Daily Analysis and Trade calls

As earning season started with Alcoa markets especially Dow is again around all time high and investor are hopeful for fantabulous earnings but expect technology and banking stocks it's hard for other sectors to perform spectacular.It's been very clear the easing policy is not reaching to each and every sector it's merely benefiting some sector specially banking and that's why Mr.Bernanke said yesterday that banking sector is very strong.

   Last Thursday, the new governor of the Bank of Japan (BOJ), Haruhiko Kuroda, announced that the central bank would double the monetary base of the country — adding an additional $1.4 trillion — by the end of 2014 in an attempt to end the deflation plaguing the economy. To achieve that, Kuroda will buy government bonds and other assets to inject cash into the economy — what has now become familiar as quantitative easing or QE — to bump inflation up to a targeted 2%. The plan is part of a greater strategy ushered in by new Japanese Prime Minister Shinzo Abe to restart the economy through massive fiscal and monetary stimulus. It also expands on the efforts by the Federal Reserve, Bank of England and European Central Bank to stimulate growth and smooth over financial turmoil by infusing huge sums of new money into the global economy. The question facing the world economy is: How far can Abe take this strategy before making the nation’s finances unsustainable? And even if the BOJ is successful in ending deflation, that may only heighten the risks to the economy.

  Moving from mild deflation to sharply higher inflation will expose Japan to risks of vast financial turmoil. Yet it is to this very risk that Tokyo is now opening the door. Given the size of its economy, the scale of its debt and how tightly its financial system is interwoven with world markets, Tokyo’s strategy holds frightening implications for us all.However first day of week didn’t start with bang as markets was still under BOJ’s easing shadow and it kept stocks on higher side hence our Dow selling didn’t go well and other trades like selling Eur/Usd or Usd/Chf is almost at same level.

Following are trade calls for today,

• Buy Gbp/Usd at 1.5245 stop below 1.5190 target 1.5340
• Buy Gold at 1572/73 stop below 1565 target 1587
• Sell May Crude Oil at 94.20 stop above 94.90 target 92.90

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