Financial Weekly Horoscope for Week 12th September 2011

Weekly Financial Forecast For Week Starting 12th September 2011

In terms of astrological placement, following major positions are expected to play out this week:

Monday 12th September: Moon will be in Aquarius
Tuesday 13th September: Moon will be in Pisces
Wednesday 14th September: Moon will be in Pisces
Thursday 15th September: Moon will be in Aries
Friday 16th September: Moon will be in Taurus

Jupiter will be retrograde throughout this month making some of the laggards pull back on the bourses

Next week, Mars and Mercury both are in very bad positions. Monday 12th September is a Full Moon Day. Markets will rise slowly due to short-covering but there will be more falls on global bourses. Defence sector stocks may gain but commodities like Steel, Silver and Copper will fall. Hope our readers managed to take advantage of the rising dollar index and superb move in USD-CHF currency pairs. It took more than 3 weeks to finally come through but it gave windfall profits when it came.

Forecast for Dow: The range for Dow now stands at 10600 to 11800. With some uncertainty about how things will go next week, it is better to stick to Sell on Rise strategy. Shorts should be hedged with far away strike Puts like 10,000 Jan PA etc and to hedge the risk of a possible rise on Dow, one should buy a nearer strike like October 11800-12000 CA in ratio 1:1 with the shorts. Only 20% of capital must be allocated to options as a hedge.

Forecast for FTSE: Range will be 5000-5450. Sell on Rise recommended. Positions should be taken with proper hedges

Forecast for Nifty: For Nifty, the range will be 4750 to 5225

Forecast for Euro-USD: Expect range bound movements between 1.35 and 1.44 during the week; Sell on Rise recommended

Forecast for GBP-USD: Expect range bound movements between 1.56 and 1.64 during the week; Sell on Rise recommended

Forecast for USD-JPY: JPY may depreciate further vis a vis USD; Long positions closer to 76-77 can be profitable; Buy on Dips recommended

Forecast for USD-CHF: USD has grown tremendously last week with the rise in Dollar Index. Would recommend waiting for a suitable high and sell because a proportion of the rise will be retraced as a correction

Forecast for Gold: Gold is expected to remain range bound between 1725 and 1950; Both 'Buy on Dips' and 'Sell on Rise' strategy is recommended. If the equities and other commodities witness a sell-off as expected, there may be a sudden mania for gold and it may try to go towards USD 2000. Since margin requirements have also increased, an appropriate strategy should be to build a long-short position pair via futures and then trail the position that is gaining. We would like to remind readers that current volatility is not healthy for traders and one should avoid playing with gold on the forex sites. Take positions with futures with your broker and ideally take a 3 months forward contract with some margin money to spare - eventual target for gold is 1450-1500 in the next 4 to 6 months.

Forecast for Silver: Silver is expected to fall back against a rising dollar and 'Sell on Rise' is the recommended strategy