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

1.       DON’T RUN OUT OF CASH AHEAD OF GOOD LONG TERM INVESTMENT IDEAS

Is November panic selling coming?  If so, this COULD be both a profitable short term trade as well as a long term investing opportunity! We tentatively project Dow 7400-7600 as the maximum “bottom” zone, while markets may also not drop below 7800 or 8200 (more of less) again in 2008. Given that the economy WILL be worse in 2009, any Christmas Rally should not be a “sucker’s rally”, but “Trader’s delight.”

Remember: Invest only in stocks at a bargain basement prices that you are willing to hold until 2010-2011.
 

SOME RANDOM THOUGHTS/OBSERVATIONS

• Amazing astro for Election Day
• Hedge fund redemptions is making stock market forecasting “easier”, i.e. more closely related to fundamentals within a shorter time frame
• January corporate earnings and outlook has to suck the big one.
• Declining State Tax Revenues is good for the lottery boys.
• How much bad news is already built into Dow 8200? 

IF THE US WERE A THIRD WORLD NATION, WHAT WOULD YOU INVEST IN?

• TELECOM -  BUY
• ENERGY - BUY
• TOURISM - WAIT
• REAL ESTATE - WATCH
• BANKING -  WATCH
• INFRASTURURE - HOLD/ACCUMULATE 

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:    NOVEMBER 4
DJIA:                9200 PIVOT 
SPX:                950 PIVOT
NASDAQ:         1650 PIVOT
XAU:                66 SUPPORT 83 RESISTANCE
DEC GOLD:      $912 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 5 UV; 11 offer 4%+ Dividends 7 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. BUSINESS & BANQUETS
At last week’s Capital Link Forum at the Metropolitan Club, we were impressed with the presentation of DANAOS (DAC). Offering over a 20% yield,  and having 75% of its fleet booked ahead an average of 11+ years is my kind of company. Subject to more due diligence, I am tentatively projecting more than a 100% return within 18 months or less. Of course, shipping contracts can be broken, but as they ONLY play with the BIG BOYS, there is  probably less downside  risk here than elsewhere. We have yet to complete our due diligence, but it surely pays for WSNW readers to look into DAC. 

Our current Oil, Gas, Gold and Silver Buy List:
Oil:  Valero (VLO), Parallel Petroleum (PLLL), Suncor (SU).
Gold:  Nova Gold (NG), GoldCorp (GG) and Agnico-Eagle (AEM).
Silver:  Silver Standard (SSRI), Alexco (AXU) and First Majestic (FM-T).
Natural Gas:  We are still researching this. 

3. As Cosmic Value Investors, we are bullish on the Black Gold (Oil), Yellow Gold and White Gold (Silver) and recommend heavy accumulation before the November Full Moon. 

4. “We are creepy-slow capital buyers at these levels.”
Jeremy Grantham, chairman of Grantham, Mayo, Van Otterloo
HW: Yes, sort of a Halloween thing! 

“It’s a 24-hour watch. I check the futures when I go to bed. I check them when I get up and sometimes I even get up and check them in the middle of the night.”
Walter “Bucky” Hellwig, comanager, Morgan Asset Management.
HW: Only sometimes? 

“We're in the camp that believes a bottoming process is in place. Unless we really thought the banks were going under, there's an awful lot of bad news that is already priced into the shares.''
Leo Grohowski, chief investment officer, wealth management unit of BNY Mellon
HW:  Goldman Sachs (GS) is the latest rumor. Still, with such good friends in Washington, that hardly seems possible!

5. Stocks Look Cheap World-Wide

Odds point to a stock upswing in November 

It's The Risk Premium, Stupid!
You'll just have to stick your neck out and buy stocks or dicey debt if you want make more than Treasuries. 

6. READER: I agree with your views 100 % on Gold.  
My analysis of ^DJIA is giving very bearish signals. I see a level of 6981 for ^DJIA latest by 30th Jan'09.
HW:  I don’t see markets below Dow 7500 for the remainder of 2008.  Dow 8200 we are buyers (and 8000, 7800 and 7500). However, like many analysts, we think any Christmas rally is to be exited or shorted before 2009. 

READER: I can lock in oil if I so desire- it is now at $64 something.
HW: I would. I believe Oil will rally to 76 and then 91 by or before late Spring. 

READER: You have issued several warnings concerning November.  
a) Would you recommend going short between Election Day and the November 15 economic summit? 
b) Do you envision gold hitting another low before that summit and taking off afterwards?
HW: Yes. I would be short the market before the November 13^th Full Moon.
Gold could or could not make another low before November 15^th. Either way, it is our strong belief  that it will be rallying thereafter into the New Year.