Update for Wednesday
Inflation numbers were a surprise to everyone but as far as am concerned, it was no surprise. On Tuesday metals traded weakly and many must have sold on my recommendation on higher prices. I recommend that you hold onto your short position since for the next few days there will still be a downward trend. Metal could fall more than two percent from current prices.
Side metals should remain weak so trade accordingly. Copper is ready to break the $300 mark and $280 is the first target on the down side.
IMPORTANT INDICATOR: Since last week I have been giving you a very important clue of not buying metals till gold breaks $629.80 and trades above this figure for forty-eight hours.
Oil should trade directionless and there is therefore no need to be involved in something confusing and whose direction is unclear.
Grains should trade weakly on Wednesday and one can therefore take the opportunity to sell for a short-term period.
Coffee traded positively and should move up after a volatile Wednesday.
Cotton gained a little bit and we started buying very small quantities. I recommend the same to you on weakness.
Treasury bonds should remain weak. One can therefore sell the thirty-year bonds.
As predicted, the stock market went down till lunchtime and then there was a sharp upward move. Don't short the market on today’s opening, but one can sell small quantities on Thursday for the short-period because the S&P and the Dow are in a bull market. Indeed I won't be surprised if the S&P moves another 80 points from here.
The Dollar remained positive and it should continue to trade positively. Today we will see a sharp downward trend in the Euro, Pound and Swiss Franc.
I wish you good luck in your trading.
Thanks & God Bless
Tuesday 22:05 Santa Barbara
It was a surprising day since metals remained weak on a positive day, even though they sharply came up from lows. I am therefore not encouraged by Monday's action and can only say it is disappointing as metals have shown a weak sign. On Tuesday metals should remain positive for a day and selling on higher side (at the predicted price in newsletter or above $630) should prove beneficial in coming days. We will sell all metals on Tuesday morning.
Oil remained weak on money and it wasn’t surprising as we expected a weak trend. In coming days metals could make lower prices but I recommend not trading in oil for some time.
Grains opened higher and traded stably except Soybean, which was weak. I expect soybean to trade sideway, corn and wheat to trade higher on tuesday. Wheat and corn should move up and one can buy on Tuesday.
On Monday coffee was sideway. Buy coffee in the last hour of Tuesday trading as I see a higher opening on Wednesday. I can see a sharp rise in coffee and you can therefore have coffee chart as well as live quote on the top of your desk and watch closely.
Cotton remained weak as expected. We have been not recommending cotton since the last few months but we are very close to buying time. Buy very small quantities on Tuesday as the next one month is a time for accumulation.
The stock market remained positive as predicted and it should remain so for another two days toward new high. I advise selling the S&P on Thursday. Day traders can sell the S&P around 10.40 AM and buy back at 13:50 before lunch time is over in New York. Look for four points. S&P in bull market and they will remain up.
We sold the thirty-year treasury bond on Monday and made money. We will sell more on Tuesday on higher side but cover the short by Friday since this is a short-term trade.
Finally, the US dollar gave us handsome gains but this is just the start of the journey. The Canadian and Australian dollars went down sharply with the British pound. We are short in all these currencies and will remain short. We recommend selling these currencies on Tuesday as well.
I am enjoying drinking coffee, keeping green note in my side pocket and just walking with trend of wall street.
Thanks & God Bless
Monday 18.30 Santa Barbara