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

1. WATCH OIL PRICES IN JUNE 

Why so many analysts were “surprised” by Friday’s job’s report is a conundrum. The sober reality of the US economy limping at best into 2011 should be obvious both from fundamental, as well as cosmic, viewpoints..  

We see US stock and Oil prices closely tracking each other this month. Commodity prices used to be largely determined by supply and demand news.  If so today, Oil prices would be far lower (short term).  However, astrologically we are soon switching to becoming bullish on oil. I believe this is more due to upcoming issues with the US$ and currencies valuation, than increasing demand or decreasing supply.  

Intermediate downside US market targets range from a high of Dow 9700 to 9550 or below. Should markets hold 9700/9800, then bulls will try again (and again) to rally back above 10,000. Currently it is hard to imagine any REAL lasting economic news that can propel US markets past DOW 10600 in June before July corporate earnings will most likely disappoint current estimates.
Bottom Line: We continue to recommend that investors wait and have a relaxing summer. 

GUEST HYDE PARK CORNER: American investors: predictably stupid 

 
KEY DATES:    JUNE 7
DJIA:                10000 SUPPORT R1 9900 R2 9800 R3 9695 S1 10300 S2 10450 S3 10600
SPX:                1060 PIVOT  1055, 1040 or 1015 SUPPORT
NASDAQ:         2250 PIVOT 2150 SUPPORT?
AUG GOLD       1220 PIVOT 1160 SUPPORT  1250 RESISTANCE
JULY SILVER:   17.50 PIVOT
JULY OIL:          70 PIVOT 67 SUPPORT 74 RESISTANCE?
EURO:              120.50 PIVOT FV ~ 122
US$                  88 PIVOT/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; 5 offer 4%+ Dividends 2 offer 5%+ Dividends.
US BANK FAILURES TO DATE: 81   
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. After Disaster, Oil Service Bargains for Long-Term Investors
HW: We may soon see some bargains in the Oil/NG sector.  Accordingly we may soon update appropriate premium WSNW web posts.

3.  “Gold was pretty much on a one-way street, and it is only natural that we see a bit of a correction. In the medium to long term, this may be an opportunity to buy into dips.”
Afshin Nabavi, vice president, MKS Finance
HW: It may be. 

READER: Gold Correction Probability in 2010: Due to Current Gold Strength, Are you still convinced that Gold will be corrected to 1000-1050 area? If so, would you please analyze its percentage of correction, and the biggest possibility to where? Many technical analysts forecast that Gold won't be going [down] so much until end of year, otherwise it'd be going up strongly.
HW: Let’s take the last part of your question first. On the downside, gold has temporary support around $1170 but could drop (much) lower. On the upside, we again see resistance at $1250 (double top). Above that is the oft repeated $1300-$1350, and then the gold bug intermediate term mantra of $1500.  As to whether gold will be correct to fair value in 2010 {$1020] is unknown. Later this year it benefits, as does oil from cosmic assistance.  Until then, I risk missing a gold rally but at least I won’t be overpaying..  That is my choice, but may not be yours.
 

4. "I don't think the selling is over by any means. It looks like we're hovering in a range around 10,000 (on the Dow), but there could still be more selling to come."

Stephen Carl, head equity trader, Williams Capital Group

HW: There will be this Summer. 

"The next level [for the euro] I'll look at is the October 2005 low at $1.18. Below that, you've got $1.09 in August of 2003. The trend has been confirmed negative on the euro and positive on the dollar."
Bruce Zaro, chief technical strategist, Delta Global Advisors
HW: I agree with your numbers and see the Euro in a short term 118 to 122 trading zone. Given we value the Euro at $1.22, we considered Friday the first of a number of potential long term accumulates as well as a baby weekend trading buy to 120.50.  

"With so many sources of worry lurking, it seems premature to declare that the flight-to-quality trade has run its full course.”
Kevin Giddis, a managing director, Morgan Keegan
HW: You betcha! 

5. Analysts Boosting Forecasts See 25% Stock Gain Defying El-Erian New Normal 

Investors continue to buy Treasury bonds despite deficit 

US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus 

6. READER: Sold my Gold investments on May 12 when gold was $1,243, per your call. Thanks. Now awaiting your next call (low) to get back into the market.
HW: Given we believe $1250 (to $1300) is overhead resistance for gold H1 2010, we prefer to wait until/unless gold is closer to its current Fair value of $1019.  This may or may not happen this summer. 

READER: We disagree with your posts on Gold. We feel that Gold will re-test US $ 1249.60 pto ( its new-lifetime high as of 5/12/2010 ) and breeze past this level in June thru August 2010. We feel the next level is US $ 1290.00 pto. We however stick to our prediction on Gold @ US $ 1500.00 pto by December 2010. We are dead sure on this prediction.
HW:  This is possible; however, it is just not our desired bet.