Today's Trade & News

Dear Friends,

Today morning, I was reading my book “2013 Financial Predictions” and got very excited so decided to put small part from book here on our website.

Here is report card of our book “2013 Financial Predictions”, many predictions from book have fulfilled and few failed as well.

What we stated about stock market:

OVERALL TREND IN 2013

2013 will be the most exceptional year because stocks and indexes will keep moving higher. We don’t know how big guys and institutions will read this market or trend of 2013 but our theory is clearly indicating a bullish year for US and world equity markets. We have kept this e-book very brief, writing just what will happen and when it will happen but surely it is time to make money in 2013. Don’t do many things; hold your best trades or the trades that the wave of nature and our Astro indicators are recommending. You can also do your own research and plan your own strategy under the umbrella of Astro cycles.

Once again, USA equity will outperform  but  other markets will  be moving higher  too.  We mentioned last year that China would underperform and it did; last year didn’t prove to be a very happy year for Chinese investors. The rest of the world did well including other developing markets as well as emerging markets like India and South Africa. Other small markets like Malaysia, Indonesia, Thailand and few African markets also attracted the money of financial institutions.

Middle-east, China, Spain and Greece remained under the underperforming markets category. Investors of these countries remained confused or puzzled.

As per our theory we see that most markets will be performing well except middle-east; this means that China will also do well.

The best performing markets will be USA, DAX, FSTI, Nikkei and India. Our theory sees that these markets will put up a solid performance during 2013.

Spain and Greece will remain the most volatile and very speculative markets; many key stocks will sky rocket so investors in these counties should build up positions without fear.

Indonesia, Malaysia, Thailand, Brazil and Russia will do well too. However, investors won’t be very happy with returns, so investors of these countries should buy EFTs or stocks in developed markets or the markets recommended above.

Middle-east will remain under its own problems without much excitement.

Commodity markets will underperform so countries that are highly dependent on oil and mining will suffer a slight setback in 2013.

BEST PERFORMING SECTORS

Alcohol and food processing companies will do extremely well; they are our number one pick for

2013. Whole Foods, Starbucks, Diego, Heineken and many other food and brewing companies around the world will outperform in the markets. In the Indian market, last year’s favorites still remain our top picks for this year as well. These include Tata Coffee, Tata Global, Jubilant Food, Tasty Bite, United Spirit, Jagtjit Ind, Nestle, Britannia, GlaxoSmith, Vadilal Ind, Globus Spirit, Mount Everest and Heritage food. In fact you can go to the wiki link below and research every countries food and brewery stocks. Here is the wiki-link http://en.wikipedia.org/wiki/List_of_food_companies. Do your own research before buying any stocks.

USA technology and telecommunication stocks will remain the top performing sector. Last year we recommended a few stocks in USA like Apple, Yahoo, Amazon, Microsoft, Google. These stocks remain on our pick list even in this year. We are adding stocks like Juniper, Qualcomm, Verizon, At&t to the list.

As Venus will be ruling the financial markets in 2013 and Venus represent fashion or high end consumer goods, stocks in these sectors will do better, and all major brand names will outperform in the markets. Keep adding stocks of famous brand names to your portfolio like Michael Kors, Coach, Nordstrom, PVH Corp (Tommy), Ralph Lauren and many others. Please do your research and add these stocks to your portfolio. In the Indian markets, you can add Titan, GSK Consumer and Shoppers stop as these companies will perform better due to the Indian government having allowed international whole sellers to enter India.

Industrial and banking will do well also; one can keep or add some of the big names banks and financial stocks to your portfolio as a form of diversification.

The Airline, online Travel booking companies, and Auto sector will also do well due to low fuel costs as we see Jet fuel and gas prices remaining stable. This will benefit directly, both the consumers as well as industries.

The most exciting time will start for housing and home builder stocks as these stocks have faced the toughest challenge in the last four years. Now the time has come to invest in this sector. Low interest rates and positive attitudes of the economy will surely give a new life to these stocks.

Solar, Uranium, rare earth and energy efficiency stocks will do well as well. Uranium stocks will move in multi folds. In the next three year these stock will move more than 1000%.

Negative trend: We highly recommend avoiding a few areas of investment and sectors such as energy, metal mining stocks, defense and Pharmaceuticals. Many will be surprised with Pharmaceuticals being under this category as in the last thirty years pharmaceutical companies

have always performed well in depressed markets, but during 2013 and 2014 they will underperform and give way to other companies to do well.

Yes, our theory is not showing any encouraging signs for mining stocks, specially metal and energy stocks, we recommend that you to stay away from these stocks.

In this E-book we are not providing specific details on each of the markets because right now S&P is playing the role of the engine so the rest of markets will follow S&P’s lead. Yes there will be few markets which will lag behind so we will write about those markets below. We strongly recommend you to keep investing in US markets, as US Dollar will remain quite stable during

2013, so you won’t lose any money in terms of currency valuation. Like last year Indian markets did well but weakness in rupee ate away on some of the gains of foreign institutional investors.

The Japanese market will do well in 2013 but Yen’s weakness may eat up gains. If you are concerned then put money back into Dollar as we see the weakness to continue in Yen during 2013.

In 2013, currency valuations or performance will be the big game changer for investors so watch currencies trends carefully if you are a foreign investor in stocks, real-estate or Bonds.

STOCK MARKETS TRADING PATERN IN 2013

Predicting market trend is always fun as well as very challenging. Globally Investors trade either in their own market or international market if they have accessibility. In our career 1997 to 1999 remained best years due to technology stocks as we predicted that madness. After that now since September 2011 we are very bullish on markets and the next two years we are still holding our predictions for bull market.

Everyone invest in market to make money and there is no doubt that if you are right side of market then you make money. In this scenario either you buy stocks or simply trade indexes. We still believe that trading Indexes is safest way to buy markets because individual stocks are attached with so many problems like earning, CEO statements, sector performance or news announcement,  downgrade  by  analyst  and  many  other  factors  influencing  Individual  stock trends.

Like 2012, in 2013 we will be focusing on Indexes, but also we will be talking about a few things that already we mentioned in the first chapter. Last year, USA was highly recommended in our buying list and after that was Europe and emerging markets. China was one market which we never recommended and these predictions have proven to be so true.

If anyone is investing in the markets and if he/she comes to know well in advance which markets will perform, then they don’t require anything else. It just becomes so simple to make money. We will try to predict the yearly trend of all major markets here below.

USA EQUITY MARKET IN 2013

In 2012 S&P pulled world indexes out from the EURO zone problems and we are able to predict that because Jupiter and Saturn are paying most important role in S&P astro chart. In 2013 we see S&P playing a lead role again for the world equity markets. Many USA companies will be keep  moving  to  all-time  highs,  technology,  online  stores,  food,  drinks,  luxury  or  fashions house,  gambling,  airline  and  hotels   and  online  travel  booking  companies  stocks  will outperform key leading sectors like transport, banking and Utility. Mining and materials stocks will also underperform.

We still see money following in US and US dollar, once again US will remain in demand, and once again outsiders will desire to succeed in US. A new era of USA is starting because Saturn will force industries to move back to US, China will have problems because of this. “Made in USA” will become a high desirable property, and yes we clearly see this era of “Made in USA” coming soon.

In the year 2013 US dollar will remain stable and this will encourage investors to keep money

USD. It will gain value against many key currencies.

Housing markets will perform extremely well in the 2013. We predicted in our previous book that housing markets would bottom out in the 2012 and all indications and data confirms that. We are not predicting a “V” shaped recovery but surely home values will go up around 10% to

15% in the 2013.

Political leaders will make the correct decisions for the economy and this will show that leaders have the willingness, and this will surely bring confidence among investors.

2013 earning will be far better, and many big names will surprise Wall-Street. This will also fuel the stock market. Investors will go rampage to acquire stocks and will increase holdings in top companies which will force equity markets to move towards historic highs.

Unemployment rates will fall to six percent or even 5.8, and economic sentiments will be far better in 2013. No one including fed predicting fall of unemployment rate toward 6.00 percent in 2013 but we are confident about it so let wait and watch. In the year 2013 most of USA’s astro points are very positive and this is encouraging me to write a positive outlook for US equity market.

S&P and NASDAQ will move at least twenty to twenty five percent higher by the end of 2013 from current levels of 1380 (S&P) and 2582 (NASDAQ). Our astro calculations indicate 1755 for S&P and 3300 for NASDAQ and 16000 for the Dow in the calendar year of 2013.

TRADING PATTERN OF US EQUITY MARKETS IN 2013

The First cycle from 2 January 2013 to 30 January 2013: This cycle represents a mixed trend with huge volatility as Jupiter will be running in retro directions. There will be volatility, no major excitement,  markets  will  calm  down  and  earnings  will  also  not  surprise many.  This  clearly indicates that the USA equity markets like to take a break. This will be perfect trading ranged market, so people can play in and out without any core positions.

The Second cycle from 1 February 2013 to 10 March 2013 represents bullish indications. USA equity markets will be making new highs of 2013 or above S&P 1500. You should be well placed with buying positions by the end of January or the first two days of February because they will be perfect days to build buying positions in leading stocks or futures market. You can also build call options in the end of January. We won’t be surprise if S&P and Nasdaq gain more than five percent during this cycle only.

The Third cycle from 11 March 2013 to 18 March 2013 represents some unpleasant scenario in the markets, suddenly markets can fall sharply, so we highly recommend booking profit before or by 10 March 2013, and let these eight days pass. During this cycle all major stock markets can fall so beware.

The Forth cycle from 21 March 2013 to 26 April 2013 will be mixed period. During this period USA markets will be trading on both sides, neither Index’s will break new highs nor will they break lows of 2013. During this period we will recommend holding 50% cash, and 50% in front line stocks like Apple, Google or Starbucks. During this cycle traders should take advantage of short term trading strategy. Our weekly newsletter and flash-news will guide you perfectly.

Fifth cycle from 27 April 2013 to 31 May 2013 represents positivity, but the market will be trading very slow, and this will be the perfect time to get ready to build big positions in stocks, call option and futures because the next cycle will bring one of the finest bull markets where indexes with keep moving higher without any volatility. During this cycle you will benefit if you buy food and tech stocks. Other areas will remain quiet.

The Sixth cycle from 1 June 2013 to 17 July 2013 represents a rising cycle. During this period we will see stock markets moving toward a new high of 2013, money will keep flowing into the market. Fed will have positive announcements and companies earning will be positive. We highly recommend holding positions in the markets, no shorts or selling recommended.

TREASURY BOND IN 2013

We have been writing about Treasury bonds for the last nine years. If we look back then we can say that accuracy levels of our predictions is very high in thirty year Bonds. We still remember when Thirty year Treasury Bond was trading around 108, and we predicted the target of 123, many did not believe but it hit 123. The next target we came out with was 137 and the last one 150. In the last seven years prices of Thirty year Bonds have been going up one sided and nowthe time for a break is coming.

At the time we  are writing this week, Thirty year bond is trading around 152 and we are recommending selling at the current price. On the higher side it can reach a maximum of up to 155 and on the down side 133, so this is a great time to make money with selling trades. Here is a detailed outlook for Thirty year bonds for the 2013:

From 7 January 2013 bond prices will start moving down and may fall constantly until 12 March 2013. During this period we won’t be surprised if thirty year bond falls to 135-20. Currently thirty year bond prices are trading around 148-28.

From 16 March 2013 to 21 April 2013 thirty year bond prices will remain sideways so trade in and out or follow our weekly newsletter for short term trading.

From 23 April 2013 to 31 May 2013, we see thirty year Bond prices collapsing and making new lows of 2013. We won’t be surprised if they reach 130.00.

CURRENCIES TRADING PATTERN IN THE 2013:

In the last decade US dollar underperformed against Yen, Euro, British Pound, Swiss Franc, Canadian dollar and Australian dollar. It performed well against Indian Rupee and underdeveloped nations currencies. Other emerging market currencies remained mixed in the last decade. Dollar only performed well whenever crises or fear of uncertainty arrived. Specially in 2007/8 when the banking and housing crises came and once again in 2011 when the euro debt crises was getting scary. Otherwise, the overall trend of dollar has remained weaker.

We were able to predict a bottom for US dollar around 72.00 in the 2007/8, and we also made a statement that we won’t see these prices again and we still believe that dollar index will go back to 72.00 in at least the next four years.

During The Tech bubble all major markets were making highs and at the same time dollar kept moving higher against all major currencies. After 9/11 everything changed overnight and positive economic outlook which used to be favorable for USD changed into safe haven status. If problems come then investors and central banks started accumulating dollar, and during the last decade a positive economy and positive stock markets forced US dollar to move down. We don’t understand who changes all the rules of perception but it is unique how psychology changes and how we get convinced by new rules and simply start following these rules with questioning them.

We clearly don’t see a weaker trend for dollar in the coming time. Yes we are aware that we are predicting a historic stock bubble and a strong economy with a strong growth rate. It means that

once again the time coming where the rules will change. Who will change them; will it be us, or nature will force us to change rules. When key people fail the way they see that’s means that they will change the rules, and we will start following it. CNBC, Wall Street Journal will force us to believe in what they are saying.

We still remember in the year 2002/3, our close friends and personal clients believed 100% that any geo-political uncertainty, economic uncertainty or war will push gold higher and we used to tell them that time is coming when gold won’t require any war or blood bath, gold would move up with its own strength. Gold will also ignore rising US Dollar because gold will be placed in every institution portfolio, all major hedge funds and central banks would love to keep or to see gold prices on higher side.

The time is coming when we will see same for US Dollar, strong economy, positive stock market, positive housing sentiments, rising GDP and strong jobs data will support US Dollar.

In the last quarter of 2012, Dollar gained handsomely against emerging market currencies as well as Yen. It is clearly indicating that in the coming time we may see a weaker Yen and we strongly see that should be in the Japanese governments and central banks agenda. Emerging markets currencies will trade with volatility. Euro will try to present its case that everything is well in the Euro zone, and are hoping that problem countries and world will believe that. Three years back Dubai had a similar problem and now no one talks about it, it looks like all its problems are gone but we do not see the same happening in the Euro zone.

Most of the big guys always give lots of importance to currency movements because they are the key indicator for all markets, telling us where they will move in coming time. When in 2001 we came out with the predictions of crash in US Dollar against all major currencies, it became very clear to us that in the future coming time commodities would move sharply as well. We were also aware that if dollar crashes the way we see then there would be diversification in currency holding positions in different central banks.  It was the most interesting prediction we got from Astro indicators, we also mentioned that this bear cycle would last for seven years. It means we were  targeting dollar to remain weaker until 2007 that happened.  Dollar index crashed from 120 to 72.00 from year 2000 to 2007, no one must have ever thought that this kind of a move was going to happen.

Anyways now dollar is trading more stable, and it is indicating that the era of dollar is coming back. With Dollar’s stability, the world is losing its attraction towards Euro and Yen. This means that carry trades are getting over, and investors are shifting money back to Dollar.

Different currencies can be used to place a bet against your investment holdings, currency positions can   be taken as a hedging trade and also many people like to take loans in different currencies because all currencies have different interest rates. Many people use different currencies against gold trading positions. Dollar is the universal currency and it is very easy to

plan any investment strategies using dollar and other currencies but these strategies are only good for big money. If you have a hundred thousand than there is no need to even think about all these excuses.

Lately fall in Yen has opened the eye for investors because Yen’s weakness supported the Nikkei market and on other side Japanese investors who bought Gold in Yen terms and sold it in dollar terms worth the same amount ended up making money. The same situation occurred with Indian investors when Rupee kept falling, gold prices in Rupee terms hit historic high even though in dollar terms gold was far below its pick.

Most of our followers are aware that our Astro indicator is one of best indicators in currency prediction for the  longer term  cycle. In  the 2007 and  early 2008 we came horribly wrong because we were eight months early in dollar buying predictions. That prediction gave us some loses and few of our members also lost money but when dollar rebounded from 72.00, we made everything back, and in fact, made more money. Anyway let see how we see 2013 for key currencies.