WARNING!! Inflation .... Get Ready for the big show down.

Hi Everyone.

I am now on traveling in Chiang Rai to one of the most poor village and writing from the one of the rural part of Thailand.
Internet access is very difficult. I have to travel at least 5 km to find the nearest mobile phone receiption which lucky come with Edge internet connecttion..

So the real inflation is starting to kick into the world and further chaos start to develop in the world market.

When i travel to rural part, I heard the villager around talking about bad government which result high food cost. It seem like political game and rumour spreading in rural which create discontent the rural or the low income with the government. I think the trend already start to develop world.

So to prevent the chaos, a lot government will start to pump in more fund to keep up the inflation which will lead higher inflation.


Anyway, the end result will be the crash of the stock market world wide which i preparing to short market big time.

If the US economy GDP growth by 2.8% in the fourth quarter, we got to be very worried cause the real inflation growth in US in the forth quarter should be no less then 4% so in real term we got negative growth in real gowth in the economy.

With inflation is in hot pursue, I am not going to be a bull in the stock market. Bull commodities will a better bet from here on.


So the Gold is close to all time high SILVER MAKE THE ALL TIME HIGH. It this the end of the precious bull market? Hardlly and I think the silver might touch US$40.00 before going into side way mode or correction.


Precious metal:

Dude to droping of silver - gold ratio, there is a great chance that at some point in the furture, the gold will start to out perform silver, but now the silver will be the start of the stage.


Silver Target will be US$40-US$42

Gold target will US$1520

These two target should be a good place to take your profit in my opinion.

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Oil.

After a small pull back at US$101.00 which is the place i take 90% of my profit but did not post on re-position at 95 - 96 area but anyway...

With so many uncertainty in middle east, the oil might be raise to US$110 - 112. nymex.

And i hope the oil will not touch US$125, if this the case, the world will be in deep trouble, with raise food and oil, I think the consumer will be strong enough to handling both at the same time.

So the bull in equitie should move very cautiously from here.


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Soft commoditites

With the stockpile at record low, price should easily hit all time high..Food security will be government top priority which will bode well for the soft commoditites price OG make a great call which I managment to make big position in soyabean at 1310, before the rally begin...

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Stock ..


I will be recommending to find a good position to short the market, which i think S&P 1330 - 1340 should a good short position then 1350-1360 and all in if the index at US$1380 on ward.


Short this market should be in cautious way, be prepare margin for any short squeeze cause there will distraction to mislead you.

Ok hope everyone have a great trading and will try to up my comment when ever i have a chance.