Daily Analysis and Trade Calls

US weak data, Europe in depression as all time high unemployment and Chinese weak economy will probably create huge selloff in stock markets. Particularly China’s data was just the latest in a long line of hints that things are not as rosy for the global economy as perhaps markets have priced in. In short, the recent sell-off could just be a sign that investors are finally experiencing a nasty wake-up call. The real worry about China is that it was meant to be fixed. The Chinese leadership was meant to be doing “whatever it takes” to prop up their economy. Instead it looks as though they’ve decided that cracking down on property bubbles and corruption is a bigger priority than keeping the boom going.

   Bigger Question is if big sell off on stocks than and US

economy not improving as expectation where money will flow?? We suggest gold at this point is still intact. As bond market is still showing negative interest rates, Japan and the United States plan to flood the world with a liquidity injection of almost $2-trillion dollars over the next 12 months, and not one G20 country has a balanced budget. While market commentators are predicting gold's demise as an asset class, astute investors will recognize that we have seen these conditions before over the last 12 years. Each time the 'paper market' for gold has capitulated it has represented a buying opportunity for gold rarely seen again. Despite this panic selling on Comex and other 'paper' markets, investors in the physical market for gold, have been taking advantage of this price action.

Yesterday's our call on buying Gold and Aud/Usd are filled and we are optimistic for both to achieve targets by today, Following are trade calls for today,

· Buy Eur/Usd at 1.3030 stop below 1.2950 target 1.3090/3110

· Sell S&P at 1565 stop above 1575 target 1537 or open

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