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

1. FOMC INSPIRED/ENGINEERED RALLY
Both short term traders and long term investors are more likely to find it profitable to use this week as more a time to buy and not to sell. Next week-election week- could be a very different story.
THE GOOD NEWS:  Instead of being a nation of traders, SLOWLY we can return to being long term investors and receive double digit annual returns. However,  If/when you have good profits buying quality, take or lock them in. 

CURRENT PROBABILITIES
90% Gold $917 and Silver 11.80 by Christmas 2008.
75% FOMC stock market pre-US presidential election rally.
70% November stock market correction. 

CONTINUE BARGAIN HUNTING EVEN THOUGH NOVEMBER 2008 IS COMING- Fear is often the basis of market rallies, but none-the-less, THIS fear has a real basis in fact.
We continue to advise to slowly accumulate quality large caps at 8200, 8000, 7800 and 7500, if seen.
Today there are some GREAT long term stocks buys and not just in large cap precious metals and energy sectors. 

ASTRODATES
11/04 Mars Square Neptune, Saturn Opposite Uranus
11/13 Full Moon 1:17 am ET
11/21 Sun enters Sagittarius
11/27 New Moon 11:54 am ET & Uranus SD

 
KEY DATES:    OCTOBER 29, 31
DJIA:                8500 PIVOT SUPPORT S1 8200 S2 8000 S3 7800 S4 7500  R1 8750  R2 9000  R3 9250  R4 9660
SPX:                1000 RESISTANCE
NASDAQ:         1550 PIVOT
XAU:                66 SUPPORT 83 RESISTANCE
DEC GOLD:      $917 FAIR VALUE
MAR SILVER    --> $12
XOI:                 800 PIVOT
DEC OIL:          $67 PIVOT R1 $76 R2 $85  R3 $91  

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. If you are a long term investor, slowly buy quality large caps that are both deeply discounted and have cash and business prospects even in a multi-year global recession whenever the Dow is 8200 or less. 

3. Golden Opportunity
HW: $850 BEFORE $650?! 

Recession Concerns Spur U.S., Europe, Asia to Untie Budget Purse Strings
HW: Got gold? 

10/23 WSNW Alert: WSNW Gold  Entry 2 out of 3  (third is post US election OCO $661 gold

Time- It is a good time to nibble. It can go to 650 and the safest time is after the US election, but this is good price to start to build position.  I also bought some $800 gold calls for February today.
As for gold stocks, if you are not over weighted Buy quality gold and silver stocks as well as physical and ETF’s pre-FOMC meeting next week. 
Note: Tomorrow can be a RED day for the US stock market – Be careful.
HW:  So far, so good. 

READER: What do expect gold to reach by then? Are you still standing by your target of $ 1000?
HW: We believe Gold should reach Fair value pricing which is currently 917.  It may or may not go higher. 

4.  “The market seems to be very overdone, almost pricing for a depression.”
Walter Gerasimowicz, chief executive officer, Meditron Asset Management.
HW: No Dow 6500 prices in a depression, Dow 7800-8200 prices in a multi-year mild recession. 

“The foreign-exchange market is basically saying we are in a global recession and perhaps a very, very deep one. Any sense of rationality and fundamentals is thrown out the window.”
Richard Franulovich, senior currency strategist, Westpac Banking
HW: Another death knell for the rational market hypothesis.  

"We are starting to see wholesale capitulation.  We are headed for some very bad times."
Peter Morici, an economist, University of Maryland
HW: What do you mean “we” white man :)

5. Ten people who predicted the financial meltdown 

GLG's Roman, NYU's Roubini Predict Hedge Fund Failures, Investor Panic 

Beware Dividend Traps
Dividend cuts are coming. Here are some likely culprits. 

6. RE: READER I am searching for this new gold bottom, hope you can help?
HW: It should happen soon unless it is already here now. 

READER: Hard to argue with Gold:Silver ratio at ~82:1
Gold would have to correct to $550/oz to get the ratio back in line with $9.00/oz silver.
HW: Yes, but instead both gold and especially silver will increase a lot more to lower it closer to the more traditional Gold/Silver ratio. 

READER: There are a number of people who think that the futures market is not representative of the current physical market. There are a few physical spot transactions happening at $20/oz for silver even though the futures price is much lower. Any thoughts?
HW: Yes, if you owned silver or gold would you sell it at today’s prices? No.
You would hold back supply until Silver was $14 and gold over $900! This is MOSTLY supplier valuing gold and silver higher than the market does! 

READER: Henry:Stagflation? Tony:Deflation? 
Confusing times we are living in or what?  http://www.dollardaze.org/blog/?post_id=00485
HW:  Stagflation. 

READER: In Today Big Wild Gold Bearish Movement, Would you please give us direction where bottom will gold go to?
Still convinced of your prediction/ astrological calculation, that Gold will move strongly in Mid November to end of December 2008?
HW: Yes. 

READER: Great call on the silver. I really do hope gold holds at 700 which likely means that it won't. FYI - I only got my august order delivered a few days ago. Physical is hard to come by. 
HW: Well physical gold is like reality- it often doesn’t have a great amount of influence on the gold market! :) 

READER: Good call. Should test 7883 today or Monday 27th Oct'08.
HW: While possible, I don’t think so-  perhaps later  in November.