Financial weekly newsletter
Whenever things are clam and no excitement that is the time to give more attentions toward market because something is coming. As we stated in previous two newsletter that negative trend in commodities and stock markets will start from 1 July, and time has come very close. We will see these market entering into a negative cycle from early Wednesday morning and they may behave uncertainly even from early Monday. One should however not sell everything or get out from the market, but rather do some hedge trading. Indeed, this is one of the best trading strategies among all available trading tools. Like, if you are a buyer in metals and don’t feel comfortable at a certain point, then you can sell next month’s contract and hedge your buying position. You could also hedge in the same area by buying gold and selling silver, but second option may result in 10 to 20 percent volatility on either side in your account.
As we said at the beginning, we should expect a negative cycle from Wednesday. Planets always give indications days or hours in advance, for instance the Moon stays in one Zodiac sign for 60 hours but begins giving results three hours before it enters the next house. One can actually divide the 60 hours into 9 parts, which is around 6.40 hours. This means that each short term rising cycle could take 6 to 7 hours before a new trend begins. If a market moves up on Monday, the same trend is not guaranteed for Tuesday if major negativity is indicated by the Moon. Furthermore, the market trades with a lot of volatility or sharp reversal even during the day of trading, when the moon is connected to more than two planets during the mid they of trading.
I normally don‘t include technical details of Astrology in my newsletter or books, but some time it is good for my members to understand basic Astro points. Mars takes around 45 days to change from one Zodiac sign to the next, and the effects of a shift begin to be felt two days before the change. On the other hand SATURN stays in one zodiac sign for 30 months and begins manifesting effects of change 21 days before moving into the next house. Due to the relatively long cycles of Saturn, it is impossible to predict long term trends of any market without studying this planet. One must therefore study the nature of Saturn and it results in each Zodiac sign in order to predict the any major future trend of any market.
Mercury, Venus and Mars will change houses next week and this will force the market into a different direction for short term as they all stay in one zodiac house for a short period. A worrying time has therefore come for commodity traders. Forty five days before Mercury and Mars changed houses the Dollar stayed weak. If you may recall, in the last week of April (when the Dollar Index was 89.5) we said that it would remain sideways for a few weeks and that one should book profit. I however never thought that it would reach 80 again because the longer term trend of the Dollar is very strong. In addition, the Jupiter--Saturn combination supported the bullish trend. I acknowledge that this was purely my mistake, for I don’t like to hide my face when I am wrong. As human beings, we all go wrong on many occasions in the course of our lives: the important thing is to strive to rectify and learn from these mistakes.
A negative time frame is in the offing for major commodities and they could slide into a decline from this Monday when the Moon will be near the circle of Virgo. The next fifty six hours will be crucial for the markets and once it is confirmed, the following twenty eight days will be painful for buyers of all commodities except coffee if market behave the way we see from this week.
Last week I came to New York from Santa Barbara , and this weekend I shall be going back to India . Though not 100% sure at this stage, I shall let you know if we shall have a hedge fund. This will be unique as I have been waiting for Saturn to move into Virgo for years. As you may be aware, in 2005 ABN AMRO Bank launched 300 Million dollar, a product called the “Wave of Nature Strategic Certificate”, which I was supposed to manage. Unfortunately, this initiative failed due to personal reasons, but this time we may have something even better. It is important to point out that we are not launching this Fund in order to make money for us but to build a solid track record to show that astrology can work wonders through the five elements, and I am confident that we shall be successful.
This week’s Financial weekly letter from 29 June to 3 July
In last week’s newsletter we predicted a high of $944.80 for gold and a low of $918, and we predict that a sharp correction could occur early this week. As a matter of fact, Mars is changing houses and Tuesdays will be a very important day for the trend in gold and silver. If gold closes weakly, this will be a strong indication that metal investors should either get out or significantly reduce their metal positions.
We expect gold and silver to remain weak on Monday, Tuesday and Wednesday. Indeed, gold should come down to $918, and the next target for the week is $905 if it breaks $918. On the other hand, silver will move down to $13.80, and the next target will be $13.21 if it slides below $13.80.
Metals stocks will generally have a negative trend for the first three days of the week.
One can cover the short for the short term if gold trades sharply lower on Thursday, and I shall send you an update as the trend on Thursday and Friday is set to be sideways. There is also a possibility of a slight recovery for metals.
A negative time has finally come to dominate base metals and one should therefore sell copper and platinum on Monday and hold the short position without fear. Aluminum may attempt to be resilient in the face of the negativity, but its prospects are also unfavorable for the short term.
Sell copper around $328 and target prices at the $305 level. In addition, platinum will drop more than seven percent.
Our prediction of selling cotton and coffee made huge amounts for those who traded both soft commodities. One should prepare to enter into trading around the second week of July as both will bottom out. Meanwhile this week they will trade weakly from Monday till half Wednesday, and short term traders can take position in coffee late on Wednesday for a three percent gain. One should however avoid cotton.
Last week we were wrong on sugar as prices moved higher, but we still foresee a weaker trend. One can therefore hold a short position in both commodities as they will drop more than 30% in coming days.
All major markets are trading sideways, but one of our favorite stocks, Uranium URZ, performed quite well with many other solar stocks in the last two months, and this is just a beginning. Our focus is on alternative energy and a fantastic period is coming for stock traders beginning from September. We entered into one of the greatest bull markets from the second week of March, and it will last for the next five to seven years. We therefore want investors to prepare to invest by end of September.
There is no doubt about the DOW hitting 32000 to 38000 in the next five year but alternative energy indexes or the ETF of clean and nuclear areas should move up more than 1000 percent. India and China will be two markets to watch closely because biggest bubble will be form there as well. Unfortunately there are not many listed alternative energy companies in India but China has huge edge over India because there are many solar and alternative energy companies listed on Shanghai’s exchange and Chinese ADR’s in USA. Yes, we see Indian market to double from here but China Shanghai market should move minimum five folds up to 18000 from currently 2700.
We have complete faith as we make our predictions and would like you to flow with one of the greatest bubbles in history. We shall have ample warning about when to get out, therefore putting $2390 (or $270 a month) yearly in our weekly newsletter will make you aware about whats happening in coming time as well as should make you good returns and save you much more as we are sure about this bubble and its bursting. This is therefore a lifetime opportunity that everyone should take advantage of coming time.
All major markets should trade weakly this week, and the short term weak or sideways trend will present a great opportunity for buying. We foresee a correction of more than 10% in the market within three weeks; therefore get ready to hedge your position. We are holding alternative energy stocks mostly in Nasdaq, and one can sell the DOW against your holding.
During this week the Indian, Hong Kong and Korean market will be weak with other Asian stock markets, and one should sell metal stocks and banking stocks in Asia . Power stocks will also trade somewhat weakly or sideways but we should like to hold these stocks, therefore hedge trading selling the indexes will pay give good returns.
Short term trade - Weak or sideways – EXPECT a five percent fall this week
Medium term trend - Bullish
Longer term trend - Bullish
This week all grains will remain weak and one should therefore avoid new positions in the grain market. However, you should cover the short position on Thursday if you make good money by then as they will move up late Thursday or on Friday. Watch corn closely as a bull market is right on the corner.
A fall in oil is overdue by now and the drop will be a sharp one, therefore trade with caution. As a matter of fact we see oil moving down to $48 in the next one month though it will be a hurricane season. Our forecast is that any hurricane this season will not be as severe as last season. Selling oil last season made a fortune to traders who went against oil in mid July because Saturn was 10 points negative out of 10 and the Moon and Jupiter did not show any hurricanes that was the reason we predicted fall of oil from 140 to below $59 in July 2008 when it was trading around $143.
Sell oil on Monday because it can fall up to $63.80 this week. Also sell heating oil and RB gas. Natural gas will remain sideways.
The Dollar has been trading sideway for the last ten days and is stuck between 81.30 and 79.90. It is a great time to accumulate the Dollar because it will soon hit three digits. Meanwhile, many people are asking how the DOW and the Dollar can move up together, and I also ask the how DOW and oil were able to move together in 2006-08.
Anyway, my clear answer is that the Dollar won’t move with the DOW; therefore don’t take this point into account because the Dollar will rise against all currencies. Also don’t think that rise of dollar will harm gold because they both carrying their own destiny. In other word you can say that gold will gain against all major currencies. People will lose faith and confidence in currencies except the Dollar, as global investors will maintain their faith in the USA economy and USD. We have a very strong astrological reason as to why the Dollar will move up. In the last forty five days the Dollar has been trying to adjust prices and time has now come for it to strongly move up after forming a bottom around 80.
This week, the Australian Dollar and British Pound will have a rough period and they will sharply move down. Indeed, we expect the Australian Dollar to come down to .7700, while the British Pound will reach 1.5980.
The Swiss Franc and the Euro are set to be in a sideways or weak trend, while the Canadian Dollar will be weak as well. The Dollar should make a huge rebound on Monday and Wednesday, and we expect it to move up to 82.39.
Best trade of week: Sell grains and oil. Avoid stock market as weak trend is coming, Buy FAZ and DUG.
Thanks & God Bless
Mahendra Sharma, 28 June 2009www.mahendraprophecy.com