Dear Members,
Wednesday USA equity advanced, Bernanke press conference ended without giving any major clue to investors. We feel these things are not that important because at this stage Greece or EU issues are more important than anything else.
Our view still very positive on USA equity and USD regardless what happens in EU. We still recommending avoid any big position in commodities as risk is higher than rewards. Buy dollar on weakness, buy natural gas on weakness and avoid rest of commodities.
ECB will be meeting tomorrow for rate decision, early this year we call biggest blunder of Trichet when he raised rate, we said that he is gone crazy as this was pro EURO action without considering debt situation in EU. He always wanted euro to climb higher against USD and he kept ignoriat debt situations in EU. I don’t know why no one pointed out that event, anyway this is history now but for his pro Euro action will cost EU lot in the coming time. Now EU have left no choice than reducing rate at least 0.5 point by year end.
Here is below Thursday’s trading range for metals, currencies, indexes, soft, grains and energy:
Thanks & God Bless
Mahendra Sharma
Wednesday 5.00 PM