Dear Friends,
I decided to put this small part of this week newsletter here with Tuesdays trading range. I am sure you will enjoy it.
Thanks & God Bless, SharMa Mahendra
Weekly newsletter from 27-30 December – “Wave of Nature”
Dear Members,
We humans have created everything from whatever excited us in the nature. Human brain played 99% role in all such creations. We start with one thing and we continuously look for better product or we create alternatives of it. The big question is, either we are advancing in world and having better things because of our needs or our brain is continuously developing more and becoming more creative. In other words, the brain of us humans has evolved over the last five generations and created many things we have today and we can be assured that the future generations will innovate more and more.
Many will ask, Mahendra, what is the reason and relation of writing the above paragraph in a financial newsletter? Yes you are right, but I want to make a point here and the reason for making this point is the pain and frustration within me. We have created all kinds of theories, including technical and economic. We give so much importance to these compared to nature - “the real hidden power, which gives birth to everything”. Wall-Street Journal told me last week that they have to go through my new book before that can put it’s advertisement in WSJ because my theory doesn’t have any basis.
It doesn’t matter to them how accurate I have been. It is a matter of many accurate predictions my theory has given to Wall-Street investors. If I had written a book on technical charts they will be very happy to publish, but what are technical charts? An ‘interpretation’ created by humans and based on that people take actions because it is widely spread and accepted. None of the technical chartist’s predicted in 2001 that gold would reach $1000 or $2000, or silver $21 to $50 or oil $150. And same can be said about economist’s and those who do fundamental research. I think none of their theories guided us correctly about future. It is just that they all speculated about future and those people who are ready to speculate by keeping longer term outlook in mind they always became successful. Like many those who believed early in this century that gold would rise and stayed with their gold investment to make a fortune.
Our theory is different, and I can also call myself as an economist because I did study economics and I have a degree in it, but for the last twenty years I have been watching chart patterns, and I also understand fundamentals and macro economy but why is it that I still like to remain with “wave of nature”?
Wave of nature is part of nature, theory which is not a product, theory which flows with nature because it is connected with nature; technical’s and fundamentals are created but then they became numbers and disconnected from nature and they have their own rules. In “wave of nature” we have nature’s rules and we are never disconnected from it, and if we even tried to do so then this theory will die just like if we try not to breath air then within few minutes we will die because we tried to disconnect from nature and air is part of nature and we are part of nature. It doesn’t matter, whether you are, President Obama, Bernanke, scientist, doctor, guy with big body with muscles or anyone else, because we can’t disconnect from what we took birth from, and we should all be aware that we took birth from nature.
It will always be challenging for me to make people and investor’s understand about wave of nature and our relationship with it. I chose financial market area, just like doctor’s choose to research about medicine and health. The study of market behavior is also a science and I am doing study of that which is called the wave of nature. I am sure once I depart from this life, people will find this subject interesting, as this subject takes you in future, and gives you a glimpse or picture of the coming times, and it is fun and a great feeling.
Wave of Nature is giving this picture of S&P where I see only excitement for those who stay with S&P, and those who go against it may not be able to enjoy the ride and that is why I ask you to go with the flow of wave of nature and I am sure you will enjoy floating with the nature’s wave.
I am sure you must have enjoyed reading our new book “2012 Financial Predictions”, and after reading it made plans of how you want to trade in 2012, or where you want to put money and the time frame, and to do this properly you just need one day, so disconnect from everything, may be go away alone for a day and make a plan for 2012, and I am sure in December 2012 I will receive an email from you that this was a good beginning in your financial life. I am asking for a small favor from you - Try to spread the word about “2012 Financial Predictions” book because we don’t want to become selfish, let everyone make money.
Here is this week’s, weekly trend for all markets. As most people will be on holiday this week and this week is also a short week, I would recommend one to just enjoy this week with family, friends and people you like and then get back to work from next week.
Weekly trend from 27-30 December 2011
GOLD/SILVER
This week both these precious metals will trade weaker. Without writing in detail, in simple words, avoid any positions in metals during this week until mid Thursday, metals are very nearer to bottom so buy around $1550 and silver $26.80 on weakness.....
Tuesdays range for:
GOLD
SILVER
COPPER/PLATINUM/PALLADIUM
Out of these three base metals,…..
Tuesday’s trading range:
COPPER:
PLATINUM:
PALLADIUM:
STOCK MARKETS
As we predicted, the USA market has been outperforming….
Here is Tuesday’s trading range:
Australia
NIKKEI
HANG SANG
DAX
CAC
FSTE
S&P
NASDAQ
DOW –
RUSSELL –
COFFEE/COTTON
Last one month coffee and cotton have been trading sideways as predicted….
Tuesdays Trading range:
COFFEE:
COTTON:
SUGAR/COCOA/ORANGE JUICE
Astro indicators….
SUGAR:
COCOA;
ORANGE JUICE:
TREASURY BOND
Last week the 30 years bond prices went down sharply as predicted. A few of our member who trade Treasury Bond made a good sum of money. You just need to make a few good trades in a year to take care of all expenses of the whole year. Last week thirty year Bond prices crashed from 146-12 to 141-28. Somehow our accuracy on bond is very high. I can say our theory guides us accurately almost 95% of the time.
Anyway this week bond prices will trade…..
Here is Tuesday’s trading range:
GRAINS
We received many emails last week from our grains traders regarding our buying call. Yes I am happy for them that after two months of predicting a weaker trend in grains we were able to predict a shorter term rebound very accurately. I still remember corn trade which we took for a very close Friend/personal client of mine “Vimal Mehta”. We bought huge amounts of corn in 2005, around $200. Around the same time Goldman Sachs came out with a negative outlook on corn and this created fear in us and we were forced to close our positions. After making $195 low, corn went up $775 in nine months, he could have made over 90 million dollars in that trade. Yes, market noise and fear is a factor that keeps us away from the market and forces us to close our best trades.
Anyway buying..….
ENERGY
I will recommend getting in…..
Tuesday’s trading range:
OIL:
NATURAL GAS:
CURRENCIES
This week dollar will……
Tuesday’s trading range:
Dollar Index
Australian dollar
British Pound
Canadian Dollar
EURO
Japanese yen
Swiss Franc
Rupee
Rand
I wish you good luck for 2012; and enjoy your yearend holidays with family and friends in peace and with happiness.
Thanks & God Bless
Mahendra Sharma, Monday, 26 December 2012