Friday’s Flash news (unedited copy)
I am very clam and have smirk of smile on face because future is very clear but unfortunately no one is looking at it clearly, and the few does but they don’t believe
Dear Members,
I am very clam and have smirk on my face because the future is very clear but unfortunately no one is looking at it clearly, and the few who are don’t believe in positive outlook. Don’t worry and walk with me because I am following the astro indicators. If astro indicators can guide us about this week’s uncertainty in the market so clearly, then what I see for the future has to come true. Have patience as only four trading days have passed and the whole year is still pending. Maybe the next two days will still remain uncertain but the future is very safe and very exciting.
Scorpio Moon will end around mid-night NY time of Today (Thursday) or in morning time Asia. I am sure next week newsletter will be most important of recent time.
The Scorpio Moon came and brought the full force of fear and played a huge negative role for all the major markets. This week started with negative news from Iran-Saudi, then the circuit down in the Chinese market, and finally the North Korea Hydrogen bomb test news. Most of you must have learnt by now that it is just better to remain away from the market during a Scorpio Moon.
STZ and WMT have been trading positively during this week, and both these stocks were on our buying list in Monday’s stocks investment report. Today or Monday one can go all in with investment because this week’s fall is overdone without any reason so don’t miss great buying opportunity in great quality stocks. Apple, Google, AMZN and many financial stocks.
On Thursday metals traded sharply higher and grains also remained in the green. Energy prices traded sharply lower in morning hours but bounced back during the middle of the session, but still ended up closing in the red. Natural gas moved sharply higher, softs commodities remained in a slightly negative direction. Thirty-year bond gained value and Dollar lost value as predicted.
S&P has broken 1964 level which was a very important astro point, and the chances of it moving towards 1881 level has opened and S&P could retest 1881 level in the worst case scenario. At this stage it looks like S&P may not go below 1907.
Important note – The Scorpio Moon was negative and I don’t want to write any prediction during a Scorpio Moon, but if any of you have still taken positions in the market then shouldn’t be getting worried because on the down side the market can fall a maximum of 2%, but on the higher side it can go up to 25% higher. It is a classic low risk high reward situation. The good news is that the market is making a low and forming a bottom in the first week of 2016. A whole positive year is pending to make money so stay focused, don’t take leveraged bets and you will be rewarded unexpectedly. I know it is difficult to believe this prediction, but I have seen these kinds of times several time in the last 30 years and that is the the reason I am very calm at this stage.
This is what we mentioned on this week Monday: S&P is holding 1982/1964 level which is a great bullish sign for the American market, but on Wednesday and Thursday the Scorpio Moon can bring some uncertainty in markets. Avoid any either side aggressive positions in commodities but surely metals will be supported.
Here is detailed Friday's trading strategy and ranges for commodities, currencies, indexes & bond:
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.
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 Friday:
GOLD/SILVER/BASE METALS
Gold and silver prices moved sharply higher as expected and base metals went down sharply. Many of the base metals closed 3-4% lower. Avoid any buying in Lead, Nickle, Aluminum, Palladium and Copper as they can keep trading lower. Friday will be the last day for metals to remain positive and we strongly recommend taking some selling positions in gold and silver.
Gold has achieved its high of $1105 and the maximum higher side is 1% from here or it could test $1123 (maximum higher sides but chances are slim). On the down side it can still go down around 10% in the next three weeks, so trade carefully. The trade carefully and selling is recommended around the higher side, and if you bought metals then get out by Friday.
Brief - This is what we mentioned yesterday: On Tuesday metals traded on both sides, but gold is still holding above $1072. Base metals traded negatively. Metal stocks also traded a bit negatively. Base metals will trade in an uncertain zone. Another two and a half-day’s positive days are pending for precious metals. We do not recommend trading aggressively on Wednesday as prices can move in any direction due to the Scorpio moon. We strongly recommend finishing all pending work rather than trading metals. There are chances that gold may move higher before it moves down again.
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.
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.
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 Friday’s range: (March 2016 contract):
GOLD: $1018.80 to $1100.05
SILVER: $14.50 TO $14.01
COPPER: $204.10 TO $198.00
PALLADIUM: $505.00 TO $477.00
PLATINUM: $889.00 TO $869.00
INDEXES
The Chinese market opened 7% lower on circuit which sent a very bearish message around the globe and scared investors. Every single market and most of the stocks started trading lower. At this stage everyone is so afraid that no one wants to come out with positive comments otherwise they think that they will look like fools. On the other hand, we have been maintaining our bull market predictions even under the most uncertain scenarios. We expected this uncertainty this week so we are not worried about the futures trend because our astro indicators are clearly showing that the most amazing cycle is on the way.
Sometimes you have to remain a spectator, and this week was one of the weeks where this was applied. So next time whenever a Scorpio moon comes just stay away from the market.
On Friday we see the market forming a low after the job report, and that low will work very well for buyers. If you ask me for how many days the market will continue going down for, my answer will be for the next two trading sessions. Take care during the next two trading sessions, and our letters will keep guiding you. At this stage it looks like S&P will hold 1907, and we still believe that soon S&P will move above 1964 as it is the most crucial level. On the down side we do not see S&P going below 1881, which had happened on the 2nd of October 2015. On that day the market turned around and rallied 11% higher.
This is what we mentioned last 25 Oct, Monday: 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.
Here are Friday’s ranges: (March 2016 contracts)
HONG KONG (cash) – 20595 to 20098
NIKKEI – 17705 TO 17329
NIFTY S&P (Spot) – 7598 to 7474 Buy
CAC – 4378 TO 4222
DAX – 10027 TO 9825
DEX EURO STOXX – 3095 – 3032
FTSE – 5940 TO 5793
FTSE/JSE (Cash) – 43288 to 42519
S&P e-mini – 1955.25 TO 1907.25 March contract
NASDAQ 100 e-mini – 4368.00 TO 4229 March Contract
RUSSELL e-mini – 1077.00 TO 1041.00 Buy
DOW e-mini – 16603 TO 16232 Buy
TREASURY BOND
Thirty Year bond traded higher. It touched 156 and it surprised me that it never went 2-3% higher on such a weak market day. On Friday we see both side moves taking place in the market and once again higher side selling is recommended as Thirty Year bond won’t be able to trade above 156 for more than three days.
Add more positions in TMV, TBT and TTT.
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.
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.
Friday’s trading range (March 2015 contract):
TREASURY BOND – 157-01 TO 155-00
SOFT COMMODITIES
On Thursday most of the softs came down. It is a great time to buy positions in coffee, and cover some part of shorts in cocoa. Avoid the rest of the soft commodities on Friday.
On Wednesday all major Softs traded negatively and we are expecting the same kind of trend on Thursday. We do not recommend buying any positions in softs, except for in coffee. Add some more positions in coffee on Thursday without any fear. Avoid the rest of the softs.
This is what we mentioned on Monday: On Monday most of softs traded negative. We recommend to avoid softs for the another few days or just trade in and out as mentioned below ranges. Coffee struggled to move above $128 levels, sugar also failed. Buy coffee around $119, and sugar $14.45. Rest of softs will trade negative.
This is what we mentioned last week 21 December: 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.
Friday’s trading range: (March 2016 Contract)
COFFEE: $120.21 TO $116.40 Buy
COTTON: $61.78 TO $60.93 Avoid
SUGAR: $14.90 TO $14.53 Sell
GRAINS
Grains traded positively on Thursday as expected and we strongly recommend buying positions in grains on Friday as grains are ready to move 5% higher within the next two weeks.
This is what we mentioned on Wednesday: Grains prices finally acted positively on Tuesday which is confirming that grains are getting ready to move higher. Avoid any aggressive trades for the next two days, but surely as mentioned in this week’s newsletter, either buy on the lower side on Thursday or Friday. Those who are not worried about volatility for the next two days can start buying grains.
This is what we mentioned on last week 18 December: 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. We don’t see corn going below $354, wheat $455, soy $845, Soy oil $29.70 and soy meal $260.
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.
Friday’s trading range (March 2016 contracts):
CORN: $355.00 TO $350.00 Buy
WHEAT: $475.00 TO $460.00 Buy
SOY: $889.00 TO $870.00 BUY
SOY MEAL: $270.90 TO $263.95 Buy
SOY OIL: $29.63 TO $28.84 Buy
ENERGY
On Thursday oil prices traded very volatile. During the European session oil touched $32.10 on the lower side and bounced back to $34.00 after the USA market opened, and eventually closed at $33.30. Heating oil and RB Gas also traded negatively, but they still held value very well. Natural gas moved sharply higher, more than 4%, and we strongly recommend booking profit in natural gas as we already predicted that it will have a tough time crossing $2.48 level. On Friday oil prices will trade mixed. It won’t touch yesterday’s low, but short term traders can trade in and out as per the below mentioned ranges, as heating oil and RB gas will trade on both sides.
This is what we mentioned yesterday: Yesterday we mentioned that Oil prices trading negatively can confirm that oil is moving towards $30 and oil closed sharply lower on Wednesday which is confirming that people should stay away from oil at this stage. Do not buy heating oil or RB gas. Stay away from Natural Gas and Energy Stocks.
Oil has broken $34.55 which was the most important astro support level which opened more room for it to move down, and if it trades below $34.55 for three days then oil could easily touch, or go below $30 and then bounce back, but remember oil has to close below $34.55 for three days. If on Thursday and Friday oil bounces back above $34.55, and closes above this level it can confirm a short term bottom in oil. At this stage there is no need to look for a bottom in oil, because it is in a bear market for the medium and longer term.
NOTE: We do not recommend shorting Oil, Heating Oil, or RB gas at this level.
This is what we mentioned yesterday: Oil, heating oil, and RB gas traded negatively on Tuesday which is a bit concerning, and if they trade, negatively on Wednesday then oil prices are in trouble and they can make a new low during this week. Wednesday is the most important day for oil and oil should close positive. If oil closes negative on Wednesday, then expect oil to test $30 within a short period. Though we still believe that $34.55 will be held, it will only be held if oil trades positively tomorrow.
On Wednesday Natural gas prices may come down so selling is recommended at the higher levels, and buying is recommended in heating oil and RB gas around the lower side.
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 $34.55 level so watch this prediction closely. I am not saying that oil won’t fall below $34.55 level but surely those who will buy around this level may be rewarded handsomely.
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 2015: 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 2015: 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 2015: 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 2014: 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 2014: 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.
Friday’s trading range (February 2016 contracts):
OIL: $34.51 to $31.88 Trading in and Out
NATURAL GAS: $2.45 to $2.31 Trading in and Out
HEATING OIL: $1.1020 TO 1.0439 Trading in and Out
RB GAS: $1.1828 TO $1.1005 Trading in and Out
CURRENCIES
On Thursday Euro and Japanese Yen moved higher and dollar went down as expected and Swiss Franc marginally held in the green. On the other hand, commodity currencies and emerging market currencies traded negative. Dollar Index traded negative. South African Rand, Mexican Peso, Russian Rubble, Rupee and many south east Asian countries currencies traded negative. Mexican Peso, Russian Rubble and South African Rand traded all-time low.
Chinese Yuan have been trading weaker which is bring some concern in market.
Rupee and Real also trading lower but now both these currencies started trading more stable compare to most of other emerging market currencies.
Rand, Rubble and Mexican Peso can collapse another 3-5% immediately but Real and Rupee will start gaining value.
We strongly recommend buying frontline currencies on Friday but remember that higher side is very limited in these currencies in coming time. Buying recommendations in Yen have done well.
Dollar selling recommendations on Monday at 97.70 have done well, and we are still recommending to cover some positions if it fall lower tomorrow or cover around lower side value mentioned here below in the ranges. There are chances that dollar index may retest 95.50 level in the coming few weeks, so stay away from any new buying in USD. Sell dollar on any rise from here onwards.
This is what we mentioned last week 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.
Friday’s trading range: (March future contract)
DOLLAR INDEX – 98.69 to 97.47 Hold sell positions recommended at $99.70
AUSTRALIAN DOLLAR – 0.7039 to 0.6893
CANADIAN DOLLAR – 0.7103 to 0.7043
BRITISH POUND – 1.4664 to 1.4571
EURO – 1.1033 to 1.0909
JAPANESE YEN – 0.8553 to 0.8477
SWISS FRANC – 1.0091 to 0.9995
RUPPEE – 67.15 to 66.59 (Spot)
RAND – 16.21 to 15.91 (Spot)
Thanks & God Bless, Mahendra Sharma,
06 January 2016, 03.00 PM, Santa Barbara
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 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.