Flash News – Day Trading News
Thursday’s Daily-Flashnews
Dear Members,
Tuesday stock market remained in positive directions on Wednesday as well; this is most exciting news for stock market investors. We still recommend going slow until next week-end because by that time all negativity will be over. Hold cash, don’t short markets or hold call options position (if you like to hedge your buying position then take very small sell position on Thursday morning as S&P will struggle to close above 1463).
Today cotton went limit up, in the last two days cotton went up more than eight percent. One can book part profit in cotton around $79.00. Precious metals, base metals energy and grains traded mix.
This is what we mentioned yesterday: Stock markets recover from lower predicted price and that is great sign.
As we mentioned in this week newsletter that this week is most important week for metals and indexes, it will be great sign if they able to bit weaker trend. We also mentioned that overall trend of Indexes is very bullish and still we believe that S&P reaching 1600 by year end. Hold your call options positions, no shorts but don’t buy any aggressive positions for the next four days.
METALS
Next six uncertain days are pending, we highly recommend to hold cash or trade in and out as per mentioned here below. Yesterday is traded as per predicted. Hold call options positions but don’t buy any aggressive position in futures. In metals on lower-side just cover position, we don’t recommend any buying.
Here is Thursday’s range (All December contract):
GOLD: $1755.90 to $1745.90 to $1737
SILVER: $33.39 TO $32.90/$32.55
COPPER: $378.80 TO $372.90
PALLADIUM: $656.00 TO $646.20
PLATINUM: $1680 TO $1660.80
SOFT COMMODITIES
Cotton moved up over 8.5% and lumber did over 8% in the last three trading sessions. One can book partly profit in lumber and cotton. In this week newsletter we clearly stated that from late Thursday we may see positivity in coffee, so time to acquire some position in it. Avoid other soft commodities.
Thursday trading range:
COFFEE: $163.40 TO $159.80
COTTON: $78.88 TO $76.05
COCOA: $2440 TO $2382
SUGAR: $20.33 TO $19.91
ORANGE JUICE: $118.70 TO $115.10
INDEXES
This is what we mentioned yesterday: In the last two months S&P went to 1463 on higher side and came down sharply from that level. Our higher side intermediate call was 1463 and lower side 1418. S&P have been hanging around between these levels.
Monday recovery taken place as mentioned in the newsletter. Tuesday also markets may remain positive. Emerging markets can be on fire, so hold your position in these markets. Wednesday and Thursday looks bit scary. So lighten up positions on late Tuesday or Wednesday. If this week passes smoothly without any damage then expect fire-works for the four weeks.
Thursday we may see both sides’ movements in stock markets so great trading opportunity is there.
Ii will be great news if markets keep moving up or if they remain stable for the next five days. S&P and world markets start roaring and by 19 December S&P may trading well above 1600.
Thursday trading range (September 2012 contract):
AUSTRALIAN (Cash) – 4598 to 4550
NIKKEI – 8937 TO 8850
NIFTY S&P (Spot) – 5651 TO 5695
SINGAP0RE (cash) – 3073.00 TO 3057.00
HONG KONG (cash) – 21468 to 21393
CAC – 3537 TO 3501
DAX – 7450 TO 7371
FTSE – 5911 TO 5857
S&P – 1463.75 TO 1450.25
NASDAQ – 2786.5 TO 2755
RUSSELL – 846.25 TO 835.75
DOW – 13551 TO 13457
GRAINS
Thursday grains prices will trade mix. Corn will trade positive so buy it.
Thursday’s trading range (December contracts):
CORN: $754.75 TO $740.50
WHEAT: $865.00 TO $847.25
RICE: $15.27 TO $14.98
SOY: $1518 TO $1497.75
SOY MEAL: $459.90 TO $451.30
SOY OIL: 51.15 TO $50.60
ENERGY
We are sure you must have taken sell position in oil, as we are expecting some weakness from here onward and prices may reach $83.30 in the next ten days.
Sell natural gas on higher side predicted range.
Tuesday Bond prices went down sharply on Wednesday, medium and longer term trend is bearish. Short term you can trade in and out.
Thursday’s trading range:
OIL: $92.98 to 90.70/89.80 (Nov)
NATURAL GAS: $3.54 to $3.37 (Nov)
TREASURY BOND – 147-25 TO 146-04 (Dec)
CURRENCIES
Great time has come to buy dollar Index, and sell all other currencies on higher side mentioned here below. Emerging markets currencies will move in the range.
Thursday’s trading range (December Future contract).
DOLLAR INDEX – 79.35 to 78.85
AUSTRALIAN DOLLAR – 1.0362 to 1.0270
CANADIAN DOLLAR – 1.0189 to 1.0103
BRITISH POUND – 1.6198 to 1.6105
EURO – 1.3183 to 1.3069
JAPANESE YEN – 1.2708 to 1.2630
SWISS FRANC – 1.0880 to 1.0797
RUPPEE – 52.97 TO 52.48
RAND – 8.59 to 8.43
Strategy:
This is what we mentioned on Tuesday:
Precious and base metals may struggle, don’t buy metals until Astro indications are clear.
Sell oil on late today or Wednesday, buy dollar against all major currencies on late Tuesday.
Wednesday and Thursday can be major turnaround day on the both sides; we may see huge volatility in equity metals, currencies and energy. We will recommend start trading aggressively once these both two days passes smoothly.
New era – Equity markets will outperform commodities in the next two years? most interesting time coming for equity markets from hear onward. We are already started writing next week newsletter. Emerging markets can surprise investor’s community from here onward. Don’t short India, South Africa, Russia, Brazil and Mexico as these markets can go on fire. Great time to buy South-American markets.
Important point to be noted – China trading around five years lows but S&P around five years high. We still warn you for the few more days, to stay away and hold cash in your account before you jump in aggressively buying.
Thanks & God Bless,
Mahendra Sharma,
Wednesday 03.59 PM, Santa Barbara