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Astrology: Financial Predictions of 2009 in the daily newspaper, yes Nostradamus played a key role in my prophecy...

Dear Friends,

I am sure, you must a had a great festive session and looking forward to a wonderfull & Prosperous 2009.

 

Here is link ofmy most recent intervew done in Santa Barbara, CA,USA. It talks about 2009 world financial predictions. I am sure you will enjoy it. 

http://www.thedailysound.com/122608predictions2008-12-26T23-28-28

 

Thanks & GOD Bless

Mahendra Sharma

www.mahendraprophecy.com

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Part of last week letter is here to review:

Dear Members,


In the year 2008, three major trends developed and resulted in uncertainty in the world economy.
 
Last week was the most volatile that we have ever experienced in the currency market and prices readily fluctuated on both sides. The Dollar sharply declined on Tuesday and Wednesday, falling from $83 to $78.70. It however bounced back sharply on Thursday Friday. The swing in the Euro was almost 1400 points on the upside and 800 points on the downside, and the same was experienced in the Swiss Franc. This scenario amply confirms that the future is likely to remain quite volatile for the currency market until September 2009.


With the possible exception of Africa and parts of Asia, the aftermath of a slowing global economy is already apparent. The property fair in Dubai last month was a major flop and that could undermine liquidity in the market as there are simply no property buyers. I am actually wondering how people will pay for services and maintenance charges, which are very high. As I have warned for the past two years, the property market in Dubai will be in utter chaos. This crash will be for an extended period and history will remember it for many centuries. Indeed, I expect a 90% crash of housing prices in Dubai.

Oil prices have been falling continually, smashing all important levels; and this crash has been an incredible freefall that no one anticipated. Of course we saw a weak trend in oil in July 2008 and predicted accordingly, but I had anticipated the drop to settle around $56 or even $49.80. I never actually thought that prices would tumble to $33 during this year. There are many times when we saw headlines to the effect that the trend of oil was ruining its own destiny, and we therefore expected a long term bear market in oil. It is however very difficult to determine whether speculation or high prices led to the downfall of oil. As far as I am concerned, the death of oil was written in destiny and its future is therefore bleak. As a matter of fact, the significance of oil will be history in 28 years and it will be like what befell kerosene. As we all know, kerosene was extremely important twenty five years ago, but it has now been relegated to the fringes
 of energy requirements. This is what will happen to oil.


Turning to the stock market, trading has been quite nasty and stocks valuation came to such levels that one may wonder if some stocks prices are real or fake. A lot of good stocks are trading at very low PE ratios despite good earnings, and the problem is that negative sentiment has taken control of market trends. Many commodity stocks have had their worst period ever and many banking stocks suffered blow outs. Real estate stocks crumbled to their knees while a lot of good companies underwent severe set backs. There is a saying that “whenever the forest burns, the fire consumes both live and dry trees”, and this is exactly what happened recently in the stock markets. The markets are now at a very important juncture where they shouldn’t fall any further. Any further drop could precede a severe period for the next several weeks. We therefore pray for stability.
 
This week’s Financial Newsletter: 22 to 26 December 2008.


 
GOLD/SILVER
Metals traded strongly last week,


COPPER/PLATINUM/PALLADIUM/ZINC/LEAD
This week there is likely to be some stability in these side ..


COFFEE/COTTON
Both these soft commodities will…


ORANGE JUICE/SUGAR/LUMBER/COCOA

These soft commodities remained weak as predicted. The price of sugar declined on Friday and dropped by more than eight percent in one day. It is important to note that the weak trend has not ended, therefore don’t touch these soft commodities for the next two weeks. One should sell cocoa and sugar at current prices. Meanwhile, orange juice and lumber are set to remain sideways.


TREASURY  BOND

The thirty years bond almost touched $142, which was our call. The bond yield is at historic lows while current prices are at historic highs. Anything around $142 is a good sale for the thirty years bond but one should trade with strict stop-loss as it could still move further up. This is because something in its later stages in a run could easily higher prices like oil did from $109 to $145.


STOCK MARKET

In the last week stock prices traded as predicted - alternative energy and Indian power stocks were on fire. We are still extremely bullish on alternative energy stock and they are likely to enter into a historic bull market.


At this stage concern is if the DOW falls below 7800 and trades below this level for three days as this could result in disaster for stock markets around the globe. We therefore pray that the DOW remains above 7800. This statement should however not worry or confuse you as the future trend for 2009 looks solid. Indeed, my bull market prediction is still intact. If this weak trend however materializes, then it will only last for a few weeks, hence the reason we are not overly concerned about the longer term trend.

Stock prices will move up this week but many commodity stocks will suffer loses. Technology and alternative energy stocks will be on fire and one should take position in both sectors. Furthermore, all major markets should move up by more than five percent this week. We should therefore expect a clear rising trend for the market this week. Any fall on Monday should be taken as a buying opportunity. Tuesday and Wednesday will have a positive trend though we could have some weakness on Thursday and Friday.

The Asian and African markets will remain positive and the Chinese stock market will sharply move up. Therefore buy the Chinese ETF.


GRAINS
Grain prices will be frail this week and a rise will be a selling opportunity on Monday as well as on tuesday. In the last week, wheat outperformed all other grains. If one wants to sell position in grains or short grains, keep your buying position in wheat and sell soybean and corn.


For the meantime, I see corn and soy coming down by more than twelve percent.
 
OIL
The murder of oil was well planned and executed by skillful masterminds and we believe that credit goes to Bernanke. We talked about Ben Bernanke early this year and in the middle of the year and said that he would do a great job. We still believe that he will be a key player in streamlining the economy and help clear the mess that the USA has been accumulating for the past several decades. Indeed, his astro chart is so powerful that the USA will rock from May 2009. I therefore pray for his good health because he will be the key person in matters of economy, not Obama. Nevertheless, we still like the positive energy in Obama’s chart as well.


This week Oil will…


CURRENCIES
What a rollercoaster we have had in the currencies market. False trends in all currencies against the USD created a panic among seasonal traders and I began receiving tones of mail from our members in the banking community as well as from hedge funds. One of the leading banks sent me an email saying that the world currency market was at war!

It was tough for me to understand the trend on Tuesday and Wednesday in the currencies market, but I never lost patience and the final two days of the week handsomely paid off.

The Dollar is the “ARK” and I shall keep saying this. One should therefore not panic as the Dollar is sure refuge that will smoothly sail you to the next stage during this very interesting journey.


The US Dollar will trade positively this week from late Monday and rising trend from, and the trading range of March will be $81.45 to $82.30. The trading range shows that currencies will not be too volatile, but we should be prepared for another volatile period next week.


The Swiss Franc, Canadian Dollar and the Euro will decline from here but they will attempt to go up on Tuesday morning or Wednesday before doing down. Each rise should be taken as a selling opportunity.


The bull market of the Japanese Yen has ended and the Yen will now trade with the Euro and other currencies. I see the Yen losing value against the USD; therefore time has come to build your selling position in the Yen as well.


The Indian Rupee, Rand and Peso will move down sharply from Thursday and move towards historic lows next week. Finally, the Australian Dollar and British Pound will remain a bit stable though the trend will be weaker.



Thanks & God Bless

Mahendra Sharma, 21 December

www.mahendraprophecy.com