Weekly Newsletter of 3 - 7 August, 2015
This week is most of important one which can guide us about future
Dear Members,
Last month Jupiter changed from its house and it will now stay in Leo for the next 12 months. Saturn went straight from retro today and Mars changed its house and moved into the house of Cancer, clearly indicating that it will be getting retro. Jupiter never favored Metals which was expected according to our book but surely Jupiter is favoring the equity market.
During the weekend Saturn and Mars moved and may try to play a role though Saturn which will support the market continuously, especially the Biotech and TECH sectors. Both these areas got damaged since Saturn started getting retro but now that it is getting direct so it should bring back a new life into tech and biotech.
Saturn and Mars are two longer term planets and they give new directions to any market for the medium and longer term but Mars changing will play a role for six weeks. Whenever Mars moved into Cancer it created aggressive trends on either side in a few markets in which Mars gets direct connections.
18 months back when Mars moved into Cancer it impacted the emerging markets, emerging market currencies negatively and pulled gold prices higher in Rupee terms and in many other currency terms. Cancer Mars can play a bloodbath role for any market and it is so unpredictable to find out the supportive or negative role for individual market at this stage so wait for few days.
We will confirm the role of Mars for commodities, currencies and stocks for six weeks by Thursday or Friday because Mars stays in one house for six weeks. There is some probability that a trend may develop from this week:
If Mars starts supporting the market which is a rare case, but this time it may because Saturn is controlling the rally, so we won’t be surprised if the market rallies 8 to 12% in just six weeks’ time. Chances of this happening is 80%
If Mars is able to put a negative impact then we may see huge corrections but the chance of this happening is 1%.
Historic data shows that Cancer Mars brings volatility in metals. Copper is very closely connected with Mars because the metal copper is ruled by Mars. There are chances that copper may go below the $200 mark and bottom out around $160 levels. Previously precious metals are supported by Mars but this time we are not that confident.
Mars in Cancer can bring unpredictable aggressive move so we highly recommend not to buy if any market is moving lower or not to sell if any market is moving higher. This simple strategy could save you from having loses. If you have a nice profit then you should book it if you see the trend starting to go against you from this week.
We all have to respect cancer Mars and make sure that we don’t go against it. Following Cancer Mars could make you a fortune and going against it could make you lose everything.
I will recommend a clear strategy either on Thursday or Friday of this week. We strongly recommend trading in and out in most of the markets without taking aggressive trade in any directions.
Yesterday I was talking about how an Incident, coincidence or circumstance plays the most important role to give new direction to our life. This happens in our life on a regular basis but our attitude of ignorance is not able to notice it. If we start watching all these closely then we can start getting a feeling of which cycles we are in (positive or negative).
We would like to keep this newsletter brief because we would like to see the impact of Mars and the behavior pattern of markets.
Weekly newsletter from 3-7 August 2015
GOLD/SILVER/BASE METALS
Last week metals traded mixed, and gold refused to move below $1080 which was a big relief for short term traders. It looks like gold will hold $1080 astro support level during this week if Mars doesn’t play a negative role. Currently metals investors should watch two of the most important figures, on the lower side $1080 and on the higher $1042. We don’t see gold moving above $1142 in short to medium term. On the down side the support level is at $1080 and if gold starts trading below $1080 and closes below $1080 then it will confirm a drastic fall.
In the very shot term we see gold having an astro resistance at $1107. Gold closing above $1107 will surely push prices up to $1123. The rest of the metals will follow gold. Copper’s trend is starting to get negative so stay away from any buying, and those who are short in copper should hold selling positions. Those who would like to take shorts in copper should start building shorts from the middle of this week.
This week Monday and Tuesday look like mixed to negative days but from late Wednesday we may witness some buying coming in and a positive trend may continue till Friday. If gold fail’s to rise from late Tuesday to Friday then we can predict that gold prices may achieve $888 to $775 within six weeks or by the end of this year. If gold starts acting positive from late Tuesday then we may see metal stocks bottoming out for the short period.
One should book profit in DUST, but one can hold GLL.
Here is Monday’s range: (July 2015 contract):
GOLD: $1002.90 to $1082.00
SILVER: $14.77 TO $14.45
COPPER: $239.70 TO $233.00
PALLADIUM: $617.00 TO $600.00
PLATINUM: $995.00 TO $968.00
INDEXES
Last week most of the equity markets gained value but tech stocks were still struggling. Financials, housing, home builders and old economy stocks moved higher. We would like to see the impact of Mars otherwise we would have recommended aggressive buying in most of the global equity markets. If this week the market doesn’t fall or act negatively then you should buildup big positions in emerging market as well as developing market.
If Mars starts supporting the equity trend then we may see S&P going towards 2300 in the next six weeks. The same kind of trend may develop in the Chinese, Indian, Brazilian and Japanese markets. Our medium and longer term view for China, India and Brazil is very bullish. If S&P hits 3200 then these markets can easily gain 70 to 100% value. China may move 150% higher from current levels so ETF’s like YINN, BRZU and INDL may easily provide 200 to 300% gains.
Saturn got retro on 14 of March and on 1 August; during this Cycle S&P remain unchanged. On 14 March S&P was around 2088 and is currently at 2100, just 12 points higher. Retro Mars didn’t allow S&P to move in either direction, it held S&P at the same level which is clearly indicating that a new trend will develop from this week.
Mars in cancer is surely a worrying sign because chances increase of FED increasing rates without any notice in the month of August and it can bring huge volatility in commodities and the equity market. Thank God, Saturn is not in Retro direction otherwise S&P would have gone to 1820 and gold $550 in a few days....
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Thanks & God Bless
Mahendra Sharma