Friday Flash News (unedited copy)
For longer term investors: Emerging markets should be in your top list of buying on weakness against selling of European and other equity market
Dear Members,
On Thursday, globally market traded higher. In USA Dow outperformed rest of USA indexes but Nasdaq closed lower. As I stated that Trump astro chart will start having impact on market from 20 January when he takes oath and move to Oval office.
Take selective bets, like biotech etf LABU moved up 75% higher in the last five days from $26.00 to 46.00. DUST also gained sharply higher in the last two days from $32 to $46 and our target is $60.00. TMV Thirty Year bond etf gained value around 30% so most of etfs recommendations have done very well. So, always there will be many trades along in coming time and one should be focusing on selective trades rather than overall market.
Etf’s shall be in your list of trading now. In the last two days FMCC and FNMA moved sharply higher as democrats wanted to scarp these both company but now that case is not there anymore so these both will keep gaining value, one can buy on any weakness.
Metals traded sharply lower on Thursday, we expected both side move but gold going down on Thursday confirming that coming time shall be negative as predicted. Gold will have important support at $1241 level, below this looks scary. Copper gained value but we don’t see above $273 level, great time to sell around Fridays high.
Market gained value, but tech stocks underperformed, stay sideline on Friday as S&P will struggle to move above 2188 level and down side we will see support at 2148. Stock market will trade mix on Friday, trading in and out will be best strategy on Friday, higher profit booking is recommended.
Thirty Year bond lost more value, one can some positions around 155 level. Thirty Year bond achieved out important target of 156 from 172.
Dollar gained value but same time Pound also moved higher, stay long in Pound.
On Thursday coffee prices lost more than 4% value, once again it was best profit booking recommendations call at $175 level. Three weeks back we stated that prices of coffee would top around $174 to 178, and it tested $178.20 on Monday. Now coffee has small support at $159.35 so watch this level, short term traders can cover positions.
Oil is trading around $44.55 level, it may trade either side move will push price of oil in that directions.
Many more supportive emails arrived after election results, stating that Mahendra our day can’t start without reading your letter, so just focus on advising on market trend as you are best in that. Many also said that Hillary won higher vote than Trump in Presidential election, surely Trump won electoral vote. I humbly aprreciate your support and trust in my work.
Indian market is struggling due to canceling old currency note of 500 and 1000, they have introduced new one but may take few weeks for things to get settle down in India. Targeting Black Monday is great job by Modi and surely soon Indian will have better results on balance sheet of this.
Here is what we mentioned in “2016 Financial Predictions” book on page 59.
Tenth Cycle for metal market:, from page 59, “2016 Financial Predictions”
From the 7th of October to 17th of November 2016 - Once again precious metals prices will fall sharply lower during this cycle so one should book profit before this cycle starts, or close your positions if you are holding any in metals. Sharp corrections in metals futures prices and metals stocks will surprise many because this fall will happen without any major news taking place in the metals market. We won’t be surprised if gold goes towards years or even decade lows. This is purely a bearish cycle and we recommend short positions in metals.
Must read Kitco article of what we stated before Diwali:
Thanks & God Bless
Mahendra Sharma