Weekly Newsletter of 11-15 May, 2015
Metals and currencies can have wild move during this week
Dear Members,
Last week was easily predictable because the Scorpio Moon transiting when the Sun is moving through Aries which always brings the wildest moves in stocks but also turns around the trend agressive, once Moons move out of Scorpio. There are millions or billions of astro combinations because every second the planets are moving and that is the reason no can catch or predict every happening. We have been trying since last thirty year to fine-tune our astro time cycles theory with human behavior pattern to get better visibility of the future, and we have achieved success to some extent.
Last week the market demonstrated that a bullish trend can turn into a bearish one very quickly and a short term bearish trend can overnight turn into a bullish one. The astro cycles are the only things which can guide us very well otherwise we will get lost in volatility and media noise.
During last week the bond market and USD made a short term bottom. Oil made a short term high; but all these markets will remain directionless for the next five weeks. If you ask us what the overall trend is then you are also aware that our answer is: bond prices will keep moving lower for the medium and longer term, euro and the other frontline currencies will make new lows in medium term and oil will trade directionless.
We are more concerned for energy stocks then oil. Last year in July we mentioned that the end of oil era is on the way and oil would move towards $20.00 in the next five to seven years. We also recommended not to invest in oil and energy sector and now it looks like it is a scary time to hold investment in energy stocks. We are not saying that energy stocks will collapse tomorrow and it will be the end of the story but surely we are recommending not to put even single dollar in the energy area. Three years back we recommended not to put a single dollar in precious metals mining stocks and most gold lovers discarded this prediction stating that gold has a great future and they were ready to give thousands of reasons that why gold would move higher.
Anyways, I want to keep the message simple rather than lengthy as I understand that people don’t like to read a lengthy report as there are so many other commitments during 24 hours; so as mentioned last month, I will try to keep the weekly newsletter simple and short but nevertheless more interesting with 100% clear answer so you know whether it is time to take trade or not.
In simple words; the great era of oil ended last July. Oil started falling from $98.88 till our predicted lower side target of $44.55 level and we were lucky to predict this in advance. We also predicted the bottom as oil bounced back sharply and gained almost 45% value from that level. Last month we guided our members that oil may face some difficulty crossing $63.00 level which was witnessed last week. Oil can touch $72.80 level in 2015 if any major international event takes place in the energy related area and the down side support is at $44.55. It is clear that oil may trade sideways to mix but energy stocks will keep giving away gains and will adopt the same kind of pattern that HUI or metal stocks did. HUI kept falling from 600 to 155, when gold just corrected 30% from high. In sort, one should take longer term selling bet in energy area and go all in with big bet of oil reaches to $72.80.
Last week when I was doing a detailed study of the energy sector, I got 100% confirmations that the worst time is coming for energy sector investors. Billions of dollars will be wiped out of energy investors and energy related funds will just keep going in deep red. Last week in our stock report we recommended five energy stocks to short and it was just a coincidence that the hedge fund manager Mr. Einhorn also came out with a few of the names I had recommend 24 hours before him.
These were the energy names we recommended shorting on 27/28 April:
PXD: It is trading around $178.00, stop-loss at $189 and down side target is $132.00.
OXY: It is trading around $98.50, stop-loss at $105 and down side target is $70.00
RRC: It is trading around $67.00, stop-loss at 71.00 and down side target is $50.00.
ERX: If its fail to close above $70.00 then one can sell with target of 57.00.
On Friday these stocks closed at: PXD at $159.00, OXY at $77.00, RRC at $64.00, and ERX at $64.00. Last week oil was moving higher but look at PXD chart as it was coming down.
In short, today we strongly recommend that you shouldn’t be putting any money in energy stocks for the next seven years. Many energy stocks will lose 50% value and many not well run companies will lose 90% and many will just shut down before the new rising cycle in energy take place in 2022.
Important note: I am not trying to scare anyone; I always try my best to put-out my view after reading the astro time cycle theory. We warned on the tech bubble to burst in 2000 though it was our favorite sector starting 1996; we predicted a great crashed in US dollar and rise in commodities in 2001; in 2007 housing and stocks crash; and in March 2009 we predicted a great rising era of stocks. These predictions we made without love or hate so if we have been predicting a fall in energy and energy stocks since last year then there has to be some important indication from our astro time cycle theory.
We recommend investors to pull out money from the energy sector and keep pulling out on any rise because this sector is in the most dangerous stage.
Two weeks back we put out positive note on President Obama and last week one of our members said that I shouldn’t be pro Obama or a Democrat, so once again I am telling all my members and that I don’t predict with love or hate. Yes, I admire Obama purely because of his astro chart, because in his chart it is indicated that he is great human soul. All humans make mistake’s including you and I, and he might have done so too. If you remember our Bill Clinton prediction, I predicted his victory in both terms and few people stated that I predicted his victory because I liked him. No, that was not the case, in fact in second term victory predictions I also predicted that Clinton wouldn’t complete his term due to some scandal but we all know that he completed his term even though I was right on scandal part. If I was pro Clinton then I wouldn’t have predicted “Clinton not completing second term in office”.
I don’t predict the rise or fall of any financial instrument because of my love and hate toward that market. Most of you are aware that I stopped predicting international events after 9/11 because it was such a sad historic event and I don’t want to be proud of predicting any sad events because innocent human life get lost and these events leaves too much pain. Since 2001 my 100% focus is on predicting the financial market’s trend so let’s make some money, lets help people around us, and enjoy each moment of this beautiful God given life.
Let’s see what this week’s weekly newsletter says from 11-14 May 2015. I will write all the market sections in simple format and we are hopeful that it will help you in making trading decisions.