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

1. HAPPY SUMMER SOLSTICE
Earnings warnings threaten summer: Many observers, including yours truly, believe in the “real world”, the US economy is at best treading water and not fundamentally improving. For this reason, we expect another market leg down. We don’t expect a “Recovery Summer.”  Instead, we expect a continuing large number of bankruptcies, foreclosures, bank closings as well as a stagnant real estate market that will not rise substantially until after the job market first improves and the current over supply is absorbed - think 2011-2012, not 2010. 

Astrologically we are coming up on our third positional sell of 2010 (#1 January 15, #2 April 22 to May).  This will be triggered by the June 26 Lunar Eclipse and the July 11 Solar Eclipse.
Possible down side DJIA targets this summer are: P1 9800, P2 9200-9400 or P3 8800-9000. 

:MY INTERVIEW LAST WEEK ON CHINESE TV
Note to my non-Chinese speaking WSNW readers, this interview is in English with Chinese subtitles.
 

GUEST HYDE PARK CORNER:
Greenspan Says U.S. May Soon Reach Borrowing Limit 

Doug Casey Revisits the Greater Depression and Explains the Realities of Investing in the 21st Century
 

 
KEY DATES:    JUNE 25, 28
DJIA:                10450 PIVOT SUPPORT 10600 RESISTANCE
SPX:                1111 PIVOT
NASDAQ:         2325 OR 235O RESISTANCE?
AUG GOLD       1260 RESISTANCE?  S1 1240  S2 1235 S3 1220
SEP SILVER:    19 PIVOT  19.780 RESISTANCE
AUG OIL:          78 PIVOT 80 or 82 RESISTANCE
EURO:              FV ~ 122.50
US$                  85 SUPPORT    

Market Marker Sentiment is 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:                       6~ FV 2 UV; 5 offer 4%+ Dividends 2offer 5%+ Dividends.
US BANK FAILURES TO DATE: 83   
THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK.
 
2. BUSINESS & BANQUETS
At ThinkEquity's Mid Year Check UP on Healthcare Conference, I discovered two interesting companies:

The first is a likely buy this summer, Genomic Health (GHDX) a niche life science company commercializing genomic-basic clinical laboratory services. Subject to due diligence, we believe there is a high likelihood of a potential 50% upside by 2012.

The second Inverness Medical Innovations (IMA) we have placed on our on Health Care Watch list. It markets consumer home care as well as professional medical diagnostic products. 

3. Gold ‘Out of Whack’ With Commodities, Due to Fall
"Gold is “way out of whack with commodity prices” and headed for a fall, according to Brian Belski, Oppenheimer & Co.’s chief investment strategist."
HW: I agree. 

China Signals It Will End Yuan's Peg to Dollar along with gold futures options rotation, technical resistance ($1260) and some possible astro may cap gold’s rise this week.  While fundamentally an increasingly strong case can be made for owning gold, gold remains as overpriced as oil was at $100 or $125 last year.  Will gold reach $1300 shortly and then $1500 by year end, or have a well deserved pause and retest support?  We are placing such a bet.  However, being counter trend, we will not fight and die if wrong, but run away quickly if the gold market continues to rally. However by the fall, we plan to be rejoining the gold bulls. While that could happen earlier, we are not so inclined just yet. 

4. "It's going to be pretty choppy until the next big monthly jobs report comes out and the second-quarter earnings start in."

Ron Kiddoo, chief investment officer at Cozad Asset Management

HW:  Yes, but there is increasing downside risk ahead, as US markets are close to overhead resistance and a June/July Lunar/Solar Eclipse zone.

"There's big money that wants to own gold."

Adam Klopfenstein, senior market strategist, Lind-Waldock

HW: Yes along with plenty of little money too! 

“The recovery is not accelerating, it’s decelerating, and there’s reasons for investors to take a step back and evaluate the longevity and magnitude of the recovery.”
David Kovacs, head of quantitative strategies, Turner Investment Partners
HW: There sure are.

 5. 5 Dividend Stocks for Former BP Investors  

When stocks become too big to succeed 

Investors ignore warning signs in municipal bond market 

6. READER: Regarding BP -- what is the trade you would do if the dividend were cut or suspended...with an appropriate market over reaction?  Are you saying that if BP went UP with that news...you'd Short it?  Or, are you saying with that news you'd go Long?  Please clarify how you would trade BP under those circumstances.
HW: I would not short BP unless I did astro on it, which I have not. However, as a Cosmic Value Investor, I would consider buying it for the long term if cheap enough. The risk/reward of “blood in the streets” is often attractive.  Still, there are at least two significant potential risks that require deep discount for prudent money management mitigation: BP oil spill may not be capped until Christmas and excessive law suit damages awarded beyond the $44B-50B figure we currently project. This will determine if the 50% drop to $30 was not only a trading buy, but also a good long term entry. However, with criminal charges possible, the damages could balloon to above $66B.  Given the risks, I would not be temped to buy BP unless it is under $25, as short term, the bias risk is to the downside until at least after the relief wells BP is drilling are successful. 

READER: We totally disagree with your views that Gold prices are in the bubble range as of now @ US $ 1220.00+ pto. We repeat Gold prices will not breach US $ 1020.00 pto in the any correction anticipated in June thru August 2010 time frame. The bubble zone for Gold will around US $ 2400.00+ pto levels sometime in Mid June 2011.
HW: A bubble happens when people buy REGARDLESS of the price or pay little attention to price.  We are there with gold already. That does not mean that gold will NOT go higher or even much higher.  However, it is already sufficiently ahead of fundamentals that it is of concern. 

READER: The eclipse June 26  and July 11 with  Mars entering end of July-  unprecedented aspects portends escalating all these unprecedented ongoing global situations.
HW: Yes. 2010 Jun 26: Partial Lunar Eclipse 2010 Jul 11: Total Solar Eclipse.