Invest in certainty
Dear Members,
On one thing everyone will agrees with me and it’s the huge volatility now in the futures markets. Even metal investors won’t be very comfortable with huge swings on both sides. Look at yesterday’s move in cotton, which went limit up and then closed limit down, a full 10-point move in cotton in a day? I never saw this before. Last week on Friday grains went limit up, pushing CRB commodity index to a mind-boggling level, and then after last week grains have not been doing anything. Surely this is a concerning time and that is why puts and calls “options trading” looks so peaceful against future markets volatilities.
EURO OR EU IS SAFE?
Dollar moved big down this week, and everyone is talking negative about the dollar. Meantime, I don’t see anyone saying anything negative on Euro. I am still concerned too much about the future of EU and the future of Euro! Once again I recommend playing a safe bet let people talk that Euro is going to 1.70 but our target of Euro going below par value in longer term is still intact. Don’t jump and sell Euro right after reading this but place yourself well in a position and that you can do by acquiring puts in Euro. Astronomical indications will turn worst for the EU zone and once again uncertain scenario will develop so be careful with your currency trades.
OIL AND GAS LEFT LIKE ORPHANS
Last four months commodity bull market remained in the headlines but none of the headline was talking about oil as it seems that oil and gas have been forgotten. Most of the time historically oil was responsible of commodity bubbles but now is the first time gold is in the driving seat and in this gold party oil is uninvited. I feel very sad for oil at this stage because oil was never able to come on floor and show its dances.
When oil reached $145, we made very strong statement saying “death of oil trend”. Yes, oil killed its own destiny because of going so high, as it gave birth to alternative energy. Nuclear, solar, and battery area will grow big that you may forget about oil like today who remember “Kerosene”. Same kind of letter I was writing but very few people believed me. Yes, there will be a final run in oil before it ends and that will be 2015.
Kuwait and UAE are going for nuclear energy. Isn’t this a surprising news? But we think seriously then we can come to conclusion that is the future and we want to be well placed. Nuclear is the cleanest energy and its can take care of energy needs very well.
Famous environmentalist James Lovelock said that we are already too late to divert climate disasters because damage has been done already to the weather. He said in his interview that people should just enjoy life for the next twenty five or thirty years because unexpected weathers will start hitting our planet frequently. Anyway I believe at least we can do something. If someone has cancer he will be keeping hope to alive, he will take medicine, and he won’t say that now it is too late. He will fight so we should fight and try to not to make more mistakes and move as quickly as we can toward clean energy.
This whole week in New York, I was enjoying the ride of hybrid “Toyota Pirus”. It is an environmental friendly car with 50 miles a gallon. What else you want? By 2012/13 we will only see hybrid and electric cars. Yes oil is feeling the pain but we have to move forward.
Today I feel so proud on learning astronomical movement because since 2005, my awareness toward alternative energy has been growing and now we are at center of gravity point so from here alternative energy will start a solid journey. Plan your investment for three-to-five year time horizon and I am sure you will able to create a most unique portfolio.
Last week all major market remained directionless. Treasury bond started coming down and dollar gave first sign of recovery on Friday. Tech stocks performed better than other sectors but alternative energy, uranium and rare earth metals stocks advanced their gains.
Trading strategy from 18-22 October – Weekly newsletter
GOLD
Longer and medium term trends....
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Thanks & God Bless
Mahendra Sharma