Accept my 6 trading recommendation for 2010:-
Oil Floats – the number of oil tankers floating in the Mediterranean and English Channel is up by 71% in the last two months. Each ship can hold nearly 1 million barrels, so a jump in price of just US$1 means an instant profit of a million dollars per ship. Goldman Sachs predicts a bull run in oil prices for the next 4 years and specifically, US$85 a barrel in the next 90 days. Between today and New Year’s is the perfect time to construct a doubler trade in oil.
Copper Trade – China is a manipulator of copper and it is being stockpiled by Beijing. China’s imports of copper are up 70% from last year. Officially, China says it holds roughly a quarter of a million tons of copper in its warehouses, valued at US$1.3 billion. To-date, copper is up 110% - it is a vital component in China’s attempt to establish a reliable electric grid across the Middle Kingdom. It pays to listen not what she does, but not what she says.
Gold Double – gold prices are the favourite plaything of manipulators. The shock is how little gold has moved, compared to say lead – another base metals.
Money Market Funds – they are in the hand of rogue traders. With US$3.5 trillion just lying around like a honey pot, someone had to figure a way to put it to a good work. When the US$62.5 billion Revenue Primary Fund failed last year, it was not because the money fund was sitting in safely in Treasuries, but in a ton of Lehman’s commercial junk paper to juice yields. Recently, Paul Volcker, financial adviser to President Obama, ignited a firestorm by suggesting that money market funds be bought under control.
Bank It – Stay away from banks. Even the best-run banks are now having trouble, but that of course, is not what the FDIC wants you to know. With 115 banks down, we have still got another 300 bankruptcies to go. That is why financial stocks have now become the most actively manipulated on Wall Street.
Small Cap Clean Tech – last year, it was solar and this year is clean tech. This is exactly what happened with SmartHeat, a totally boring heat exchange manufacturer that got romanced from $3 last December to %10 this August.
The current rally has all the features of manipulation. The media cheerleading, especially from Bloomberg, has been relentless. Trading desks have been quietly told to squeeze the shorts until they scream.
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