-- Posted Thursday, 20 March 2008 | Digg This Article | Source: GoldSeek.com
INSIGNIA CONSULTANTS
Asian Metals Market Update for 20th March, 2008
GENERAL MARKET CONDITIONS
Yesterday I had mentioned that investors should buy US dollar calls and precious metals puts. I was right. The US dollar gains and the fall in energy prices and metal prices is nothing but a technical correction which is a part and parcel of a long term bull run rally. Investors should get used to such movements and if they get scared, then the best place for them is the bond markets. Risk appetite has to be increased for both the investors and the day trader else stop losses will keep on getting hit.
Base metals get cranked up very quickly. Returns in base metals are high but so is the risk. It is the physical trader which tries to create an artificial shortage of the metal which in turn shrinks the LME stocks and prices rise. Retail investors think that whenever LME stocks fall that metal should rise and they end up doing a loss making trade. LME stocks are just manipulated by the base metals hedge funds and physical traders so that the end user buys at higher levels. They are not concerned over five percent intra day swings in base metal prices as long as medium term demand is high. Retail investors, if they are caught on the wrong side, exit only when they are unable to pay margin calls. Looking at intra day LME inventories is not the correct way to trade.
We wish u all a very colorful holiday and happy Easter vacations.We will back on Monday. Day traders expect higher volatility to continue in metals and energies.
LME ZINC 3 MONTHS -- INTRA DAY PIVOT:$2287
Only a break of $2476 will result in bullish zone else zinc will fall to $2200 and below in short term.
LME NICKEL 3 MONTH-- INTRA DAY PIVOT $28580
Nickel has to close over $28580 to be in a bullish zone and target $31000 and $32000 once again.A close below $28580 will result in a slide to $26280 and below.
HAPPY HOLI
Disclaimer : Any opinions as to the commentary, market information, and future direction of
prices of specific currencies, precious metals, base metals, or equity indices reflect the views
of the individual analyst, In no event shall Insignia Consultants or its employeeshave any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
partyin reliance upon the information provided in this material; or in any delays, inaccuracies,
errors in, or omissions of Information.
-- Posted Thursday, 20 March 2008 | Digg This Article | Source: GoldSeek.com
1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com
