In the past week, it was apparent that even the respected Mr. Greenspan himself does not have a clear notion about the path that the
The Dollar will soon start making strong gains for a few months before collapsing and losing its status as a key global currency.
On the other hand, oil will remain down for several months before embarking on a new journey, which may take prices up to $75 to $80.
While the stock market is on the verge of collapse, investors will be enchanted by the beauty of silver, hence fall in love with it.
These are basic points that my members should remember as they do their investment planning.
LETS US SEE WHAT IS INDICATED FOR THIS WEEK:
PREDICTIONS FOR 22 FEBRUARY TO 25 FEBRUARY
During this week, gold will continue to move up step by step. Triggered by a rising of the US Dollar, an interesting event will take place. Planetary positioning is strong for both gold and the dollar and it shall therefore be interesting to see how the metal will fight against a strong dollar move. In this week, we shall witness the simultaneous rise of both the dollar and gold.
Please do not make the mistake of selling gold when you see the dollar rising. There will be a clear upward trend from Monday to Friday. However, Wednesday may be directionless.
Gold stocks rallied during the last two weeks and indeed the same will very strongly occur through this week.
START SELLING GOLD AND GOLD STOCKS FROM THURSDAY EVENING AND FRIDAY AND THEN WAIT FOR MY NEXT BUYING CALL.
During this week gold will trade in the range of $424.80 to $441.20. I will recommend slowly getting out from holding position of gold and build-up silver position in 2005 but don’t forget to book profit on each rise as nature of silver will never change (volatility).
I stated last week "Silver was on the march as though the morrow would never dawn. Well, this may explain why it is my favourite for 2005. Indeed, this was just a trailer because the main show is about to begin. There is a reason behind this and that is why I have been recommending putting more than 50% of your money into it. Oh Yes, Silver will outshine gold and I can see that many powerful people are after that."
This week silver will trade between $7.02 and $7.42.
SILVER STOCKS WILL BE THE BEST PERFORMERS AND I CONFIRM ONCE AGAIN THAT SILVER WILL MAKE MANY NEW MILLIONAIRES THIS YEAR."
Palladium prices will move upwards in this week. Indications further show that March will be a good month for palladium.
ONCE AGAIN I maintain last week’s prediction - Stay away from both of these metals. Do not hold any positions in them as they will remain most volatile.
Do not hold any buying position in oil because it will start moving down any time around $50 or $51. As for the oil stocks, they are trading in the high risk zone.
I have finally seen the bear approaching, slowly ambling along Wall Street and closing in on the
One can therefore start selling market from Friday this week.
LAST WEEK I SAID: A great time to short the market is soon coming on top high and it will be like Jessie Livermore’s right selling day back in 1929 CRASH. You may receive my alert to "GO SHORT" because I see an end of an era for the
You can start accumulating the US dollar during this week as I see it having a strong upward move any time by Friday or next week. The Euro, Pound, Franc and Yen will go down quite sharply soon. Do not be short in the Dollar from next Tuesday.
Once again, coffee hit a new high last week. It will remain very volatile during this week and it may touch another new high though. Stay in buying position.
Last week cotton prices went up quite strongly and I expect the same for this week. Hold your buying position in cotton and you can even add onto it.
Last week grains remained quite stable. They should rise very strongly during this week and I therefore recommend buying grains on Tuesday. They all will hit a three months high in the next ten days.
I see orange juice surprising every one during this week. Prices could rise up to ten percent in the next 10 days trading sessions.
The Moon will support sugar during this week. Buy and sell by Thursday and sell all positions because sugar could have a drastic fall next week. You should therefore get out from sugar positions by Friday this week for the next ten days.
Finally, the focus for this week will be on silver movement as well as the dollar verses gold movement. In 2005 gold won’t able to attract investor because silver will sideline gold, so don’t hold big position in gold.
Currencies will remain weak against the US Dollar.
Cotton, orange juice and grains will move up strongly.
YOU CAN DO TWO TRADES THIS WEEK - Sell STOCK MARKET AND METALS on Friday. Metal selling will be short term while for the stock market, it is long term.
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Thanks & God Bless
Mahendra 18 Feb 2005