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

Today I see many LONG TERM VALUES in the US Stock Market - Fair Value Currently DOW 8200; NAS 1550 SPX 860. 

WSNW ALERT: Friday, 20 February, 2009 Possible Short Term Bottom Today or Monday
As Premium WSNW subscribers know our long term P1 trading targets were DOW 7260 to 7340. We are there now.
We are therefore considering starting to do our long term buying.  Normally we do this in 3 trenches but this will be only a ½ and only selective buying. 
We are not yet sure, and no need to rush as markets CAN go lower and have mixed to negative astro for some time. 
Still there are long term bargains and perhaps a positional trade set up.  We will advise more as we see it. Just a heads up for now. 
Those that are short should lock and/or take more profits. If you have been following our advice, you substantial profits- protect some of it today/Monday. 

H1 2009 TIME & PRICE BUYING

• Circa February 21
• April
• Dow 7260 to 7360

Our 2009 INVESTING PLAN called for a first positional buy before the Ides of March at DJIA 7500 OB.  That is here NOW in BOTH TIME & PRICE.
 

We plan to use 50% of available cash for Trading and 50% for long term Investing. Of the latter, we are ready to begin to buy 10%-15% this week.  15%-20% more is planned by April/May.
We have covered or recommended tightly stopping our long term shorts from 2007 & 2008.  We are NOW looking for buying opportunities.  This is/can be an early call as when we recommended to begin to cover our Oil shorts at $71.  However, the Wall Street saw is No one ever went broke booking big profits. 

Positional trading: We are long and have stops in circa Friday’s lows.
We fully realize there can easily be months of serious worry ahead and a lower low (even a selling climax). We will allow ourselves to be stopped out while investments are to be held long term. 

Possible Additional Buys

• SPX 730-740
• SPX 700-710
• After Panic Selling 
  

I do recognize that is easily possible and perhaps even probable that equities will be cheaper [10-20%] in the future.
If so next stop SPX 730-740.  If Friday’s low do not hold, it can happen as quickly!
Be prepared if that is the case- that market continue to tank rather than a bear market rally. 

Bottom Line: Be prepared for more BUYING as Investors and SARS (Stop and Reverse) SELLING as Traders!
 

SPRING FASHION AND MARKETS
When it comes to clothes it doesn’t pay to be too bullish
Designers divided: strong or safe for fall
Stock Market Translation: As in Fashion, so in markets!
 

 
KEY DATES:    FBBRUARY 24, 27
DJIA:                7260 PIVOT 
SPX:                760 PIVOT
NASDAQ:        1380 SUPPORT 1500 RESISTANCE
XAU:                125 PIVOT 148 RESISTANCE
ARRIL GOLD:    895 FAIR VALUE $1000 PIVOT
MAR SILVER:   $14 PIVOT
XOI:                  870 PIVOT 920 RESISTANCE
DEC OIL:          50 PIVOT $45 SUPPORT $60 RESISTANCE  

The Market Marker Sentiment until March 3 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
DIJA:                       87 ~ FV 7 UV; 16 offer 4%+ Dividends 10 offer 5%+ Dividends.
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. BUSINESS & BANQUETS
SPECTRA ENERGY (SE) sports a $1 dividend.  We plan to buy it at current pricing or better before May.
Like many stocks, there is a possible 10-20% downside risk. However, I believe it is clearly undervalued as are now ALL of the S:12 Energy 2009 stocks in our  premium post. We believe most, if not all will be trading higher in December than April 2009.
We like buying with Oil under $40 [$34-$36 is better]. Remember these companies are profitable at $35 Oil!  Buy some before May. 

International Royalty (ROY) is a royalty mining company that seems undervalued on an intermediate to long term basis under $2.00 

3. Lou Paquette: Gold Will Be The Last Man Standing

 Gold stocks lag metal's rise; does it signal bubble or breakdown?

"Historically, when stocks begin to underperform gold, that's a sign that gold is running out of steam."

 Ray Hanson, technical analyst, RBC

HW: Short term, D’accord.  Short term, physical gold and silver are over valued. 

4. “The market is very news sensitive and wants to hear concrete plans; it looks like Obama understood that now and will give more details. We may see a relief rally after markets haven fallen below the floor.
 Claudio Meiger, manager, Schweiz
HW: Are we there yet? 

‘The break to fresh bear market lows for the blue-chip Dow and the broader Standard & Poor's 500 index is a worrisome sign. And it could signal that more selling is coming.’
Quincy Krosby, chief investment strategist, Hartford
HW: It can also mean it is beginning to become profitable to invest ala Warren Buffet. 

"The rational investor is hiding, not investing in gold, money markets and Treasurys -- those harbors of safety represent pent-up demand for stocks."
Art Hogan, chief market strategist, Jefferies
HW: Yes pockets of greed will be appearing before the Summer Solstice. 

5. Dow Again Approaching a Ten-Year Old Support Level at a Key Time 

The 20 Best Dividend Plays for 2009 

The shopping spree is over for consumption-mad countries  

6. READER: Can you ercommond one stock that would be on your buy list?

HW:  My question to you is what risk/reward and holding period are you looking for?
Second, I prefer to buy at least three to five, not just one.
Perhaps VLO under $19. One problem is a bit early for oil stocks such as SE and PLLL (both of which I like).
A number of precious metals stocks are cheap like ROY and AXU, but think I may buy better. 

READER: In your view the market is going to do W and not a V recovery. Does that mean that we already seen the first down point of the W in October 2008 lows and we should see one more sometime soon. Or do you expect two more low points before recovery?
HW:  We may have more downside, but also we may also be at a resting pivot. 

READER: DO YOU AGREE:
A recent paper purported to show that gold returns are at least five times greater around new moons compared to full moons (Lucey, Brian M. Lunar Seasonality in Precious Metal Returns? September 18, 2008. Available at SSRN: http://ssrn.com/abstract=1270085).
HW: I never studied this. Tuesday is a New Moon.  I have gold down on Sunday night (profit taking plus astrology) and also Wednesday, but no gold view this Tuesday. 

READER: Gold for sure can tank to US $ 880.00 pto in Feb'09 and from then will test US $ 1200.00 pto latest by Dec'09. 
HW:  While nothing is for sure, I find gold Over Valued Short term and Under Valued Intermediate/Long Term! 

READER:  I moved out of most of by gold position.  You mentioned 955 pivot.  Now that we're at @980, have I missed the move?  Should I jump in anyway?
HW:  I have to yet to act.  On the up side, $1005, 1030 and $1050 are possible targets. On the downside $962, $900 and $880 short term.

Subscribers please send your comments, questions and suggestions to LETTERS.