Weekly Newsletter from 22-26 September 2014
Mercury transit may bring some volatility or selling pressure in stocks & commodities
Dear Members,
There is no doubt that tech and biotech companies are ready to do everything to bring excitement but we are not sure whether these things will teach us the value of life or how to become a better human being. It looks like after 20 years we will just be taking instructions or commands from our gadgets. I don’t allow my children to use their phones or tablets on the dining table, while watching TV or during a family discussion because a few years back I notice that they were less interested in food and not enjoying eating food because they were too busy taking to their friends on FACEBOOK or watching something while eating and same thing started happening in the car and everywhere else. Thank god I made a few rules in my house. I am not trying to criticize new technology because there is no doubt that new innovations is making our life easy and helping us in many ways but we don’t want tech to take the leading role and come between us, our family, friends or the world.
Last week the market traded very calmly when all kinds of events like the FED meeting, Scotland referendum, BABA listing and iPhone launch were taking place. Investors knew that none of these events will surprise anyone and that’s what happened. Commodities suffered a huge setback, commodity investors are bleeding as they missed a great opportunity in the stock market. Also many currencies made multiyear lows like Euro and Yen. Dow, S&P made a new high during last week but Russell struggled.
This weekend Mercury joined Saturn which may give some volatility and historically October has always proven to not be a great month for investors so hold positions in selective stocks. In this book “2014 Financial Predictions” we predicted some weaker trend taking place after 18 September 2014 for a few weeks so stay away from any new buying from this week in stocks and book profit in tech, pharma and all other sector as we would like you to wait for new buying.
If you are holding quality stocks take some positions of put options in Indexes and 3x bull etf’s which will protect if any weakness comes in the markets.
Commodities will keep struggling and currencies will trade directionless. Banking and housing stocks should be watched closely.
At this stage trading in and out will remain the best trading strategy rather than buying new positions.
I received a few emails from India asking about clarification of whether gold will hold value at $1193 and $1143 levels. My answer is better stay away until mid next year, yes we are aware that Indian investors love gold investment and financial institutions have taken complete advantage of this as most of Indian financial institutions have launched ETF’s.
It is tough to answer where to invest right now, so better hold cash in hand and soon we will add more of our favorite stocks. Microsoft and Apple are two stocks that are constantly moving higher non-stop.
This week a New Moon on Tuesday may bring some uncertainty. Alibaba - BABA will be good on any weakness.
Read Indexes and stock sections here below very carefully.
Here is this week’s newsletter from 22-26 September 2014