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

1. JUPITER & PLUTO SD MONDAY!

What an appropriate time astrologically for the Fed to nationalize Freddie and Fannie. While I consider it positive that the Fed is finally paying attention to the Cosmos, will the government bailout of FRE/FNM be interpreted positives or negatively by investors?  In our view, this event could be a very short term positive. However, the reality is rather negative.  If there is a strong positive reaction among the financials stocks, we are likely to recommend selling some of our AIG at $24 to $25, instead of waiting for $26. 

• The upcoming reporting time for most MAJOR financial institutions will be poor.
• Will markets feel the worst is behind them?  [This is not reality, but COULD be at times perception.]
• Will Lehman be sold to the Koreans?
• Can “they” keep the markets UP until the November elections?  Yes and No – markets will do both. 

OUR RECOMMENDATION REMAINS: BUY BOTTOMS AND SELL TOP

This week I would be buying if “there is blood in the streets” and selling if there is a strong euphoria in the air.
Last week markets approached the H2 2008 lows of SPX 1214 and we recommended that our traders cover.  However, the next support test, we recommend holding until closer to SPX 1200 and a possible break to 1188. 

Moreover, midweek Oil stays on the brain with OPEC Tuesday and the usual Wednesday reports.  For markets to be happy Oil needs to break $105 support to be a new positive for the market.
 

 
KEY DATES:    SEPTEMBER 8, 12
DJIA:                11000 SUPPORT? 12600 RESISTANCE
SPX:                1200 SUPPORT  1250 PIVOT
NASDAQ:         2200 SUPPORT 2250 PIVOT
XAU:                125 SUPPORT
DEC GOLD:      $903 FAIR VALUE
XOI:                  1240 PIVOT
OCT OIL:           $108 PIVOT $105 SUPPORT? 

The Market Marker Sentiment OIL ON THE BRAIN UNTIL OCTOBER 3!
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 2 UV; 7 offer 4%+ Dividends 5 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.  BUSINESS & BANQUETS

At the 11^TH Annual KBRO Investors Conference at the W Hotel IN NYC, I discovered a new potential alternate energy play for us - Beacon Power (BCON). We intend to research this further. We were also impressed with the presentations made by Akeena Solar (AKNS). Also worth tracking are:The Street.com (TSCM), Jupiter Media (JPM) and Solar Power (SOPW).

We may alter our original plan for AIG.  Given the FRE/FNM news this weekend, instead of selling 1/3 at 26, 30 and 34, if there is a strong rally to 24 to 25 this coming week, we will probably sell ½.  Then if/ when it retreats back to retest $20 we would think about rebuying.

3. Gold/XAU Ratio        6.19

 Gold/Silver Ratio        65.70 

This suggests to me that gold, and especially silver and silver stocks are well under valued.  We bought on last Friday, but plan to buy more this week as traders. This means until 9/12, we will allow ourselves to be stopped out, and then re-enter as daily and hourly market conditions warrant.

Note: Hopefully we will be right in not expecting to be sweating our gold and silver investments much past midSeptember.

4. "This is not a flight to quality, it is simply a flight."

Alan Ruskin, chief international strategist, RBS Greenwich Capital

HW: When the going gets tough, the tough get going! 

"The concern over the earnings outlook for 2009 is well founded.''
Gabelli, chief executive officer, Gamco Investors
HW: You betcha! 

“We're clearly in a bear market. There is no doubt the economy is slowing.”
Simon Moss, investment director of U.S. equities, Scottish Widows Investment Partnership
HW; Clearly seen from across the pond. 

5. Is It Time to REIT Rewards?

Despite the flood of home foreclosures and a 27% drop in the real estate sector between January 2007 and February 2008, REITs appear to be pulling out of the bear cycle. But is it still too soon for investors to jump in?

Ten international stocks that will set you up for the long haul

How Utility Stocks Became Risky 

6. READER: Henry, be careful in AIG. They are pulling out of the CA auto market and screwing all their agents...Still may have a bounce from here, but their fundamentals stink. Also, mark to market accounting will hurt AIG.
HW: Using Mark to Market accounting  would turn MAKE PRACTICALLY  EVERY major financial US institution bankrupt - so that aint gonna happen! 

READER: Do you feel Gold will not hold US $ 810.00 pto in the near future? What are your short and medium term targets for Gold? 
Also which camp are you in for Crude Oil for the short and medium term  - US $ 90.00 or US $ 120.00 pbbl ? I am in the US $ 120.00 pbbl camp. Await your views.
HW: I believe by Mid September, gold will be comfortable above $800 and $810 support.
As for Oil, it is now oil 120. I believe it can be both 120 and 90 and 120 before the US elections- there are a lot of mixed currents. Next spring we forecast $90, Short term, wild swings are possible and therefore both price targets are possible.   Sorry not tot give a more clear answer – is near impossible given today’s numerous irrational and headless traders. 

READER: Last WSNW you wrote: “We currently are recommending a high accumulation of precious metals for fall/winter.  Initially I suggested buying in August under $833 to $800 OB until mid September.  Now I recommend for “safety” sake, by the end of August.  That could mean gold investors may sweat for a week or two, but as a safety hedge, time is running out.   Will gold soon retest its recent lows- it is possible:" What I'd like to ask you is:
1. What do you mean by Safety Sake?
2. Gold Investor may sweat for a week or two, but as safety hedge, time is running out?
HW: There are many geopolitical and economics risk out there e.g. Fannie and Freddie, Russia, etc.  Given my desire to sleep soundly at night, I preferred an earlier complete gold entry. While not the absolute bottom, allows me portfolio protection plus I save by not having to buy sleeping pills! Traditionally gold not only helps preserve wealth but also is desired when there is uncertainty and global risk.  More recently much of this role (post Gulf War) has been supplanted  by US bonds. However, given the sorry state of both the US economy and US treasury, it is far wiser to own a higher portion of gold and a lower proportion of US bonds if you wish to PRESERVE WEATH! 

READER: Please tell me if I put $5,000 in NG, AEM or GDX. how much can I get by end of 2008? This is just an approximate because NO one knows the exact amount.
HW: NG has the highest risk/reward upside to 10K+ but also slightly  more downside risk- 25%?
AEM smaller risk, but slightly more moderate reward to  8K+plus with downside risk 0-15%.
GDX medium risk reward  7500+ with 15% downside.
Note: You can also spread your risk by buying 1/3 of each!