Vote for your future…vote for safe trading …vote for profitable trading…
Voting is taking place all over the country now, and I have voted for the right party that I think will make my future secure in this country and even my hard earned money. So I wish that even you make a wise decision and vote for the right party and make your future secure and even the future of your dear family. Here we have the elections running in our country and the cricket IPL going on in South Africa. What is interesting to know that we Indians out here are watching the IPL on the TV and the NRI’s out there are watching the elections updates on their TV? So even the Indians sitting out of our country are concerned of which government is going to come into power, because even they are worried of how their hard earned money is treated in India.
That no doubt is a cause of concern, but what is new concern now is “SWINE FLU”. This year the first swine flu outbreak was reported in Mexico with 159 already confirmed dead. And it is being spreading very rapidly. This is actually the 4th outbreak of swine flu in the world. The first outbreak was in 1918-19 which affected 1/3 rd of the world population which was around 500 million people and caused around 50 million deaths. The second outbreak was in 1976 in America which was controlled not immediately but with a delay of 9 months by vaccination where almost 40 million Americans or 24% of the population was vaccinated. The third outbreak was in 1988 again in America but that was not a major outbreak as such. And now in 2009 we again have this coming in and it starts from Mexico and the earliest known case was of a 5 year old child.
This pandemic has created a sort of panic in the world markets. As soon as the news hit the TV screens the commodities were the first to react. Soybeans on CBOT collapsed during the electronic trading session collapsed from the high of 1057.50 to the low of 975.25 within 3 days. CBOT corn collapsed from the high of 395 to make a low of 375 in 2 days itself. CBOT Wheat in 1 day itself made a high of 550.4 and a low of 519.4. Because all these commodities some or the other way are connected to the pig farming industry. But what about crude? Let me mention that too it came down from the high of $51.75 to a low of $48. Now why would crude react in such a manner is a good question. Crude oil is indeed connected to all this panic. When a major pandemic breaks in any part of the world there is always a general fear among travelers to go to any part of any country. When such a thing happens the first industry to be affected is the airline industry which is a major consumer of crude oil. At these times all the commodities get a bit wild and become a bit directionless. The tops and bottoms that are formed are completely illusionary and there is a high possibility that you may be tempted to trade these moves but let me tell you they are actually traps which may cause you major losses with your stop losses being hit bad. That’s why I will advise you to stay away from the market for sometime and wait for a week’s time for the swine flu paranoid to end and then start trading.
This week it would be a bit difficult to give any levels for trading any commodities. What ever levels I give the stop losses levels will be very high and the risk involved would also be big. If you have the patience of holding on for sometime and wait for clear trends to come in it will make you comfortable, as you will not loose money by not trading.
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