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

1. Sell in May and go away? It still holds true, research shows: Been there, done that, bought the T-shirt!
Last week was obviously a good week for us.  However, for the next two weeks, we are without major astro indicators to guide as we had both in mid January and this past week.
We continue to believe the fundamental US news is poor and will be increasingly known. Stock correction in bears' crosshairs, yet it is still unlikely that bulls will give up without a fight. Frequent but partial profit taking (as recommended last week) should continue to out perform a “Sell and Hold” philosophy. 

HOW LOW IS LOW?
Technically SPX 1180 and Dow 11000, are key support/pivots.
Only after markets close below SPX 1180 (on a weekly basis) will more technical analysts join the bear party.
Next, markets could find intermediate term support at SPX 1155. However, it will take a market drop below SPX1140 to trigger a bull run to the first and obvious price target of the 2009 close of SPX 1115 zone.
 

GUEST HYDE PARK SOAPBOX: How to turn global risks into a competitive advantage
“Companies can gain a competitive advantage by contemplating long-term global risks, such as chronic disease and a further erosion in asset prices…
Among the top risks the group identified for 2010 in its fifth annual report: further declines in asset prices, slowing growth in China, fiscal crises as various countries grapple with rising national debts, and the spread of chronic disease.”
HW: Note their list is longer than mine because we use a hierarchy of probable risks each year.
 

ASTRODATES
5/13 New Moon 9.04 pm ET
5/20 Sun enters Gemini 11.34 pm ET
5/23 Jupiter opposite Saturn
5/27 Full Moon 7.07 pm ET
5/30 Saturn SD 

KEY DATES:    MAY 6.7
DJIA:                11000 PIVOT
SPX:                S1 1180 S2 1155 S3 1140 
NASDAQ:         2000 PIVOT 
JUNE GOLD     1120/1160 Dual PIVOTS 1180/1200 RESISTANCE?
JULY SILVER:   1750 SUPPORT 1900 RESISTANCE?
JUNE OIL:         85 PIVOT
US$                  82 PIVOT   

Market Marker Sentiment changes May 28.  
So Far: Modest Hope coupled with Realty (Disappointment).  Unlike previously, markets drop first, then usual bargain hunting rally ending slightly positive.
2009 CLOSE:           DJIA  10428 SPX  1115 & NASDAQ 2269
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 1 UV; 4 offer 4%+ Dividends 2 offer 5%+ Dividends.
US BANK FAILURES TO DATE: 64   
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2.  7 Dividend Stocks Trading Below Fair Value  

“Balance-sheet management has been stellar over the past two years. We continue to like high dividend yielding stocks as alternatives to money-market and short-duration bond funds.”
Jonathan Golub, U.S. equities strategist, UBS
HW: We agree. 

3. Richard Russell Is in Cash and Gold: 'No Time to Be Cute'

While both black gold (Oil) and yellow Gold have favorable astro later 2010, we believe both commodities are currently overvalued. Given Gold stocks are less overvalued, if one is impatient, we believe buying gold and oil stocks offer better relative value.  Still, we believe we may see a seasonable correction in gold by late May. If we are wrong, we can still make money with short term trading.  If we are right, we will get to buy (invest) at better pricing. 

Note: Despite a generally increasing appetite for risk assets, I believe there is always good reason to own some gold as a hedge as well as for portfolio insurance.  

4. "We're on borrowed time (for) people wanting it to run much further now and we're entering the irrational exuberance level."
Robin Griffiths, technical strategist, Cazenove Capital
HW: We agree. 

"There are no signs that the market is about to embark on a sustained decline."
Phil Roth chief technical market analyst, Miller Tabak
HW: Look up! :)

“I’ve gotten more bullish in the past several weeks. The economic numbers, and as a result the earnings, are going to surprise people to the upside over the next couple of quarters.”
Jason Trennert, chief investment strategist, Strategas Research Partners
HW: Let’s see who is surprised this coming July earning season.

5. Technical Support: Signs Point to More Stock Gains

Why Rising Bullishness Could Derail Stocks 

The Small Cap Bubble Is Ready to Burst 

6. READER: Do you think we will see a significant sell off soon?
HW: How do you define “significant”?  How do you define “soon”?  Let’s say the bull case for a rising stock market in Q2 & Q3 2010 is becoming weaker by the day. 

READER: Would agree that the very best and most fantastic "shorting" opportunity all year will be in late July/Aug when the CARDINAL CROSS is in place?  Isn't that the perfect storm for a "market crash?"
HW: Depends on how much money is made from April 22-April 30 shorts!  However, mid-late summer is currently planned as our third market short in 2010. 

READER: Will gold pass 1200 area in this May?
HW: Good question. We don’t believe gold will pass $1220-$1240.  Currently $1180 remains midterm resistance. However, a brief move up to $1201, or a $20 move, is only an insignificant blip and could easily happen. 

READER: Your advice to get "short," especially this week -- is looking very smart...so far.  Next week we have the Unemployment numbers on Friday.  I heard Jim Cramer at CNBC say that he feels very sure that those numbers will be very positive and cause the market to RALLY big!  Would you stay "short" throughout the week and then, get out Thursday?  Or, would you remain "short" even in the face of a very positive, Rally-Making, Employment Report?  What is your advice?

HW: We do NOT answer such questions here as we are not acting in the capacity of managed money, but as a newsletter advisor. Different WSNW readers have different time horizons and trading and investing philosophies. What is right for one is not necessarily right for another. I would say that in general, it is positive for bears if bulls are bullish ahead of Thursday/Friday.  If so, the “good” news will be “built in”. If not there will be disappointment.  

Personally with my Moon in Libra, I like to take SOME profits often and let SOME ride. If markets rally, I have SOME profits.  If they drop further, I still have some profits.  I follow the old adage: Bulls make money, Bears make money and PIGS get slaughtered! 

READER: For many weeks you've advised waiting for GOLD (and SILVER) to pull back for a better "buy-in" price.  But GOLD looks poised to break $1,200.  So, at one point are you ready to say that GOLD will not pull back any further?  And at what price and at what time...are you ready to say BUY GOLD now?
HW: As a trader I buy and sell Gold often and can make money on either the long or short side.
As a Cosmic Value investor, I personally do NOT like to buy overvalued instruments.
I prefer to miss the opportunity and sometimes I do. While I may do some trading buys (or sells) on gold, I am NOT ready to BUY AND HOLD!