1. JULY MARKETS
2. UP STARS/DOWN STARS
3. GOLDEN OPPORTUNITIES
4. JULY SOLAR ECLIPSE
5. QUOTES
6. ON THE WEB
7. LETTERS 

1. Hello, 9000! The Dow's Run Is Far From Over
Even if there is a slow, bumpy recovery, don’t forget about the annual fall correction/crash. Market historians and astrologers know this can also happen earlier in August or September or later in November.
July 21 Pre-Eclipse numbers  Dow 8915  SPX 954  NAS 1916.
We still expect a 10%+ correction over the next 90 days from these prices. Currently we are still betting on sooner, rather than later. 

EARNING TRENDS: Absolutely Bad and Relatively Good
Earnings are coming in much better than expected in the early going.
HW: This is largely due to cost savings and cautious earnings estimates. The widespread lack of revenue growth is not a sustainable long term profit growth strategy. Even if we have seen the worse in earnings, I strongly believe the next quarter earnings will NOT be (much) better. Depending on analyst expectations and stock market prices at the time, this may not be considered acceptable or worse, should markets be as high as they are now or higher. 

INVESTING NOTE: If you cant contain yourself and MUST buy (something I don’t recommend), consider undervalued quality small cap producers in energy and natural resources.  They are likely to out perform and play catch up as the risk tolerance of investors continues to increase. 

GUEST HYDE PARK SOAPBOX: US markets: Don’t thank your lucky stars just yet

If you’re thinking recovery and green shoots, think again. Robert Gover, an economist-cum-astrologist, says the planetary alignments portend a decline in the US markets beginning in August, accelerating into a crash by October. A Grand Cross, whereby four planets form oppositions to each other in outer space that resemble a cross on a celestial chart is what is coming up, says Gover. Grand Crosses were present in all of the US’s severe depressions. It’s going to be lumpy for the stock markets from then until 2012, when it will get worse until 2015. So much for green shoots. 

 
KEY DATES:     JULY 27, 31
DJIA:                 8915 PIVOT
SPX:                 954 PIVOT
NASDAQ:         1916 PIVOT
XAU:                 145 PIVOT
OCT GOLD:       850 PIVOT
SEPT SILVER:  13.60 PIVOT
XOI:                  900 SUPPORT 1000 RESISTANCE
DEC OIL:          68 PIVOT 65 SUPPORT 75 RESISTANCE 

The new Market Marker Sentiment has Less Volatility and Market Cross Currents.
Stocks Meander slightly ahead and favor defensive plays. The US$ doesn't collapse and Commodities may not be needed as a safe haven panacea.
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:                       6 ~ FV 2 UV; 7 offer 4%+ Dividends 3 offer 5%+ Dividends.
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. Canada's recession is over?
According to the Canada’s Central Bank, Canada is ahead of the world in emerging from the recession. They do acknowledge there are still hurdles.  While we for good reason overweight Canada and the Loonie, we think this pronouncement is pre-mature. 

3. Natural Gas ETF Falls More Than Fuel on Record Supplies as Shares Sell Out 

Natural gas seen as too cheap to ignore

On paper, the case for investing in natural gas is straightforward: It is a clean, largely domestic fuel now selling at 74% below its peak price of a year ago. 

With Oil vs. NatGas, Something Has to Give
The cheapest valuations in at least 14 years are making oil companies too alluring to pass up for UBS AG and Guggenheim Partners LLC, even though earnings in the industry may fall 48 percent this year.
HW: Bottom line: When you believe Oil will rally, buy Natural Gas (NG) or NG stocks and indices. 

3. Gold’s Rally May Stall, Standard Bank Says: Technical Analysis.
HW: Given some negative astro for Oil and Silver this week, we are still patiently/impatiently waiting to buy precious metals. 

4. Solar Eclipse 

Solar eclipse pits superstition against science 

Monsoon, crude may get boost post solar eclipse 

Two favorite comments on this eclipse:
1) As per Brihat Samhita, the prices of onions, bananas, potatoes, spices, and Silver will rise
2) As this eclipse will last 6 minutes 39 seconds, we can expect nearly 7 more years of recession.
HW: Both are good news as 2016 is coming plus I am bullish on Silver starting this Fall. 

5.  “The outlook over the next few quarters is improving.  We see the recession likely ending by the end of year but that is not without some months of turbulence.”
Jeffrey Roach, chief economist, Horizon Investments
HW: If a recovery, we will still be under 2.5% growth and it will FEEL like a recession to most. 

“Investors should now revert back to an overweight position in equities. We are halfway through the first ‘V’ of an upward sloping W-shaped recovery, with a likely peak in the early fourth quarter.”
Andrew Garthwaite, global strategist, Credit Suisse
HW: This model doesn’t seem to include a Fall or late Summer correction in equity pricing? 

“After the recent gain a consolidation is more than overdue.”
Claudio Meiger, managesr, Schweiz AG.
HW: Astrologically some time after the July Total Solar Eclipse but before the Fall Equinox! 

6.  Harvard Economist Feldstein Detects Risk of `Double-Dip' Recession in U.S. 

7 Reasons Why Housing Isn’t Bottoming Yet | The Big Picture 

5 Signs of a Strong Dividend Stock 

7.  READER: ProShares UltraShort FTSE/Xinhua China 25 ETF (FXP) Interesting fund considering the coming eclipse over China??? I got some!
We will see how gold holds up after the eclipse, but it did not fall last week, and the Friday prior (7/10) was an interim? bottom. I was correct on that, but did not buy more. However, I am keeping enough cash and waiting for the right opportunity.  I do think that the China play above plus shorting the general market should boost cash holding soon when they are sold.
I do worry, though, that China may suffer some disasters that cause them to repatriate funds from US treasuries that could tank the dollar and cause gold to rise further, thus not allowing the extra cash to be put to work at a lower price.
HW: We all know the famous Chinese “saying/curse”: May you live in “interesting” times! :)
Gold may rally, and of course eventually it will, but at the moment we believe it is “over valued”, not that that has stopped any previous mania! 

READER: SOLAR ECLIPSE is not visible in USA like in China and India, do u think it will have effect in USA stock market?
HW: We live in a global world and remember eclipse effects linger for up to one year!
It will be interesting to see the price action of the Chinese markets between September 10 and September 23^rd. Reference. Monday Shanghai Exchange 3266. 

READER: Do you think the prediction below is likely and if so, how would it affect gold?
Looking ahead, one of the next big crash dates could possibly be Black Friday, 14th August, 2009. Here are the reasons, in order of importance. 1. Saturn within orb of opposing Uranus. 2. Lunar node in Aquarius (nadir of the down cycle - Louise McWhirter's theory). 3. Sun opposing Jupiter and Neptune. 4. Mars squaring Uranus.
HW: I think it is not too far from that date, but after. 

READER: Can u be little more clear about china and India. Do u think immediately after solar eclipse markets there will start crashing or it will take time and to what extent effect will be?
HW: I believe the primary effect will be felt within the next 90 days. That suggests reducing or partially hedging one’s exposure to Chindia. If accurate, that is sufficient warning for investors to protect themselves. 

READER: Do you think the price of gold will come down sharply as well? Arch Crawford seems to think the eclipse may make gold move a lot higher 
HW: It is possible, but I am not bullish on gold short term. 

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