Friday’s Flash news (unedited copy)
Buy oil and sell metals is great hedging trade in commodity
Dear Members,
On Thursday strong rally in US equity market surprised everyone, on other commodities traded positive but gold went sharply higher. Currencies gained against USD and Thirty year recover loses in the second half of the days.
Tech and biotech stocks lead today’s rally, after mix closing on FED meeting day. Greece progress is on the way but day ended without any decisions and now they will meet on Monday.
Friday we strongly recommend selling metals around higher sides, currencies has may be another few days to move higher and thirty year will recover some more value from here onward.
Hold positions in market without fear because this week Tuesdays trend confirmed markets are ready to move higher and commodities to struggle. Hold positions in recommended stocks, todays recommended stock SUPN performed very well.
Our astro indicators are not worried about Greece nor FED so plan your trade well. This is what we mentioned Tuesday: Last week Greece dominated market trend. Commodities traded negatively but on the other hand bonds and currencies gained value on Friday. This week one should focus on FED and Greece news. Index and currency futures will expire soon so surely some big positions will be transferred to the next expiry. There is no doubt that traders and markets are stuck between the wall of the FED meeting and Greece; it looks like everyone is confused.
The Greece deal will take longer than expected, so don’t expect any great news on Monday which may force the market to remain weaker or directionless. Greece has no choice and EU won’t care much about Greece; on the other hand, astro combinations are not showing any worrying signs even if EU throws Greece from the Euro zone, so the market is in a win-win situation. Traders will win if they keep trusting the Astro cycles.
Commodities will remain in a confusing zone; on Monday, we are still recommending to sell metals around higher ranges. Energy will trade better than metals.
Currencies and bond prices may gain some value on Monday. Stay invested in the market until S&P holds the 2088 and 2062 level. Gold is trading around $1180, which is not good news; stay away from metals and if EU throws Greece out of Euro and if Gold rises on that news, it should be taken as a selling opportunity on that rise.
This is what we mentioned two weeks ago on Wednesday (20th May): Gold have been trading in range of $1225 to $1142 since one year after coming down from high of $1900 in 2011 which we predicted and since then we have been not recommending investing any money in metals and metal stocks. We are planning to recommend buying metals later this years which we already mentioned last year in Kitco interview and our website.
For medium and longer term traders trading range: Major support on down side will remain at $1180 and $1142, on higher side $1225. Breaking either side will confirm end bear of bullish trend.
Oil is trading positive and energy stocks are trading mix to negative as predicted. We still believe that oil will have touch time to cross $63.88 as predicted.
Cut or cover all shorts in grains and softs as tomorrow is our final day for ending bear trend in grains and softs.
Thirty year bond trading as predicted, but short term traders should close positions in TMT, TBT, and TTT. Also close positions in put options in futures markets.
This is what we mentioned on the 22nd of January and are holding the same prediction: Stocks are trading mixed as some stocks are rising sharply and many are falling. We strongly recommend holding positions in the market as well as our recommended stocks until S&P holds 1982. S&P shouldn’t close down below 1982 for more than two days. USA market is volatile but at the same time it has been consolidating around 2000. Tech stocks are performing very well. Precious metals and energy bounced back from lower levels on Monday. Oil held $44.55 level very well. Grains and soft commodities struggled as predicted.
So far S&P is holding 1982, oil $44.55 (these are buying levels) and gold has not been able to hold above $1307, also watch 172 (these are selling level) level for Thirty year.
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