Dear Friends,
Here is last week nwsletter and I am sure you will enjoy it. Some important part has been removed.
Thank & God Bless
Mahendra Sharma
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.
Let's see what this week is indicating for markets:
Weekly newsletter from 28 June 2 July 2010
GOLD/SILVER
Last week’s predicted daily moves came very accurate for gold and silver. This week any time from Monday gold and silver will start trading weakly but we should not forget that this is the final week for July contract before expiry so trade carefully. You must have stop-loss setup. HUI index is trying break out to the upside and many investors must be watching this development with much excitement.
Let me come back to this week trend: as per planetary movement gold and silver will start moving down and they will fall very hard from Wednesday. Any rise should be taken selling opportunity in gold and silver. Thursday and Friday as well both these metals trend look ugly. HUI will also move down sharply.
Trading range of gold will be $1,263.8 to $1,218.20. Silver trading will be $19.28 to $17.98. If they break lower side then more two o three percent fall could come.
Important note for metal investors: This week trend in metals is very important for you. If metals rise against what we see, then you will hit big fortune. If metals trade as we see (weak for this week), then they will trade both sides in the coming time.
I will write updates if important trends take shape.
BASE METALS
This week compared to precious metals base metals looks more positive. I highly recommend that you shouldn’t be shorting base metals during this week when you see metals trading weakly. Copper and platinum will trade positively with palladium but zinc and aluminum will trade Weak.
COFFEE/COTTON
Last week coffee made new highs. The most exciting trend is taking place in coffee. Many must have missed this move and many must have gotten out early in the rise. I also missed this one personally but I will get in soon around $155. Any correction in coffee should be taken as a buying opportunity ($155.20 will be best prices to buy coffee).
Cotton remained sideways, in current week coffee and cotton July contracts are expiring so trade carefully. Avoid any short position in cotton at this stage. Don’t short any soft commodities even if you see metals and oil falling down because they are in different trends at this stage.
SUGAR/COCOA/ORANGE JUICE/LUMBER/RICE
This week Sugar will move higher but selling time is coming in sugar. Sell sugar on Thursday.
Cocoa will trade positive as well for this week.
Orange will trade very positive so focus on orange juice.
Lumber looks week for this week but soon lumber will bottom out Thursday will write day to acquire some position in lumber.
Rice prices has been falling since last year for almost a year now. This week I see some recovery but still another two weeks are pending before rice prices start moving up.
TREASURY BOND
This week bond will make highs so avoid any position in thirty years bond. Jupiter and Moon combinations have always guided us more than 95% right in bond trends. Our target is 128 from 125, so any weak trend in bond prices should be taken buying opportunity.
STOCK MARKET
Last week all major stock markets remain directionless. This week we see very volatile trend. Monday and Tuesday all major stock markets will try to remain positive but from Wednesday sharp corrections will come in Asian, European and US market. European market will get worst hit during this week. Sell European markets and buy Singapore, Hong Kong and India.
USA market will also fall from Wednesday but after European market closes it will gain.
Sell DJ Euro indexes and I am sure you will gain handsomely from Wednesday.
FAZ, GLD and DTO will perform extremely well during this week.
GRAINS
This week grain will start gaining some ground, as per planetary combinations corn and soy are almost at the bottom so it’s great time to acquire positions. Metal and oil will trade weakly so hedge your position by buying grains. Soon corn will get be on fire so great time to acquire positions in corn.
Wheat will remain sideways so avoid wheat and Soy trading.
Again, this week grains (Corn) will gain ground irrespective of what other commodities do.
OIL
This week great opportunity is coming to take short positions in oil. We see huge correction on the way. Sell oil on Monday and hold positions for a whole week. Trading range of oil will be $79.60 to $74.10. Our astro lower side is target is $55.00 so oil will keep making lows from here. Read carefully specially metals and oil area in our weekly newsletter from here as important time for traders is on the way.
Heating oil and RB gas will trade sideways.
Natural gas weak as predicted and still shorter term trend gas looks weak. Trading range for gas will be $4.89 to $4.59.
Sell oil and Natural gas during this week. You can short through ETF’s.
CURRENCIES
Last week US dollar remained weak. September contract closed around 85.53 and made a low of 85.32 on last Monday. We see huge up move in USD for intermediate and longer term as well as shorter term but there will be huge volatility on both sides in the shorter term specially this week.
Last week Australian and Canadian dollar traded sideways with volatility. This week I see weaker trend in both of these commodity currencies. Maximum upside for Australian is 0.8788 and Canadian 0.9710 and down side we see at least 3 percent down during this week so great time to make money on both of these currencies.
Last one month we have been recommending not selling pound, except last Friday so those who have shorted pound can hold positions. This week Pound will trade weaker from late Monday. Overall trend pound will remain weak during this week and on the down side it may come back to 1.4735.
Japanese Yen is our favorite currency after Dollar. This week Yen will gain value so avoid shorting yen at this stage. Our next target in Yen is $115.55.
Euro and Swiss franc will trade weakly. Sell Swiss franc on Monday as huge correction will come in Franc during this week. Euro will also trade weaker from late Monday. Trading range for Euro will be 1.2190 to 1.2435.
Side currencies like, Rand, Rupee, Peso and Real will trade positive so avoid shorting these currencies for the first three days but from late Thursday one cans take short position in these currencies for two days.
Dollar index range will be $85.28 to $86.79. Buy dollar index on fall if it break down, I don’t see dollar Index breaking 84.00, so plan you longer term trade. This week trade commodity currencies only.
Best trades of this week:
Sell stock markets on Monday
Sell commodity currencies
Sell gold, silver and oil on late Monday and late Tuesday
Thanks & God Bless
Mahendra Sharma,
Predicted; 27 June 2010