I shared that I was spot-on the selling of Gold when it was trading at US$1900 last year and have been rather accurate on each selling wave while many analysts and industry experts kept calling for buy.

I even mentioned that Gold is near to an intermediate support below US$1550 and one prepare to look into it soon.

As expected, Gold rallied more than $40 overnight, chalking good profits for those who bought it recently.

At the same time, the S&P tanked to 1300, effectively losing more than 100 handles since start of May

This has sparked off another round of doomsday call of expecting S&P to hit 1200 due to the popular saying of “Sell in May and Go Away Theory”

But before one does that, I really wish for everyone to reflect on something first….

1. Euro TAOS is around 1.2665, near to the lowest level in Jan 2012, before it rallied all the way 1.3450. Yesterday it was re-visited and rebounded.

Today its tracking near there. If this currency can be used as guide for the current crisis then one should have noticed that the selling has ceased off a little therefore traders should take this opportunity to look out for a plausible recovery.

2. Crude Oil, something that I have constantly mentioned to many about its incredible “direct-relationship with the Equity market” since 2003.

Look at the peak of Crude Oil on the 1^st of May… and you will see that the Dow also peaked on the same day.

Last night, while we witnessed the Equities market breaking down, crude was down marginally instead.

If this counter is to reverse current direction, one may also see the same for the Equity markets.

3. GOLD; we mentioned to many that once this yellow precious metal hits below US$1550, one can start to accumulate it for a short term rally and many followed and bought around US$1540s…. truth be told, it actually hits US$1526 which may have gave some players a fright, especially first timers on this market but the seasoned traders will know it’s perfectly normal (that’s why the margin requirement is very high per contract… approximately US$13,000).

It closed near to our first target of US$1580 and if it can continue to rally, we suggest booking partial profits around US$1600~1620 level.

So the question is, was the buying due to technical rebound or was it because of the US Dollar Index? We strong believe it’s due to the latter.

4. US Dollar Index: Since 1^st of May, despite U.S. being a heavily debt ridden country, the Smart Money flocked to the Greenback in search for a “safe heaven currency” hedge. In the history of crisis, this move happens almost every time despite people knowing that U.S has a trade deficit in trillions. So here is the irony, one side people are saying that US Dollar is near to zero value… the other side, people always buy into during crisis…

Nonetheless, with the result of the President Election in France, shows clearly that if Obama wish to retain his position in the White House, he would really need to bring down the Unemployment Data by October 2012 but last night report from the Labour Department shows that the first-time jobless claims for the week ending 12^th of May was holding at 370,000 unchanged. This is not positive the Obama Administration.

Based on my “limited knowledge” I believe that US Federal Reserve and the G7 should be stepping into the market very soon to boost liquidity into the market.

From the political point of view; they will not use the term QE3 but some positive suggestions of boosting liquidity and a sudden surge of M2 and M3 Supply in the credit market from the back, should do the trick.

The Resistance at 81.70 shows that players are also looking at it.

————–

From www.zerohedge.com

From mid-November last year, S&P 500 futures fell from a high of 1259 to a low of 1136 in around 9 days – 123 points (or 9.7%).
This was enough, it seemed, for the Central Banks of the world to get on the phone and press the big green ‘print’ button in a coordinated response to markets waking up to the dismal reality hidden under the covers. From May 1st highs at 1412 to today’s 1300.5 lows is a 112point drop in around 13 days (or a drop of around 7.8%). While the most recent move is slower and smaller so far – today’s action in stocks (and even more so in Gold) perhaps reflects the reality that QE3 is inevitable (gold) but not until stocks have fallen enough to warrant ‘extraordinary actions’ by the Fed. Do we have another 2-3% drop before the Fed picks up the phone?

————-

Overall,

With the S&P Put vs. Call Option Ratio increasing to 0.92 now, it’s very clear that players are going “nuts” and seems to expect a financial calamity to happen again… Meaning, the buyers of Put Option overwhelmed the market so much, until some are willing to pay very high premium to get on the short side of the market.

The last time this Ratio hits this level, it was in 2009-2010… and what happened after that is the S&P rising more 6-8% after that.

Of course, some may compared the levels which were definitely much lower back then but we cannot deny that U.S economy have already recovered substantially since 2010 (Just look at the GDP growth from negative 6% to current positive 2.5%).

If market bottoms are always created when Fear and Panic is at the extreme, then probably we are around the corner.

From the overall picture, my suggestion to traders is to watch the numbers carefully and gauge for yourself… do some risk assessment and pay more attention to the market or counters with a clear mind without prejudice of the current situation or media write ups.

I am sure you can find some GEMS in the market and profit immensely later once the money returns to the market.

(FYI, Funds has been noted, leaving from the markets for the last 8 consecutive weeks since late March 2012…. Soon the blood in the water plus bargains in the market will draw them back and normally you hardly see reports of that in the market… )

We have bought an array of stocks for our portfolio and you can look at it on our blog:
http://www.didyoutrade.com/posts/v3go-grads-team-looking-to-increase-positions-on-some-selected-counters-with-stops-in-mind/

BECAUSE you are our special and loyal friend, we have attached the technical view of 10 different markets for your reference.

Hope that my forecast will come true by the end of 2012.

Have a great weekend ahead!

Best regards,

Kelvin Han

V3Go Chief Trainer

With the IPO priced at US$38…. many are waiting for it to start trading in about 4 hours time.

At that price, Facebook’s IPO will raise $16 billion, making it the largest tech IPO in history. It’s the third largest U.S. IPO ever, trailing only the $19.7 billion raised by Visa (V, Fortune 500) in March 2008 and the $18.1 billion raised by automaker General Motors (GM, Fortune 500) in November 2010, according to rankings by Thomson Reuters.

With so many investors looking to sell their stake (which they held since the start of the company), we are likely to expect the inital profit taking motion first.
http://www.thetechblock.com/articles/2012/early-facebook-investors-seemingly-lack-confidence-plan-to-sell-off-large-percentage-of-holdings/

But take note; the stock won’t be traded on the opening bell… http://money.cnn.com/2012/05/17/technology/facebook-ipo-trading-start-time/index.htm?iid=Popular

I expect the stock price to fall to around US$30s first… but in the good time to come, I am looking at US$50 by end of the year.

PS: V3Go Grads Team is not buying Facebook since its IPO is at US$38…. we were looking at US$28 level…

Kelvin Han
V3Go Academy Chief Trainer

Traders on the floor is sepculating that financial instit… may exercise liquidity and credit flow into the market over the weekend.

Thats why there are some movement in the futures market.

But again, this is based on unconfirmed rumors….Caveat Emptor

Firsrt Hand Information….. brought to you by V3Go Team
Smart People. Smart Choice.

<<DJIA>>

Sentiment: Bullish Rating (66%)

Last night Dow Jones day low missed V3Go TAOS S/L (Around 12422) but closed near day low.

The V3Go TSC is still a DT. So likely there may still be some selling pressure in the market.

But as the V3Go Indicator is at extreme bottom, the downside may be limited.

In fact, should Dow Jones close above OP and the V3Go TAOS S/L, a rebound may take stage soon.

William
V3Go Academy Senior Asst Trainer

<<HK>>

Sentiment: Bearish Rating

HK opens gaps down by 349 points, which is below LB of V3Go DT TSC, V3Go MLP and V3Go DIFF but slightly above V3Go TAOS S/L around 18650.

HK is now trading around TAOS S/L level as of typing

If today HK is able to stay above V3Go TAOS S/L and OP level, we may see some recovery soon

William
Senior Asst Trainer

<<STI>>

Sentiment: Bearish Rating

STI opens gap down this morning and now trading around OP level as of typing.

STI’s OP is below LB of V3Go DT TSC, V3Go MLP, V3Go TAOS S/L around 2796 and V3Go DIFF S/L

So based on techniques, STI may go lower as long as it stays below OP

But, if STI is able to trade above OP and above TAOS S/L to close above them, we might see  a rebound soon

William
Senior Asst Trainer

Market continued to fall and many are running for the exit door but that’s where the GEMS will be forsaken and only the savvy will grasp the opportunity to pick them up from the chaos….

V3Go Grads Team increased their position in both Asiasons and China Fashion at 34 and 5.4cts respectively for the Penny counters while they bought more Wilmar at $3.78 and for the first time, inserted Keppel Corp into their portfolio at $9.94.

The above positions are bought based for mid term investment (2-3months) and we do expect some mid term volatility in them. So kindly do some risk assessment before entering into them. Nothing is for 100%.

They also bought in an array of the Ultra Penny counters as based on Professional Trader Calculation; today should see the end of the Forced Selling by the Retails.

They bought into

1. TT Int at 0.113
2. Roswley at 0.093
3. Informatics at 0.082
4. Qingmei at 0.066
5. JEL at 0.056
6. Federal at 0.037

The above are speculative counters and we only entered a relatively small position on each of them with a stop in place. Upside is around 10-20% in 2 weeks time. Remember, ensure your stops are in place for them.

Based on my experience in the market, we may actually see a plausible strong recovery today in the market… Short Sellers, should take note of the market from 11am onwards…

Have a great trading day ahead!

Kelvin Han
V3Go Academy Chief Trainer

Abel,
V3Go Academy Asst. Trainer

1. HSIC1 (73% — Bear) — HongKong
2. SHICOM (60% — Bull) — Shanghai
3. JKSCI (85% — Bull) — Jakarta
4. FTSE (60% — Bear) — London
5. DAX (52% — Neutral) — Germany
6. AAOI (58% — Neutral) — Australia
7. INSEI (87% –Bear) — India

8. DJIA: (66% — Bull)
9. EURUSD: (63% — Bear)
10. GBPUSD: (70% — Bull)
11. USDJPY: (64% — Bull)
12. AUDUSD: (85% — Bear)
13. USDCHF: (54% — Neutral)
14. LGD: (50% — Neutral)
15. G.CLC1: (60% — Bull)
16. ESC1: (66% — Bull)
17. STI: (64% Bear)

A Service from V3Go Team
Disclaimer Applied

Abel,
V3Go Academy Asst. Trainer.