Weekly Newsletter from 20-24 June 2016
Read carefully - No need to panic on rising metals and falling stock markets
Dear Members,
Last week was a very disappointing week because the market never performed as predicted, and I felt very miserable. One week back S&P touched our most important level of 2117, but after that it started moving down and closed 50 points lower in the last seven trading sessions. We recommended buying short term call options; those who bought positions got expired worthlessly.
Many times, the market behavior pattern ditched me on crucial occasions, and last week was one of them. In June 2015, the same kind of trend took place; FED announced an unchanged rate policy and the market went down sharply lower; the same happened this time as well.
S&P closed below the 2088 level once again, and now we have to wait for it to close above this level. One thing I have learnt in the last 19 months is that the market always came down sharply whenever it went below 2088 and tried to break the higher side.
Once again, I started doing astro-research as to why I was not able to predict the last seven days’ weaker trend in the market, and I found out that the medium and longer terms are still showing a more positive time for the market. In the last seven days, three planets changed houses, the Sun entered into Gemini, Mars entered into Libra, and Mercury entered into Taurus. Among all these, Mars changing houses is important because it plays a crucial role in riding the short term bull market. My ignorance of Mars moving out from Scorpio directed me onto the wrong predictions. In our book, we mentioned that from the 21st of June 2016 onward, the market may remain in a volatile trend for three weeks. This week’s detailed astro research will help us in the future-coming time to guide us on any oncoming short-term bearish trends.
Recommendations and future planning - Yes, I strongly recommend to stay on the side-lines in the market without putting any money for the next 25 days (until July 13th, 2016) and let Mars moves back to Scorpio, which shall bring a major turnaround in the market with at least 10%-15% rally within 39 days from the 17th of July 2016. From the 12th of February to the 29th of March, S&P gained a 10% value and the same kind of cycle will start from the 13th of July 2016 to the 16th of August (S&P can easily gain 10% value during this period).
The middle of August changes of few planetary positions, which may bring a very aggressive trend in the market, and I have experienced these combinations in the past, so I can confidently be recommending going all in from July to December 2016 because most of the astro cycles will be very bullish. I am 100% confident that you can make a fortune because the USA and India can gain 25% value within the short span of 5 and half months.
Looking into the future - We have been predicting bull markets in equity from March 2009, and it turned very bullish from September 2011; but this oncoming bullish cycle which shall start from the 17th of July could bring one of the major moves in the market.
Strategy - Last week, the market traded negatively; this week we are expecting volatility. S&P should hold the 2052 to 2037 levels of last month’s prediction. Closing below 2037 will bring some uncertainty in the market. We clearly see a huge positive move in the market on the way from mid-July, so it’s better to invest money from September and December 2016 in the call options, and avoid the next 25 days because the market may struggle to hold higher levels. It will keep coming down from every higher move. I call it a sideways or sluggish move in all major markets. Watch the 2036 level on the down side and 2088 and 2117 on the higher sides.
Today (Sunday) is Father’s Day, so I would like to wish you a Happy Father’s Day.
On the 24th of June, the Brexit referendum will take place. We don’t see Britain going out of the EU at this stage, but in 2011 we predicted that the EU will start breaking up from 2017 onwards, and by 2023, there won’t be an EU… so keep this in mind.
Here is this week’s newsletter from the 20th-24th of June 2016
GOLD/SILVER/BASE METALS
Last week after the FED announcement, gold prices started moving higher. On Thursday, gold touched a high of $1317, and on Friday it came back from lows and closed around the $1296 levels. Silver also rebounded. There is no doubt that gold has performed very well in the first half of 2016, and a testing time for gold is coming now. As we have been predicting, gold may see a huge correction in the second half of 2016, so let’s wait at this stage.
I was reading the short term astro combinations because the medium and longer term predictions are very bearish, but the short term volatility can damage trading and investments. Gold prices moved once again to $100 from the lows in the last three weeks. We don’t expect it move above $1300, but it went and closed around this level.
I have been predicting a fall in gold prices, and after doing in-depth studies on gold, we predict that gold prices will crash from the 17th of July 2016 (Remember this date). We are also recommending not taking any aggressive selling or short positions until the short period passes; however, the higher side will remain very limited.
Those who are already holding short positions in gold can hedge by buying short term call options of this Friday expiry and next month’s expiry, or you can buy silver from Monday because we see silver trading positively for the short term.
Gold closing above the $1307 level can open doors for it to move toward the $1321 to $1348 levels and on the lower side, we are still holding our predictions of it reaching toward $775 any time in the next year. If any worst news arrives in the market, the maximum higher side could be the $1348 level.
Scorpio Moon will end on Sunday evening at 5:36 PM Pacific Time. The Moon will enter into Sagittarius. Monday will be a Full Moon day, which always brings uncertainty which can bring both side aggressive move, so stay away from any trading on Monday in either long or short term in metals - waiting and watching will be the best strategy for Monday. Those who are shorts between $1280 and $1298 cane cover shorts for the next two days and watch $1293 level, if it fails to trade above $1293 level then go ahead and sell aggressive positions in gold but if it holds then stay sideline.
Short term – Volatile on both sides
Medium and longer term – Very bearish for precious metals
INDEXES
I have written enough in detail in the part of newsletter for equity markets. You have to stay sideline if you are short term trader or just trade in and out on daily basis as per mentioned in the ranges in the daily flashnews.
If you are a medium and longer term trader, then you must keep adding positions on weaknesses in batches from here to until the 17th of July 2016.
I always recommend not to put big money on short term trading. We always support medium and longer term strategies because we have seen that the medium and longer term strategy always made money for investors because our planetary combinations guided us very accurately. In the short term, if too many planets changed, they can misguide us about trends, and that was the case of the last seven trading days, as we were not able to predict an accurate trend. We expected the market to move sharply higher, but the market went in the opposite direction. It was two percent lower from the high in the previous week. Those who took short term bets on the expiry of June, all calls above the 2070 expired worthless.
Watch this week carefully; in fact I will purely recommend only trading in and out and building medium and longer term trades in the market. Put 25% in September calls as we see a big move coming from the 17th of July. However, don’t put the 25% now out of 6% every week. The rest 50% is in December and 25% in March 2017.
From now to the 17th of July, the market will remain in an unpredictable zone with volatility; we may see a sudden rise and sudden weakness, so no leverage trade is recommended.
S&P shall hold the 2052 level and it shouldn’t go below the 2017 level (which I don’t see). At this stage, we don’t see it going below the 2052 to 2037 levels. On the higher side, we see S&P struggling to move above the 2088 level, and if S&P closes above the 2088 level continuously for five days during this uncertain cycle of 21 days, then expect the market to move in a big way because negativity is not impacting the trend means S&P gaining more than 15% by end of August.
We don’t have any major confidence in any markets except USA, India, and China. However, at this stage we recommend booking profits in India as well, and staying on the sideline for a few weeks. Down side S&P will hold 1982 and higher side will struggle to close 2117.
In our book also we predicted sudden fall in market from 21 June 2016.
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Thanks & God Bless
Mahendra Sharma
19 June 2016, 3.00 PM Santa Barbara