Tuesday, 18 September 2007
Dear Members,
Fed made aggressive decision to cut half point and bring doubt in mind that either every thing is not okay in USA or it is done by purpose for Dollar. They were knowing clearly that impact of cutting half percent on US Dollar and commodities so I think they have their own planning for inflation.
Any way I want to came back on my path and I see:
STOCK MARKET
For a quite some time I have been talking about new historic high for Dow in longer term and yes we once again confirm that but I am not very much excited about other international market as they will enter in weak trend from Thursday. USA market will be the best performing market but rising trend of international market will over soon during this week.
OIL
Oil has been moving up and yes we are not doing any thing at this stage because we already mentioned in Newsletter that we will sell on Friday as we see weak trend from next week.
METALS
Gold and silver are moving up after Fed decision. My request is to watch carefully because they are not in great time frame. December gold can go higher more one percent from here.
GRAINS
Top has been achieved and I don't see they moving higher from here so there will be great selling opportunity if they open higher in Asian market.
CURRENCY
Finally worst is over for Dollar because this will force out those who have been buying recently. On the worst day still Dollar index did well as it gained sharply against Yen. Historic low for dollar index is $78.30 in September 1992.
IMPORTANT NOTE:
Mars is saying: This aggressive move by FED is done purposely to end people hope for the dollar and build faith in commodities, and on other hand to fix short term problem of credit crunch, real estate market or for recession threat. Over all investors will be happy but smart people will see a great opportunity in sifting and changing financial scenario in current world. Time will tell us that Fed acted immaturely or they have big plan behind this cut.
Dollar and commodities will surprise every after few days. Book profit in commodities and buy dollar.
Thanks & God Bless
Mahendra Sharma, 18 September