Wednesday’s Flash news (unedited copy)
Great Sign - S&P recovered from 2033, Brief update as we are in Mexico for holidays
Dear Members,
On Tuesday Market moved sharply higher as predicted. Energy prices moved higher, natural gas once again gained 7% value. Dollar gained and Thirty year lost big value. Rest of commodities traded negative.
Wednesday we see both sides move in market but still positive trend will continue. Commodities will struggle to move higher and among commodities, metals will lose value. Hold positions in market and stay away from commodities for the next two days but grains are ready to move higher so hold positions.
This is what we mentioned yesterday: Monday most of global markets traded mix, we were watching S&P because closing below 2033 could have been nasty astro indications but it recovered from low’s and which is sign of positive astro time for markets. Most of you are aware that we our view is very positive for S&P and most of global market in 2016 and certain astro level S&P won’t break but still due to precaution we wanted see S&P remaining above 2033. Metals traded negative and most of commodities lost value including energy.
Dollar gained value and Thirty year came down sharply after moving higher.
We are on holiday so this week updates will remain very small but surely we will try to guide you clearly.
This is what we mentioned last week Tuesday: Tuesday as predicted the market gained handsome value and S&P closed above 2033 level which is very bullish sign. Dollar lost some more value against the frontline currencies, and the emerging market currencies traded mixed. Metals, grains and softs traded negatively but finally oil recovered from the lower levels and specially it held $35.35 very well which clearly indicates bottom have been formed in oil. The market is in the process of bottoming out and may take another two to three weeks to form a complete bottom, so stay long with your trades. Watch 2088 level closely and once S&P rises above 2088 then expect 1tleast 14 to 17% non-stop rally.
On a positive day metals traded negatively which is indicating that the future of the metals looks terrible. On Wednesday and Thursday there are chances that metals could rebound but our medium to longer term indicators are showing a very negative move so avoid any buying.
Immediately after job data we mentioned this on Friday, 2 October: Job data unexpectedly came out negative and market came down sharply lower but these lower prices may not able to remain for more than few hours or few days so time to acquire more positions here in USA market. This week on Monday S&P made a low of 1863 level and right now it is trading at 1886 and this level should be held and it won’t trade below 1886 for more than three days.
Must watch: Emerging markets are bottoming and emerging market currencies also started moving higher since last three trading sessions after weaker news of five years. Time to acquire emerging market currencies and emerging markets. Watch YINN, BRZU, INDL and LBJ.
In 2011 mid-October S&P bottomed out and moved 30% in the 5 months, and every year there on S&P always bottomed out in mid-October and same we are expecting this year to happen as we have been predicting that market should bottom out by 10 or 16 October 2015. We are still expecting huge rally in first quarter of 2016. We are expecting S&P to gain 20% by 2016 March.
Thanks & God Bless, Mahendra Sharma, 7.00 AM Santa Barbara, 2 Oct 2015, 5.45 AM
This is what we mentioned 2 September: Watch UVXY – ultra volatile etf went sharply higher in the month of Mid-August from $25.00 to $86.00. Many bear etfs like RUSS and YANG are moving up crazily, shorts in these etfs shall provide year results in the next few months.
This is what we mentioned four weeks ago on Wednesday (20th of May): Gold have been trading in range of $1225 to $1142 since one year after coming down from high of $1900 in 2011 which we predicted and since then we have been not recommending investing any money in metals and metal stocks. We are planning to recommend buying metals later this year which we already mentioned last year in Kitco interview and our website.
Here are the trading ranges and strategies for Wednesday:
GOLD/SILVER/BASE METALS
On Tuesday metals traded in the tight range and on Wednesday they will lose value so stay away from any buying. Stay away from metal stocks. Higher side selling is recommended in precious metals. Base metals will trade also mix to negative.
This is what we mentioned yesterday: Monday metals traded negative which is very negative sign, on Tuesday higher side will remain very limited so avoid any buying. We recommend taking sell positions on higher sides, at this stage gold won’t able to close above $1078 and silver $14.16. Copper and other base metals will trade negative so stay from platinum, palladium and copper. Stay away from metal stocks as well.
Last week Thursday we recommended to book profit in metals which proven very right because on Monday metals came down. Down side is wide open for metals.
This is what we mentioned on 14 December: This week precious metals will open positive on Monday and will remain positive in the Asian and European market but some selling will come during the USA trading sessions so day traders can buy in Asia but sell everything back once the USA market open.
The FED rate decision will come on Wednesday so wait for Wednesdays update. Gold will struggle to move above $1086 and the down side is still wide open. Avoid any buying in silver and if you are buying on Monday than get out by the end of the day.
Gold will have some support at $1063 to $1043 so short term can cover positions and wait for FED decisions and our alert of Wednesday after FED announcement.
It looks like that $1083/1088 will remain very strong astro resistance level for gold and $14.55 for silver so selling is recommended and down side is wide open toward $1043 to $988 and same percentage for silver and other metals.
This is what we mentioned on 16 November: Last week precious and base metals traded very negatively and many base metals traded towards multi year lows, but metal stocks traded relatively stable. Gold is holding $1080 at this stage and on the higher side it is refusing to move above $1090. We still don’t see gold closing above $1097 and on the down side gold closing below $1080 will open the door for gold to move towards $1055 to $980.
This is what we mentioned on last Monday 26 October: Metal investors made money from 2000 to 2007, and 2009 to 2011 by buying and holding positions, but that era is gone, and now you have to be a smart metal investor or you have to become an opportunist rather than falling in love and holding for years which won’t take you anywhere. Tuesday will be the best day to buy positions in DUST at $11.80. The Fed meeting is on Wednesday so trade with light positions. At this stage gold will struggle to close above $1178 and won’t close above 1184 as predicted two weeks ago. Silver is showing positive signs but positivity will disappear as it won’t close above $16.05. On the down side gold will hold value at $1151. If gold breaks the lower side support level of $1151 then it will be an extremely bearish indication so remain vigilant.
These levels we mentioned on last week Monday and Wednesday is working very well so far. This is what we mentioned 3 October: Tuesday one should trade in and out in metals, any rise in Palladium should be taken as selling opportunity, and Palladium won’t go above $720 levels. Get out from metals stocks once HUI reaches to 125 level. Maximum higher side for silver is $15.95 and gold $1168 and $1184 looks difficult to move higher.
August note: Gold came down from $1935 TO $1073, and up 7% from lows but must remember that it is in bear astro cycle.
Here is Wednesday’s range: (March 2016 contract):
GOLD: $1071.90 to $1063.05
SILVER: $14.05 TO $14.81
COPPER: $215.50 TO $209.30
PALLADIUM: $565.00 TO $555.00
PLATINUM: $899.00 TO $884.00
INDEXES
On Tuesday S&P gained handsome value, and positive trend to continue. Google, Amazon and many leading stocks touched all time higher. Don’t short any market at any level because we are getting ready for amazing move which will surprise everyone. After Tuesdays rally, Wednesday will be mix day for markets.
Keep adding positions in emerging markets around lower side mentioned ranges here below. Now S&P have crossed 2033 and 2064 level, once it closes above 2088 for 11 days than our next target is 2175. S&P will hold 2064, 2043, and 2033 levels so watch these numbers closely.
This is what we mentioned yesterday: On Monday most of markets traded mix but EUROPEAN and USA market opened lower. USA market recovered value from lower levels so stay long in USA and emerging market markets. European market will trade mix.
Now S&P won’t retest 2033, we strongly recommend to buy positions in S&P around 2043, and same time add positions in most of USA indexes.
Best bet will be on emerging market and emerging markets etfs so don’t miss opportunity to buy.
Tuesday overall trend in most of global markets will remain very bullish so buying is recommended on Tuesday around lower sides.
This is what we mentioned Monday: This week will again be a very short week and volume will be very light as most of the people will be in the holiday mood, so do not trade aggressively, but surely we strongly recommend taking buying positions in Indexes around the lower level. I am sure you must be constantly reading about our bullish view on the emerging market, and you should watch the emerging markets trend closely. We strongly recommend taking some positions in emerging market ETF’s on Monday if you are going to be trading. If you are on holiday, then those positions can be taken in the first week of 2016.
Monday should be a positive day for the market, but the trending pattern will be mixed so trade in and out.
Last week energy ETF’s performed very well, and now it is time for you to buy beaten stocks like Apple and Disney. These are the two quality companies along with Microsoft, so one must hold or buy positions.
On Wednesday stock prices moved sharply higher, important that S&P closed above 2033 and now only next two important levels (2064 and 2088) are close by to break and they will be taken away soon. Once S&P start trading above 2088 then market may start moving up like wild fire. Hold positions in emerging market efts. Add financial and housing related stocks.
This is a great time for investors to buy YINN, BRZU, INDL and LBJ.
This is what we mentioned last week Monday: It is always tough to go through with Scorpio Moon. I saw a few emails from members asking what will happen from here and our answer is; the Scorpio Moon is over so the market will rebound from mid-Monday. S&P closed 2007, and the December and March contracts closed at 2000. The next most important astro support point is at 1981 which has worked very well in the past so we can recommend investors and traders to take positions around this level and astro indicators are still telling us that S&P may not close below 2033 for more than three days. Friday was the first day of S&P closing below 2033 but let’s see whether S&P bounce back or not on Monday, in our view it should bounce back sharply on Monday after making lows. Our astro indicators are telling us that S&P will bounce back and will bounce back very hard in coming days if not then it could be worst week so I will try to guide you by alert on middle of trading sessions. We still believe that S&P could move up 5% during this week or 5 to 7% by end of December so watch this prediction closely.
We are not giving any importance to the FED’s statement or the FED decision, because for the bullish trend to continue, if the markets fall this week without making any positive move and if S&P closes below 1982 for three days will surely be concerned sign, but at this stage we want to remain firm with our decision because still in our system market can turn around big if S&P make a U turn on Monday.
This is what we mentioned last 25 Oct, Monday: This week once again, everyone will start focusing on the FED. There will surely be some fear of a rate rise so we recommend that you remain vigilant and be ready to buy the market on any weakness. On the higher side S&P has achieved our predicted short term level of 2068 and it may struggle to move above 2088, which is something that we have emphasized since the last quarter of 2014. Book some profit in the market around 2088.
This is what we mentioned on 1 October, Thursday: On Wednesday most of markets traded very positive throughout the day without any corrections and volume was also very decent. S&P held 1863 level very well, and trading above 1928 will open avenue to reach 1988 in coming few weeks. Today emerging market also performed well, including Brazil and China. Indian market have been performing very well. Today INDL and BRZU moved over 12%.
On Thursday we strongly recommend buying energy stocks, and energy etfs. Tech and biotech stocks will keep recovering from recent fall.
Emerging market and rest of world market will perform very well on Thursday, overall another 8 days mix days are pending but according to us market have bottomed out and recovery will be very strong which may surprise everyone on this planet or those who trade markets.
This is what we mentioned on last week Tuesday, 29 Sep 2015: Last ten days market fall happened only due to all uncertain news so market is falling on news not on bad economy data. Last year in October Ebola news dominated and push most of global market sharply lower for at least ten days and after that market gained aggressively.
Political and all other side news can keep bring uncertainty in market for the next ten days maximum. Sun moving out from Virgo which is right now having combinations with North Node will bring huge U turn in market or V shape recovery and no body believe this.
Many international markets look very attractive but another one week is pending before they make reverse in big way. Emerging market have corrected sharply (Brazil, China, Europe and South American market) and they have also lost a lot of value in terms of currencies. Those who will invest in countries like China, India, and Brazil will make returns in multi folds. Indian market have been acting well, it is only market which just corrected 12% and rest of world market have been falling.
Down side is 2 to 3% and higher side euphoria rally is pending in the next 18 months. We still S&P moving toward 3200 so add more positions on Friday. Market rally is about to begin from mid-October
Indian and Indian Pharma stocks moved sharply higher, many Indian Pharma stocks are trading at an all-time high. Our Indian market letter provided great returns in the many recommended stocks in the last three years.
Here are Wednesday’s ranges: (March 2016 contracts)
HONG KONG (cash) – 22355 to 21989
NIKKEI – 19298 TO 19051
NIFTY S&P (Spot) – 7975 to 7918 Buy
CAC – 4737 TO 4692
DAX – 10955 TO 10811
DEX EURO STOXX – 3324 – 3288
FTSE – 6289 TO 6235
FTSE/JSE (Cash) – 47488 to 46929
S&P e-mini – 2084.25 TO 2064.25 March contract
NASDAQ 100 e-mini – 4725.00 TO 4672 March Contract
RUSSELL e-mini – 1166.00 TO 1152.00 Buy
DOW e-mini – 17705 TO 17571 Buy
TREASURY BOND
On Tuesday Thirty Year bond lost big value which surprised many but we were expecting this. On Wednesday Thirty year will trade mix, but any rise should be taken a selling opportunity. TMV, TBT and TTT moved higher. Hold positions in all recommended trade in Thirty year.
This is what we mentioned Monday: Thursday Thirty Year Bond traded a bit positively and we are sure that many of you must be holding short positions in Thirty Year Bond, and we recommend to keep holding positions. On Monday we strongly recommend taking selling positions in Thirty Year Bond as prices will come down from the higher levels. One can add more buying positions in short ETF’s like TMV, TBT and TTT on Monday.
Thirty Year Bond lost more value on Wednesday. Most of the bear ETF’s have gained value. Tomorrow Thirty Year bond will trade mixed, but remember to add more selling on the higher side as it is confirming that the bear trend which was supposed to start in January may start from here onwards. Once Thirty Year Bond starts trading below 154, and trades below this level for three days, it will open the doors for the bear to enter which can take prices toward 144.
On the higher side selling is recommended; we are still holding predictions of what we mentioned last week: The positive days for Thirty Year Bond are numbered. From first week of January we see the market will turn on the down side. We are not changing any of our predictions. We strongly recommend taking selling positions in Thirty Year Bond from around 156.
Remember that a bearish astro cycle will start from the 15 of January, so keep building selling positions in Thirty Year.
Just trade with put options and longer term investors should buy longer term positions in TMT, TTT, TBT and SBND.
This is what we mentioned on last week 9 December: Our higher side target of 156 got achieved and selling is recommended at any levels above this. However, the way Bond prices are moving indicates that there are chances that prices can hold till 23 December. However, you are buying March Put options so don’t worry as you will make great returns in the early part of 2016.
This is what we mentioned on 6 October: Most of you are aware that our Thirty Year Bond selling recommendations are for the medium and longer term. In the last six months a few selling opportunities came at 172 and 162, and we took advantage of selling and did very well. We have been recommending buying TMV but most of you must remember that our recommendations is only for a two year time horizon. Don’t make any aggressive short term bets on Thirty Year Bond or TMV.
Thirty year won’t go above 160 level. Right you can accumulate March 2016 put options. We are sure you must be holding positions in TMV and this trade is for the longer term.
This is what we mentioned on 26 June, Friday: Wednesday Thirty-year bond lost more value, June contract came down to 151 so it lost almost 21 points from 172. Our predictions of Thirty-year bond topping out proven best call and we also mentioned that fortune could be made and we sure many of you must have done amazingly well in this trade in the last three months.
We are not changing any predictions but surely short term traders can book profit. This is what we mentioned yesterday: Tuesday Thirty bond lost more value and came down to 151 level. We recommend covering some more short positions on Wednesday. We are not recommending any buying. Hold positions in etfs.
This is what we mentioned on the 2nd of Feb: Thirty Year bond will just collapse without any news so watch closely. As mentioned last week that it is always a very difficult time for traders when any market is at a historic top or at a low. On Monday Thirty year may open higher but surely it will start moving down after the USA market opens. Sell around 172 (June contract) or the below mentioned higher side ranges.
Wednesday’s trading range (March 2015 contract):
TREASURY BOND – 154-00 TO 152-20
SOFT COMMODITIES
On Tuesday coffee prices moved higher but rest of softs traded negative as predicted. Don’t buy any other softs and keep adding coffee. Book profit in coffee if it moves around $128.
This is what we mentioned yesterday: Monday soft commodities traded mix and same king of trend is indicating for Tuesday so we are not changing of what we mentioned yesterday: Last week, except for coffee, the rest of the softs traded mixed. Coffee has been holding $118 very strongly since the last few months, which clearly indicates that coffee is getting ready for a big move. We are sure that those who trade coffee must be holding positions in coffee, and at this stage we recommend to keep adding call options of March and September. On Monday we see both side moves in coffee and the rest of the soft commodities. Those who are holding short positions in sugar, cocoa, and orange juice can keep holding. Cotton will be the second best performing soft commodity during this week. Short term traders can trade in and out as per the below mentioned ranges.
As predicted soft commodities traded mix but coffee moved higher. At this stage coffee is our most favorite among softs. Coffee is trading above $118 which is great news for buyer, one can start building call options in coffee.
Stay away from sugar, cocoa, orange juice and sugar.
This is what we mentioned last week Monday: On Tuesday softs traded mix to bit negative, get ready to take some positions in coffee around $118 with stop-loss of $116.00 because best positive time is starting from January 2016. Stay away sugar, cocoa, orange juice and cotton for the next two weeks, if you are short then hold positions.
Remember - Coffee will struggle to close above $128, cotton $64.88, and sugar $15.45. On the down side coffee will hold $118 and cotton $61.28. At this stage we not recommending any aggressive trading in softs.
Wednesday’s trading range: (March 2016 Contract)
COFFEE: $122.91 TO $119.70
COTTON: $64.44 TO $63.80
SUGAR: $14.90 TO $14.65
GRAINS
On Tuesday grains prices held value, and gained some value. We are strongly recommending to add more buying positions in grains. Add soy, wheat, corn, and soy meal on Wednesday. This is what we mentioned yesterday: Grain prices traded negative on Monday and we are sure you must have bought some positions around lower sides, if not then we are strongly recommending to buy positions on Tuesday and carry this positions to next week. We are not changing any predictions in grains of what we mentioned yesterday: Last week grains traded a bit negative, and as previously mentioned that grains are in the process of bottoming out, but we also mentioned that during this bottoming our period one should take some positions on any sharp corrections. Monday is that day so take positions in soy bean and soymeal as both of them are our favorites for Monday. Wheat also moved higher from the lower ranges, so in short buy grains on Monday around the lower side ranges mentioned below.
This is what we mentioned on last week Friday: Soy product and wheat rebounded big on Thursday. Yesterday we mentioned that down side is limited and now one should keep adding buying positions in grains without fear. Grains are our favorite in 2016. Thursday one can trade in and out. Down side is very limited from current levels so take some buying positions around the below mentioned levels in most of the grains, which may provide you with good returns within the next ten days.
The lower side in Soy, soy oil, corn and wheat is limited from current levels, not more than 2%; but on the higher side we see that 5-7% positive moves.
This is what we mentioned on 28 July: Time to build long positive so don’t miss this opportunity. Last week corn closed around $375, wheat $477 and $880, these are great level to cover 100% shorts in grains.
Wednesday’s trading range (March 2016 contracts):
CORN: $366.00 TO $359.00
WHEAT: $482.00 TO $471.00
SOY: $878.00 TO $865.00
SOY MEAL: $271.00 TO $266.55
SOY OIL: $30.89 TO $30.12
ENERGY
On Tuesday oil, heating oil and RB Gas moved higher but natural gas moved sharply higher more than 6% again. Natural gas has been moving sharply higher, gained almost 25% higher. Energy etf’s are trading higher and we are strongly recommending to book profit in energy and energy stocks. Oil may struggle to move above $39.88 and natural gas may struggle to close above $2.46 level so watch this level and book profit today in energy.
This is what we mentioned yesterday: Monday oil, heating oil and RB Gas prices traded negative but natural gas moved sharply higher more than 7%. Energy stocks trade mix. If on Tuesday oil prices trades negative, then oil come down for rest of week so buy tomorrow around lower sides with strict stop-loss. Book some profit in gas but don’t short natural gas.
Energy stocks should trade positive on Tuesday. Tuesday is very important astro day for energy and they have close positive otherwise trading negative will give very negative astro indicators. We predict sharp recovery from lower levels in energy on Tuesday.
This is what we mentioned on Monday: Last week oil prices gained value as predicted. Those who bought grains around $35.35 level must have done well. Energy stocks also moved sharply higher with natural gas and other energy products. Once again we believe that $35.35 is a great level to buy oil. Though our view is not that bullish for the longer term (which you are aware about), take advantage by booking profit on any sharp rise. Oil may struggle to close above $39.77 so watch this level closely, or book profit around this level. Energy stocks will trade mixed, and any sharp rise on Monday or Tuesday should be taken as a profit booking opportunity. Natural Gas also gained over 18% from the lows. Book some profit on Monday. On can book profit around the higher levels on Monday in Oil, Heating Oil and RB Gas.
On Wednesday oil prices gained value, rest of other energy products (RB Gas, Heating oil and Natural gas) also moved higher. Energy stocks also moved higher, GASL moved up 35%, ERX 13% and UWTI moved 15% higher.
Thursday still oil and other energy prices may move higher but some profit booking may come so one can book some party profit. Don’t short oil but get out 100% from it once it reaches to $39.65 level.
Gas and RB Gas will move higher.
Oil have bounced back from $35,35 as predicted which indicates that oil have bottomed out but higher side will remain limited.
This is what we mentioned last week Monday, 21 December: Last week energy traders remained very nervous as they felt like abandoned by the bigger financial institutions and other large energy investors, but the truth is that every energy trader or investor is badly stuck energy trades.
In 2008 we predicted a crash in oil from $145 and in 2009 we predicted that it had bottomed out at $33.00 level. That prediction provided great returns those who invested in oil and energy stocks. Now once again after the prediction of oil falling in 2014, since the last two weeks we have been predicting that oil would form a bottom around $35.35 level so watch this prediction closely. I am not saying that oil won’t fall below $35.35 level but surely those who will buy around this level may be rewarded handsomely.
On Monday we are still recommending buying oil around the lower levels. Buy RB Gas. Avoid any positions in heating oil but natural gas will move higher.
Maximum fearful days: According to the current astro cycle we see another 12 volatile or fearful days are pending but the down side is limited.
Buy positions in ERX, GASL and UWTI.
This is what we mentioned on 27 August: If oil trades below $47.00 for two days then there are chances it could retest our magic support figure of $44.55. If it starts trading below $44.55 then next level $38.50 so avoid buying positions.
We are not recommending any buying in heating oil and RB gas, also one should avoid buying any energy stocks.
This is what we mentioned on the 27th of April: Adopt trading in and out strategy in energy, but don’t take any shorts in oil, heating oil or RB Gas. Sell some energy stocks. Energy stocks will trade mixed without any major move so one can get ready to sell energy stocks. Higher side it is possibility that oil may see $63.80 level, if its hold $57.00 level. Keep adding positions in Natural gas around $2.55.
This is what we mentioned on the 5th of March: Oil shouldn’t break $47.00 level this time, if it does then surely scary time is coming ahead for energy investors. On Down side oil will hold $47 and on the higher it will have a difficult time crossing above $55.78 so watch these levels closely.
Watch our higher side target $55.78 to short and $44.55 to aggressive buy. Stay away from energy stocks. Small support for oil is $47.00. ERX won’t be able to move above $70.00 level, so selling is recommended in energy stocks when ERX reaches to $70.00.
This is what we mentioned on the 3rd of January: On our predicted lower side target of $44.55 is coming closer so one can cover 100% short positions and may be buy very small trade but I won’t be buying as I would like dust to settle. RB Gas, heating oil and natural gas lost value as well on Monday. Don’t buy RB Gas and heating oil but surely natural gas can be bought around $2.71.
This is what we mentioned on the 23rd of December: Oil can only get lower if it close below $54.40 for three days, if it does then it will hit $45.20 but chances of happening this is very less.
This is what we mentioned on the 11th of December: Wednesday our fear proven very true, we strongly recommend to stay away from oil. When oil broke $92.88 we recommended sell oil and get out from all energy product, when it broke $88.88 we predicted it is reaching toward $64.20. Two weeks back we mentioned that if oil falls below $64.20 then chances are that it may move toward $57.80 level. Most important level will be $54.40.
This is what we mentioned on the 5th of December: Oil and other energy products lost more value on Friday as predicted. We are not recommending any buying in energy stocks, oil, RB gas and heating oil. Natural gain gained value from the lower levels on Friday as predicted.
On Monday the higher side will remain limited, and if oil closes below or trades below $64.00 for more than seven hours then expect $57.90 levels in the short term. Selling is recommended in energy and energy stocks on Monday. It looks like oil is getting ready to break $60.00 so stay short or add selling on any fall.
Wednesday’s trading range (February 2016 contracts):
OIL: $38.29 to $36.97
NATURAL GAS: $2.42 to $2.30
HEATING OIL: $1.1720 TO 1.1339
RB GAS: $1.3088 TO $1.2599
CURRENCIES
On Tuesday dollar gained value and Wednesday USD will move higher once again or will gain more value against most of frontline currencies. Hold sell positions in Franc and Euro, also one can sell position in commodity currencies. Australian dollar and Canadian dollar will lose value on Wednesday.
Euro will struggle to move above 1.1075 and may hold value 1.0725 so watch these both levels closely.
Next week we will put important levels in currencies for the short term.
Emerging market currencies should be in your buying list on late Wednesday or Thursday.
Pound may retest 1.4600 levels on down sides. Swiss Franc will test 0.9875 levels so don’t buy any frontline currencies at this levels.
This is what we mentioned on the 23rd of April: On Wednesday currencies traded both sides, emerging market currencies traded positive. At this stage currency are trading directionless with without any clue so trading in and out will remain best strategy. Thursday profit booking will come in USD but we are not recommending any short in USD but surely one can trade in and out in all major currencies on daily basis, which may provide you great return.
We don’t see Euro holding above 1.1278 and don’t see dollar Index going below 95.00 level in medium term so remember these figures.
The Medium and longer term trend is still very positive for USD but for the short term a mix to bit weaker trend indicated. USD Index have achieved our target of 100 and now down side 95.00 or at worst case 90.00 level will be great buying.
Dollar is our longer term buying trade so we won’t recommend shorting dollar, we recommend buying USD on any weakness. Euro higher side 300 pips and lower side more than 3000 pips. We don’t see USD index going below 95.00 levels.
Remember this what we mentioned on the 5th of March: Currency war has nothing to do with USD Friday USD gained value as predicted. Medium and longer term outlook is very positive. As stated dollar will have some difficulty crossing above 95.50 level for the short term but if dollar will break 95.50 then it may move towards 102.70 later this year. On the other hand euro will move towards 1.0730 to 1.0388. At this stage one should start covering all shorts in currency.
Sell Euro around 1.1730 to 1.1788 and Franc 1.0988.
This is what we mentioned on 15 Jan 2015, Monday: Most fund managers and market advisors are still analyzing the after effects of a rocking Swiss Franc on Swiss National Bank. I just finished one interview from Switzerland and they are too excited about Swiss Franc’s move. Our view was very simple, we recommended that it will not be able to hold above 1.2270 level so if Franc moves to 1.2270 then it will be time to sell as it will going to go back to par levels.
This is we mentioned on the 2nd of October: On Thursday USD will trade mixed so we strongly recommend booking 100% profit in all short positions in euro, Pound, Franc, Yen and Australian dollar. Euro has moved down more than 1000 pips, Franc moved 750 pips, and Yen 4000 Pips. We will wait for few days before we put out a new strategy so wait for our weekly newsletter.
Remember, this is what we mentioned in the month of July: At this stage USD is trading in a positive direction without any break since the last three weeks. Finally it is reaching a most crucial level because once it breaks 81.78 then the nonstop upside journey will start in USD. Also euro falling below 1.3355 level will bring huge corrections. I am waiting for USD to close above 81.78 because then USD will move like wild fire toward 87.88.
This is what we mentioned in the month of May (2014): Keep adding USD on any weaknesses on Tuesday or around 79.50. Sell Euro around 1.3988, and Swiss Franc around 1.1470. Emerging market currencies will trade a bit weaker or sideways from Tuesday. We strongly recommend taking some buying positions in USD around 79.50.
Wednesday’s trading range: (March future contract)
DOLLAR INDEX – 98.52 to 97.84
AUSTRALIAN DOLLAR – 0.7295 to 0.7221
CANADIAN DOLLAR – 0.7251 to 0.7198
BRITISH POUND – 1.4898 to 1.4787
EURO – 1.0981 to 1.0901
JAPANESE YEN – 0.8351 to 0.8293
SWISS FRANC – 1.0163 to 1.0079
RUPPEE – 66.38 to 65.12 (Spot)
RAND – 15.39 to 15.20 (Spot)
Thanks & God Bless, Mahendra Sharma,
29 December 2015, 03.00 PM, Mexico
In this year book “2015 financial predictions” we predicted “final bear cycle in market from 27 July to 15 August 2015”, yes Sun can bring some uncertainty but take this uncertainty as buying opportunity in same time in 2015 in the month of August.
Watch 2088 level for S&P, as it is most tough astro resistance of 2015. In April when markets were falling, we predicted S&P won’t go below 1825, and by the 15th of June, S&P would achieve 1932 to 1955 and 1988.
In our 2015 book we mentioned that commodities will have worst year of 2015, and so far energy, precious metals, base metals, grains and softs have been struggling and they will keep moving down in the second half. Dollar will perform amazingly well in 2015 so hold positions and money in USD.