Thank God, human age is doesn’t span 1000 year otherwise leaders like Mubarak, Gaddafi or Mugabe would have never stepped down
Dear Members,
Still Japanese horror images are in our mind and it will be difficult to come out from this for some time. Half a million people are without home and lost everything like car and all other house hold article we don’t know how they will start their life, most of them don’t even know from where to start. We must pray for them.
Thank God, human age is doesn’t span 1000 years, otherwise leaders like Mubarak, Gaddafi or Mugabe would have never stepped down, in fact they would have asked their family members to rule continue. If heaven or hell had a bank they would have asked their children to deposit money of their part there. My dad always says Mahendra, how much is life, just live simply and enjoy it, if you have extra then share is with needy. Now Gaddafi is sending innocent people to fight and sending them to die for him like he had taken care of whole country. He should go himself or send his own children to fight war then we will say he is braw enough. Anyway we pray that these kinds of leaders may get wisdom soon.
Libyan situation is getting serious, under current condition it is very clear thousands of civilians lives will be in danger. Gaddafi still wants to rule Libya at the cost of blood of its own people, once political power goes in anyone bloodstream which spread like cancer which is not removable or curable and this is what happening in countries where leaders are not chosen by democratic way or where terms is not limited time for president or Prime Minister. Fall of Saddam, Mubarak and soon we will see fall Gaddafi will confirm that many other dictators/rulers future will end soon.
It is coincidence that US Jets missiles pounded on Iraq and that day was 18 March, Saddam future ended with his death, now on Libya Western combine carried attacks on 19 March so it looks like Gaddafi future will end soon as well and Libya will be free from dictator.
Germany not voting in UN resolution pushed Euro to multi month high, concern in international action against Libya pushed gold prices higher but still closed below from where it started on Monday. Libya produce 2% of world oil productions so there will be some volatility in oil prices in coming time.
Volatility in commodity, currency and indexes is on highest point, to danger too trade with small money, too danger to trade with stop-loss as both-side prices are moving.
We are at an important juncture of time because last two weeks we have seen huge volatility in grains markets as well as indexes, related to this metals and energy market remain in range bound. Many of our members are confused about which trade to take for medium and longer term because in shorter term markets are too volatile and prices are moving both-side within a week.
Here is this week’s newsletter from 21-25 March:
I normally avoid predicting during Scorpio moon and I always recommend even my members not to trade during Scorpio moon. Last few hours of Wednesday, Thursday and Friday one should avoid trading in all markets. Don’t take new trade and carry forward of these negative days trade. These three days finish other pending work.
GOLD
This week gold looks to trade very volatile due to Moon transiting from house of Venus and house of Mars. Whenever Moon transits through the house of Scorpio (which is Mars house), it always give huge volatility in metal prices.
Each trader is aware that war situation always put gold prices on higher side so we all aware that on Monday gold and oil will open positive but we are doubtful of closing positive on Monday because Astro combinations indicates that gold won’t able to close positive by end of day on Monday.
I normally avoid predicting during Scorpio moon and I always recommend even my members not to trade during Scorpio moon. Late last few hours of Wednesday, Thursday and Friday till 11.30 AM New York time, one should avoid trading, not only in gold but all markets. Don’t take new trade and carry forward of these negative days trade.
It is a great time to build short position on rising or on USA opening on Friday.
SILVER
Wait for good period to buy silver, which is on the way from April 05. This week silver will remain weak compared to gold so avoid trading silver during this week. Monday morning, in Asia and European sessions, if it is trading higher, which it should be due to the Libya problem, this rising trend should be taken as a selling opportunity because by the end of Monday, it will close lower.
Tuesday and Wednesday, any sharp corrections should be taken as a buying opportunity. Thursday and Friday, I see silver trading on both sides; if it rises sharply then sell, and if it falls sharply then buy. Friday morning take selling opportunity.
BASE METALS
Last three weeks, all major base metals have suffered a huge setback. Last week, they rebounded technically and this week they may remain in a tight range, so I will recommend avoid trading in base metals this week.
Platinum and Palladium will gain value with Aluminum from Tuesday and a positive trend will remain till Thursday.
Copper and Zinc will remain in sideways or in a weaker trend, so any rise should be taken as a selling opportunity. Higher side on copper we see $439.80 and at this price, one can take a selling opportunity because next week, I won’t surprise if copper breaks $400 in coming time.
STOCK MARKET
During last week, all major stock markets remained very volatile due to the Japan earthquake. We are all aware that there were huge wealth destructions. As most of you are aware, we are very bullish on all the major stock markets in the longer term. But short term, some uncertainty will rule this week.
Late Thursday and Friday, stock markets, Uranium and nuclear stocks recovered sharply from lower levels. Fukashima nuclear plant has been damaged completely and won’t be able to produce any electricity. But one thing got very clear, and that is that in the last 50 years, not many human casualties happened because of nuclear energy as compared to coal and oil. This accident is a win situation for nuclear energy in the future coming time. Many of those who oppose nuclear energy have tried to put their case in media after the Fukashima event, but they will be the losers in the longer term. Only nuclear energy will be able to cope up with the future growing world as well as it will provide surety of energy demand to the world population. The current time is a great one to acquire uranium stocks for the medium and longer term.
This week stock markets will recover from late Tuesday and all major markets will move in a bit of a positive trend for the whole of the week. USA will remain the best performing market during this week.
Alternative energy stocks have been trading positive since the past three months and they have performed extremely well since the last two weeks, where the rest of the markets were having a setback. Our call is to hold all our recommended alternative energy stocks and add them more during this week.
COFFEE/COTTON/COCOA/SUGAR
From Tuesday onwards, cotton looks very week so Monday one can take selling positions in cotton. One can also buy put at this stage because we do not see cotton prices breaking this year’s high. And downside, we see $151 in the next three months.
Coffee will remain sideways during this week so avoid trading coffee and those who are short can hold the positions. Downside we see coffee prices falling around 20% in the next 3 months. Thursday and Friday will be the right time to buy put options in coffee.
In the last one month, sugar prices came down more than 25% and we still don’t see any huge recovery, but during this week, sugar can rise to $27.90 and that will be a good price to sell for the short term targeting $23.80 within next three weeks.
Cocoa prices also came down sharply even though still Ivory Coast uncertainty is still there. From late Tuesday, we see cocoa prices going back on the positive track so one can buy cocoa and target 7-10% returns.
GRAINS
Grains are in the worst trend and last week technical rebound has brought you a great opportunity to make great profits. Sell soy bean and corn without fear and hold your positions because next three months, they will keep trading lower and lower.
Wheat and oats will also trade weak, but their weak trend will be limited. From Wednesday, we see a rising trend in rice so rice will be a great hedging trade against selling corn and soy bean. In the next two months target 20-30% fall in the grains (corn and soy bean)
ENERGY
No major planets are supporting oil at this stage but yes, international events especially the middle-east is in favor of oil trend. This week I will recommend still not to trade oil because moon is in the house of Scorpio, and moon rules oil so there will be volatility in oil.
Late Wednesday, Thursday and Friday, oil will trade both sides so any sharp rise should be taken as a selling opportunity and any sharp fall should be taken as a buying opportunity. Monday and Tuesday, oil won’t be able to remain at higher prices. Trading range will be $106.30 to $100.20
Natural gas traded extremely well during the last week. It performed as per the planetary movements indicated, and we still see it moving higher. Monday and Tuesday natural gas will trade sideways, but from late Wednesday, it will move up big and it will remain positive till Friday. Trading range (May contract) will remain in between $4.09 to $4.48.
CURRENCIES
Dollar performed horribly during last week. I do not recommend shorter term trade in Dollar because during the positive time dollar was not able to take advantage of it. So I will recommend in the next positive cycle to buy, which begins late Friday (After opening USA market). Then only will I recommend to load up dollar once again.
During this week, two currencies will perform extremely weak, and those are Canadian and Australian Dollar so great time to build sell position. So both these currencies should be in your selling list during this week.
British Pound will be another currency which will trade weaker during this week from Monday to Wednesday, and some recovery will come from Thursday and Friday. Trading range will be from 1.6100 to 1.5720.
Japanese Yen has remained very volatile through the past week and we all know the reason why it touched its historic high against USD. Any rise in Japanese Yen should be taken as a selling opportunity around 125.60. From here onwards Yen will slowly move down and the downwards journey will continue for the whole year.
First few days Swiss Franc and Euro are both trading positive and this week they may remain positive but Friday will be the testing time for both these currencies as we are expecting a huge correction from Friday onwards so I will recommend buying options put in both these currencies and target Euro reaching 1.3000 and Swiss Franc reaching 0.98 in the next three months. This put can make you a huge amount of money.
Thanks and God Bless,
Mahendra Sharma
20 March 2011