Wednesday, 10 June 2009
Dear Members,
This week we expect a sideways or bit upper trend in base metals and we also expected slight positive in precious metals on Monday and Tuesday but from Wednesday all metals will start moving down from late in evening. Sell gold around $964 and silver $15.47. Copper will remain higher side and will fall sharply from $242.80.
Oil will trade in volatile trend during this week and will fall to $48 any time after this week. In worst case oil could move to $72.30.
Grains will remain volatile and will start moving down any time from late today from Monday. In worst case Soybean can reach up to $1265.
Note: Worst case means they won't trade above predicted prices in any circumstances.
Stock market will top out on Wednesday and will start falling down. Uranium, nuclear and solar stock can be good hedge against short in market.
In our newsletter we expected bit profit booking in US Dollar on Tuesday and we saw dollar trading weak but from middle of Day Wednesday dollar will turn around so don't miss opportunity of buying on Wednesday. Dollar is in long term cyclical bull market but yes, currently it is trading in shorter term bear cycle, which mean it is adjusting prices before it attempt to new high.
Medium term trend:
Dollar will touch 100 mark by end of year and in Jan 2010. (On lowerside it has formed bottom at $78.45). Sell all currencies today during opening of USA market.
Base metals will have major corrections from July and this correction will last for more than six months. Copper will touch 120 and platinum around $700. (Top for copper will be $242.80 and platinum $1275).
Oil will touch $48.80 to $42.20 in the next three months (top for oil will be $72.30).
All grains and soft will move down in medium term trend. We expect huge fall in grains from next week.
Gold has formed top of $990 and it looks very difficult to cross this level in the next five months, except any catastrophic event taking place, lower-side we still expect $650 to $750 and silver $8.30 to $9.50.
Best or safest trade of today and for this week, we are 100% sure:
Buy dollar $79.50 or sell Swiss Franc at 0.9309 and sell Euro at 1.4110, Pound 1.6410 and Canadian dollar .9110. Twenty or thirty pips here and there but sure major trend will develop in dollar from late today.
Metals, energy and other commodities will remain volatile during this before then fall sharply. Sell stock markets.
Thanks & God Bless
Mahendra Sharma, Wednesday