GENERAL MARKET CONDITIONS

Once again it’s the US dollar story for all metals and energies. The difference this time around is that the rise is followed by huge demand in all metals. In my view if the rise in commodities is backed by increase in physical demand then higher prices are sustainable. With every rise the premium on gold and silver bars will fall in Asia.

Yesterday one of my clients went long in comex gold december future at $923 only to exit at $928 making a profit of $5. After booking the profit he immediately went short in gold at $928 only to book a loss at $931. This is one of the dumbest ways of trading. It is these kinds of traders who incur losses and curse the commodity exchanges for their trading losses. The best way to trade is to take a break between two trades, if the first trade is a profitable one. Commodity futures are one of the investing ways where profits and losses can be unlimited. Reduce of greed is the key. For the day traders then should have a target profit in mind. If the target profit is reached one should close their trading screens. If they do not close their trading screens then chances of profit getting reduced or profits converted in losses are higher as risk appetite also increases.

NYMEX CRUDE OIL (1ST CONTRACT)

Crude oil targets $135.80 and $145.60 in the short term as long as $109.80 holds.

MCXARUN
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