Gold is at cross-roads like in OCT 2008

Gold is the similar circle that was in OCT 2008. Will it break up or end down.

We don't think it will break down. It will get to $2000/oz in a year. (only in US $, no estimates in Indian Rupee)

In 2008 crisis US had to print another $5Trillion and has now ended in $16Trillion debt.
Today it is no different, we need $4 Trillion more in the next 4 years.. Gold has been down 20% since Aug 2011 and it is expected a big move.  probably to upside. Wait for confirmation in the next 2-3 weeks. It has to produce a weekly bar in the weekly chart below.

Infosys's Capitalism introduced into a Socialist country like India. Is it working?

Infosys's Capitalism introduced into a Socialist country like India. Is it working?

Picture says 1000 words. We pulled up chart of Infosys and Wipro from Feb 2000 till today.

Infosys was at $92 on Feb 2000 and after all split adjusted and dividends, it is worth $44 today, what this means if would have invested $92 in the great NRN's Capitalism Vision of Infosys, your money is worth only $44 today. It will take another 30-40 years for Infosys to get back to $92, if at all Infosys exists in its present form. Charts says it all.. where Infosys is heading towards.. Collapse like Kingfisher Airlines

Wipro : If would have invested $6 in Wipro in Feb 2000, it is worth $8.2 now after all splits and dividends. Does it makes sense in Premji's Socialism.. Yes your money is inflation adjusted for 2-3% and will grow sequentially. Believe in Socialism now. 

AAPL : Updates 08/29/12

APPL continues strong towards our target of $850 by  JAN 2013. See P&F charts

This week we saw $$$ flow from AAPL to GOOGLE, this is temporary and will change next week.

AAPL is basing on the 60 minutes for a breakout to $740 next month.  See Weekly charts. AAPL is one of the cheapest stock in S&P 500 and it will continue to grow next 3 years for a price target of $1500

On the IRA accounts we are holding till $800, sell and buy lower after a 10% correction (which may not come as per weekly charts in 2012)

Weekly trading accounts are managed as per the 60 minutes charts.. sell begining of  week and buy on Wed evening is working  out well.

FaceBook (FB) - Our suggestion on IPO? where we are now?

We suggested not to buy FaceBook IPO at $44 on the opening day. Our target was $14. But some of you bought it. Also I got couple of hate emails and on my Facebook page regarding our suggestion.

Let us do a reality check today :- FaceBook (FB) is at $20.90 down from $44.00. We think it will go to $14 as suggested on the IPO day. It can comeback to $20 and then again $4-$8 range in the next 12 months.. yes $4 you heard it. Remember the lockup period and additional 250 million insider selling on Aug 12 2012.

Your comments are welcome.. we value your opinion.
Venkatesh K

GOLD-07-15-2012

GOLD-07-15-2012.

Many people ask about GOLD. Is it a Buy?
Our Analysis is based on US $ only.  We buy 1 oz bars only. We started from $260 in 2002

We will provide some views in terms of Indian National Rupee (INR) and cannot guarantee in INR as the Indian Policies change every minute and a dysfunctional & corrupt governments add to the illegal demand for Gold in India

Gold is in Bear mode since August 2011 from $1943/oz and today it is at $1570. It has lost nearly 20% of its value due to US $ strengthening against the major Currencies (Please see US $ chart below). 13week Moving Average(MA) has crossed below 65 Week MA. This happened  only once in last 10 years Aug 2008  and stayed there for 8 months.

We think it will take another 4-6 months and may touch $1400/oz intra day. That will be your next buy. We have a target of $3500-$4000/oz in the next 5-8 years. downside is limited.

Weekly chart of GOLD Contracts on the Chicago Mercantile Exchange(CME).

In India, price of Gold is Rs 30,000/10 gms from  Rs 31,700. You seem to wonder why it has not changed?  Our RBI Governor has brains of Chanukya. When Gold was $1940 in August 2011 on CME, minuscally traded Rupee was fixed @Rs44/US$. This translates to $1940 X Rs 44= Rs 85360 /oz (bar) .. 

As Gold started dropping 20% in the international market, RBI started to artificially devalue the Rupee, by keeping high interest rates. Today Gold in India is $1570 X Rs 55= Rs 86350 /oz (bar) .. WOW no change

If RBI would not have done this and GOLD in India would have fallen 20%, real estate would have collapsed by equal amount. Hence the Rupee is at 55 today.

How long will it be at 55? let us analyse further

If you analyse the 10 year Weekly chart of USD, it has been on a decline, we think it will touch the Upper channel of 86 in the next 2-3 months.. may not be..  At that time we expect Indian Rupee to be at Rs60/USD.  Plan your remittances then.

Last year we told Rupee will touch 55 when it was @44, some people laughed.. ok wait and see.

Please leave comments..

Venkatesh

INFOSYS (INFY) reports on 07/12/12 AM

Trade idea - Buy the July $45 puts for $2.50 before 07/11/12 close. We are expecting INFY to go down $6 to $38 on Thu.

Sell the July $45 puts for $7.00 and higher on 07/12/12 AM.

I am opening this idea for all users. Many reported they made 200-250% the next day. 
We have nailed INFY correctly for 6 out of last 7 reporting quarters.