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

1. OCTOBER & NOVEMBER KEY DATES

October 14/15 Full Moon Mercury SD
October 24 is coming!
November 4 US Election
November 18 New Marker Market 

Friday’s close is not that far from the OCT 2003 Lows: DJIA   9660, SPX 1090 & NASDAQ 1899.
We could be seeing a short term bottom or not. Regardless, STAY HIGHLY LIQUID AND PREPARE AS IT MAY GET MUCH WORSE BOTH IN THE STOCK MARKET AND IN THE US ECONOMY.
It is scary. A market that rallies 400 points in a DAY, can drop 1000 or more just as quickly. 

On the web: “A cartoon this weekend with a financial planner advising his worried clients to diversify their retirement savings: put half in a mattress and bury the other half in the backyard.”
The Key point to remember is that it will take YEARS TO UNWIND THIS MESS.  It is far from over in the US and global stock markets and world economy. 

GOLD
We now see a possibility of 1200 and higher gold ahead.  I am not saying it will happen, but it could happen as early as November. So could 1500!  So while many forces will try to force gold down to $740-$780 before then, gold should rally quite strongly in November. It may reach $1000 before February 2009, but as a portfolio hedge, some gold should be a requirement.

As for everything else, trade short term, or stand aside, and only invest and buy companies with solid balance sheets that can thrive and prosper in a 1-3 year slow growth recessionary environment into 2012.  Think Cosmic Value & Distressed Investing.  Use little or no margin (better) and Keep plenty of cash (in more than one bank). 

The New Market Marker is Happy Markets; retreats then Worry.
 

KEY DATES:    October 14, 15
DJIA:                10300 SUPPORT?  11000 RESISTANCE
SPX:                1100 PIVOT
NASDAQ:         1950 SUPPORT?  2150 RESISTANCE
XAU:                105 SUPPORT 130 RESISTANCE
DEC                 935 FAIR VALUE
XOI:                 1050 SUPPORT?
NOV OIL:          $90 SUPPORT 110 RESISTANCE 

The Market Marker Sentiment Happy Markets; retreats then Worry
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 6 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. Only buy stocks at great fire sale prices, but remember there may NOT be a real bottom for years, e.g. rolling bottoms.

3. A gold move of $100 last month has been forecast since the first Gulf War when it lost its status as a global safety instrument. We said that when the upcoming problem in the US Dollar and US bonds was realized, expect a daily $100 gold move. 

Remember while gold is worth $945 currently, it can trade below $800 in October.  However, by MidNovember it will be trading at or ABOVE fair value!

4. "It would be hard to invent a scenario that could be more bullish for gold than right now. Bailout or no bailout, gold is going a lot higher due to a broad based flight to quality."

Mark O'Byrne, executive director, Gold and Silver Investment

HW: You betcha!

“Under normal circumstances, the Treasury's financing decisions are guided by its desire to be regular and predictable. However, there is certainly nothing `regular' about this rescue package, so that approach is not relevant.''

Louis Crandall, chief economist, Wrightson ICAP

HW: I wonder who is REALLY going to profit from this bailout. Don’t’ you? 

“I don't work in finance and I am not heavily invested in financial companies, so I haven't noticed any kind of downturn. I still have a job. And the government is going to bail everyone out anyway. I just bought my first [Hermes] Birkin bag! Don't tell my mother.”
Mary Park, public relations specialist, New York, N.Y.
HW: It will remain our little secret. 

5. In Financial Food Chains, Little Guys Can’t Win
Millions of us did nothing wrong, according to the accepted wisdom of the age. We saved. Now we have had the rug pulled out from under us. 

Economic data point to recession 

High dividend yields at reasonable prices
 
6. READER: Fabulous call on Gold!
Thank you 

READER: Thank you for the reminders/alerts that you send out to us.  They have kept me out of  a lot of trouble.  I don't know if anyone else appreciates them, but I sure do.
HW: We try! 

READER; Do you recommend selling gold and silver? Or is it a long term play?
HW: Until midNovember, gold can move in any direction so is very tradable..

However as a long term investment it is cheap (FV currently $945) and quality gold stocks are even cheaper.
If it is a portfolio hedge, hold it. 

READER: Did you do a chart on AIG?
HW: NO~! Just my fundamental views- It thought I had another [easy] BAC play. 

READER” For worst cases, where'll gold to go at bottom in October?
HW:  $740-$780  it may or may not break $800, but it CAN!