Here is the monthly outlook on the world financial market:
I have noticed in recent years that two planets, Venus and Mars are playing a very important role in any trend. Venus has just changed houses and we may therefore see new trends building up from Monday.
Metals in the month of October:
Overall, the month of October will provide negative results for metals. We will find movements on both sides, but a sharp correction in metal prices will come after the first week of October, therefore avoid holding a large position at this stage. Venus changing houses may bring evidence of the dollarís turn around and weakness in metals.
Energy in the month of October:
The whole of this month, energy stocks as well as oil, heating oil and RB gas will trade lower. I expect 5 to 7 percent fall in the month of October.
Grains in the month of October:
There will be a sharp correction in grain prices and I expect a fall of around 18% in wheat, soy bean, soy oil and soy meal, and one can therefore plan trades accordingly.
Stock market in the month of October:
October will bring uncertainty for all major markets; therefore one can avoid buying any stocks at this stage. In fact it is time to liquidate the position or even take a short position by buying puts and selling calls in Asian and European markets. There will be time to buy USA, China and Indian stocks once we get over the fall.
One can keep buying uranium and alternative energy stocks against selling.
Soft commodities in the month of October:
One should avoid trading in lumber, orange juice and sugar, but coffee will remain in a positive trend in October. One should therefore expect new higher prices for coffee and stability in cotton.
Currencies in the month of October:
There will be uncertainty and everyone will try to describe the currency market in their own way. At this stage, this is a hot topic because the Canadian dollar is trading at par and the euro made a new high against the dollar. Venusí change of houses shall support the dollar and there will be a sharp recovery in the dollar. There will also be some corrections in-between that will scare new buyers of the dollar but one thing is certain: when we talk about the dollar on 31at October, it will be trading between $80 and $82.
Overall, this month will be negative for commodities as well as the stock market, while positive for the USA dollar, alternative energy stocks and coffee.