1.
FIRST COMFORTABLE INVESTING BUY ZONE CIRCA DOW 11750 TO
12250. NASDAQ FIRST DOWNSIDE BUY TARGET IS 2331.
On
late Thursday we emailed to all WSNW readers:
“Yamada,
Roth, Chart-Watchers See Chance to Sell Before U.S. Stocks Plunge We
basically agree with this post.
We are also close to a likely tradable SHORT TERM
bottom.
FIRST COMFORTABLE BUY ZONE CIRCA DOW 11750
TO 12250
NASDAQ FIRST POTENTIAL DOWNSIDE TARGET IS 2331.
Given market low of Nas 2343 and DOW 12126,
while there is more potential downside ahead,
We covered our shorts and started to buy a
little today and may a little more tomorrow and Tuesday. Of course there is
tremendous risk and only for the few stocks that are NOW at value (or slightly
undervalued). We are essentially in cash, but putting a little to work
over next week. I repeat ONLY a little.
REMEMBER” Be Careful Buying.
Ps since all the metals can be down
tomorrow, if buying more gold, wait until the end of the day or early next
week.
Or wait closer for the Ben rally end
of month.
See for example some S:income stocks are
not trading close to value, but are NOT undervalued or great bargains.”
While most
analysts expect US companies to warn of a more difficult economic environment
ahead, as the
However, THIS IS TRADING.
As for INVESTING, would you rush to any store today to buy its goods on
sale at a mere 15% discount? Or would you demand at least 20% or more buy?
Prepare a list of your favorite stocks at dream prices. Value investing is
buying stocks UNDER VALUED, not simply NOT OVER VALUED!
TRADERS: Given currently Wild Markets,
we continue to recommend Day Trading. A tradable bottom MAY be in place as of
NASDAQ 2331 and/or Tuesday. Be cautious
as Bulls and Bears war globally.
Note: Last week our trading scenario
did not work out as expected due to IBM pre-reporting its solid earnings on
Monday instead of Thursday.
INVESTORS: My long term view is well known:
focus on protecting against downside risk.
DJIA: 12068
PIVOT R1 12264 R2 12450 R3 12500
SPX: 1325 PIVOT
NASDAQ: 2331
PIVOT S1 2300 S2 2290 S3 2250 R1 2375 R2 2400 R3 2500
XAU: 175 PIVOT
FEB
GOLD: 875 PIVOT R1 868 R2 850 R3 840
S1 888 S2 895 S3 900
MAR
OIL: 90 PIVOT S1 89.50 S2 88 S3
88 S4 80
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!
2007 CLOSE: DJIA 13264, SPX 1468 & NASDAQ 2655
2006 CLOSE: DJIA 12463, SPX 1418 & NASDAQ 2415
2005 CLOSE: DJIA
10717, SPX 1248 & NASDAQ 2205
DIJA: 3 ~ FV 0 UV; 6 offer 4%+ Dividends
2 offer 5%+ Dividends.
Looking ahead, my question is
whether 2008 will show less than 2% growth or be a classical recession?
THINK SWISS AND
PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK.
2. “Our 12 Stocks for Bad Times portfolio is a defensive,
lower risk value oriented portfolio that allows one sleep better at night even
if the "recovery" takes time and is not on "TV" time.
Gold, entertainment, consumer staples often outperform in bad times. Also
considered traditional safe havens in times of uncertainty are utilities and
property trusts. However, deregulation and the ongoing real estate crisis have
made them less attractive in H12008.
Additionally we have one education company (one activity people choose when
they are out of work), one liquor company (another "classic" response
to recession) balanced by one SRI component to feel good about, even if it wont
make a ton of money. I have also included two dividend paying
conservative REITS along with classic Johnson and Johnson (JNJ) as
"there will always be boo boos".
Please note, I am currently in no rush to
buy any of our stocks until their stock prices are closer to or below our given
value pricing. The stocks listed below are to be watched and accumulated on
weakness: ….”
WNSW SUBSCRIBERS can find our 12 2008
selections plus read our entire premium post at S:2008 UNCERTAIN TIME STOCKS.
3. Nothing
like a crisis to polish up image of gold
"You've got the U.S. dollar
falling out of bed. People are looking at precious metals as principally a safe
haven while they ride out a correction in equity markets."
Peter McGuire,
managing director, Commodity Warrants
FUNDAMENTALLY Gold
demand is outstripping new supply.
TECHNICALLY Gold has
overhead resistance at both $900 and $930.
We may or may not retestt $868-850 this week. March Silver held 1570
well and it is unlikely we will see $15.50 before another test of 16.70.
ASTROLOGICALLY Gold has extremely positive astro the very
end of January.
Note: The Gold/XAU ratio is now
4.97.
Classically
when the Gold/XAU ratio moves toward 5.0, it’s a often an excellent time
to buy gold stocks. This indication goes
along with my view that at this time, I prefer to own gold stocks to physical
gold.
On
the hand, over the intermediate term, BOTH will be higher.
4. “`It looks to me
like we're already in a recession. There's nothing out there to say the worst
is over.”
Jason Cooper,
comanager, 1st Source Investment Advisors
HW: Not over
yet? Hmmm, you are right fundamentally
of course, but marketwise there could be short term recovery at least into the
FOMC.
"Now investors have the great chance to buy stocks of well-
managed companies with growth prospects cheaply."
Herbert Perus, head of global equities, Raiffeisen Capital
Management
HW: Cheaply? No. However,
for the first time in a long time, a number of well managed stocks are NOT
overvalued by our measures.
It's far
easier to argue that we're at the start of a period of higher inflation and
lower
Philip
Klapwijk, executive chairman, GFMS
HW: I agree.
10 Predictions for 2008: Economy, Dollar & Gold
14 winning strategies for a
bear-market recession
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6. READER: Good call on
gold. What is a good price to buy Gold and Silver next, and NG [Nova
Gold]?
HW: We have suggested selling silver at 16.70 as
next target of 20 is only likely when gold goes to 1000. We have to see if 930
is a ceiling or 900 before deciding.
Perhaps 850-875, perhaps 888, too early to tell.
That being said
both gold and silver have a good month and you most definitely want to be
profit from the Ben Gold rally January 30-January 31.
Nova Gold is
still cheap here. Perhaps NG may test $10 again, perhaps not. Resistance is
12.50, thereafter next targets are 14-16.
If your time frame is one year or more, you can buy any time under
$12.50. If you are trading it short
term, then buy it close to resistance or next week.
READER: Right you are. At levels below 12000 - my three best US Stocks picks would be:
i) General
Electric
ii) Boeing or
Raytheon
iii) Schering
in that order.
What are your views?
These are pure
'trading buys' for a 15 % or say return over the next couple of months. There
would be exit rallies after ^DJI tests sub 12000 levels. At these rallies exit
from the said recommended stocks.
HW: They all
seem like good choices. We recommended a
variety of buying last week and depending on Tuesday’s action, may buy more or
not. This NASDAQ (QQQQ) with a stop
under 44 to stocks at value or under value such as GE that are given in our
various WSNW subscriber premium posts. A few of which I updated on Friday.
"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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