Weekly Newsletter of 24 - 28 August, 2015
Aggressive Mars dancing on the floor created so much dust that you can’t see what is ahead clearly. The dust will settle once rate rise takes place.
Dear members,
Last week was the first week in the last five years where we felt fear because people were losing money because volatility. Mars single handedly created a wild fire and many investors got burnt and most must have lost money on a short term basis as well as on a longer term investment. Commodities also lost big value except for gold which surprised everyone including me. Thirty year remained silent, but on the other hand few frontline currencies like Euro, Franc Pound and Yen gained value but emerging market currencies lost value like toilet paper.
In the first week of August when we were writing the weekly letter after Mars entered in Cancer we were afraid and we also mentioned this in the letter, but I hope that I was able to give the clear message to stay away from the market even though our letter was one that recommended exercising caution. Still, I want to accept that this was a big error from my part as I knew that something this bad could happen, but I was not able to put a 100% clear message to stay away from the market which could have saved you money and you would have appreciated greatly. On the other hand overall metals went sharply lower as predicted but gold moved sharply higher in the same manner in the early 2014 in the period when Mars was in Cancer and gold moved higher in terms of dollar but gold touched all time high against many emerging market currencies (especially Rupee).
Must read: I would like you to read 2-7 August newsletter forts part, I wish I was able to keep focusing on Mars change that could have made huge difference in our member’s trading and investment decisions:
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.
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.
Let me put out a clear message, and even though it is too late for many, they can still make some decisions for the medium and longer term.
We can blame this volatility on Mars but at the same time we should blame the FED, because the FED unnecessarily keeps indicating that a rate rise is coming which has created uncertainty in the minds of the investors. The FED made this market so confused or I can say that the FED paralyzed not only USA investors but investors all around the world. If they would have raised rates then everything could have been fine but now the FED has pushed everyone into a corner and created a mess with huge uncertainty in which the FED itself is also trapped. At this stage I place 100% of the blame on the FED for not raising rates in the month of July or August.
Our clear message to the FED: I know our letter goes to many big investment firms as well as policy makers and I request them to raise rates this week and we are 100% sure that the market will take it positively and can move up to a 1000 points. I wish they could have done it in the month of July and things would have been fine right now, but continuing to drag the rate decision without a clear timeline is making every nations life miserable. Looks at China, it devalued its currency because USA is showing uncertainty and they wanted to support the economy. A rate rise in USA would have made YUAN weaker but they couldn’t wait longer, so they devalued the Yuan two weeks ago. Europe, Japan, RBI of India and other important nations are holding all important decisions and waiting for the FED to make a decision so that they can plan their policy accordingly.
The housing market has recovered; corporates are holding huge cash; cheap money is available and the business environment is fine in the USA so what is the problem with the FED? I think FED has lost its vision and if they don’t raise rates within this week or in the next meeting then they can put huge risk on the financial market. It would be better if they raised rates now without waiting for a few more weeks because world won’t end by them raising rates by 0.25%.
Bullshit or hypocrisy: I am shocked by corporates and analysts talking very badly of 0.25% rate rise but why they are they not talking about how much they have benefited in the last five years from lower commodity costs, historic low interest, and low energy costs. If we calculate all these factors than 0.25% rate rise is nothing so we strongly recommend analysts who are coming on TV and crying about interest rise, to shut their mouth and leave the job of analyst or just sit at home and cry about it alone. There is no need to come out in public or in the media and start crying about the interest rate.
I will try my best to send you small update every day because it is a crucial time and we must provide you with correct guidance. If the situation requires it then we may recommend closing all trades and hold whatever cash is available so also read the daily Flashnews.
Clear message, Weekly newsletter from 24-28 August 2015):
This week on Monday….Subscribe to read complete report.
Thanks & God Bless
Mahendra Sharma
23 August, 11.00 Santa Barbara