WALL STREET, NEXT WEEK
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WALL STREET, NEXT WEEK: FEBRUARY 1, 2010
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

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

1. H1 2010 INVESTMENT CLUES
As stock markets remain overvalued, we continue to recommend waiting for better value pricing. 

According to Dorothy Belshaw. NY International Gift Fair director, the three key trends for winter 2010 gift market are:
Sustainability, “timeless classics” (traditional items with a contemporary twist) and multicultural products (design with global influences).
Market translation: Expect outperformance from 1) Sustainable Investments 2) Value and Dividends and 3) International investing or export oriented US companies. 

Trend alert: Legs, legs, legs! Hollywood's hottest fashion trend is one of contrast: long legs & short skirts.

HW: While I do not believe this indicator is reason enough to buy stocks before Spring, I find this classic bullish indicator fun to watch! :) 

ASTRODATES
1/31 Saturn Square Pluto
2/13 New Moon 9.51 pm ET
2/18 Sun enters Pisces 1.36 pm ET
2/28 Full Moon 11.38 am ET 

TRADERS: 10K DJIA Support testing success or failure? So far, the post January Solar eclipse trend is your friend. After protecting old profits, reshort any rallies. 

INVESTORS: My long term view is well known. Focus on protecting against downside risk and only buy and hold stocks with sustainable earnings at Deeply Discounted Value pricing.
Invest only in stocks at bargain basement prices that you are willing to hold until 2011. 
Soberly prepare for the reality of an L or U shaped US economy for the next two to seven years.
 

FAIR VALUE:  DOW 8800 NAS 1800 SPX 900
LONG/SHORT PORTFOLIO:  L2/S3

 
KEY DATES:    FEBRUARY 1
DJIA:                10050 PIVOT R1 10130 R2 10200 R3 10420
SPX:                1095 PIVOT 1035 SUPPORT
NASDAQ:         2180 PIVOT
XAU:                144 SUPPORT?  R1 147  R2 155 R3 164
APRIL GOLD     1100 PIVOT
MAR SILVER:   S1 16 S2 15.50 S3 15

XOI:                  1010 PIVOT
MAR OIL:          S1 72 S2 70 S3 68 78 RESISTANCE
US$                  78.50 PIVOT  R1 79.50 R2 80.50 R3 82
 

Market Marker Sentiment changing March 2010.  
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 1 UV; 5 offer 4%+ Dividends 3 offer 5%+ Dividends.

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

2. Whether 10,000 Dow support holds this week or not, we expect it broken in Q1/April 2010. 

3. GFMS Gold-Silver-PGM forecast for 2010.

While gold may trade up or down, or both ways next week, we are neither long term investors nor recommend strong buying at current prices.
However, we expect it to be within 30 to 45 days.
 

4. "We may be in for another challenging year for equities, according to the January barometer."

Sam Stovall, chief investment strategist, Standard & Poor's Equity Research

HW: From a cosmic fundamental view, that is an understatement! 

“We believe recent market weakness is a buying opportunity. Both earnings revisions and economic surprises remain positive.”
Andrew Garthwaite, analyst, Credit Suisse Group
HW: We believe there will be a far better buying opportunity early Spring. 

“People are being a little too pessimistic right now. There are some headwinds, but companies are in pretty good shape. They did a good job realigning their businesses to reflect the economic realities.”
Erick Maronak, manager, Victory Capital Management
HW: While I agree with the latter statement, I disagree that people are too pessimistic- au contraire.
 

5. 10 Stocks with Over 100 Years of Dividend Payments  

Volatility and Politics Are Feeding Fears of a Market Correction 

Experts See Another Global Dip Ahead 

6. READER: Just wanted to ask you why April 15th is important, do you have this as a cycle date when the markets may move higher or lower from this point.
HW: I wrote: We believe it is just a question of how low we go and when before April 15th. 
I believe markets will be moving lower in March/April.  Perhaps I  should have written “before April 30th.”

READER:: Star-gazers sway Sri Lanka election.
HW: Too bad astrologers don’t have more (direct) influence in US elections! 

READER: How do you see current Gold correction in Q1 2010? Will it end around $1000 before rebound? or will it just stop at $1070?
HW: It could hold (not my view), but if so, we will see it closer to fair value (1011) then in Q2 2010.

 

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