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

1. BEAR MARKET RALLY:
OVER NOW, OVER JUNE OR OVER JULY?  SPX 1430 OR 1450 Q2 2008 TOP? 

WE RECOMMEND SELLING AT CURRENT OR SLIGHTLY HIGHER PRICES ANY STOCKS YOU DO NOT WISH TO OWN PAST NOVEMBER 2008.  While Markets may continue to rally climbing a Wall of Worry, we believe we will be able to buy UNDER SPX 1300 by Late Summer or Early Fall.  Should oil drop shortly,  we could see a short relief rally. Should Oil continue to rise, it is over now, not later. 

THE QUESTIONS LONG TERM NVESTORS NEED TO KEEP ASKING ARE:
THE US ECONOMIC SLOWDOWN/ RECESSION How long will it last? How bad will it get? 

ASTROLOGERS FUND vs. GOLDMAN SACHS
We don’t believe US stocks will continue to advice in spite of oil surge.  Our bet is $110 before $140.
However, the Oil bubble mania may be a lot like the Internet bubble was for us.  We lost money shorting YHOO at $120 (exit $130’s), $160 (exit 170’s) and then shorted from $200 to under $30.  Oil demand is dropping not only in US but also in China. Eventually the Oilnuts will realize that. This week? Next month? Sooner or later markets DO intersect with fundamental reality.  As a trader, I hope sooner rather than later. As an investor, I am far more patient.  Be forewarned! 

KEY DATES:     MAY 20, 23, 25
DJIA:                13000 PIVOT 12700 SUPPORT 13180 RESISTANCE
SPX:                 1425 PIVOT 1400 SUPPORT?  1430 RESISTANCE

NASDAQ:         2525 PIVOT 2450 SUPPORT 1550 RESISTANCE
XAU:                 185 PIVOT
JUNE GOLD:     900 PIVOT S1 880  875 S3 850 R1 905 R2 912 R3 930
XOI:                  1600 PIVOT
July OIL:           126 PIVOT 118 SUPPORT 128 RESISTANCE 

The Market Marker Sentiment is:  Worry and HEAVY Recession Fears change May 23-June 5.
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
2007 CLOSE:           DJIA 13264, SPX 1468 & NASDAQ 2655
2006 CLOSE:           DJIA 12463, SPX 1418 & NASDAQ 2415
2005 CLOSE:           DJIA 10717, SPX 1248 & NASDAQ 2205
DIJA:                       2 ~ FV 0 UV; 6 offer 4%+ Dividends 3 offer 5%+ Dividends.
Looking ahead, my question is whether 2008 will show less than 2% growth or be a classical recession?  
THINK SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2.  We are recommending EXITING MARKETS MAY to July circa SPX 1425-1450.  The major exception is natural resources which we planned to start slowly, accumulating by early June (a bit late or on time, still to be determined). 

3.  We are not yet comfortable that $840 gold support is “solid”. On the other hand, if Oil bases at $126, and then moves UP towards $140, then gold will likewise base at $900 and move above $1000.
Tuesday may be a critical day for markets, Oil and Gold.  Intermediate term, circa $126+ remains our “line in the sand”. 

4. We've been getting good economic numbers and earning numbers, which overall have come in better than expectations."
Paul Mendelsohn, chief investment strategist, Windham Financial Services
HW: Good?  I would hate to see “bad” numbers! 

“The U.S. economy is in the midst of a pronounced slowdown, with very little growth recorded for two consecutive quarters.''
Dennis Lockhart, Atlanta President, Federal Reserve Bank
HW: Aint it the truth! 

“There are definitely pockets of value in this market.”
Mark Bon, fund manager Canada Life
HW: I think this is most definitely true with select small and midcap precious metal stocks.  Elsewhere I am not so sure. 

5.  For Bill Meridian, it's all in the stars 

Bullish newsletters versus bearish analysts 

Buffett: Dissecting Buffett's portfolio 

1. READER: RE: DMC Wednesday May 14 “By MOC We look to SARS  circa  SPX 1423 and Nas 2537 with trailing stops.  We will be short by next Tuesday and begin slowly shortly.”
What is the meaning of SARS?
HW: SAR(S) Stop And Reverse.  See our Common List of Acronyms .