Dear Members,
Markets have been losing significant value over the last two weeks. Tuesday was a supportive astro day, yet the market still declined, which is not encouraging. As mentioned in the daily Flashnews, I want to highlight a few key points:
1. The market closing lower on Tuesday is not a good sign. Tuesday’s astro combinations were very positive, and according to our theory, a negative market reaction on a positive astro day is a bearish indicator. Conversely, a market rising on a negative astro day is one of the strongest bullish signals.
2. Software stocks have been falling relentlessly. Major investors have lost substantial capital holding the big names, creating widespread concern. Today, MSFT is trading sharply higher, and $395 remains the key buying level from our book. We do not see MSFT falling below this level, though this stability does not apply to all software names. MSFT is deeply tied to AI—it is no longer a pure software stock.
3. The sharp fall in Crypto is equally concerning. Investors have lost massive amounts. Stablecoin-related stock CRCL collapsed 70%, from $275 to $52. ETHU fell from $188 to $26. The list is long. Many traders—large and small—have lost fortunes, making reentry psychologically and financially difficult.
4. Several key AI-related stocks—ORCL, CRWV, NBIS, AVGO, and others—have also seen steep declines. ORCL alone has dropped $200 from its high. NVDA has struggled since its last earnings, and networking stocks continue to fall. Even our favorite names—ALAB, NBIS, and CRDO—have corrected nearly 50%.
1. Most of you already understand what is happening, so there is no need for a lengthy update. What you truly want to know is whether the market is close to a bottom or if the pain will continue.
My view:
As clearly stated in the book, you should avoid buying from the end of the third week of January 2026, as a volatile cycle was set to begin. I continue to stand by that prediction. February will remain a rough month with elevated volatility. Investors must trade with cash—no margin, no speculative short-term trades. Those holding cash can invest 10% today and another 15% over the next six weeks.
Important note:
This is not the time to sell AI stocks. This is the time to accumulate gradually. Challenging periods have always proven to be the best accumulation phases for long-term investors. The AI story has not peaked—it has barely begun. NASDAQ is on track to test 43800 to 49800 within the next two years, and 63800 by 2028/29. The downside risk from here is a maximum of 5%, with a worst-case scenario slightly above 3%.
Today, SITM will announce earnings, which are in our buying list. Alos GOOGL and FLNC should move higher along with AMZN. Short-term traders can buy TQQQ.
On Monday, we recommended buying metals. Today, per our weekly and daily letters, we recommend closing long positions. Gold was a buy at $4468 and silver at $75.95, with profit-booking levels this week at $5098 for gold and $89.88 for silver.
Thanks & God Bless
Mahendra Sharma