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

1. WOWIE- 3000 DOW POINTS IN A WEEK- WOWIE!  NOW BUY SILVER (& some Gold).
Unlike last week’s forecast for an increase in market volatility, happily, I believe it is now smarter to sell Volatility than to buy it, i.e. markets will become more often like last Friday rather than last Monday. We are not retiring from our profits.  Instead, I  couldn’t wait for the strong astrological signals coming in November to BUY SILVER!  In our view March Silver will be $14 OB by or before February 2009.  WSNW readers are advised to buy physical Silver or SLV the silver ETF or their favorite Silver companies.  You may have to sweat some until mid November but by the time of the Silver Institute annual industry dinner in New York, it should be clear that it will be plenty of Dom Perignon champagne at New Years! 

STAY CAUTIOUS: While we see markets possibly going as high as OEX 515 by November 4, next week (Friday) will remain challenging with continuing daily sobering economic and earnings reports.  Still, a US election is coming, and while not fully backed up by astrology, a pre-election, post FOMC market rally is not out of the question.  Our Upside target is OEX 515, where upon we stop and/or Sell. 

So like Warren, CONTINUE BARGAIN HUNTING EVEN THOUGH NOVEMBER 2008 IS COMING- Fear is often the basis of market rallies, but none-the-less, today’s fears have a real basis in fact.
 

 
KEY DATES:    OCTOBER 21, 24
DJIA:                8750 PIVOT SUPPORT 8000 RESISTANCE 10000
SPX:                940 PIVOT

NASDAQ:         1500 SUPPORT 1950 RESISTANCE
XAU:                78 SUPPORT 92 RESISTANCE
DEC GOLD:      $922 FAIR VALUE
XOI:                  855 PIVOT!
NOV OIL:          $76 PIVOT $67 SUPPORT $115 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:                       5 ~ FV 5 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. 

1. BUY SILVER IN OCTOBER UP TO MID NOVEMBER
 We conservatively expect it to return more than 30% by year end!
Our current three favorite silver stocks are Silver Standard (SSRI), Alexco (ACU) and First Majestic (FR-T). 

Five Buys For Warren Buffett 

3. Oil is Headed for $150 a Barrel, Gold for $1,500 an Ounce, Merrill Analysts Predict 

HW: You said Silver would go to 9: it only went to 9.08: I want a refund.
Broker: I know, still has more to go.
HW:  No refund?
Broker: Not yet
HW: How about we make a bet. I bet that Silver goes to 11.80 before 9!
Broker: Ok, you have a bet 

We took all of this month’s profits into buying early some Gold and a LOT of Silver.  Astrologically, I acknowledge this may be buying early as it is not yet mid November. This may be akin to buying in early September ahead of the astrological date of September 12.
No matter, I find the Silver prices too cheap. I will save some cash to buy early to Mid November.
I fully expect Feb gold above $922 and March Silver 14 OB in less than 3 months.
Enough said. 

4. "The risk of a recession is increasing. For the rest of the year, most global markets could be testing their lows.  I think the rebound we saw globally is over."
Patrick Shum, strategist, Karl Thomson Securities
HW: We expect a series of rolling bottoms. 

"Not to be overly simplistic, but things that people chew, smoke, eat, drink or wash with are all very attractive options at this point over the short and medium term."
Robert Deitrick, CEO, Polaris Financial Partners
HW: Yes! 

“This is the greatest investor of our time [Warren Buffett] and he's in there seeing excellent opportunities in American companies.  I've been doing this 18-plus years and I have never seen the opportunities that we have right now.''
Pat Becker Jr., chief investment officer, Becker Capital Management
HW: Money talks, nobody walks! 

5. World's Economies May Be Lucky to Escape With Worst Recession in 25 Years 

Breaking The Fever
Investors found their threshold of stock market pain on Monday and should be feeling much better fairly soon. 

5 Stocks You Can Feel Good About 

6. READER: I am very impressed with your timing, but I have AIG on your call.. I am investor, not use stop loss, have you one idea positive or not?
HW:  I was wrong on AIG.  While probably it is more likely to go up $2.50 to $5, than down $2.50 to 0, I think there are better buys out there now.
You MUST use profit/loss stops even as a long term investor.  Generally speaking, after a drop of 15-25%, you should take your losses and move on. 

READER: Re: Hope you liked our calls to buy on Friday circa 8000 sell on Monday circa 9600  SARS (cover and go long yesterday MOC  circa 8550).
I'm sending you $50 mil to manage. Bet it all on red!! 
HW: Will do. However, we first have to check with compliance and have them do proper due diligence to make sure that this money is legal. 

READER: Today - Friday 17th October 2008 close for ^ DJIA is very important from technical point of view. If it does not close above 9000 level - then you will re-test the intra-day low of 7883 of Friday the 10th Oct'08 in the next 30 days from today. 
For the medium term, as per my analysis ^DJIA can fall to around 7000 levels ( 50 % Fibonacii Re-tracement from the 52 week high of DJIA at 14013 ). This can happen in the coming 75 days.
HW: Interesting. 

READER: I am searching for this new gold bottom, hope you can help?
HW: It should happen within 30 days and $30, unless it is already here now.