Dear Friends, here is last week newlsetter, many visitors always requesting to put old letter on our website, and we always do that some time. Thanks & God Bless, Mahendra Sharma
Gold is entering in bear market
(Weekly newsletter from 26-30 July, prediction date 25 July)
Dear Members,
In last week’s newsletter we tried our best to bring your attentions on the current market trading pattern, which has evolved and changed completely since 2008. Big boys see great opportunities making money on rapid fire short-term trading where their prowess can influence and nudge markets as they wish. Again last week we saw each day market changing directions with wild swings. So what should long-term investors do from here? How do you capitalize on our long-term prediction on the raging bull market for silver and alternative energy?
Among all financial instruments, currencies are now trading with highest uncertainty and volatility because in such vast markets in trillions it’s hard for investors to have any clue. So investor mood goes from hugely positive to hugely negative on either Euro or Dollar on a daily basis! This is yet another sign that the big boys are behind and taking advantage of current uncertainty and confusion. Therefore last week we added a few more detailed astro combinations in our analysis to help you trade especially on a short-term basis.
The investor community has been waiting anxiously in the past month to see the results of European bank stress test, which again fooled the market by being a total non-event. To me the bank stress test report was a big joke and media should learn the lesson that next time they shouldn’t give attentions to this kind of politically influenced, superficial reports.
I don’t see any reason why anyone should buy Euro at this stage as the whole zone is in a mess as per my astrological calculation, which gave us such prediction as far as three years back. In the last six months what happened to euro was just an indication, an appetizer. The main course of total calamity is still pending. The coming fall of Euro will be so drastic that next few generations will still talk about it. I strongly warn investors or currency traders to get out from Euro. It is time for commercial and industry people to plan their trade keeping in mind that Euro can crack any time even in the short term. Also they should keep it in mind that Euro can lose 50% value easily in the next few years.
In 2008 we already predicted that before 2015 there will be a vertical split in the Euro zone and eventually Euro would lose 80% of its value against USD. Yes there is a lot to talk about euro but same time has come to talk about India and China. Both these nations are growing rapidly. China has become a key export country and at the same time they are accumulating raw materials (commodities) and companies that produce them. China will survive as long as world’s demands stay relatively healthy. However, once the world’s growth starts to come off, China’s economy will be hard hit, but this horrific problem won’t arrive until 2015.
On other hand Indian economy is growing fast too with enormous infrastructure and government spending. Also with over a billion people like China, India’s local demand is also growing rapidly as its middle-class expands and younger generation spends more than their parents. I still remember that 15 years back in India, even owning a small car was a big deal and large families live all in crowded houses together. How amazing 15 years have changed the face of India! Now car ownership is common in major and secondary cities, while proliferation of educational opportunities and global media presence are making Indians, especially the young generations, follow Western lifestyles. Today, urban Indians don’t mind taking out loans that are not popular at all just 15 years back. Astro charts for both India and China look great for the intermediate term. Among all countries, Indian stock markets will perform far better than the rest.
As you are aware that I am not sure what will happen after 2014 to the world and world financial markets because the astro picture after 2014 is very scary for whole world. For now, just enjoy life and do good karma.
Till 2014 your longer term planning should:
Buy silver and hold until September 2014. I see silver going toward $38 to $42 or if bubble continues then it may surpass previous peak of $52. Unfortunately gold will be sidelined by silver.
Great bubbles in stock markets will form from 2011 September on and by 2014 Dow will be approaching 42,000, BSE 52,000 and all other markets will follow these markets. Nasdaq will be rocking and may hit 20,000, much of the rise due to alternative energy booms.
Just focus on these two above mentioned predictions and I am sure you will thank nature for this guidance.
Intermediate and shorter term advices we will continue to offer through our weekly newsletters and flash news.
This week there is not any major change in planetary movements. Here is this week newsletter from 26-30 July 2010:
HERE IS THIS WEEK LETTER FROM 26-30 JULY
GOLD/SILVER
Last week gold and silver traded in a narrow range. Gold was trading weak but silver was consolidating at current prices. Unfortunately the current time is not very favorable for gold and that is reason we are predicting fall in gold prices since the last three weeks. One thing also our members should remember is that from September onward our prediction will be very much on the bullish side for the precious metals.
This week gold will start moving down sharply from Monday on and this fall will continue until mid day of Thursday. So any rise from Monday to Thursday you can take selling or short positions in gold and silver.
From late Thursday we may see prices of gold and silver prices recovering from lower levels and Friday we may see the same trend continue.
Metal stock will suffer badly during this week so avoid any holding in gold and silver mining stocks. As we see weak trend in metals, so one can take position in through the ETFs such as GLL.
Trading range of gold will be $1,196 to $1,165, and if it trade two hour below $1,165 then expect lower side around $1,145 in gold and silver trading range will be $18.19 to $17.19.
Still silver will be less weaker than gold.
Recommendation – Sell gold, but silver should be in shopping list on fall
BASE METALS
Last week base metals traded positively as predicted because Mars was supporting copper, platinum and palladium. I strongly recommend not to short base metals. Platinum, palladium and copper will trade sideways. Different planets play unique roles so don’t short base metals just because precious metals fall during this week.
Copper will remain sideways or a bit weak on Monday but Tuesday and Thursday it will move up higher. Trading arrange of copper will be $318 to $303. Platinum will move up from Thursday with palladium.
Recommendation – Don’t short base metals, and trade longs on a short-term basis. Since last two weeks planetary movements are indicating buying in base metals like copper, platinum and palladium.
COFFEE/COTTON
This week coffee and cotton will trade sideways. Wait for another buying opportunity in coffee and cotton. Buy coffee around $155 and cotton $68.20. Current short-term planetary movement is not supporting both of these soft commodities. Over all coffee will remain in bullish trend and our targets for coffee is $210 in 2010 and short term $181.00.
Recommendations – Avoid soft commodities.
SUGAR/COCOA/ORANGE JUICE/LUMBER
This week planet Venus is recommending selling in sugar and cocoa. Expect 3% fall from last Fridays close. Orange juice and Lumber and will trade sideways but one can take long positions in lumber from Friday and expect 5% rise. Avoid orange juice.
STOCK MARKET
In 2009 March when we accurately called for bottoming out of all major world indexes and we knew that longer term all markets were entering into long-term bull phase. Yes in between we expected corrections but overall trend we expected rises to continue. There is no doubt in our theory and belief in the coming bull market in all major indexes. In July and August we expected some corrections but it looks like that the current bull cycle is stronger than negative combinations.
We are predicting that the bull phase in stock markets is starting from here, yes Dow will hit 38000 and Indian market BSE 52000. Yes there is one worst cycle pending which can start from either from 7 August or 18 August 2010 and this negative cycle can stay for two to three weeks. This is the only negative time frame I see for markets. During this negative time cycle we expect 10-15% sharp fall and you should take this fall as a opportunity of buying. My weekly newsletter will guide on this.
This week market will trade positively, except Wednesday and Friday.
One should start building positions in favorite stocks and indexes. Yes you can hedge positions by selling precious metal stocks or precious metal ETFs. You can decide specific trading points but just keep in mind that stock prices will start moving toward new highs.
Hong Kong, India, Japan and Korea will be gain but on other side of the Pacific, Australia will remain weak. Australian mining companies will suffer huge set back as precious metal prices will drop sharply.
In USA market and European market tech stocks will move up sharply higher with banking stocks. Alternative energy stocks will make the sharpest gains.
TREASURY BOND
Last week treasury bond prices remained on the sideways. This week we see 30-year bond prices moving lower. So sell bond for short term and I am sure you can gain handsomely. Trading range will be 128 to 124.
GRAINS
Last week grains prices remained weak as we predicted. This week we don’t expect any major move so prices will remain sideways…… Last week we recommended buying in rice and yes rice prices moved up sharply on Thursday and Friday. I strongly recommend buy rice even at current prices and more than 5-7% additional rise is in the cards. September rice is trading around 10.30.
OIL
Last week oil remained very volatile on both sides. This week we see sharp corrections in oil prices in late Monday. Tuesday again prices will fall but on Wednesday prices of oil will bounce back. Thursday we may see prices moving but later in day they will fall sharply and weak trend will continue on Friday.
Above trend in oil clearly indicates that prices will move both sides. Trading range of oil will be $79.80 to $75.80. Best strategy will be to buy on sharp falls and sell on sharp rises because Mars currently is swaying short term trading in each and every financial instrument. Heating oil and RB Gas will follow oil.
Natural gas will trade weak so I am not recommending any buying in it. Any rise should be taken as a selling opportunity. Except late Wednesday and Thursday all other days Natural gas will trade weakly. Trading range will be $4.76 to $4.29.
CURRENCIES
Last week we were sure that dollar index would hold 82.29 and yes it never went below that. This week we expect the same resilience. Jupiter indicates that huge up move in dollar from late Monday on is coming so if all currencies open higher against USD on Monday then buy dollar on weakness by the middle of the day. It will start gaining once USA market opens. I don’t see dollar index now receding further anymore although we may see some weakness in dollar on late Thursday……
NOTE – Current market condition is favoring short term trends, so we should take advantage of short term time cycles and at the same whatever profit we make should be invested in longer term instruments like silver and alternative energy stocks. As I mentioned that I will write more intra-week updates.
Best trade of this week trades:
BUY Rice
SELL Gold and mining stocks
Sell British Pound and Swiss Franc on rise
Sell 30-year Bond at 129
Thanks & God Bless
Mahendra Sharma, 25 July 2010
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