GENERAL MARKET CONDITIONS

The metals rise is all about a weaker US dollar and higher crude oil prices. Base metals were volatile as they fell after the OECD growth forecast was reduced to two percent for 2008. Thereafter they pared all their losses. Base metals will be volatile for the rest of the week as global economic growth will not be as good as markets expected. Markets will be looking forward to the European Central bank meeting to see if they comment anything on the stronger euro. Higher commodity prices will prevent the ECB from cutting interest rates. Tomorrow’s February payroll number will be the key as the worst gets factored in. There could be liquidation of longs if the numbers beat market expectations.

Traders and investors have started investing away from equities into commodities. This is one of the prime reasons for the rise in prices. Commodities are one those investments which if you start trading are addictive in my view. If you start trading in commodities you may even miss your date with your girl friend or miss family get together if it is on a week day. The prime reason is that commodity markets are open five days a week and nearly twenty four hours a day. A person can return from his work and trade after his office hours unlike equities which have limited trading hours. Like I wrote yesterday commodities are universal in nature. One can also trade in equities twenty fours hours a day but in a different country and you need to have proper knowledge of the scripts which you trade. No additional research needs to be done for commodities. We will continue with the commodities and equities differences tomorrow.

COPPER -- MAY FUTURE -- INTRA DAY PIVOT: $389.0

Only a break of $402-$404 will result in $418.80. On the lower support at $389.70 and $380.60

NYMEX CRUDE OIL -- FUTURE -- INTRA DAY PIVOT: $106.0

A break of $106 will result in $108.65. On the lower side only a fall below $102.60 will result in $100 and $98.40

MCXARUN
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