EUROPEAN DEBTS CRISES IS NOT OVER YET
Dear Members,
Thursday all markets went crazy after receiving news from Europe that they are taking solid steps to deal of debt crises but still long way to go. Nothing has changed overnight apart from optimism but investors communities are reacting like everything is over now. In this week newsletter we mentioned that Thursday all markets would move up sharply on Euro news and this would push 24 hours rally, yes once again I warn that there is no need to jump in commodities and currencies at this stage because far better opportunity will come within next ten days. Keep accumulating S&P, in the last three weeks S&P moved more up from 1088 to 1284. I feel this is on the best advise we provided so far in the last two months.
European has taken approval of 440 billion euro’s European financial stability facility (EFSF), proving leverage up to 1 trillion euro’s. Also they modify Greek bond sweep plan to force 50% losses on Greek bond holders from the initial agreed 21%. EFSF or Euro zone doesn’t have any plan for Italy because debts is too huge they can EU won’t bale to tackle this, so Italy can save Italy, mean Italy has to do lot on debt reducing otherwise within a year this EU problem will go beyond manageable, simply EURO and EU financial system will collapse like Lehman.
Today once again I will recommend buying dollar against all currencies, as from here small negative news can be so damaging for euro and other currencies. In the last ten years all other world currencies are following euro and going against USD. Now time is changing, from here onward dollar will keep moving up on all positive news and everyone will miss one of the greatest trade, we are expecting this to take place from next week. In this week newsletter we also mentioned that dollar will move with S&P and this will going to place within next ten days.
Day trading range won’t work in day like today, when markets having huge move due to news, and these kinds of wild move doesn’t occur often. As per our current theory of days trading range we believe out of ten times nine times it will work.
Precious and base metals went up sharply, but planets are indicting that won’t able to hold today’s gain. Still metals are in danger zone for another six trading sessions.
Here is metals day trading range:
GOLD: $1753.90 to $1719.90
SILVER: $35.39 to $33.93
COPPER: $375.20 to $359.80
PLATINUM: $1655 to $1621
PALLADIUM: $677 to $655
Here is stock markets day trading range: It looks like market may start moving down from middle of day so great time to take sell trade around higher side predicted price.
HONG KONG – 20120 to 19750
NIKKEI – 9105 to 8879
DAX – 6455 to 6301
CAC – 3409 to 3328
FTSE – 5755 to 5670
S&P - 1286 to 1263
NASDAQ – 2409 to 2371
Here is soft day trading range:
COFFEE: $239.70 to $233.10
COTTON: $105.90 to $103.20
COCOA: $2809 to $2719
ORNAGE JUICE: $192 to $185
SUGAR:$27.14 to $26.53
Here is grains day trading range:
CORN: $657 to $641.50
SOY: $1259.5 to $1235
WHEAT: $655 to $632
RICE: $17.34 to $17.01
Here is energy day trading range:
OIL $94.39 to $91.88
NATURAL GAS $3.86 to $3.74
TREARSURY BOND 135.01 TO 138.03
Here is currencies day trading range:
AUSTRALIAN – 1-0659 to 1.0509
PRITISH POUND – 1.6157 to 1.5984
CANADIAN – 1.0088 to 0.9966
DOLLAR INDEX – 74.88 to 75.58
EURO – 1.4198 to 1.4069
JAPANESE YEN - 1.3212 to 1.3102
SWISS FRANC – 1.1643 to 1.1488
RUPEE – 48.81 to 49.21
RAND – 7.61 to 7.83
Thanks & God Bless
Mahendra Sharma
Thursday, 5.00 PM