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

1. ARE WE THERE YET?
Markets performed surprisingly predictable last week.  They seemingly found a base from which to rally; however, the underlying economic problems will not be resolved quickly or easily.  I am not sure whether we will see markets rally above Dow 10300 short term. Should they move higher in June to retest 10428-10600 overhead resistance, we would reshort or take similar market actions (buy puts/write calls etc.)  Of course, if not given that opportunity, we would sell lower if/when markets are ripe.
Given this week is options expiration, day and range trading is the order of the day. 

INVESTORS: The US job and housing markets will need years to heal.  Is that any reason for markets to rally short term?  I don’t believe so!
TRADERS: We continue to closely monitor oil prices in June.
 

 
KEY DATES:    JUNE 17
DJIA:                9700 SUPPORT 10600 RESISTANCE
SPX:                1040 SUPPORT 1140 RESISTANCE
NASDAQ:         2250 PIVOT 2150 SUPPORT?
AUG GOLD      1220 PIVOT 1180 SUPPORT  1260 RESISTANCE
JULY SILVER:  18.25 PIVOT
JULY OIL:         76 PIVOT 69 SUPPORT 80 RESISTANCE
EURO:              FV ~ 122
US$                  87 PIVOT 85 SUPPORT 88/89 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:                       7 ~ FV 2 UV; 6 offer 4%+ Dividends 2 offer 5%+ Dividends.
US BANK FAILURES TO DATE: 82  
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. BUSINESS & BANQUETS
The 2010 Morgan Joseph Best Ideas conference presented several conservative quality long range investments.
Three definitely worth owning in appropriate conservative wealth preservation portfolios: 
California Water Service (CWT) [Buy $45],
South Jersey Industries (SJ) [Buy 55)] and
Aqua America (WTR) [Buy $23].  “Blue Gold” aka water is almost always a safe investment given there can be no product substitution.  Today worries of high capital infrastructure needs will help US companies such as WTR in their growth/acquisition strategy.
[Morgan Joseph Rating and Price Targets]. 

Two companies, Internet Capital Group (ICGE) a public private equity/venture capital firm, and Great Lakes Dredge & Dock (GLDD) [Buy/$7] were also put on our watch list.
GLDD was naturally of interest given the BP/Gulf disaster.  They will clearly benefit and restrict any downside movement. Other Gulf plays such as Shaw Group (SHAW) are relatively far more expensive.  One big question is the value of BP.  It may be worth an investment or trade, but for me ONLY after the next dividend cut/suspension with an appropriate market over reaction. 

3. Worried About Their Dollars, More Are Turning to Gold
HW: Not yet on the cover of TIME magazine, we are getting closer to the bubble phase of gold investing. 

The High Probability of an Irrational Gold Bubble 

silver-to-get-more-bullish-than-gold 

Will gold and silver correct to more reasonable fundamental levels this summer?  Stay tuned. 

4. "Most of the charts of the major gauges look terrible and I think it's going to be a difficult summer."
Tom Schrader, managing director, Stifel Nicolaus
HW: I agree. 

"I don't think anybody out there thinks BP is a $30 company. It's either zero or 50. My personal bias is it's probably 50."
Justin Wiggs, vice president of trading, Stifel Nicolaus
HW: I agree. 

“Markets are paying attention to China as never before.”
David Cohen, economist, Action Economics
HW: I agree. That being said, I believe this is too much attention for its current status of number two or three economic weighting. 

5.  Double-Dip Recession? 

34 S&P 500 Stocks Yielding More Than 5% Dividends 
Most of the stocks in this list are in the utility, telecom or consumer goods sector.
HW: Q3 2010 is a good time to be defensive in portfolio! 

Stock market: crystal ball or false alarm? 

6. READER: As I have understood there is very negative astro in the general market like the QQQQ in July and August. There are also technical reasons for a nice decline now. 
But I don't want to buy PUT options on QQQQ that ends before the negative astro ends, I consider that too risky. If it ends in the middle of August I will buy options on that month. 
So what is your advice here?
HW: While more expensive, it is safer to buy September options and close them in late August.