Thursday Flash news (unedited copy)
Once again S&P failed to close above 2088 level
Dear Members,
Small part from todays flashnews.
Here are the trading strategy and ranges for Thursday:
GOLD/SILVER/BASE METALS
On Wednesday gold prices traded negative, but rest of metals traded mix. Metal stocks lost value in early sessions but recovered in the second half trading sessions. Tuesday gold trading lower created bear cycle in gold.
On Thursday we still we see mix trend in metals. Buy more put options in gold, and buy bear etfs. Friday metals may fall sharply lower so stay short in precious metals but in this week newsletter we recommended buying Silver against short gold. On higher side gold won’t move above $1307 even if Brexit get vote on exit.
Gold has small support at $1260 and $1240 so on Friday watch these levels closely. If gold breaks $1250 then we may see $1218. Most of metals will follow gold and metal stocks can react big negatively.
Hardly anyone is predicting bearish trend and we still believe that gold prices will crash in the second half of 2016.
INDEXES
On Wednesday USA market opened higher but started giving up all gains during middle of trading sessions and once again S&P closed below 2088 levels. If S&P start trading above 2088 then we may see 2125 to 2136 levels. European banking and UK banking stocks may trade nervously higher because UK leaving could be disaster for financial and all major market on Friday but chances of happening this is very limited.
If you don’t like to take any aggressive trade, then just buy call options which can lock you risk. Our view is UK remaining in EU and which can push all major markets higher on Friday and next Monday. Stay long in most of markets.
USA market closing higher on Tuesday clearly give POSITIVE ASTRO signal that bullish trend is about to in most of market and down side will remain very limited. From Mid-July, we see biggest positive cycle.
Oil should be in your selling list and Thirty Year to. Watch 92.00 level for USD, as that will be buying level. Our call of USD remaining negative for some time.
Stay away from commodities at this stage except coffee.
Here time table of voting and results:
This is what we stated on Monday, the 23rd of May: You can follow other indicators, but give the astro indicators a top priority for the next 18 months. S&P held the 2017 level. It went to 2023, but bounced back strongly and closed above the 2037 level. Both these levels are the most important levels for S&P, which may not break these levels from the 24th of MAY 2016 till 2018.
At this stage, your focus should only be on the market and you should put most of your money in indexes and stocks. Out of $100, you must put 70% in equities, 7% short metals, 7% short Thirty-Year bonds, and 16% for holding cash. The rest of the areas like currencies, softs, grains, and energy will be trading directionless. Many short term trading opportunities will come and we will bring them to your attention when they arise.
This part above has been taken from the weekly newsletter. Subscribe to the weekly newsletter to read the rest.
Thanks & God Bless
Mahendra Sharma, Wednesday 3.00 PM