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Dollar Index and commodities - This week newsletter here

Dear Friends,

I decided to put here part of this week weekly newsletter as investors has been ignoring a key window, which can provide glimpse of tomorrow well in advance. We believe that investment returns can be huge if investors includes “wave of nature theory” when they making decision of investment with fundamentals and technical’s analyses. “Wave of nature” theory is different, unique and untouched.

Thanks & God Bless, Mahendra Sharma    

 

 MISSING BY MAINSTREAM ANALYSES

Dear Member,

We remind investors from time to time that once in a while, new patterns of inter-market relationships emerge among different asset classes, markets or financial instruments that symbolize a new planet age.

In the recent weeks, for example, we have seen that gold wanted to move higher with USD. Many ask me that if this is a short term phenomenon or a new long term trend? Most of my members know market fundamentals and economics better than I do but still I would like to point out a few important points might be missing from the mainstream analyses. My job is to follow planetary movements, follows my sixth sense with constant mediation on market behaviors. Here are a few developing new trends that I’d like to bring attention to you.

 

GOLD and Its Recent Quirky Movement

Last week we have seen that metals are gaining ground despite of a strong dollar, and many must be starching their heads about this new development. We never sit quietly because our job is advising and bring out worthy views that help you make the right investment as well as trading decisions. Since Sun changes house on 15 Feb, it gave internal support to the dollar against all other currencies. Metal are not trading positively because of positive news about them but because of huge uncertainty in the world currencies market (especially surrounding Euro). Metals are in demand as a hedge or safe haven, along with USD, as fears on the future of Euro mount. We have to watch when dollar move sideways then what gold would do?

Anyway, we have analyses of current planetary chart for gold and it looks very scary. Gold can fall sharply any time now for more than $300. Yes it is not a typo and is a shocking thought at this stage when gold seems to be holding like a rock, having absorbed two big punches during last week (first IMF selling gold and then Fed’s discount rate increase). The reason was that planet Moon was supporting metals on Wednesday and Thursday but overall Sun was in support of gold’s fall. So in a way it was a fight between Sun and Moon. Sun rules 30 days and Moon rules only 60 hours and those 60 hours got over on Friday. So it will be extremely interesting to see how gold and other metals trade from next week.

Yes, longer term I like gold investment but in both short and medium terms, planets are not supporting gold, silver and other metals, at all. So, in future market (which is very volatile) we don’t want to take risk as those old days have gone when people use to hold for longer term without much worrying. 

 

DOLLAR “The King currency market”

Lion will always remain the king of jungle. USD is the king of currencies. Dollar has entered into one of the best Astro cycles in the last 100 years because Saturn is in full support of USD and once Saturn decides then no other planet will try to stand in its way. I don’t have any answer if you ask me when and where will the dollar bull market end! At this stage slowly our all near term predicted target has been fulfilled, and our medium term target is 84 to 86 and even 89 is achievable target by mid or end of March. Two to three years down the line we see Dollar index touch 125 to 135, meaning Euro will move far below par value. Yes, USD is the “Ark” and at the same time, contrary to what many Dollar “doomsayers self prophet” would want you to believe that Dollar is going to the drains, it’ll be the best performer in the financial market in coming months and years.

Uncertainty will upset and unseat Euro as a reliable currency, and this was the key reason that why we recommended two year back to get out from Euro positions. At this stage I even don’t know if Euro will survive in the next few years or Euro will be a history when USD index surpasses 200?

 

OVERALL OUTLOOK

Current time is uncertain for all major stock markets and any sharp rise should be taken as a selling opportunity. Speculation will dominate all markets from here until mid of May and this period started from last week December. We will see rise and fall in metals, oil and soft commodities, if time plays true negative role then we may see copper going back to 150, gold going back to $750 to even $550, silver will move to $8.55 and cotton will go back to $59. There will be mini crashes in all major markets in the first week of March, and a few European countries will be on the verge of freefall (economically). The whole financial system will be in worse shape than early last year. So stay away, hold cash or hold money in Dollar and put aside your love toward gold, oil and stock market at least for now next few months.     

Keep buying Dollar Index for now. Then when the time comes, we will advise you to buy alternative energy stocks and add grains when the falls are near the end. Grains follow news on the economy and we are expecting some negative news from China that might damage grains for a shorter period. From all angles Dollar looks only safe haven.

Planets are guiding us well because financial markets are part of nature and we are part of nature. We must try to understand and respect the messages of nature, be it spiritual or financial. Nature provides us everything pure and fresh, and out of those we create things that are artificial, fake or harmful. Allow nature to come to you, and always be ready to accept whichever is part of nature. Every economist will change their view after economic news, technical analyst will change prediction once a breakout occurs on the charts but planets never changes wave patterns. The future of Astro investing is unfolding slowly but surely. Billions of dollars are already following our wave of nature theory.

Weekly Newsletter from 22-26 Feb 2010  

GOLD/SILVER

Many metal investors are overly excited after metals traded strongly against the news surrounding IMF gold sales and increased discount rate by Fed. Planet movement, however, is able to look beyond temporary distractions from human fear, greed, and power struggles to show the real underlying trend. Now planets are indicating that metals’ recent resilience represents nothing but false hope so we would like to warn metal investors to stay away from metals.

This week metals should trade weakly from Monday and the weak trend to remain continue until Thursday evening. From late Thursday we see some stability coming in metals and Friday they will move up. It will be a biggest surprise to me if gold and silver move up from Monday to Thursday.

Trading range of gold will be $1,128.80 to $1,078.80. If prices trade above or under either side for more than 3 hour then another 2% move will come in that direction.

Short term recommendation: Sell precious metals and metal stocks

 

PLATINUM/PALLADIUM/COPPER

Since last two week we came off track with copper predictions. This week March options will expire in many metals contracts (except gold & platinum) so we may see some volatility in base metals and silver. Copper is the only metal which is ruled by planet Mars, and we are all aware about nature of Mars (it is the God of war, Red planet or planet of blood and volatility) so we are expecting sharp fall in copper with sizable volatility. We see platinum, palladium, zinc, aluminum and lead drop sharply as well.

Copper will also move down but external forces may enable copper to hold at current level for short period of time. But if you see copper getting weaker then don’t miss opportunity to go short as once the fall starts it will be drastic. We see that copper’s coming fall will not stop before $145.

Again, Monday to Friday base metals will remain down. Short term recommendation: Sell precious metals

 

COFFEE/COTTON

Coffee will remain sideways and cotton will trade weakly. During the last ten days cotton prices has moved up sharply and current weak planetary position is not favoring cotton so great opportunity to make money in shorting cotton.

This trading range in cotton will be $78.50 to $73.80 and coffee $135.90 to $130.10.

 

SUGAR/COCOA/LUMBER/ORANGE JUICE

Prediction on the falls of sugar and cocoa made us good money. Still we see weaker trend as no major planetary movement is supporting them so our members should sell on any rise. Lumber and orange juice will remain weak also. We see all these soft commodities will remain “soft” for the time being.

 

 

STOCK MARKET

This week would be the final week for some stability in stock market but after this Thursday stock prices will start moving down. We see 10 to 15% fall in all major stock market for the next 2 months. We don’t see any positive trend for the next 3 months in all major markets.

Asian market will remain weaker compared to all other stock markets. European market will fall sharply from Friday and from next week so don’t hold any positions in European shares. USA market will remain weak as well but one thing our members should bear in mind is that USA will outperform all other markets from 2010 to 2014. S&P will reach to 3,200 to 3,500 by that time, and Dow will reach 38,000.

Alternative energy stock will be the best performer during the next bull era so our members should start accumulating from mid-May 2010.

On the short to intermediate terms, however, one should build up short positions in stock indexes from Thursday, or buy puts/sell calls. Start accumulating the short ETF’S from this week.

 

GRAINS

This week planetary movement doesn’t support grains that much. From next week on some clear, positive trend will start building in grains. As we mentioned earlier that grains positive trend will start from 15 Feb, and we hold that prediction even now because this positive trend will remain for the whole year so gradually grains (corn and wheat especially) will move up. This week Friday is the best time to build up long position in grains.

 

OIL

After copper we came wrong in oil last week. Oil’s move surprised us even more because we never expected any rise. We were trying to find reason and only reason we found is Mercury, which can support oil for 1 or 2 more days before oil price starts moving down. Maximum oil can move up to $81.55, and we expect same positive movement for RB Gas and Heating.

Natural gas will remain weak for this until Thursday and from late Thursday we can recommend buying Gas. Moon is indicating gas moving more than 5% in the next 10 days.

 

CURRENCIES

Once again dollar has proven that it is one the most important currency in world. Once Astro indication has turned negative for Euro then no reason I find why Euro and other currencies remain positive. I have been asking since last year that why Euro should remain higher than Dollar and no satisfactory answer has come yet from anyone.  Now planetary movement is against Euro and I know once nature is not in support then how it will end up. From 2001 to 2007 we mentioned the same thing for US dollar. We always said that planets are sending negative force to dollar and we saw during 2001 to 2007 dollar moved down substantially. I still remember mid 2001 when we came out with target of Euro reaching 1.3750 from 0.8300, and hardly anyone believed that.

Current week planets will support USD again, and we see huge up move coming in USD from next week. This week USD will remain in a tight trading range of 80.43 to 81.90. Before March contracts expire, USD index will touch 84.20.

Last week we predicted sharp fall in three currencies—Euro, Yen and Pound, and all these currencies moved down. This week our outlook is very negative on Australian, Canadian dollar and Yen. Euro and Pound may try to stabilize but nothing much is indicting such move has any leg so take the opportunity to sell these currencies on any rise. Our next target short term target is 1.3330 and pound 1.4920.

 

Important note: This week Monday and Tuesday metals should trade weakly so take the opportunity to sell but if they move up then I will come out with flash news. Last week Wednesday and Thursday trend confirmed that metals wanted to move down and they will move down quite sharply.

Buying dollar will prove the best prediction of 2010. Avoid metals in 2010.

 

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Mahendra Sharma

Thanks & God Bless, 21 Feb 2010