Dear Members,
On Thursday USA market closed sharply higher, currencies traded mix or both sides. Grains and softs lost value but cotton made multi-year new high. Coffee prices closed sharply lower, it breached most important levels and now $130 to $128 great buying level.
Energy prices traded mix, base metals traded higher.
France elections will either bring storm if Pen or Melenchoa because both these candidates will bring systematic and fundamental risk of current system in EU and France, but Marcon or Fillon winning won’t change any fundamental of market or France.
Many are discarding Pen but I am not, Problem is all three key candidates have Cancer Mars in chart which doesn’t allow any person to remain in power for more than 18 months. Elections will go into second round which would give traders enough time to judge and make final decisions once two candidates goes in second round.
If this election was in July then I would have immediately predicted chaos but this elections is in end of April or it can go in to May.
Take bet before the market closes today: I still recommend taking bet against Euro and buying Pound will be great bet in currency market, but Put options in euro.
Build more sell positions by buying put options in market. Don’t bet big on metals but surely any rise shall be taken as selling opportunity after elections and currently you can buy put options in precious metals and base metals.
Thanks & God Bless
Mahendra Sharma