:: VOLTALITY WILL BE GAME ::

Time has finally come for both of my favorite areas of investment since 2002 (ENERGY/METALS) to act negatively. This time is fast approaching as only this week is left for rising metals (gold, silver, copper, platinum, palladium) and oil (crude, heating oil, unleaded gas and natural gas). One should therefore trade with extreme caution in these two areas as a sudden fall could result in massive losses in the futures market.

Last year I went out of metals and oil and made good profit. Indeed I would even have made more if I had waited longer but since I was following my theory; I listened and made my decision accordingly. There is therefore no regret as I entered both areas (metal/energy) in 2002/3 in accordance with the same theory. Abiding by this same theory, we took a small short position (buying put option) in gold during the last week and will take the same during this week. We shall do similarly with oil. For the first time, we shall also take selling positions in the futures market.

Platinum and cooper went beyond my expectations and will sell during this week. The most important is the stock market – and it has been moving up. However, this should be the final week for rising in all markets. For the first time I will trade aggressively- of course on the selling side. This bull is very intelligent and when time comes, he will vacate the battlefield without informing anyone. He shall simply disappear and catch some flatfooted.

GOLD Last week I included the wave chart which indicated a downward trend for gold but it did not happen. Even in the final weeks, Mars still seems to hold onto the upward trend and is making sure that opposite trade should be closed.For this week, I still maintain the same wave chart pending confirmation in a few days. Metal investors have made some good money. It is now time to stay away for a while before re-entering My higher side target remains unchanged and the maximum that spot gold can therefore rise is to $571.80. This should be the high and prices won’t move above this level for the next seven months.


OIL The fall of oil is imminent. I sold at $70.80 on the day of Katrina and will sell from Wednesday this week as the Moon will say bye-bye to the short term rise of oil. A rise will take place from Monday to Wednesday morning. However, a fall lasting a few weeks is on the way, starting Thursday. This week oil could reach high $69.80 while touching $65.20 on the lower side.


RELATIONSHIP OR DIVORCE 1. Last year I made a unique prediction – the most unique of my career I think - that “gold and dollar will rise together”, and they did. That prediction no longer holds for this year as I now see this relationship breaking up in the next four weeks. The rise of the dollar now means a weak trend for gold.

1. The rise of oil means a fall of the market but last year I mentioned that they would both act strangely. Please don’t buy the market if oil moves down and don’t short the market if oil rises.

1. The Euro zone may raise interest in the middle of the year but to the surprise of currency traders, that will result in a fall of Euro zone currencies.Both relations mentioned above shall only not work in the month of June as I expect a most volatile month. I AM NOT GIVING UP ON THE WAVE CHART. I AM WAITING ANOTHER WEEK, AFTER WHICH I THINK MY CHART THEORY WILL PROVIDE YOU A UNIQUE KEY FOR SHORT TERM TRADING. I SHALL BE PROVIDING WEEKLY CHARTS FOR METALS, OIL AND INDEXES. FOR COTTON, COFFEE AND GRAINS I SHALL PROVIDE MEDIUM TERM CHARTS

THANKS & GOD BLESS

:: SUNIL S JAIN ::


Disclaimer: There is risk of loss in all commoditiestrading. I do not guarantee profits or pre-determined loss points, and are not held monetarily responsiblefor the trading losses of others::


Disclaimer: There is risk of loss in all commoditiestrading. I do not guarantee profits or pre-determined loss points, and are not held monetarily responsiblefor the trading losses of others