GENERAL MARKET CONDITIONS

Another comment this time from US president Bush that the US dollars’ decline was not ``good tidings'' for proponents of a strong dollar. If these comments continue, the US dollar’s fall and crude oil’s rise will not stop unless there is coordinated central bank intervention. Traders and investors will use a rise as an exit opportunity in equities and invest the same else where or sit on cash. Metals and energies will be volatile. The federal reserve has been trying to use a series of measures to bring the house in order but markets have ignored such calls.

China's retail sales climbed 20.20%, the fastest pace in at least nine years, a sign that consumer spending may sustain the world's fastest- growing major economy as export demand weakens. China will slowly move away to a domestic demand growth against an export led growth and will be less dependent on US exports over the coming years. If Chinese domestic demand remains firm base metals’ long term bullish trend will be there but volatility will remain high. Steel, we are very bullish and will prefer to invest in steel stocks and steel futures for long term on any five to ten percent dip. Copper, Nickel and other base metals will be volatile.

COPPER -- MAY FUTURE -- INTRA DAY PIVOT: $372.

Copper has managed to hold $372 and will target $392 and $402 once again.

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

It remains to be seen whether $112 is broken or not. Support at $106.

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