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

1. WHAT IS NEXT? WATCH OIL PRICES IN JUNE
While DJIA 9800 and 10600 are currently key support and resistance zones, it is DOW 10,000 that garners more public attention.  As such it has been tested. To some it is seem as becoming a solid base to stage a market rally in June. Oil pricing will be the key here.  However, once we are into July with new earnings and more economic reporting, things will be different. For example, consumer spending, while up 4.6% for the year, was flat in April.  The combination of high unemployment, weak employee earnings growth and heavy price discounting will inevitably lead to a modest drop going forward. As for housing, now that the government is not giving away $8000 to new home buyers, what is the motivation to buy? As for corporate earnings, you can only cut expenses so far without raising the top line before profit growth stalls.

NEW MARKET MARKER SENTIMENT:
Market Marker Sentiment (MMS) changed May 28 to Sell prenews optimism; even modest reality will move markets down! 
Last Tuesday we achieved our January 15 Intermediate Price Targets of DJIA 9864, SPX 1055 and Nasdaq 2155.
Friday, we had a new MMS which suggests we will see a lower stock market this summer.
However, we are on holiday and do not feel like calculating the next market bottom.  We plan to after the Jupiter-Uranus conjunction of June 8^th.  This planetary aspect raises the risk over the next two weeks of a powerful short squeeze. Sometime thereafter, astrologically we re-enter our comfort zone of shorting and selling. 

GUEST HYDE PARK CORNER: Market Fear Gauges: SPY, VIX, Oil, GLD, AUDUSD 

ASTRODATES
6/08 Jupiter conjunct Uranus
6/12 New Moon
6/21 Sun enters Cancer 7.30 am ET
6/26 Full Moon
7/11 Solar Eclipse 

 
KEY DATES:    JUNE 4
DJIA:                9800 SUPPORT 10600 RESISTANCE
SPX:                S1 1080 S2 1055 S4 1040  R1 1100 R2 1120 R3 1135
NASDAQ:         2250 PIVOT 2150 SUPPORT?
AUG GOLD      1200 PIVOT 1160 SUPPORT  R1 1220  R2 1240 R3 1250
JULY SILVER:  17 PIVOT 14 SUPPORT 19.80 RESISTANCE
JULY OIL:         74 PIVOT
EURO:              FV ~ 122
US$                  83 SUPPORT 88 RESISTANCE   

Market Marker Sentiment changed May 28 to Sell prenews optimism; even modest reality will move markets down! 
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:                       9 ~ FV 3 UV; 6 offer 4%+ Dividends 2 offer 5%+ Dividends.
US BANK FAILURES TO DATE: 78   
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. While markets are LESS overpriced than before, there are few bargains.  We prefer to short the NEXT rally and then to begin buying Midway into the NEXT correction.

Mexico Takes Share From China as Peso's Drop Spawns Rebirth at U.S. Border
“Company boards are asking, ‘In what country can we diversify away from our Chinese risk?’” De la Calle said. “Mexico is your best option.”
HW: Worth taking a look. 

3. "Everyone is looking for an excuse to buy gold. Today's excuse is the uneasiness with the euro."

Craig Ross, vice president, ApexFutures.com

HW: So true.

We will become gold buyers over the next few months. Currently $1140-$1160 is relatively strong support. Conversely, however, $1250-$1300 is strong overhead resistance - Hence our dilemma. Until forced to by astrological indicators, we still prefer to wait and to try to buy at cheaper prices aka buy value instead of momentum.

However, Oil will soon be bottoming, if it has not already. Those impatient for SOME gold (whether black, yellow or blue) can begin with black, although my preference here too is to err on the side of value and caution. 

4. “I don’t think we’re out of the woods yet. We have our eyes on the exit and we’re not going to be afraid to walk through.”
Ted Weisberg, president, Seaport Securities
HW: Fear not! 

“The troubles that we have are big enough to keep this downtrend going for quite some time.
Philippe Gijsels, head of research, BNP Paribas Fortis Global Markets
HW: Amen. 

“The bottom line is risk aversion has gone up.”
Adrian Cronje, chief investment officer, Balentine
HW:  As well it should in a world of rational investing. 

5. What my crystal ball says about the market 

 Put On Your Crash Helmets  

Crash is dead ahead. Sell. Get liquid. Now 

6. READER: Interesting link concerning the Euro http://www.bloomberg.com/insight/euro-breach.html.
HW: True, but the US is in worse shape.  I will still win our bet even though the ill conceived German ban on short selling has lowered the euro a point in fair value and its buy back by 2 points.  We wrote that when euro was 126- it is now 122 at fair value.
READER: Can u get me some of whatever you're smoking! hahaha...time will tell...I may also take a bet that the euro falls apart down the road (not in the short-term, though)...but for the time being let's stick with $1.09 vs. $1.30.
HW: 1.07 not 1.09.
READER: ok...sorry...forgot...$1.07 yes!!!
HW: Given 1.10 is the price target of some major hedge funds, I prefer the extra safety of 3 handles overshoot and to increase the odds of my winning our bet. 

READER: On gold: www.dailyspeculations.com/wordpress/?p=4801
“It is indeed interesting to recall the Sep 1999 Ashanti mine hedge default, their bankers covering from $255 all the way to a split second buying frenzy near $330 in the Comex pit, all in one week! They then took over a year to slowly deteriorate back to $255 double-bottom. We'll be readying for a mirror analogue, anticipating $1250 area futures double-top May 2010 “
HW: Yes.