1. AUGUST/SEPTEMBER  MARKETS
2. UP STARS/DOWN STARS
3. GOLDEN OPPORTUNITIES
4. FASHION & FINANCE
5. ON THE WEB
6. LETTERS 

1. FOR “SAFETY” & PEACE OF MIND OWN GOLD IN SEPTEMBER & NOVEMBER
We currently are recommending a high accumulation of precious metals for fall/winter.  Initially I suggested buying in August under $833 to $800 OB until mid September.  Now I recommend for “safety” sake, by the end of August.  That could mean gold investors may sweat for a week or two, but as a safety hedge, time is running out.   Will gold soon retest its recent lows- it is possible.  If so, have cash available for trading buys.  But even if so, we expect to see gold well above $950 by/before February 2009. Given that we are also expecting a traditional September or October stock market sell off, we recommend that by mid September you remain prepared with very high cash levels and/or appropriate long/short hedging strategy. 

Note: Given the forthcoming US presidential election in November, do not expect quiet Fall markets.
OUR ADVICE:  Buy and sell extremes, and when investing, buy deep value. 

FINANCIAL ASTROLOGY 101
The 8/01/08 SOLAR ECLIPSE was noted by astrologers to be pathed over China, Russia and Pakistan: How interesting! 

SEPTEMBER ASTRODATES
9/8 Jupiter SD
9/15 Harvest Full Moon 5:13 am ET
9/22 Sun enters Libra 11:45 am ET
9/24 Mercury SR
9/30 New Moon 4:12 am ET 

 
KEY DATES:    September 25, 28
DJIA:                12600 PIVOT
SPX:                1292 PIVOT
NASDAQ:         2412 PIVOT
XAU:                135 SUPPORT 165 RESISTANCE
DEC GOLD:      905 FAIR VALUE
XOI:                 1370 RESISTANCE
OCT OIL:           $109 SUPPORT 126 RESISTANCE 

The Market Marker Sentiment OIL ON THE BRAIN UNTIL OCTOBER 3!

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 2 UV; 8 offer 4%+ Dividends 4 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. Generally we recommend trading over investing into the Fall elections.

Next Sell when markets are 11600-11800 and buy when they are next testing or under Dow 11,000.

Our Six Current Recommendations: 

Last week we suggested buys of AIG under $20 (ideally 19.64). AIG will be sold 1/3 at $26, 1/3 at $30 and 1/3 at $34, whether this happens in two weeks or two years. (think BAC). The alternative to selling is to write in the money October/November covered calls. 

PFE  (Re)buy at $17.75

BAC  Play it again same (re) buy $24-26

VLO  We continue to hold for our $40 target stock

NG    We are holding until February 2009 oco $12.50 to $16.

GDX   We plan to hold until February 2009 oco $50 OB.

3. Will Precious Metals Glitter Again?

My view: Gold’s current fair value is $905.  In both late September and November 2008, gold is a necessary safety hedge. Today most gold major stock pricing value gold at $650, while it is currently selling above $800.  Like the Gold/Oil ratio, one or the other will correct over time.

We recommend BUYING PRECIOUS METALS AND PRECIOUS METAL STOCKS!! 

4. “If you needed any more evidence that we're in an economic slowdown, search no more.  Hemlines are falling and hair styles are softening -- both bellwethers of declining economic fortunes… 

"Tradition is that when the economy goes south, so do women's hemlines. Longer hemlines demand more glamorous hairstyles, which are softer, not only in cut, but also in color," explained Barbara Middleton, who owns the La Coupe Sauvage salons in Santa Rosa and Healdsburg.  "Fall fashions are showing much longer hemlines this year and we're seeing much more demand for more feminine hairstyles as well."  

While hem lengths and hair styles seem to go hand-in-hand with changes in financial fortunes, Middleton has one more economic indicator to share. "There's the lipstick barometer.”When the economy goes down, everyone in fashion knows that lipstick sales go up."  Sure enough, according to Mary Kay Inc., sales of lipstick during the first six months of 2008 were up a whopping 60% over the same period in 2007.   "The theory is women buy more lipstick in brighter colors to cheer themselves up.” 

BOTTOM LINE: THIS FALL SHOULD NOT BE DIFFERENT:
BUY WHEN MARKETS ARE DOWN;
SELL WHEN MARKETS ARE UP.
 

6.  Investing With a Conscience: 7 Things You Should Know 

Forecasts for the Markets Turn Ultra-Bearish 

Jim Rogers Says Oil Price Rise to Continue for Decade 

7. Subject: Emerging Markets Is it time to exit?
HW:  If not past time- of course there are always exceptional markets but in general YES! 

READER:  Please could you advise me in your opinion of the best 3 gold stocks currently to invest in. I know you advise on Nova Gold but I would like to spread my risk a little more
HW: The GDX index is a good way to spread risk. We also like Agnico-Eagle (AEM), SSRI and ACU both of which are silver plays.  Since you are an WSNW subscriber,  also look at  our premium S: Mining post -  Which of these 15 current favorites to choose depends largely on whether you want small, medium or large caps choice from among them. 

READER: How far does silver dip - 11?
HW: One would assume 12, 11 or it might be today at 12.40. Certainly 11 is very undervalued.
The major factor is for how long Oil holds $110 and whether $100 or $90 is broken and if so how quickly. . There can easily be a mispricing on the downside for silver and gold as well as the upside we have recently seen in oil. 

READER: Do you mean with roller coaster a dive down, a slow up and then dive down or an up down, up down or down up down up???
HW: If gold and silver, we could drop into Wednesday, then depending on Oil have the bottom or not.
Until early  September, wide swings are possible. 
Much depends on whether you are trading or investing!!!
If investing we are buying. If trading, we are buying/selling, buying/selling etc. until mid September. 

READER: COMMENTS? The Disconnect Between Supply and Demand in Gold & Silver Markets
HW: Maybe, probably not. 

READER: I don’t know if can see it Henry but the XAU to gold ratio is .157 if it were to close at that today that would be the lowest level ever gold stocks are very cheap down here.
I am looking for a rally then a decline where gold goes to new lows for this move but the stocks do not. 
HW: That is very possible, but $833 was our FIRST target given at our July 15, 16  Triple Gold conference when gold was trading above $990.  I agree that what you say is possible, but this is not a bad place to BEGIN TO accumulate. We do have two or three  more investing buys ahead before mid september for both precious metals and precious metal stocks.