ASTRO ECONOMICS® STOCK MARKET NEWSLETTER
A Resource for Choosing Stocks That Will Outperform the Market

Volume 13 - Issue 1 Published by Astro Economics, Inc. January 1, 2008

“IT’S THE ECONOMY, STUPID.”
Home sales will bottom in August 2009 and the top will be June 2020, according to the 11-year Nodal cycle. Looking back to previous bottoms in the Nodal cycle such as February 1935, October 1953, May 1972 and January 1991 we were either in a recession or as in 1935, a depression. So most likely, between now and August 2009, the economy and the housing market will get worse. But what about investing in the stock market? If you choose the top stocks in favored sectors, there is money to be made in stocks. The markets usually thrive on low interest rates and low rates should continue.

GET IN AT THE START ON THE NEXT MOVE UP.
We have an opportunity to get in on the next price increase of the stocks that will do well in 2008. Since we know stocks that are in leading sectors do well, we want to identify which sectors will outperform in a new cycle. A new cycle began in December 2007 as Jupiter moved into the sign of Capricorn (12/19/07-1/6/09). And just as the 2007 transit of Jupiter in Sagittarius gave rise to the Gaming/Leisure sector, sports, import/export, transportation and the Higher Education sector, this new cycle will relate to Capricorn-connected areas. Some of them are: banking, investing, home repair, restoration construction, heavy equipment, building materials, reconstruction of infrastructure, discount stores, practical clothing, the environment, food products, family-style restaurants and farm equipment. Also included are basic materials that include aluminum, copper, steel, etc. and health-related stocks particularly companies that produce products and services for senior citizens.

Since cycles repeat we can go back twelve years to the last Jupiter in Capricorn cycle (1/5/96-1/22/97) and see which sectors were outperforming back then. The top 12 sectors were: Consumer Hardware, Specialty Retail, Energy, Electronics, Financial Services, Real Estate, Banking, Aero/Defense, Diversified Services, Drugs, Computer Software & Services and Consumer Non-Durables.

In this cycle, the price of commodities such as wheat may rise because of shortages that could be related to weather conditions.

DECEMBER TOP WINNERS

STOCK   11/29/07
PRICE
12/28/07
PRICE
Gain %
Potash-Saskatchewan 116 144 24%
Smith International 61 75 23%
MEMC Electronic 73 90 23%
Vimpel Communications 35 42 20%
Arena Resources 36 43 19%
Intercontinentalexchang 166 189 14%
China Medical Tech 38 43 13%
Mobile Telesystems 91 102 12%
Apple Inc. 179 200 12%
Baidu.com 357 399 12%
Flotek Industries 33 37 12%
AT&T 38 42 11%

REMOVING COVERAGE:
We continue to remove coverage on last year’s favored sectors and stocks in those sectors, most notably foreign stocks, particularly China. With a few exceptions, we think the run up in Chinese stocks is over. We have already removed the Gaming/Leisure sector. We did give Dick’s Sporting Goods (DKS) and Gamestop (GME) another month to see if they might outlast the sector but they have not….so they will be removed due to poor performance which means that sector is truly finished as a favorite.

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OVERALL TOP WINNERS

STOCK
Price at
Recommendation 
Today’s (12/28/07)
PRICE
Gain %
Hansen Natural
3
45
1400%
Google 
168
703
318%
Vimpel Communications
11
42
282%
Baidu.com
132
399
202%
Research in Motion
99
117
179%
Intercontinentalexchange
83
189
128%
China Mobile Ltd.
40
87
118%
Precision Castparts
67
139
107%
Arena Resources
22
43
95%
Garmin  
46
89
90%
Focus Media Holdings
30
57
90%
Potash Corp.
76
144
89%
Aluminum Corp. China
29
53
83%
GFI Group Inc.
54
97
80%
Apple Inc.
115
200
74%
Celgene
27
47
74%
Flotek Industries
33
37
61%


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