THE COMMODITY MARKET IS NOW AT A TIPPING POINT IT ALL DEPENDS AS TO HOW EUROPE FARES IN THE COMING DAYS

GOLD HAS HIT AN ALL TIME HIGH IN THE INDIAN MARKETS AND IS NOT GOING DOWN DESPITE FALLING GOLD PRICES INTERNATIONALLY BECAUSE OF THE WEAKNING RUPEE

THE SAME ALSO HOLD TRUE FOR CRUDE PRICES

IF THE RUPEE APPRECIATES FROM HERE YOU CAN SEE SOME EASING OF PRICES IN GOLD AND CRUDE AT THE MCX

COPPER AS LEAD INDICATOR IS IN PERFECT COORDINATION WITH THE WORLD  MARKETS

SO WHAT WILL HAPPEN NOW

TO ME IT SEEMS THAT EUROPE PROBLEMS ARE INCREASING INSTAED OF DECREASING AND THE RISE THAT WE SAW IN THE EUROPEAN MARKETS IN THE LAST MONTH CAN BE REVERSED AND WE CAN SEE A MAJOR DOWNSIDE FROM HERE

I EXPECT COPPER TO LOSE 4-5 % FROM ITS CURRENT LEVEL AND ONE SHOULD BE SHORT ON COPPER FROM HERE FOR THE NEXT WEEK OF COURSE ONE HAS TO WATCH THE DEVELOPMENTS IN EUROPE VERY CLOSELY AND IF THEIR IS SOME POSITIVE DEVELOPMENT YOU NED TO GET OUT OF YOUR SHORT POSITION

THE RUPEE SHOULD ALSO APPRECIATE SOME WHICH COULD RESULT IN GOLD PRICES COMING DOWN AND ALSO CRUDE PRICES GOING DOWN

ONE CAN GO SHORT IN GOLD ALSO BECAUSE IF THE GLOBAL CONDITION WORSENS GOLD CAN ALSO GO DOWN BECAUSE OF THE LIQUIDITY CRUNCH

SO ALL IN ALL YOU SHOULD BE LOOKING AT SHORTING OPPORTUNITIES THAT GOING LONG 

the markets world over are in a positive mood and ll the commodities are going up

gold which used to have negative correlation with with the equity markets is now showing a positive correlation with the world markets 

but gold is also showing a negatie correlation with the euro though it seems easy that if the euro is falling gold is rising but what really is  behind the gold rally 

on well level gold is now again becoming the safe haven that is always is but then it should  fall with rising stabilty in the world markets but the demand for gold is going up and the prices seems to be rising despite whatever may be the market behavior 

but to me it seems that gold prices have reached a high and should retreat somewahat on the mcx there should be profit taking rally after this relentless rise .

so  i am looking at selling gold with view of 300-400 point gain but of course with strict stop loss of 100 points 

so lets see wheter that pans out 

with the euro zone crisis nearing a solution the world markets have heaved a sigh of relief and as a result commodity prices have seen a jump up be it  gold copper and crude everything has gone up

so is it going to continue or will we see a reversal in all these commodities well it looks unlikely that the euro leaders will allow the solution to be given away this easily so i don't expect any shockwaves coming out of the euro zone may be some jitters that will push the prices by 2-3 percent but nothing more

but then in trading there is always a reversal someway or the other prices find a reason to fall if they are too high or reason to rise if they are too low as of now the prices of everything is on a high so somehow the prices are more  likely to correct than go up and the trigger can come from anywhere be it china or the US

so what should the trading strategy be for the rest of the week

i would say wait and watch don't take position as of yet

let the news settle and form a direction be it bullish or bearish as of now the world markets are not sure let them make up their minds and then a position can be taken

so wait and watch would be my statregy for this week with a downward bias