Dear Members,
Here is below Tuesday’s flashnews which we sent yesterday. Negative Astro time may start any time from mid or late Wednesday. This we already mentioned in weekly newsletter and yesterdays flashnews that some scary news may pop-up and markets may move down. We are bit concern about commodities as commodities can fall sharply compare to stocks. Dollar Index looks great buy here. Stay away from commodities, hold posiiton in coffee and cotton. Cotton already moved 4% in the last 24 hours.
Thanks & God Bless, Mahendra Sharma, Wednesday 9.35 AM Santa Barbara
Tuesday’s Daily-Flashnews
Dear Members,
Monday commodities traded weaker except cotton and lumber. Precious metals, base metals and grains fell sharply. 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
This is what we mentioned yesterday: This week very big Astro and geo-cosmic events will take place, and due to these negative combinations we may see some unhealthy economic or geo-politics events will develop either from Europe, Syria or Iran. We will see precious metal trading without any clear directions. Base metals will be trading weaker. We should watch $1737 for gold and $32.42 for silver as these will be very crucial Astro support line.
Metals went down on Monday but still Gold closed above $1737 and silver $32.42. If they start trading below these levels then we may get bit concern. We will strongly recommend buying in precious and base metals after next nine days passes smoothly. Currently just trade in and out, but with stop loss. We don’t see gold going below $1690 and silver $31.29 in the 2012, so lower side is limited. Once again our reminder is don’t do hurry in taking buying trade.
As per our weekly Newsletter we mentioned weakness in the metals on Monday but recovery on Tuesday. Wednesday we may see again weaker trend developing in the metals.
Here is Tuesday’s range (All December contract):
GOLD: $1750.90 to $1731.90
SILVER: $33.03 TO $32.59
COPPER: $372.10 TO $366.30
PALLADIUM: $637.00 TO $621.20
PLATINUM: $1655 TO $1627.80
SOFT COMMODITIES
Cotton was only commodities which traded positive on Monday. We are aware that cotton trade will be proven same as corn trade of 2006. Keep acquiring call options position in cotton and coffee for the 2013 December. Avoid all other soft commodities at this stage. Coffee will start moving higher from Thursday but upward trend in cotton will continue whole this week
Tuesday trading range:
COFFEE: $162.90 TO $159.10
COTTON: $72.98 TO $72.03
COCOA: $2380 TO $2332
SUGAR: $20.03 TO $19.52
ORANGE JUICE: $114.70 TO $109.80
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.
This week bit crucial as per our weekly newsletter, it looks very difficult of S&P holding 1418, if it breaks 1418 it may go to 1389. We don’t see SP trading below 1373 in the pending two and half months of 2012.
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.
Coal stocks are doing great since last one week, especially small mid-cap like JRCC, ANR, ACI, may keep moving higher if Obama lose tomorrow in debate.
Tuesday trading range (September 2012 contract):
AUSTRALIAN (Cash) – 4539 to 4510
NIKKEI – 8717 TO 8612
NIFTY S&P (Spot) – 5679 TO 5729
SINGAP0RE (cash) – 3063.00 TO 3048.00
HONG KONG (cash) – 21308 to 21143
CAC – 3443 TO 3401
DAX – 7328 TO 7261
FTSE – 5830 TO 5759
S&P – 1428.75 TO 1445.25
NASDAQ – 2751.5 TO 2715
RUSSELL – 834.25 TO 821.75
DOW – 13417 TO 13321
GRAINS
Grains went down sharply on Monday, keep accumulating corn but avoid buying position in other grains and also keep hedging trade of sell in wheat, soy, soy oil and meal. Soy and meal are down more than 15% since we recommended selling.
Tuesday’s trading range (December contracts):
CORN: $745.75 TO $729.50
WHEAT: $860.00 TO $835.25
RICE: $15.09 TO $14.89
SOY: $1510 TO $1478.75
SOY MEAL: $461.90 TO $451.30
SOY OIL: 50.56 TO $49.39
ENERGY
Finally time has come to build sell position in oil on late Tuesday and Wednesday. Fall in oil can be nasty one so avoid any buying position in oil.
Sell natural gas on higher side predicted range.
Sell Bond on Tuesday we will see weakness coming back, but Wednesday onward bond prices may start moving up for the short period.
Tuesday’s trading range:
OIL: $92.81 to 90.55 (Nov)
NATURAL GAS: $3.56 to $3.40 (Nov)
TREASURY BOND – 149-25 TO 148-17 (Dec)
CURRENCIES
Tuesday trend will be mix in currencies. Late Tuesday will be great opportunity to buying US Dollar against all major currencies. Sell Pound, euro and Australian dollar.
Emerging market currencies will have limited down side but surely they will trade bit weaker.
Best strategy will be taking sell positions on higher side predicted price for all major currencies against USD.
Tuesday’s trading range (December Future contract).
DOLLAR INDEX – 80.02 to 79.59
AUSTRALIAN DOLLAR – 1.0243 to 1.0157
CANADIAN DOLLAR – 1.0219 to 1.0173
BRITISH POUND – 1.6128 to 1.5995
EURO – 1.3008 to 1.2909
JAPANESE YEN – 1.2755 to 1.2678
SWISS FRANC – 1.0760 to 1.0679
RUPPEE – 53.27 TO 52.80
RAND – 8.82 to 8.70
Strategy:
Tuesday Asian and European markets should be on fire but Wednesday looks scary day. If Wednesday and Thursday stock market doesn’t fall, that will give most bullish sign for the equity.
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 now South American markets.
Must read weekly newsletter has weekly letter gives you vague picture of future coming time.
Thanks & God Bless,
Mahendra Sharma,
Monday 03.30 PM, Santa Barbara