Chinese housing bubble bursting soon, may harm metals and base metals
(Weekly newsletter from 28 June to 2 July 2010)
Dear Members,
Concerns about Europe seem to be fading away from investor’s mind this week, like people were ignoring housing problem in 2006/7. Investor’s are too confident on gold, making gold the hottest commodity in recent years compared to even oil. A few weeks back we gave indication that soon silver will be on a hot seat so we should be watching that very carefully. Planetary position is getting very strong for silver so in coming time silver’s gain will be twice as big as gold, percentage wise, in the coming years. Yes we are predicting a bubble will form in silver and then, make no mistake, as like all bubbles, this metal bubble will also burst. However, we will guide you in the weekly newsletters how to profit from silver’s coming rise and collapse.
Last week commodities (metals and oil) remained positive. Grain traded weakly compared to all commodities. Oil rebounded on Friday and all major stock markets traded weak. Fed decision came and passed, housing data left numbing disappointment and open questions in the mind of investors.
When we were writing last week’s letter we were confident about metals’ positive trend but same time in last week newsletter we mentioned that “significant fall in metals from the next week”, which is this week. Yes, we see sharp corrections in metal and oil. Soft commodities ad grain will remain sideways or on positive side.
Currencies will melt down against USD but Japanese Yen will make new highs. Yes this week is also a very volatile week but weaker for commodities and positive for dollar. I would like to talk more on dollar because it has already entered in its most unique era, and the good thing about it is that it is consolidating at this stage before attempting new highs. Planetary movements are indicating huge up move on the way so don’t miss any opportunity on buying on Monday. I am sure many must have already positioned themselves in dollar on Friday so get ready for this most exciting ride.
On a side note, World Cup soccer in South Africa is entering the final stage. Today USA lost against Ghana, indicating that a surprising winner can take the trophy. I am doing my study and soon I will try to come out with names of a few Astro favorite teams.
(Above mentioned small part here is taken from this week newsletter)
Small update after market Mid Monday's Trend:
Our fear of fall in precious metals and oil from Monday is taking place, this is most negative sign for short and medium term.
Dollar bounced back predicted on Monday so add postion.
Add more position in DTO, FAZ.
Don't touch soft commodities.
Buy grains today.
Thanks & God Bless
Mahendra Sharma