Weekly Newsletter from 21-25 March 2016
This week markets will hold value but commodities will struugle
Dear Members,
We are sure you must have seen two major markets trading in the direction that we saw, and those are the equity markets (Which are going up), and dollar (which is going down). If you see the last two months’ recommendations, you will see the prediction of USD coming down from 100.00 to 95.00 and then to 93.50 level (which has almost been achieved). An interesting move has taken place in the emerging market currencies over the last three weeks. In the last two months we constantly screamed to buy emerging market currencies because we clearly saw a new trend developing in currencies like Rupee, Real, Rubble, Rand, and Peso. I don’t know how many individual subscribers took positions in these emerging market currencies but surely many hedge funds and financial institutions did so as they sent us thank you notes for a good call on emerging market currencies.
On the other hand, the USA market is leading this ongoing rally which started from the 12th of February, and this rally lately got supported by a weaker dollar and may continue supporting in the coming time. Rebounding oil prices also helped the market.
If you re-examine everything then you will say, “Mahendra it was a good call on S&P not falling below 1812.” “It was great advice of USD Index not going above 100, and then moving to back to 95.00, and then to 93.50.” “It was a good call to buy oil at $27.71.”
This all seems very easy but I was extremely nervous because I never change my prediction until something drastic happens on this planet (which never happened since I started predicting for the market except for 9/11). On the 13th of February I sent a note stating that I had a sleepless night, and the reason for that was because Oil was trading at $27.71 (our lower side predicted target in the 2016 book); the market was behaving so negatively at 1812 (our lower side predicted target in the 2016 book); and everyone on this planet were predicting that S&P would fall towards 1600. That day gold touched $1268 (our higher side predicted target in the 2016 book). Everything was happening on the same day, and this made me very nervous because if all my predictions fail then people will lose fortunes because many investors trust my work and must have taken big bets on my predictions.
Many of you may think that I have an easy job of just writing a letter, but let me tell you today that I always remain on edge. I put so much effort in writing the book, the weekly letter, and the Daily Flashnews to guide people according to what I see in my astro calculations.
In the last four weeks S&P came back from 1812 to 2048; oil moved from $27.71 to $41.00; dollar index came down from 98.80 to 94.70; and gold is trading around the same level. Emerging market and emerging market currencies gained handsome value so there is no doubt that those who held positions on the 12th of February, or those who bought positions on the 12 February must have done very well. If you are a trader and don’t expect volatility uncertainty in the market, then you become careless. Uncertainty and volatility gives us the will and vision to fight whenever these kinds of periods come in the future. Also, once you see that all these predictions came true, it gives you more confidence to believe in our work.
Now everyone is asking about gold’s price because it has been trading around $1250 and I am still predicting that by the end of this year gold may fall below $1000 mark. The question on everyone’s mind is how they should trade from here. Yes, the current short term astro cycle is indicating that for the next eight days’ gold can still hang around the same prices with a few percent up and down moves, but from next week gold will start it’s downwards journey and we may see gold prices falling down non-stop.
Yes, short term traders should trade in and out on a daily basis, and medium term traders should get ready to build some selling positions. One should get aggressive selling positions in gold around the middle of next week. Longer term traders should build put options in gold.
In our book we clearly mentioned that in the month of April we may see S&P trading or reaching an all-time high, and we hope that this prediction comes true because most of the overall trends were called accurately, and things happened as per what was said in our book, so we should just focus on the overall cycle. Here what we mentioned in our book “2016 Financial Predictions” page number 30-31:
First Cycle:
From the 1st of January to the 11th of January 2016 - The market will trade in an uncertain trading pattern due to the Scorpio Moon and New Moon. The moon will rise on the 10th of January, so we recommend investors to watch this cycle very carefully. Many traders who booked losses or closed trades during the end of the year might start reinstating positions, but we are not recommending any aggressive buying during this period. You can plan what you want to buy and what positions you want to accumulate for the medium and longer term during this cycle. This cycle may bring some uncertainty in the market because we are all aware what the Scorpio moon is capable of.
Second Cycle:
From the 11th of January to 21st of January 2016 - During this time cycle, the market will remain directionless but buying will keep coming on the lower side, and I am right in my reading of the astro cycle then the market may form a great solid bottom. Any sharp correction during this period should be taken as a buying opportunity. The overall sentiments in all the major markets will remain mixed to a bit negative. We do strongly recommend taking aggressive positions during the last 63 hours of this cycle, or before the 20th of January, because on the 20th of January Mercury will rise in the east which is a positive astro move for the market.
Third Cycle:
From the 22nd of January to 3rd of March 2016 - During this cycle we see the market trading very volatile and we may see sharp aggressive moves on the higher side. During this period the markets trading range will be 5% on either side but weakness will only last for 18 to 34 hours. It will move up 5% and then may come down 2%. Each period of weakness or any negative move during this cycle should be taken as a buying opportunity. Jupiter will be retrograding during this cycle, which indicates that banking stocks may move up aggressively. The food and energy related stocks will perform well. Housing and housing related stocks will perform well too.
Fourth Cycle:
From the 4th of March to 3rd of April 2016 - this will be a very bullish cycle for the markets. We strongly recommend that traders take aggressive positions in stocks and indexes. Investors can also buy call options in indexes and frontline stocks. Our view is very bullish for this cycle so this is a good time to make money. During this cycle the US market will be trading at an all-time high.
I am sure you must have enjoyed reading our book, and must have put the word out. Let’s talk in detail about the markets and metals below in their respective sections.
Here is this week’s newsletter from 21-25 February 2016
GOLD/SILVER/BASE METALS
This week......