Tuesday, August 30, 2011

Massive opportunity to get in short

There has been a very strong inverse relationship between gold and equity markets for quite long now. Looking at this gold is back to its previous levels and equities haven't gone down. This has been a very sharp movement for the equities upward but it can be big fall down from this level. The natural calamities all the globe is like adding salt to the wounds. This is not helping. Every country's finances are drained with these uncertain events all over the world.

With this uncertain chain of events the technical and fundamental reasons me to be long the gold and short the equities worldwide. These are quite volatile times and I would like to be on short side of the equities as the basic problem of debt crisis is not addressed properly by the western world. This can be a double dip!

Wednesday, August 24, 2011

Sense some selling again

This can be an end to the US superpower regime. How can you force a person to resign if he downgraded a country?? There is no way you could hide the structural problem in your country. It is near to a default and there is no way you could hide that. Every wrong step taken by the country is forgotten to overcome 2007 credit crisis debacle. Its the time to pay that is pay back the excessive quantitative easing in form of a slump or a depression. The demise of capitalist regime under democratic framework seem to be quite evident.
Crude oil seems to be loosing its air and has a possibility to come off whereas right to buy gold when it has dipped quite sharply.

Friday, August 19, 2011

The markets bullied by big bears

There has been an unwanted delay created by government of western world to declare an economic world declining into recession. For past few weeks, the European countries especially France tried to stop short selling in banking stocks but the results don't seem to favor the cause. The systematic deficiency in huge leverage taken by the debt world cannot be overlooked by banning short selling. Again my argument is strongly against wrong addressing of issues by bureaucratic authorities. The demise of capitalism is substantiated by government's wrong acts. I could see double dip recession very much there with US dollar losing its value if Quantitative Easing is done the third time.

In oil market, Brent and WTI Crude have already shown steep fall and there will be now shock if it comes off drastically with gold going up. With no buying capacity the oil products might take a dip down. The economic indicators are still not worse but there is a huge scope of situation worsening to an unimaginable level. No Economy in world is able to get proper growth with these debt issues.

Trade well and be sure.

Thursday, August 11, 2011

A relief day

The stocks came back a bit with traders involved showing a sigh of relief. But is this kind of upward movement sustainable?? I don't think so. There is so much more to loose for so many odd fundamental and technical reasons. The US national debt is increasing by $5000 every single second. The United States Of America needs another baby boomer generation which is a possibility but with not these kind of expenditures. The commodities are priced in terms of US dollar, most of the massive economies like China hold US Treasury bonds, US is about to quantitative ease for the third time. Seriously speaking there is no real value in this particular currency and for me we are heading for a financial disaster again.

Austerity Vs Excessive spending debate

Both America and Europe had their own way to deal with this financial crisis. If you ask me both of them are crappiest idea in their respective narrow brains. This shows lack of focus in their government's policy to deal the basic problem of bubble formation in their economies. Rather than dealing with this problem they are trying to be mischievousness young boys trying to escape problem for a short span of time.

I have currently come through on news channel saying Dow tops 11000 and I sensed some USD in my accounts.

Trade well and be safe.

Wednesday, August 10, 2011

Sell!! Sell Sell

Markets offered great opportunity yesterday to get in some short positions on global stocks especially bank stocks. The stocks don't seem to go up at all whereas gold is ballooned up just as a security for lay man. The shares like Walt disney and various banking sector stocks came off a substantial propostion of their market value. There is currently no signal of any kind of buy for me in this market. No stock or any company seems to please my eyes as everything is over capitalized compared to original market value.

Banks or government re-financed debt???

These western banks don't seem to stand back up after major debacle of 2008 sub prime crisis. The most important mistake has been the government intervention in securing their debt. Its a funny situation in the end where government bailed out banks and got bankrupted themselves. It is very funny indeed because it provides unnecessary volatility in the market. The VIX Index was over 20% and it was recorded one of the highest for this year. This unnecessary volatility attracts various speculators who take advantage and make millions. How can a economy be sustained if its based on speculators??

Is electronic trading an improvement compared to floor trading?
A hell no. Electronic trading of derivatives have made it worse as it just promotes speculation with better technology . We are heading for the times where these derivatives products will create huge animosity among the so called civilized people.

I still believe and firm on my opinion on DOW, Sand P 500, NASDAQ or any other global stock index. A big Sell.

Trade well and be safe.

Tuesday, August 9, 2011

Market Panic?? No believe me

Looking at global stock indices there is nothing to be shocked about. This was very clearly evident with the US federal bank policy of printing currency without any reliable source of financing debt. Looking at economic indicators of the US economy everything was very much taken care of my US economic authorities with unreliable ways financing the debt. There's an oppurtunity cost to pay in every case. In this case it is a huge cost of being degraded to from AAA to AA.

Is this the end?
A big NO. The fundamentals of whole western world are not really good and technical charts according to speculators signal a big sell. For me to take a view on this market, I will be selling stocks very aggressively. The time has come for a shrink. It is a continuation of shrink from 2008 where most of the banks were given bailout for no reason. The economy can shrink to the worst creating a mass of unpaid debt.

Looking at oil. It was testing or hovering around this level for nearly whole british summers. This aggressive selling for me is a strong signal for a sell down.
Interesting observation?
News on CNBC says how much will oil fall this time. They give a random number justifying their analysis with manipulated guests displaying their unwanted analysis.
My answer to this question would have been markets can touch the bottom which we can't even dream about. Last time crude oil touched $38 and it can be lower this time. So no definite number for this downward trend.
Trade well and be safe.