Weekly Financial Forecast For Week Starting 19th September 2011

In terms of astrological placement, following major positions are expected to play out this week:

Monday 19th September: Moon will be in Taurus
Tuesday 20th September: Moon will be in Taurus
Wednesday 21st September: Moon will be in Gemini
Thursday 22nd September: Moon will be in Gemini
Friday 23rd September: Moon will be in Cancer

Jupiter will be retrograde throughout this month making some of the laggards pull back on the bourses

This week, we will have the Fall Equinox on 22nd September. When the Fall Equinox comes in, there will be some major changes in the angle of declination of Sun, Moon etc and there will be definite tradeable moves in the market around this date. Some markets may increase significantly whilst others may decrease but most indices will break out of the narrow ranges they are trading in and move considerably in a particular trend.

Forecast for Dow: The range for Dow now stands at 10600 to 11800. With some uncertainty about how things will go next week, it is better to stick to Sell on Rise strategy. Shorts should be hedged with far away strike Puts like 10,000 Jan PA etc and to hedge the risk of a possible rise on Dow, one should buy a nearer strike like October 11800-12000 CA in ratio 1:1 with the shorts. Only 20% of capital must be allocated to options as a hedge.

Forecast for FTSE: Range will be 5000-5450. Sell on Rise recommended. Positions should be taken with proper hedges

Forecast for Nifty: For Nifty, the range will be 4750 to 5225

Forecast for Euro-USD: Expect range bound movements between 1.35 and 1.44 during the week; Sell on Rise recommended

Forecast for GBP-USD: Expect range bound movements between 1.56 and 1.64 during the week; Sell on Rise recommended

Forecast for USD-JPY: JPY may depreciate further vis a vis USD; Long positions closer to 76-77 can be profitable; Buy on Dips recommended

Forecast for USD-CHF: USD has grown tremendously last week with the rise in Dollar Index. Would recommend waiting for a suitable high and sell because a proportion of the rise will be retraced as a correction

Forecast for Gold: Gold is expected to remain range bound between 1725 and 1950; 'Sell on Rise' strategy is recommended. If the equities and other commodities witness a sell-off as expected, there may be a sudden mania for gold and it may try to go towards USD 2000. Since margin requirements have also increased, an appropriate strategy should be to build a long-short position pair via futures and then trail the position that is gaining. We would like to remind readers that current volatility is not healthy for traders and one should avoid playing with gold on the forex sites. Take positions with futures with your broker and ideally take a 3 months forward contract with some margin money to spare - eventual target for gold is 1450-1500 in the next 4 to 6 months.

Forecast for Silver: Silver is expected to fall back against a rising dollar and 'Sell on Rise' is the recommended strategy

Disclaimer: The views expressed here by the author are fully personal based on a combination of astrological and financial market knowledge. The author hopes and prays for your profit but assumes no responsibility for either profits or losses arising from trading positions. It is recommended that one should consult a personal qualified investment advisor for better trading decisions.