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

1. A FULL MOON, MERCURY SD OPTIONS EXPIRATION
Sometime ago we wrote:

If you wish to buy stocks today, you should have DEEP POCKETS AND DEEP CONVICTIONS. 
Where to buy and when are two big questions. Will it be safe for long term investing again in 2008? MAYBE NOT!
Stop waiting and start buying slowly! 

Under Dow 9000, there are a LARGE number of undervalued quality stocks I believe worth buying and owning for the long term.  While the intermediate and long term outlooks are difficult, even the Mayan astrologers forecast and believed the end of the world is not yet here yet (2012?). If and when markets retrace and retest Dow 7500 to 8000 we will buy more stocks while still leaving money aside for upcoming November tests.  If/when markets rally to test the October 2003 lows circa Dow 9660, we will begin to take and stop/protect our profits. . 

WSNW SPECIAL ALERTS OF 10/10: BEGIN BARGAIN HUNTING DOW 8000
Gold reached 932 fair value and sold although gold and silver stocks are cheap and holding.
Assume the next to worst and markets are CHEAP even if we go to 7500 or 8000, Many quality stocks are long term buys.
Trading and investing Buy today but leave plenty of cash for November
HW: REMEMBER WE LOVE GOLD & SILVER H2 NOVEMBER & DECEMBER 2008!
 

KEY DATES:    OCTOBER 14, 15
DJIA:                8500 PIVOT SUPPORT S1 8200 S2 8000 S3 7800 S4 7500  R1 8750  R2 9000  R3 9250  R4 9660
SPX:                925 PIVOT
NASDAQ:         1650 PIVOT
XAU:                95 SUPPORT 125 RESISTANCE
DEC GOLD:      $927 FAIR VALUE
XOI:                  900/1125 FV!
NOV OIL:          $76 PIVOT $111 RESISTANCE  

The Market Marker Sentiment Happy Markets then retreats to Worry  UNTIL NOVEMBER 18!
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:                       4 ~ FV 6 UV; 13 offer 4%+ Dividends 8 offer 5%+ Dividends.
Looking ahead, my question is whether H 1 2009 will show less than 2% growth or be a classical recession?  
THINK SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK.
 

2. There are lots of good quality large cap stocks to buy NOW ranging from GE & IBM to BAC & MET to VZ & T etc.
Buy only DEEP COSMIC VALUE. Stop waiting and start buying slowly! 

3. Short term we like BLACK GOLD (Oil) given our long term short target of $76 was effectively met.  Our upside target is $91. 

Obviously Gold and especially Silver pricing from an intermediate term perspective is a joke.  Worst case is $780 and $9. [Best case short term is $960 & $14.] $With Silver, we are almost there. With gold there is some risk.
As for quality gold and silver stocks, we recommend accumulation into the November election. 

4. “There is a downward spiral of fear.”
Richard Sparks, senior equities analyst, Schaeffer’s Investment Research
HW: It’s time to be contrarian- BUY! 

 “A crisis always feels bottomless, and it usually isn’t.”
John Dorfman, manager, Dorfman Value Fund
HW:  I agree we are very close to a short term bottom. 

“When the going gets tough, the tough get going.”
HW: Ride em cowboy!
 

5.  Fannie, Freddie Ordered to Buy $40 Billion of Troubled Mortgages a Month

HW: Omg!  Will their report in November be the “November surprise?”

BERNANKE WAS UP AGAINST A WALL WITH RATE CUT

OK, everyone take a deep breath and hold it for a few seconds. Now repeat that process. Do it as often as necessary.

 Dow Average May Be Poised to Fall to 7,000 `Trend Line': Chart of the Day
 

6. READER: I apologize if this sounds like a redundant question. But what happened to Gold & Silver today? It closed at about 850 and was down even more than that. Does this change any long range outlook for the metals? Are we still in a long term bull market for gold and silver?
HW: We suggested selling gold at 932 (our fair value).  Gold and Silver will be WAY up by Mid November and December.  Until then, it can trade like it did in early September until September 12^th.A lot of this was FORCED selling and liquidation by funds in addition to the semi-mistaken belief that deflation not inflation is the problem (It is stagflation!).  Still we bought silver near $10.  We  also bought some trading gold which can retest 800 or even 780.  However, intermediate term they are both a BUY, and as for quality gold stocks and silver stocks, what a joke!  Still be patient and own a lot post US election. 

READER: What are you calculating fair value based on, the difference between the futures and spot price?  When adjusted for inflation (i.e. CPI) gold is still trading at a premium!  What are your thoughts on this?
HW: No. I calculate its worth based on gold’s “value” as a commodity, currency, inflation and safety metal.  As for CPI, are you using US government figures or truer values such as at shadowstatistics.com? 

READER: I was just going to ask you if you had any info you can send me about what the stars say about these market conditions.
HW: Basically it is upcoming on the14th/15 with a Full Moon and Mercury SD.  Note the bigger picture:  the Saturn/Uranus configuration big picture that is for November.
Then we expect another big gold/silver rally in November/December. 

READER: READER: this looks just like 1974 which means the market should have only about 5-10% downside bottom rally then retest in December
HW:  Except retest in November.
JNJ is cheap.  GE is cheap. IBM is reasonable.   Note: Watch GE and IBM are market bell weathers. GE above 20 and IBM above 90and market is “safe”.  Under 18 and 85 dangerous. In between wild.
We are buying more stocks as we hit 8000. While 7500 and 7800 is possible, it is silly seasons.
However use NO margin and leave plenty of cash for the final bottom.  Still this is why we said hold cash and wait. 
Stop waiting and start buying slowly!