.00, taking a loss of $75.00 (a 0.71% loss in 7 trading days).

On December 17 we sold 100 shares of United Parcel Service Class B (UPS) at 85.15, taking a loss of $60.00 (a 0.70% loss in 9 trading days).

*****


POSITIONS ADDED TO THE PORTFOLIO DURING THE PREVIOUS WEEK: ACXM, DHI, HLEX, CNTY.

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

We bought 400 shares of Acxiom Corporation (ACXM) at 26.60 on 12/13/04, setting our initial stop at 25.20.

We bought 200 shares of D. R. Horton Inc. (DHI) at 39.00 on 12/13/04, setting our initial stop at 35.10.

We bought 500 shares of Healthextras, Inc. (HLEX) at 15.75 on 12/13/04, setting our initial stop at 15.00.

We bought 1,000 shares of Century Casinos, Inc. (CNTY) at 8.65 on 12/17/04, setting our initial stop at 7.75.

*****


YEAR-IN-REVIEW MODEL PORTFOLIO ACTIVITY

So far in 2004 we have had a total of 202 completed trades, with 97 winners and 105 losers bringing us a total net profit of $43,253.50. The largest profit for a single trade has been $5,645.00; the largest single-trade loss has been $750.00; the average profit per trade has been $214.13. The mean duration of our trades has been 10.3 trading days.

During 2003 we had a total of 176 completed trades, with 99 winners and 77 losers bringing us a total net profit of $51,717.00. The largest profit for a single trade was $9,240.00; the largest single-trade loss was $1,170.00; the average profit per trade was $293.85. The mean duration of our trades was 10.1 trading days.

During 2002 we had a total of 195 completed trades, with 119 winners, 74 losers, and 2 break-even trades bringing us a total net profit of $50,956.00. The largest profit for a single trade was $5,100.00; the largest single-trade loss was $1,055.00; the average profit per trade was $261.31. The mean duration of our trades was 12.7 trading days.

*****


CURRENT POSITIONS IN THE MODEL PORTFOLIO

Acxiom Corporation (ACXM) -- bought 400 shares at 26.60 on 12/13/04; currently 26.50. Raise stop to 26.35.

Ameristar Casinos, Inc. (ASCA) -- bought 300 shares at 41.25 on 12/08/04; currently 43.31. Raise stop to 42.00.

Apple Computer, Inc. (AAPL) -- bought 200 shares at 53.50 on 11/02/04; currently 64.99. Raise stop to 64.50.

Burlington Northern and Santa Fe Railway Company (BNI) -- bought 300 shares at 38.61 on 10/05/04; currently 46.10. Raise stop to 45.40.

Century Casinos, Inc. (CNTY) -- bought 1,000 shares at 8.65 on 12/17/04; currently 8.85. Raise stop to 8.60.

Computer Associates International, Inc. (CA) -- bought 300 shares at 30.75 on 12/08/04; currently 30.17. Raise stop to 30.15.

D. R. Horton Inc. (DHI) -- bought 200 shares at 39.00 on 12/13/04; currently 39.69. Raise stop to 38.90.

Frozen Food Express Industries, Inc. (FFEX) -- bought 800 shares at 12.00 on 11/30/04; currently 12.51. Raise stop to 11.75.

Healthextras, Inc. (HLEX) -- bought 500 shares at 15.75 on 12/13/04; currently 15.80. Raise stop to 15.55.

Humana Inc. (HUM) -- bought 500 shares at 23.00 on 11/22/04; currently 29.75. Raise stop to 28.75.

Sunrise Senior Living Inc. (SRZ) -- bought 300 shares at 42.50 on 11/22/04; currently 44.90. Raise stop to 44.00.

Urban Outfitters Inc. (URBN) -- bought 200 shares at 42.75 on 11/30/04; currently 43.28. Raise stop to 42.80.

*****


STRONGEST MARKET SECTORS LAST WEEK

Residential Construction; Music & Video Stores; Gaming Activities; Oil & Gas Drilling & Exploration; Home Health Care.

*****

WEAKEST MARKET SECTORS LAST WEEK

Networking & Communications Devices; Printed Circuit Boards; Security Software & Services; Semiconductor Equipment; Specialized Semiconductors.

*****


KEY ASTROLOGICAL EVENTS DURING THE COMING WEEK

December 19
Heliocentric Mars conjunct Heliocentric Poseidon 00:37 EST
Heliocentric Earth semisquare Heliocentric Mercury 02:51 EST
Moon quintile Chiron 04:40 EST
Moon quincunx Poseidon 05:24 EST
Heliocentric Mercury parallel Heliocentric Kronos 05:48 EST
Moon semisquare Admetos 05:56 EST
Heliocentric Earth parallel Heliocentric Mercury 06:09 EST
Sun quintile Jupiter 06:14 EST
Venus quincunx Kronos in right ascension 06:25 EST
Venus square Uranus 06:53 EST
Sun quincunx Saturn in right ascension 08:38 EST
Mars trine Saturn 09:10 EST
Mars semisquare Zeus in right ascension 09:48 EST
Heliocentric Jupiter quincunx Heliocentric Uranus 09:56 EST
Moon opposition Zeus 10:00 EST
Heliocentric Mercury opposition Heliocentric Neptune 11:45 EST
Moon trine Cupido 11:57 EST
Moon trine Mercury 12:04 EST
Sun biquintile Admetos 12:25 EST
Moon sesquiquadrate Mars 12:56 EST
Moon quintile Hades 14:00 EST
Moon contraparallel Zeus 16:44 EST
Moon sextile Neptune 17:36 EST
Heliocentric Mercury semisquare Heliocentric Kronos 19:12 EST
Sun trine True Lunar Node in right ascension 19:25 EST
Sun semisquare Neptune 19:44 EST
Sun contraparallel Kronos in right ascension 19:54 EST
Heliocentric Venus enters Scorpio 20:13 EST
Heliocentric Venus parallel Heliocentric Apollon 21:09 EST
Moon in 24th harmonic to True Lunar Node 21:23 EST
Moon opposition Jupiter 22:19 EST
Moon contraparallel Jupiter 22:27 EST
Heliocentric Mercury parallel Heliocentric Hades 23:13 EST

December 20
Mercury direct station 01:30 EST
Moon semisquare Uranus 03:01 EST
Heliocentric Mercury quintile Heliocentric Venus 04:37 EST
Moon quintile Kronos 04:55 EST
Moon sesquiquadrate Venus 05:08 EST
Moon biquintile Mars 06:42 EST
Moon semisextile Admetos 09:56 EST
Moon trine Pluto 10:12 EST
Heliocentric Mercury parallel Heliocentric Vulcanus 10:25 EST
Heliocentric Mercury parallel Heliocentric Saturn 10:55 EST
Moon square Vulcanus 12:07 EST
Moon sextile Hades 12:29 EST
Heliocentric Mars semisquare Heliocentric Pluto 13:20 EST
Moon crossing Universal Clock 24 Line 13:25 EST
Moon opposition Apollon 14:05 EST
Moon square Chiron 14:33 EST
Mercury parallel Mars in right ascension 15:44 EST
Mercury parallel Mars 15:46 EST
Moon sesquiquadrate Cupido 16:10 EST
Moon sesquiquadrate Mercury 16:14 EST
Heliocentric Mercury semisquare Heliocentric Jupiter 16:15 EST
Moon quintile Neptune 16:16 EST
Moon contraparallel Apollon 16:18 EST
Moon square Saturn 16:45 EST
Heliocentric Mercury contraparallel Heliocentric Cupido 16:46 EST
Heliocentric Venus trine Heliocentric Kronos 18:07 EST
Moon quincunx Mars 18:44 EST
Heliocentric Mercury trine Heliocentric Pluto 20:43 EST
Moon contraparallel Uranus 22:40 EST
Heliocentric Mercury square Heliocentric Admetos 23:07 EST

December 21
Moon biquintile Venus 00:08 EST
Moon trine Sun 00:16 EST
Void-of-Course Moon 00:16-00:53 EST
Moon enters Taurus 00:53 EST
Heliocentric Mercury semisextile Heliocentric Saturn 00:53 EST
Heliocentric Mercury semisextile Heliocentric Vulcanus 00:58 EST
True Lunar Node retrograde station 01:21 EST
Moon conjunct True Lunar Node 01:50 EST
Moon parallel True Lunar Node 01:54 EST
Heliocentric Mercury semisquare Heliocentric Zeus 02:56 EST
Heliocentric Earth sesquiquadrate Heliocentric Neptune 03:16 EST
Heliocentric Mercury sextile Heliocentric Hades 03:45 EST
Moon sextile Kronos 03:45 EST
Heliocentric Mercury sextile Heliocentric Apollon 03:49 EST
Heliocentric Venus parallel Heliocentric Uranus 05:11 EST
Jupiter biquintile Admetos 06:08 EST
Heliocentric Mercury quintile Heliocentric Poseidon 07:11 EST
Moon sextile Uranus 07:40 EST
Winter Solstice - Sun enters Capricorn 07:41 EST
Moon biquintile Cupido 09:28 EST
Heliocentric Mars parallel Heliocentric Poseidon 09:38 EST
Moon biquintile Mercury 09:43 EST
Venus semisextile Poseidon in right ascension 11:45 EST
Moon contraparallel Poseidon 11:47 EST
Heliocentric Mercury quintile Heliocentric Mars 12:48 EST
Moon quincunx Venus 12:59 EST
Heliocentric Saturn conjunct Heliocentric Vulcanus 13:10 EST
Moon opposition Poseidon 14:10 EST
Moon in 24th harmonic to Admetos 14:39 EST
Mars trine Vulcanus in right ascension 14:43 EST
Moon sesquiquadrate Pluto 15:03 EST
Moon contraparallel Chiron 16:19 EST
Venus biquintile True Lunar Node 17:02 EST
Heliocentric Mercury quincunx Heliocentric Chiron 17:05 EST
Moon semisquare Hades 17:15 EST
Moon contraparallel Pluto 18:04 EST
Mercury sesquiquadrate Saturn 18:17 EST
Moon quincunx Zeus 18:58 EST
Sun trine True Lunar Node 19:20 EST
Moon quincunx Cupido 21:07 EST
Moon quincunx Mercury 21:36 EST
Moon quintile Vulcanus 22:44 EST

December 22
Mars sextile Chiron in right ascension 00:44 EST
Venus semisextile Poseidon 00:45 EST
Moon contraparallel Neptune 02:23 EST
Heliocentric Mercury parallel Heliocentric Admetos 02:50 EST
Moon square Neptune 03:06 EST
Moon quintile Saturn 03:19 EST
Sun semisquare Neptune in right ascension 06:12 EST
Moon biquintile Zeus 06:41 EST
Moon in 24th harmonic to True Lunar Node 06:53 EST
Moon quintile Uranus 07:03 EST
Moon sesquiquadrate Sun 07:58 EST
Moon quincunx Jupiter 08:27 EST
Moon biquintile Pluto 08:39 EST
Moon semisquare Kronos 08:51 EST
Venus square Uranus in right ascension 09:54 EST
Venus in 24th harmonic to Pluto 09:59 EST
Heliocentric Mercury enters Virgo 09:59 EST
Moon parallel Admetos 10:03 EST
Moon contraparallel Mercury 15:40 EST
Moon contraparallel Mars 16:27 EST
Heliocentric Earth sextile Heliocentric Mercury 16:51 EST
Heliocentric Mercury sextile Heliocentric Kronos 17:10 EST
Heliocentric Earth conjunct Heliocentric Kronos 18:21 EST
Sun opposition Kronos 18:29 EST
Sun opposition Kronos in right ascension 18:37 EST
Sun contraparallel Kronos in right ascension 18:46 EST
Moon conjunct Admetos 19:58 EST
Moon biquintile Jupiter 20:22 EST
Moon quincunx Pluto 20:29 EST
Heliocentric Mercury biquintile Heliocentric Chiron 22:09 EST
Moon sextile Vulcanus 22:15 EST
Moon semisextile Hades 22:36 EST
Moon contraparallel Venus 22:50 EST

December 23
Japanese Markets closed for Emperor's birthday celebration
Moon quincunx Apollon 00:23 EST
Moon sesquiquadrate Zeus 00:24 EST
Moon trine Chiron 01:14 EST
Moon parallel Saturn 01:21 EST
Moon contraparallel Cupido 02:05 EST
Moon sextile Saturn 02:47 EST
Moon biquintile Sun 03:18 EST
Venus sesquiquadrate Vulcanus 03:27 EST
Heliocentric Mercury contraparallel Heliocentric Neptune 03:34 EST
Moon parallel Vulcanus 04:03 EST
Heliocentric Mars semisextile Heliocentric Zeus 08:06 EST
Moon opposition Mars 08:41 EST
Void-of-Course Moon 08:41-11:32 EST
Moon parallel Hades 09:17 EST
Mercury sesquiquadrate Vulcanus in right ascension 09:46 EST
Moon enters Gemini 11:32 EST
Moon biquintile Apollon 12:16 EST
Moon semisextile True Lunar Node 12:19 EST
Heliocentric Mercury quintile Heliocentric Hades 13:40 EST
Moon sesquiquadrate Jupiter 14:22 EST
Moon semisextile Kronos 14:27 EST
Heliocentric Venus trine Heliocentric Uranus 15:04 EST
Heliocentric Mercury opposition Heliocentric Uranus 16:01 EST
Moon quincunx Sun 16:18 EST
Heliocentric Mercury sextile Heliocentric Venus 16:30 EST
Heliocentric Mars sesquiquadrate Heliocentric Hades 17:00 EST
Moon contraparallel Sun 17:22 EST
Heliocentric Mercury semisextile Heliocentric Jupiter 17:26 EST
Heliocentric Mercury sextile Heliocentric Poseidon 17:26 EST
Heliocentric Jupiter semisextile Heliocentric Poseidon 17:29 EST
Moon parallel Kronos 17:34 EST
Heliocentric Mars in 24th harmonic to Heliocentric Apollon 17:37 EST
Heliocentric Mars parallel Heliocentric Chiron 17:58 EST
Moon square Uranus 18:43 EST
Venus semisquare Apollon in right ascension 19:03 EST
Heliocentric Venus conjunct Heliocentric Poseidon 19:17 EST
Heliocentric Venus semisextile Heliocentric Jupiter 19:22 EST
Saturn sesquiquadrate Cupido 20:31 EST
Heliocentric Mercury contraparallel Heliocentric Pluto 22:52 EST
Venus opposition 05/21/03 Solar Eclipse Point 23:33 EST

December 24
Christmas Eve -- markets closed in U.S., U.K., Germany & Hong Kong
Venus semisquare Apollon 00:22 EST
Venus sextile Zeus 00:33 EST
Moon quincunx Poseidon 01:18 EST
Moon in 24th harmonic to Admetos 01:43 EST
Heliocentric Mercury semisquare Heliocentric Vulcanus 01:53 EST
Heliocentric Mercury semisquare Heliocentric Saturn 02:21 EST
Moon semisquare Vulcanus 04:01 EST
Heliocentric Mercury semisextile Heliocentric Zeus 04:03 EST
Moon in 24th harmonic to Hades 04:21 EST
Heliocentric Mercury semisquare Heliocentric Apollon 05:02 EST
Moon sesquiquadrate Apollon 06:13 EST
Moon trine Zeus 06:14 EST
Heliocentric Mercury sextile Heliocentric Mars 06:20 EST
Heliocentric Venus semisquare Heliocentric Pluto 06:35 EST
Moon opposition Venus 06:53 EST
Moon sesquiquadrate Chiron 07:16 EST
Heliocentric Mercury contraparallel Heliocentric Mars 08:15 EST
Moon semisquare Saturn 08:27 EST
Mercury semisquare Chiron in right ascension 08:28 EST
Moon opposition Cupido 08:32 EST
Heliocentric Mercury contraparallel Heliocentric Chiron 09:31 EST
Venus semisquare Chiron 10:44 EST
Moon opposition Mercury 11:10 EST
Heliocentric Mercury square Heliocentric Cupido 12:05 EST
Moon biquintile Poseidon 13:18 EST
Venus sextile Zeus in right ascension 14:16 EST
Heliocentric Mercury contraparallel Heliocentric Poseidon 14:23 EST
Moon trine Neptune 14:42 EST
Moon semisquare True Lunar Node 17:57 EST
Mars trine Saturn in right ascension 19:54 EST
Heliocentric Mercury sesquiquadrate Heliocentric Chiron 19:59 EST
Moon in 24th harmonic to Kronos 20:22 EST
Moon trine Jupiter 20:36 EST
Venus sesquiquadrate Saturn 21:05 EST
Sun sextile Uranus 21:50 EST
Venus contraparallel Saturn in right ascension 22:14 EST
Venus contraparallel Saturn 22:17 EST
Venus conjunct Cupido in right ascension 22:54 EST
Venus conjunct Cupido 23:04 EST

December 25
Moon biquintile Chiron 01:26 EST
Heliocentric Venus semisextile Heliocentric Zeus 02:29 EST
Heliocentric Venus sesquiquadrate Heliocentric Hades 05:11 EST
Heliocentric Venus in 24th harmonic to Heliocentric Apollon 05:20 EST
Heliocentric Mercury contraparallel Heliocentric Venus 05:37 EST
Heliocentric Mercury quintile Heliocentric Kronos 06:17 EST
Mars quincunx True Lunar Node in right ascension 06:36 EST
Moon sesquiquadrate Poseidon 07:22 EST
Moon semisextile Admetos 07:44 EST
Venus parallel Cupido in right ascension 08:10 EST
Moon opposition Pluto 08:30 EST
Void-of-Course Moon 08:30-23:37 EST
Venus parallel Cupido 09:40 EST
Moon semisextile Vulcanus 10:03 EST
Moon conjunct Hades 10:23 EST
Sun sextile Poseidon in right ascension 10:54 EST
Mars enters Sagittarius 11:03 EST
Moon trine Apollon 12:19 EST
Sun sesquiquadrate Admetos in right ascension 13:16 EST
Heliocentric Mercury quincunx Heliocentric Neptune 13:30 EST
Moon quincunx Chiron 13:34 EST
Moon semisextile Saturn 14:22 EST
Mars quincunx True Lunar Node 14:31 EST
Venus sesquiquadrate Vulcanus in right ascension 17:06 EST
Mars square 04/19/04 Solar Eclipse Antiscion 17:28 EST
Heliocentric Venus conjunct Heliocentric Mars 20:52 EST
Moon sesquiquadrate Neptune 20:55 EST
Moon enters Cancer 23:37 EST
Moon sextile True Lunar Node 23:40 EST
Heliocentric Earth quintile Heliocentric Mercury 23:59 EST

December 26
Moon quincunx Mars 00:23 EST
Heliocentric Venus semisextile Heliocentric Cupido 02:10 EST
Moon conjunct Kronos 02:30 EST
True Lunar Node enters Aries 02:41 EST
Venus semisquare Chiron in right ascension 05:51 EST
Moon trine Uranus 07:05 EST
Full Moon 10:06 EST
Heliocentric Mercury contraparallel Heliocentric Uranus 11:10 EST
Moon biquintile Mars 13:14 EST
Moon trine Poseidon 13:37 EST
Moon semisquare Admetos 13:57 EST
Heliocentric Mars semisextile Heliocentric Cupido 14:23 EST
Moon biquintile Neptune 15:07 EST
Mercury sesquiquadrate Saturn in right ascension 15:14 EST
Sun sextile Uranus in right ascension 15:19 EST
Moon in 24th harmonic to Vulcanus 16:16 EST
Moon in 24th harmonic to Hades 16:34 EST
Moon square Zeus 18:35 EST
Moon in 24th harmonic to Saturn 20:26 EST
Heliocentric Mercury contraparallel Heliocentric Apollon 20:59 EST
Moon quincunx Cupido 21:02 EST
Heliocentric Mercury biquintile Heliocentric Neptune 22:31 EST
Venus contraparallel Vulcanus in right ascension 22:41 EST
True Lunar Node conjunct 04/19/04 Solar Eclipse Point 23:12 EST
Moon quintile True Lunar Node 23:28 EST

*****


STOCKS TO WATCH: CATY, MSB, UDI, UFPI.

Cathay General Bancorp (CATY)
NASDAQ
First Trade Date: 12/14/1990; 09:30 a.m.
Trading Strategy: Cathay currently has transiting Saturn passing over its First-Trade Descendant and conjoining First-Trade Chiron, along with transiting Chiron passing over its First-Trade Ascendant and conjoining First-Trade Saturn. On top of that, transiting Jupiter is conjoining First-Trade Apollon and transiting Pluto is conjoining the CATY First-Trade Sun. That's a lot of positive action, so our plan is to add a long position early this week, setting our initial stop at 38.25.


Mesabi Trust CBI (MSB)
NYSE
First Trade Date: 07/28/1961; 10:00 a.m.
Trading Strategy: This stock set a new high in November and then pulled back sharply as it moved into December. That action isn't surprising, since transiting Saturn is opposing the MSB First-Trade Saturn and transiting Hades is conjoining the First-Trade Midheaven and First-Trade Venus. What we're looking at is the astrological picture coming up in the next few weeks, however, with transiting Jupiter simultaneously forming a square to First-Trade Mercury and a semisquare to First-Trade Zeus. That could be enough to provide a nice short-term move, so we plan to add a long position in MSB this week, setting our initial stop at 11.75.


United Defense Industries (UDI)
NYSE; optionable
First Trade Date: 12/14/2001; 09:30 a.m.
Trading Strategy: UDI has zoomed up roughly 150% since the start of the Iraq War, and it has only recently showed some prospects of a slight pullback as Saturn has crossed over its First-Trade Descendant. Transiting Poseidon is exactly square the UDI First-Trade Neptune right now, enhancing the stock's attractiveness. What has really caught our attention, however, is the action surrounding First-Trade Mars (a key planet for a stock in this industry). Transiting Uranus will soon be conjoining First-Trade Mars, and then transiting Jupiter will get into the act as well, forming a sesquiquadrate to the red planet. All that looks like a good opportunity for yet another surge in the price of UDI stock; we'll add a long position to the Model Portfolio this week and set our initial stop at 46.00.


Universal Forest Products (UFPI)
NASDAQ
First Trade Date: 11/10/1993; 09:30 a.m.
Trading Strategy: With transiting Jupiter crossing the UFPI First-Trade Midheaven and Mars activating the First-Trade Pluto/Cupido conjunction, it's not too much of a stretch to anticipate another price run-up for this stock. The technical picture encourages a bit of caution, however, since UFPI could be setting up to form a double top. We're going to start a close watch on this stock this week; if we get a daily close at 43.50 or higher, we will add a long position to the Model Portfolio with an initial stop set at 39.50.

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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 @ 12/19/2004 01:38:39 AM