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

1. AFTER THE NEXT DOW 10425 TEST THEN WHAT?
We expect to see markets both Higher and Lower this year.
Ideally lower first, then a brief bargain hunting rally followed by another market drop. 

Outlook rosy for US stocks thanks to euro woes?
Our contrarian view is that the Euro is currently trading near Fair Value ~ 123.
From a long term Investing viewpoint, when under 123, we consider the Euro a long term accumulate. Under 118, it is a buy.
Given market conditions, unless you are an active currencies trader, it may be best to look for European exporters who will be benefiting from the current lower Euro.

GUEST HYDE PARK SOAPBOX: Ponder this: Who rescued the market last week? 

Next issue: Jupiter opposition Saturn.

TRADERS: We continue to trade technical support/resistance ranges. 

INVESTORS: My long term view is well known. Focus on protecting against downside risk and only buy and hold stocks with sustainable earnings at Deeply Discounted Value pricing.
Invest only in stocks at bargain basement prices that you are willing to hold until 2011. 
Soberly prepare for the reality of an L or U shaped US economy until 2012-2015.
FAIR VALUE:   DOW 9680 NAS 1928 SPX 958
LONG/SHORT PORTFOLIO:  L2/S3 

KEY DATES:    MAY 18, 21/24
DJIA:                10620 PIVOT
SPX:                1140 PIVOT
NASDAQ:         2350 PIVOT
JUNE GOLD     1180 SUPPPORT 1245 RESISTANCE
JULY SILVER:  18.50 SUPPORT 19.65 RESISTANCE
JUNE OIL:        72/76 DUAL PIVOTS
US$                 85 PIVOT    
EURO:             125 PIVOT S1 123 S2 121 S3 118 

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 0 UV; 4 offer 4%+ Dividends 2 offer 5%+ Dividends.
US BANK FAILURES TO DATE: 72   
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. BUSINESS & BANQUETS
Williams (WMB) Analyst day at the Pierre:   “Commodities & Infrastructure are as good as they have ever been.”
WMB sees natural gas having fundamental support at $4.50 mcf rising to $6.50 to 2012. We like Williams which is a low cost NG producer. They keep financial controls TIGHT and have strong, consistent cash flows  We see a possible upside target of $25, while $18-20 or less, would be a good buying zone. 

At Talisman (TLM)’s analyst day at the Sheraton, we heard a well managed, diversified geographically and mixed (oil/ng) e/p company. Their view: Long term Oil $70-$90 range and natural gas $5-$6
While they have no oil hedges, they sport a fair number for $6 natural gas. TLM has an upside target of $20-$22 and would be a very good buy in the $15-$16 area.  
Note: Oil has jus reached our initial selling target of $68-72.  However, in my view it is worth $58. Astrologically Oil has positive astrology in H2 2010, so I do not know if we will see $58 in 2011. Unless we do, I am holding off buying Oil companies (except for short term trading or portfolio hedges) at least until Summer. 

3. Gold's 'ugly sister' gets a second look 

We have been recommending shorting positionally gold from the $1240 zone all week and plan to continue over the next 10-12 days.
Silver came close enough to our intermediate term $20 price target that we also recommended selling/reducing exposure (SHORT TERM only.) 

4. “There’s a re-surfacing of reality.”
Daniel Genter, president, RNC Genter Capital Management
HW: Reality?  That sounds like a fairly bearish market trumpet to me. 

"Clearly the action in the euro is reflecting the fact that at least currency investors don't think the bailout plan plus the austerity measures are sufficient. The euro is leading the market down."
Uri Landesman, president, Platinum Partners
HW: To me this is just an excuse to sell an overvalued and risky stock market. 

"We're in very unusual times. Everyone is debasing their currencies, so I think having some gold is not a bad idea.”
Barbara Camaglia, head of Legacy Financial Advisors, Beachwood, Ohio
HW: I agree, it is NOT a bad idea! However, not everyone is, e.g. Canada, Australia, Norway etc. 

5. 5 Bull Market Game Changers 

Stocks Poised for Big Rally 

Five Key Strategies for Defensive Investing

6. READER: We have also predicted a correction in equity and commodity markets in June thru August 2010. 
We are however bullish on Gold @ US $ 1500.00 pto by December 2010 if not earlier.
HW: Anything is possible, but we are selling gold $1240-$1250. Currently we do not see it going much higher, perhaps to $1280/$1300-$1350 later this year. Of course that view could change.
 
READER: There seems to be 5 arguments for shorting gold now: 
1.Astro 2.Seasonal 3.Very overbought 4.positive sentiment for gold 5. Tony long term neg. 
I will buy options on GLD. But what month July? September?
HW: August options by May 21-24 (Time) or $1240 OB price.