-- Posted Thursday, 14 May 2009 | Digg This Article | | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
The direct correlation between stock prices and base metals and energy prices continues. The drop in US April retail sales resulted in rise n safe havens and fall in base metals and energies. Yesterday I had mentioned in my daily report to be cautious while investing in commodities at higher prices and I was right. The medium term bull run in all commodities is still intact. However there will be corrections or profit taking at higher prices if negative news comes in. These dips should be used as an investing opportunity.
Obama government now wants to control the over the counter derivatives market. Federal regulators proposed subjecting all over-the-counter derivatives dealers -- whose trades are not made through an exchange, making them hard to monitor -- to "a robust regime of prudential supervision and regulation," including conservative capital, reporting and margin requirements.
Our view
There are times when we see all of a sudden big moves in the market without any reason. These may not happen or will happen less frequently. OTC traders do manipulate the prices which in triggers the options markets and further option short covering or short selling as the case may be. Regulation will also mean state takes control on the OTC trades and manipulate them as per their needs which will impinge on the independency of the financial markets. There are positives as well negatives for the same.
TECHNICAL VIEW
COMEX SILVER JULY
$1400-$1460 is a neutral zone and silver needs to break this zone for $1535. On the lower side $1305 is the key support.
DISCLOSURE: NO POSITIONS
Disclaimer:Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information.Nothing in this article is, or should be construed as, investment advice.Prepared By Chintan Karnani. Website www.insigniaconsultants.in
-- Posted Thursday, 14 May 2009 | Digg This Article | Source: GoldSeek.com
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