WILL GOLD REACH HISTORIC HIGHS IN THE NEXT NINETY DAYS OR IS IT THE END OF THE JOURNEY?
I would like to start my newsletter with metals, as it is predictions on metals that gave me international popularity in the last six years. Indeed, key traders around the globe have continued to closely follow my metal predictions, and the first one to talk about my work was GATA – Bill Murphy. Jupiter guided me to predict a multi-year bull market in metals when gold was trading at $270, and many people were attracted by my Astro-cycle predictions. Indeed, the predictions of the rise of gold may have come as a new hope.
I shall do my best to guide in regard to the overall outlook, but it is also necessary to be keen on technical charts, world economic health, global geo-political situations and risk management. There is need to engage in all useful study as I believe that ignorance can put one onto the wrong path. As part of the resolves for this year, we should therefore strive to follow all important rules when investing our hard earned money. Try to remember and apply all the important points each day and I am certain that 2007 will prove to be the best year in your life.
We start 2007 with metals:
The following ten days will tell us whether gold will hit historic highs in the next ninety day or not.
A sharp fall in the first week of 2007 was a surprise to me and though I expected a weak trend, gold and silver went down more than I had anticipated. Indeed, metals are in a great positive cycle, only that they are not showing much strength. That is why I have not yet given a strong buying recommendation. Nevertheless, the outlook should change in the next few weeks.
The allure of speculation is becoming brighter than real glimmer of gold, and this is worrying and quite upsetting. It gives rise to the question of whether the bull market in gold is over or not. Will my prediction of gold reaching $1000 ever come true? Well, today we’ll try and reveal the answers.
Unfortunately, gold has emitted a negative signal during a positive cycle and this fact may portend some disconcerting moments for metal investors in 2007. The trend of gold is poised to be sideways for most of 2007, though it shall trade positively up to March 2007. After this period however, a very uncertain trend will take root and it will persist till September 2007. During this period, we are likely to witness major volatility and some discerning people will have an opportunity to make tons of money by buying and selling at higher levels while buying back at the right time. I shall try my best to guide you through my weekly newsletter.
If gold fails to reach $1000 by March, then I seriously doubt its ability to do so in 2007, and this is therefore quite upsetting news for metal investors. One should therefore trade smartly. On my part, the weekly newsletter will guide you well and we may even make more in trading than what we could have made with gold reaching $1000.
However, I am still hopeful that gold could hit new historic highs in ninety days. The countdown starts this Thursday (11th January 2007).
This year silver will very closely follow gold’s movements and one should therefore expect the little sister to move in accordance with gold’s trend. On a few occasions in the course of the year, silver with act strangely and experience major volatility. I shall feature this in my weekly newsletter whenever it is poised to occur. In February and March, silver should remain in the hot seat and it could actually attain new multi-year highs or possibly $18.80 or $20.80. You should therefore wait for my recommendation, which should come in the next ten days.
I am not optimistic about the trend of platinum, zinc, aluminum and palladium, though copper will have great rises on a few occasion during 2007. Indeed, I shall not at all be surprised if it once again reaches the previous high.
The great era of oil is over and I thank Saturn for correctly guiding me in regard to the start and ending of that period. 2007 will have mixed fortunes for oil, and it will trade around $44.80 on the lower side, while the high should be around $67. Indeed, oil is likely to trade without much strength and any rising should therefore be taken as a selling opportunity. All the same, one should buy whenever I give a strong recommendation. The overall outlook indicates that energy stocks will be the worst performers in 2007, and one should therefore avoid any investment in the energy sector after March 2007.
I expect the downward journey to continue in 2007.
Overall, grains will perform well after March 2007 and a fortune can in fact be made if you trade right and follow the wave. We shall see a bull market in corn and soy bean during the second quarter of 2007 and prices could go limit up for many trading sessions. However, grains will trade with uncertainty or with a downward trend till March 2007.
All these commodities will trade weakly in 2007 except coffee. We shall be buying coffee at the end of March and hold it for 6 months. Other soft commodities like lumber, sugar, orange juice, and coco will trade sideways or weakly during this year. Any short-term rise or buying opportunity will be posted in my weekly newsletter, and we won’t be holding for the long-term.
The rising trend in the
There will be historical moments, as for the first time we shall witness a unique relationship between other world stock markets and the
Last year, the Indian stock market was the best performer in the world equity market. However, this market will have mixed results in 2007, and will experience sharp falls and rises. Overall, I see the end of the bull trend in the Indian market in 2007.
Elsewhere, the South African stock market will trade very negatively. While the Chinese stock market will lead investors into depression since it will be unable to perform well. As for the Russian stock market, indications are that it will be the best performer in 2007. On the other hand, the South Korean stock market will give mixed result.
The Japanese stock market is not a good place to invest, as it will sharply move down after February 2007. The
The Australian market will be the worst performing market and I therefore recommend no investment there. My recommendation to those that have already invested is to withdraw their money as soon as possible.
Furthermore, all South American markets will trade sideways and I therefore don’t expect much excitement there.
In 2007, financial or bank related stocks will perform quite well and technology stocks will perform positively. Bet on telecommunication stocks as they will be the best performers of 2007, while energy and the mining sector will not have an exciting performance. Once again, pharmaceutical or biotech stocks will come into the limelight after June 2007, and the stock value of most frontline companies will rise more than 40%.
It will be surprising for everyone that the alternative energy sector will be among the best performers despite the weak oil prices. Watch solar, uranium, wind, bio-fuel, fuel cell, ethanol and hybrid technology stocks. This is a clear indication that the world is ready to adopt new technologies. Many will start walking on the path of alternative energy sources, and this is a clear sign of reduced dependency on oil.
From time to time I shall explore all these areas in my weekly newsletter and I am sure that it will be great fun trading in 2007.
You might be wondering why I am not talking about the trend of currencies for 2007. Well, I haven’t forgotten it: it is just that as you know, I start my newsletter with metals and always end with the currencies section, which is the same thing I am doing here. Anyhow, in spite all indications in the economy or the geopolitical situations, I still see the dollar remaining strong in 2007. All the side currencies will lose their charm and it will be very interesting to watch the confrontation between the Japanese Yen and the European currencies.
The rising trend of the dollar will start from February to April, as well as from July to December. Indeed, the dollar will once again rule the currency market and I therefore warn against those advising selling the dollar. It is always fun to talk about my currency predictions in the weekly newsletter because more than 150 banks and financial institutions ‘scratch their heads’ most of the time after reading the currency section of my weekly newsletter. The reason is that though they believe in me, the language that comes from their experts is often quite different. I always enjoy reading their emails and it is fun to see the wave of nature theory slowly but surely arrange the steps in the heart of the world financial market.
I would like to end this part about the 2007 outlook –predictions- as we shall certainly talk about each area throughout the year by way of the weekly newsletter. In the commodity market, it is certain that the excitement will grow faint in 2007: The CRB index which has very high leverage has come down 30 points, which is enough to make $150000 if one short 10 contract four weeks back.
Please don’t hesitate to write to me incase you have any questions.
Let us now look at the newsletter for this week:
FINANCIAL PREDICTIONS FROM 8 TO 12 OF JANUARY:
Metal investors had a bitter taste during the first three days of the first week’s trading session of 2007, as gold went down more than five percent. I take this as a warning signal to all who were loading up metals. The purity strength of gold is gone and speculation has taken root, therefore be very careful before you load up the metals.
This week gold will trade stably on Monday by showing some positive signs, and the positive trend may continue till....
Silver went down quite sharply on Friday last week....
These metals will trade...
This week will prove...
Thursday will be the best day...
All these soft commodities should move...
Since the last two months, coffee has been trading in the predicted range. This week I see coffee....
I recommend buying..
Last week there was a sharp fall in grain prices, and this scared many investors. We however expected this and this....
A sharp mind-blowing correction came in oil and we are lucky that since last four months, oil is not in our favorite list anymore. We shall avoid trading in oil for the next several days as this week oil could fall towards a new low....
The Goldman Sachs commodity index, which is highly weighted on oil and has very high leverage, has fallen so sharply that any trading account that was holding a buying position could have been wiped-out....
Those who were talking about the fall of the dollar are confused after seeing last week’s dollar price movement......
In conclusion, I have been wrong twice during THE LAST SIX YEARS of predicting the unpredictable market trends:
1. In 2004 and 2005 I predicted weakness in the stock market but it never happened.
2. In 2006 I was off-track concerning metals for the first four months, but I later emerged onto the right path.
IN THE LAST SIX YEARS OVERALL;
Ø Astrology has guided me very well and because of planetary movement I was able to make unique calls on the rise and fall of OIL (from $18.80 to $80 and from $80.00 to $55.00); METALS (gold and silver from $270 to $600 and silver $4.50 to $12.80); GRAINS, SOFT COMMODITIES AND CURRENCIES (Euro from $0.83 to 1.36 and now predicting a weak trend).
I pray that my accuracy remains and that it may continually increase so that I can guide you with even greater precision.
For anyone that has lost by following my recommendation, I pray that this year they make far more than they have lost. For those who have made good gains, I pray that their rising journey may continue: I pray that we may remember to engage in charity work and share part of the profit with the needy in society.
I wish you a good trading week.
Thanks & God Bless
Mahendra Sharma, 8 January 2007