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

1. GOOD NEWS AHEAD

• ·                                 Stock buybacks
• ·                                 Declining US Dollar – positive for Export Oriented Companies
• ·                                 More Interest rates cuts?
• ·                                 Seasonal Christmas Rally 

BAD NEWS AHEAD

• ·                                 Flat to Declining Quarterly Earnings Profits
• ·                                 Declining US Dollar-Foreign investors sell American stocks and bonds
• ·                                 Declining Consumer Confidence- US Consumer Highly Stressed (Too much debt, High Food & Energy prices, Weak Housing)
• ·                                 Tax Loss Selling 

Quote of the Week
“It is a good thing there is only a little inflation.  Can you imagine how high Oil would be IF there actually was inflation!” :)

 
KEY DATES:     November 5, 6, 8, 9
DJIA:                13500 PIVOT
SPX:                 1500 PIVOT
NASDAQ:         2800 PIVOT
XAU:                 First Intermediate Trading Target of 190 effectively met
DEC GOLD:      800 PIVOT 772 SUPPORT  R 1 810 R2 850 R3 875 

Market Marker Sentiment is:  TOO MUCH COMPLACENCY STILL- Only Sane response is to own gold
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!

2006 CLOSE:           DJIA 12463, SPX 1418 & NASDAQ 2415

2005 CLOSE:           DJIA 10717, SPX 1248 & NASDAQ 2205
DIJA:                      0 ~ FV 0 UV; 3 offer 4%+ Dividends 0 offer 5%+ Dividends.
Looking ahead, my question is whether 2007 will show less than 2% growth or be a classical recession? 
THINK SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. IT IS  TOO EARLY FOR ANY BARGAIN HUNTNG AHEAD OF DOW 12800-13200 and perhaps even then!. 

X: Maria Bartiromo says whenever can you  get Citigroup at 35 you have to be a buyer.
AfundHenry: Well, I have a first trading buy under 35 and see 33.
X: 25
AfundHenry: 25??? Really?
X: You heard it here first. 

3. A test down for gold is expected at the end of this week – this could be a last chance to buy certain gold stocks e.g. NG, PIED at “cheap” valuation.  This should be followed by a strong rally crica 10/19-10/20^.
We expect Nova Gold (NG) to win its court case this month.  While this is likely to be challenged,  we maintain our conservative short term target of 22 to 25! 

4. “Looking at the weak dollar, this is the time to buy.`U.S. stocks are cheap.''

Guenther Gerstenberger, fund manager, Oberursel, Wertpapier

HW: Compared to Chinese stocks they are, but at least buying the Chinese Yuan is a sure one-way bet.

“There's confidence corporate profits will continue to rise, with the technology industry as a driver.''
Carsten Klude,  head of investment strategies, M.M. Warburg
HW: Overall S&P 500 profits will be flat to negative despite pockets of tech profitability.
 

“For years America has underinvested by trillions of dollars in infrastructure. There is a tremendous amount of spending that has to be done.''

Ron Baron, manager, Baron Capital Management

HW: Yes, just like in third world countries. 

5.  Bonds 

Everybody hates the dollar 

African Stock Safari
If emerging markets have become a little too tame, put  more adventure in your portfolio by investing in Africa.

6. READER; You say the "Given my view that our new gold’s longer term target is $1200", as a Silver Subscriber where do I find your outlook on Gold? I believe this is the 1st time I have read this in this Report. 
What I am looking for is your short term, & long term outlook for Gold. I can not seem to find that info.
HW: That is long term.  It was mentioned just after Ben lowered interest rates .50.  Intermediate term we simply say that we are bullish on gold from September to February.  Short term views are usually given in our Commodity, Platinum and sometimes gold WSNW editions.

READER:  The euro went to 1.45 USD and the Canadian dollar to 1.06 USD... Vive Ben !!
HW: I can see what currency bets you have been making?

READER: Funny how the fed reserve is debasing the currency the way the UK did in the 70s. disaster always follows.... mind you the UK is still living off cheap credit which is another disaster waiting to happen. I'll keep the money in the bank (with half in the stockmarket).
HW: Make sure you have some gold exposure!
READER: What percentage? 
HW: It depends on a variety of factors.. US investors need more than foreign investors.  As a UK investor, 10%t until February 2008.  You may wish to wait until the end of next week for better pricing. 

"Can you afford NOT to have financial astrology in YOUR future?"
Stop reading Wall Street, Next Week, last week:  YES, I WANT TO SUBSCRIBE
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