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

1. DON’T THINK 2001 -2008 if you wish to understand and prosper in 2009-2010!
The Immediate future will be very different from recent past.

As we foresee a W market pattern with February will be down, followed by a rally and another down move, what is the right thing to do?
Should one be fully invested and buy and hold by Dow 7400 as the Dow is not likely to break 7200? Yet others say the Dow WILL drop below 7000. 

Our advice: First, do not margin. Then divide up your portfolio into three parts:
1)       Short to medium term aggressive holdings
2)       Cash and defensive holdings
3)       Long term core holdings. 

Assuming we reach Dow 7400 by February 24,
1) ADD quality long term stocks.
2) Accumulate and trade ENERGY sector stocks before May on weakness both for trading and investing.
3) Be prepared to rebuy precious metals stocks upon a gold test of $785 to $825 and/or intermediate term trades of small and midcap producers at $1005 oco May/June. 

Simple? No, but we think the above advice will be highly profitable.
 

GUEST HYDE PARK CORNER:  Worse Than A Bad Bank 

ASTRODATES
2/1 .Mercury SD
2/5 Saturn Square Uranus
2/9 Lunar Eclipse 9.49 am
2/18 Sun enters Pisces 7.47 am
2/23 New Moon 8.35 pm 

Please note: there will be no Wall Street, Next Week Next Week as I am attending several conferences, involved in a new research project as well as raising capital money gathering.
 

 
KEY DATES:    FEBRUARY 2, 5
DJIA:                8000 PIVOT S1 7800 S2 7400 S3 7200  R1 8400 R2 8776 R3 9000
SPX:                 825 PIVOT
NASDAQ:        1500 PIVOT
XAU:                125 PIVOT 105 SUPPORT 135 RESISTANCE
APRIL GOLD:    $900 FV
MAR SILVER:   FV $11.50
XOI:                  950 RESISTANCE?
DEC OIL:          55 PIVOT $50 SUPPORT $67 RESISTANCE  

The New Market Marker Sentiment is A Known Weak Economy; so what me worry? No! Buy.
2008 CLOSE:           DJIA   8776, SPX   903 & NASDAQ 1577
2007 CLOSE:           DJIA 13264, SPX 1468 & NASDAQ 2655
2006 CLOSE:           DJIA 12463, SPX 1418 & NASDAQ 2415
2005 CLOSE:           DJIA 10717, SPX 1248 & NASDAQ 2205
DJIA:                        7 ~ FV 5 UV; 13 offer 4%+ Dividends 7 offer 5%+ Dividends.
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. With the possible exception of accumulating a few select energy stocks, we think this is a NOT a time to buy stocks. 

3. We have just lowered the Fair Value of Gold from $912 to $900 & Silver from $12 to $11.50
January 30, we issued:
WE ARE SELLING SOME AND PLACING PROFIT STOPS ON A LOT OF our GOLD AND SILVER STOCKS YESTERDAY AND TODAY
When I have 100-500% profit I take a lot of off the table and then profit protect most of the rest of my investments/trades in PM.
Not portfolio hedges, THEY REMAIN.
Yes 90 percent chance gold will be $1000 in 2009, but a 70% chance will be 820-850 over next 3 months.  I can rebuy then or if I am wrong next, can rebuy lower down the food chain.

PLEASE NOTE:  WE HAVE JUST LOWERED OUR FAIR VALUE OF GOLD FROM $912 TO $900 AND SILVER FROM $12 TO $11.50.
We may lower again, but if we do, we will be raising later. 

IF YOU HAVE NOT ACTED ON THIS ADVICE, REMEMBER THE CLASSIC WALL STREET ADAGE:
BULL MAKE MONEY, BEARS MAKE MONEY & PIGS GET SLAUGHTERED.
If you bought when we suggested in the Fall, you are up 150%-500%- To lock and book profits now is sound money management.

4. “When you don’t have complete Armageddon with earnings, the days start looking a little better.”
Doug Sandler, chief equity officer, Riverfront Investment Group
HW: Amazing. 

“It’s one of the deepest recessions in two generations. It’s still getting worse.”
Roger Kubarych, chief U.S. economist, UniCredit Global Research
HW: You betcha. 

“From a fundamental perspective, the GDP report would be negative for the dollar and market sentiment.”
 Lee Wai Tuck, currency strategist, Forecast Pte
HW: Yes, but Mercury doesn’t turn SD until Sunday February 1. 

5.  High-dividend stocks buck downtrend 

10 Dividend Stocks for the Next Decade and Beyond 

http://www.realclearmarkets.com/articles/2009/01/macro_experts_apply_astrology.html 

6. READER: Just wanted to ask you if you still feel the market will sell off heavily on Friday [1/31] and if so what level do you think it could fall to?
HW: Hard to say, the potential is there, but a lot also depends on the 8.30 news  but a short term top here is likely in or will be in circa Friday. And of course I like the risk/reward of all this, but have yet to play it.
I believe we see a retest of 7800-7400 in February.  

READER: You say there is a negative astro on the general market in February. Could you tell us when that negativity starts and ends?
HW: It can start as early as January 31 or as late as February 5 or 21 and can end as early as February 24 or sometime in March. 

READER: I bought 300 shares of GE at $16....so are you saying t might be a good idea to sell in case AIG situation Since it is still heading south?
HW: I am saying to using a standard stop. What was your target? You are already down 20% which is what many people use.  Others use more or less depending on their target.  What is yours?
PS GE is more a buy then a sell at 12 here. However, you have to watch for risk. I would watch carefully and certainly have a stop in just below 10 if not higher.  Then if GE goes to 15, move your stop up to 12. 

READER: 600-650 [gold] next?
HW: $860 and then perhaps 780 to 820.  Anyway my numbers come first and that is where I will first consider (re) buying. 

Please note: there will be no Wall Street, Next Week Next Week as I am attending several conferences, involved in a new research project as well as raising capital money gathering..