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

1. Stocks Drop as Dow Posts Longest Losing Streak Since 2008.
What is next? Astrologically there is more risk until the July 11th Eclipse and thereafter. 

What will July earnings be? Consensus is S&P 500 Members' 2Q Profit Seen Climbing 27%. I believe October earnings will likely be worse.  Together this suggests a Stock Market's Cruel Summer.  Markets have retreated as forecast from their Summer Solstice highs just shy of Dow 10600.  They then reached our intermediate term target of 9698 ahead of schedule.  Will markets next stabilize and rally?  If so, we will happily short them again.  If not, we will trend follow them until valuations become more attractive and the risk/reward of owning stocks is more favorable.  In the meantime, I am trying to recalculate what the US stock market is worth. 

PLEASE NOTE OUR FOURTH OF JULY COMPUTER GLITCH WILL NOT ALLOW ME TO REFORMAT PROPERLY.
 

 
KEY DATES:   JULY 6
DJIA:                9600 SUPPORT? 10100 RESISTANCE
SPX:                 1020/1080 DUAL PIVOTS
NASDAQ:       2100 PIVOT
AUG GOLD     S11200 S2 1175 S3 1160  R1 1220  R2 1240 R3 1268
SEP SILVER:   18/18.50 DUAL PIVOTS
AUGUST OIL: 72 PIVOT 70 SUPPORT? R1 74 R2 75 R3 76
EURO:              124 PIVOT
US$                  84 SUPPORT 89 RESISTANCE 

Market Marker Sentiment is 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:                       8 ~ FV 2 UV; 7 offer 4%+ Dividends 3 offer 5%+ Dividends.
US BANK FAILURES TO DATE: 78   

THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. This coming week ahead of July earnings we plan to continue our market buyer's strike. 

Tesla [TSLA] IPO 6/29/2010 11:25.08 am NYC opened at 19 closed at 23.89 MOC; then ended the week at 19.20. Why would anyone buy this stock in 2010 (fundamentally), especially at such a high price is beyond me.  Additionally, I don't see astrological justification for it in 2010 either.  

3. Like other markets, Crude oil prices dropped to test support under $73. The fundamental reason was a report from China that manufacturing growth had slowed. Will it drop lower to Fair Value, or remain over priced as it has been?  I hope not, as I would like to buy later this summer, given upcoming cosmic indicators. 

As for yellow gold, so far $1175 intermediate and $1200 short term support has been holding. However, if enough believe the deflation story, gold could drop more.
Like black gold, I hope so, as I would like to buy later this year given upcoming cosmic indicators. 

4. “What people are now worried about is whether this correction will morph into a bear market. “If history is any guide it doesn’t look all that great.”
Sam Stovall, the chief investment strategist for Standard & Poor’s Equity Research
HW: You betcha! 

"Earnings are decent and interest rates are low, but it's a nervous environment, from declines in net worth to issues of job security. The public is unlikely to invest with this backdrop."
Steven Goldman, market strategist, Weeden & Co
HW: Why should they? 

The recovery is going to stay more muted than markets had hoped. Consumer spending will remain constrained during the coming months.
David Semmens, economist, Standard Chartered Bank
HW:  That is a sound economic forecast. One that is not likely to be accompanied by a roaring bull market short term! 

5. S&P 500 could be stuck in same trading range for a while 

Bond rally reflects gloom 

Long / Short Is Better for Long-Term Investors Than Long Only 

6. READER: Gold : We still do not understand your bearish call on Gold for June 2010 ? Look after testing sub US $ 1225.00 pto level in June 2010, Gold is again near US $ 1260.00 pto levels as of 25th June 2010. It will explode to US$ 1290.00 pto in a few weeks.

HW: As I am sure you know : CFTC Commitment of Traders report for commercials sees gold shorts at 2010 highs on renewed speculator long interest.  Our play to short the $1260 resistance zone in June as we did in May was again profitable.  While I agree that over time the risk/reward of owning gold will become much more favorable, I personally prefer not to over pay for gold, oil or stocks.