Happy New year . What to invest , the best hedge for your money and value.

Hi everyone,

It was quite sometime since my last newsletter which sometime some misfortunate event will sudden strike without notice.. it was lucky for me to have tradegy pass by .. I realised one thing which we should not forget .. your real life , family, and what we want to do together with our family ....
should treasure every moment. After this event, i will spent more time with family and friend, enjoy every moment of out life till it last ... ok some long for the soap story let jump in to the letter.


While look like the dollar is gaining real momentum on it strength which should last for a while but not a trend which there is line draw between .

The main reason 1) the short are taking profit, USA oversea company is bring profit back to USA.

The weak dollar is still intact so take note of this ..


China send a message to the world that they will NOT yield world presuure of revalue yuan, this is another factor which will support dollar in short to medium as yuan is tight to dollar.

what is this imply, well, the other central will be force to support dollar in order to support yuan in order to reduce yuan competitive edge in export market. Which mean that they will too buy more dollar to do that . which will cool down short term inflation in dollar.

That is why gold and silver see a short term pressure in price and should under some more pressure. Should accumulate when price is depressed.

I still see some presuure in the gold and silver price..

Gold Strong support line US$1070.00 and silver US$16.45 .

Gold and precious metal is still upward trend should accumulate on weakness...

============

Prepare to short equities market ...


After a strong run in 2009, will expect some meaningful correction in the market which is long due ... I will start put short in S&P targeting 1280 - 1300 range.

But i anticipate the market will try to confuse the trend with strong dollar and strong equities at the same time ... have to cautious if you are adding equities at this point .


================

Oil and Nat gas

For oil and Nat gas, i would like to talk oil first, the cheap oil field is depleting and it is only going to cost us much cost to produce a barrel of oil the it used to ..


So the the oil is going to get expensive in regardless to the strength of dollar. we will see some up and down but this is the trend i see.

Nat Gas, cheap oil field depletine and seem like the world is turning to Nat Gas for the source of energy and this is the trend ... technically world is going to consume more energy then ever.

Well , we might see Nat gas gain some stength from here but any going to play or buy should be short term holding as the price have jump more then 40% from US$4.36 ...

Oil target need to do catch up so i believe US$85.00 should touch this time.


===================

Soft commodities

It is the investment of 2010, El niyo weather will surely pressure to soft commoditites output, i expect soft coommoditites to make a good run and make huge profit from these investment.

China and india, will consume more then ever at the same the bad weather will cause problem to the commoditites out in the homeland.. I will prepare for the rally in soft commoditites.


Hope everyone will have a fantastic hoilday and a every happy news years.

see you on Monday ..