1. JUNE MARKETS                       
  2. UP STARS/DOWN STARS
  3. GOLDEN OPPORTUNITIES                        
  4. QUOTES
  5. ON THE WEB
  6. LETTERS

 

RED MARKET ALERT 5/22-5/26 = Stocks close higher but Dow logs longest weekly losing streak since 2011

 

1.    Next week will be watching if XI imposes June 1 tariffs (Down) or postpones until June meeting with Trump (Up)

2.    YOU BET YOUR LIFE (SAVINGS)  EPISODE THREE: HOW LOW IS LOW?

OUR RECOMMENDATION HAS BEEN TO RAISE CASH LEVELS, SELL INTO STRENGTH & LOCK IN PROFITS!

Specifically, we recommended selling at 2954 May 1 [Tops 2954.13] and, if covered, reselling 2945 SPX Friday May 3.

  • P1 2869 ACHIEVED
  • P2 2812 ACHIEVED
  • P3 2750?  Perhaps we will see this upcoming test next week??

 

WHY MAY? In addition to astro indicators, five more potential EARTHLY reasons beyond the FOMC May meeting & subpar UBER IPO:

  • Future disappointing corporate earnings & forecasts (within a bifurcated stock market)
  • US/China Trade Negotiations may not come soon, and that would mean more market volatility
  • A classic “Sell in May and Go Away” (unlike last year)
  • Assorted geopolitical swan events e.g. China, [Iran, UK, Turkey, N Korea, etc.]
  • THE BIGGEST REASON IS THAT GIVEN MARKETS WERE AT RECORD LEVELS.

WE HAVE YET TO SEE ANY STRONG EARTHLY (OR HEAVENLY) REASON FOR MARKETS TO MOVE MUCH HIGHER AT THIS POINT IN TIME!

 

Proper Valuations:

DJIA > 25000

SP > 2750

US$ ~ 98

UBER < 42

TSLA < 200

OIL 54-60

 

IMHO “Improper” Valuations

US 10 Year Bond  <2.50

TIPS  > 113

COPPER < 3.20 

BITCOIN > 6000

GOLD < 1370

SILVER < 18

 

TRADING NOTES: UPCOMING TRADER’S DIAPER DAYS

June 1    XI US Tariff Deadline

June 14 Trump Birthday

June 16 Astro: Jupiter Square Neptune

June 18/19 FOMC Meeting

June 21 Quadruple Witching Day & Summer Solstice

June 28/29 G20 Osaka Summit

JULY 2 ASTRO: TOTAL SOLAR ECLIPSE

 

FIRST EPISODE OF YOU BETCHA YOUR LIFE (SAVINGS):

Sell SP 2954,  Sell 2945 and Sell? KACHING: Both Covered 2840!

SECOND EPISODE OF YOU BETCHA YOUR LIFE (SAVINGS):

Sell SP 2888, Sell 2880 and Sell?  KACHING: 2812 STOP 2850 Buy Gold 1286, 1280

 

H1 2019 TRADING HEDGES: 

Sell Oil 62.62  Buy Gold 1297 Cover Oil 60.62 

Sell Oil 64.50 Buy Copper 2.92  Cover Oil 61.81

Sell Oil 64.88  Buy Gold 1279  Cover Oil 62.88

 

64K QUESTION:

Will the US/China Trade deal happen this May? In June? This summer?

We currently plan to ADJUST major shorts by/before June 5-14

 

HYDE PARK SOAPBOX: Here’s the new China calculation for U.S. stock market investors

 

MARKERS        DJIA                        SPX                        NASDAQ                SILVER                  GOLD                   COPPER                BONDS                    OIL                        BITCOIN

2018CLOSE

23327

2506

6635

15.64

1281

2.63

2.65

45.41

3768

5/24/2019

2611

2831

7312

14.54

1284

2.70

2.32

59.02

8106

PIVOTS

25555

2825

7400

14.50

1280

2.67

2.35

60

8000

SUPPORT

25000?

2800?

7200

14.25

1260

2.66

2.35

58

6000

 

KEY DATES:      MAY.28/29 JUNE 1, 5, 7, 14

DJIA:                    S1 25500 S2 25000 S3 24000 S4 23327

SPX:                     2840 PIVOT S1 2825 S2 2800 S3 2750  R1 2850 R2 2880 R3 2900

NASDAQ:           7400 PIVOT
GOLD:                 S1 1280  S2 1260  S3 1250 R1 1300  R2 1310 R3 1325

SILVER:              ?

OIL:                     60 PIVOT 58 SUPPORT?  66  RESISTANCE

COPPER:            STEADY ACCUMULATE:  2020 à3.50+

US 10 year         WATCH

BITCOIN:             8000 PIVOT 

 

2018 CLOSE:          DJIA 23327 SPX  2506 & NASDAQ 6635

2017 CLOSE:          DJIA 24719 SPX  2673 & NASDAQ 6903

2016 CLOSE:          DJIA 19762 SPX  2238 & NASDAQ 5383

AFUND Fair Value: GOLD $1370

THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: HEDGE AND PROTECT AGAINST DOWNSIDE RISK.

 

What-happens-when-you-buy-assets-journalists-warn-are-in-a-bubble

Stock selection is once again important. Like many others will be looking buying stocks sporting strong cash flows, sound balance sheets and growing dividends.

Actively managed portfolios are deservedly outperforming index funds in the current bifurcated markets.

 

3. We are forecasting June gold to be above $1300 and gold bugs to be happier this coming August!

We continue to recommend Maximum Allocation or fresh precious and base metal investments for the  intermediate and long term, given that the precious metal sector and copper are obviously very undervalued!

With seasonal weakness waning and unfavorable astro gone in June, we advise patient precious metal investors to pay attention to stock selection and be prepared to add this JUNE/SUMMER 2019.

  • Gold remains cheap geopolitical crisis insurance.
  • For investors who cannot or will not buy the $US currency as well as investors who wish to safely and cheaply hedge their US$ exposure, ONLY GOLD IS AS GOOD AS GOLD!

Gold FV $1370 = Commodity FV: 1332 + Currency FV: 1380 + Inflation Metal FV:1368 + Crisis FV: 1400.

Gold/Silver ratio à 78  Silver FV $18.

INVESTORS: We plan to stay LONG into H2 2019 (recommending a precious metal sector hold rating and only occasional hedging, selling or profit taking).

We remain disinclined to short or sell until gold is overvalued e.g. $1400-1450. For silver our first selling numbers remain $20+.

 

4. “It is not difficult to envision a scenario where this Twitter tantrum turns into a fully-fledged bear market…. Valuations will need to be dropped. Skeletons may come out of the closet of many a once-highly valued tech unicorn.”

incent Deluard, macro strategist, INTL FCStone

HW: You betcha!

 

“Investors are still coming to grips with the idea that we’re going to be living with some kind of tariffs, and they definitely aren’t pricing in 25% tariffs on all Chinese goods. So it’s one step forward, two steps back because the market is still trying to figure out the impact of all this.”

Carlos Dominguez, chief investment officer, Element Pointe Advisors

HW: I love to dance Tango!

 

“Continued weak global economic data and the lack of a specific date for the resumption of U.S.-China trade talks are clouding earnings visibility and weighing on risk appetite. Markets are pricing in the harsh reality that trade tension is more likely to linger than quickly be resolved, as had been the consensus expectation anchoring sentiment until late April.”

Alec Young, managing director, FTSE Russell global markets research

HW: What me worry?

 

5. ‘Godfather’ of chart analysis says Wall Street shouldn’t bet on stock-market records anytime soon

Tesla’s demise could bring down the whole ‘house of cards,’ warns strategist

 

6. READER: You’re giving excellent predictions. Other than weekly letter do you have any other services you provide like daily letter something like that?

HW: Yes, it is mostly commodity focused but some stocks trades.  Currently the price is $10K annually but we plan to raise the price this Summer.

 

READER: I have SLV call options due in January 2021. The strike price is 15. SLV is 13.53. 

I am still holding them at a loss of 41%. Not very smart to not have sold them, but I do expect that they will not be down soon or certainly may be positive and in the money at some point. Wishful thinking?? Or! Not??

HW: Given of our views of gold in June, August and the Fall I would HOLD!

 

READER: How low do we go? I think we go lower.

HW:  While the bottom could be in and SPX 2800 a short term floor, it is a 50-50% we can see 2750 (or lower) ahead.

The Astrologers Fund (AFUND) is not a registered broker dealer, CTA or a registered investment advisor. Past performance does not ensure future results, and there is no assurance that any of the Astrologers Fund's recommendations achieve their investment objectives. The Astrologers Fund Inc. makes no claims concerning the validity of the information provided herein, and will not be held liable for any use thereof. If you are dissatisfied with the information found on this website, your sole and exclusive remedy is to discontinue use of the information. No information or opinion expressed here is a solicitation to buy or sell securities, bonds, futures or options. Opinions expressed are not recommendations for any particular investor to purchase or sell any particular security or financial instrument, or that any security or financial instrument is suitable for any particular investor. Each investor should determine whether a particular security or financial instrument is suitable based on the investor's individual investment objectives, other security holdings, financial situation and needs, and tax status. Past performance is not indicative of future results. Contact The Astrologers Fund, Inc. 310 Lexington Avenue Suite #3G, New York, N.Y. 10016 Email hw@afund.com 212 949 7275 Twitter@tafund

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