13/03 Thursday market update
DOW/WALL ST: Trend direction is still up but peak may be at hand
Dow is resilient - up to almost neutral on market close from initial downside of almost 90 points on opening. Dow is still not able to create new high. SP hit the lower short term support 1854 and then rebound to the first support 1866
Aggressive trader (1-5 days): Hold SP short entry at 1867
Conservative trader (Major trade): Wait for more technical confirmation to short around 24 March onward
GOLD SILVER: Ukraine/Russia tension is on and referendum for Crimea is on Sunday. Look like Russia is determined to annex Crimea. Gold can at least hold or go up to challenge 1380-1425 before Referendum. Silver is weak initially due to the collapse of Dr Copper and growing fear of China’s slow down.
Aggressive trader (1-5 days): Hold Long in gold and silver. Might have to exit by Friday or partial exit at 1380
Conservative trader (Major trade): Wait now for reassessment
ASX: Very weak last night but also rebound strongly. Following DOW but growing fear in China' slow down and the breakdown in Copper might put extra dpwn ward pressure on ASX
Aggressive trader (1-5 days) : 1. Reshort FMG from 4.95-5.05 2. Hold BDR and SLR for more gains. May have to close all gold stocks on Friday.
Conservative trader (Major trade): 1. Short FMG from 515-520. 2. Hold BDR and SLR for longer term– depends on Gold/Silver price
Major trade need WAITING ( major account) with wider stop loss. Aggressive ( small account) is for quick trading only. Allocate 70% to major trade and 30% to quick trade.
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