Weekly Newsletter from 17 – 21 Feb 2020
We still believe market may swallow gigantic coronavirus like a pill but what will be side effect of pill is unknown…
Dear Members,
Last week the Markets moved higher Globally; Commodities remained directionless except for Gold and Coffee; Dollar Index traded around a multi-year high; and Energy prices tried to stabilize. Traders are still looking for a clue about what is happening with the Market because it is not showing any signs of concern about the shutdown in China and loss of economic activity due to the Coronavirus. Countries and Companies that are dependent on China must be concerned at this stage as there is not a lot of transparency from China, the rest of the world doesn’t trust any news or numbers that are coming out from China.
The death toll has moved above 1500 and may test 2500, that is our new number. Younger people are recovering faster than older people which is good, but still death is still death, whether its someone younger or older who dies.
The Sun changed its house which is supportive, but Mercury changing directions on 17th February could play a negative role. If Mercury is able to damage the Markets trend then expect the next three weeks to remain uncertain for the Global Markets. If there is no negative impact of Mercury, then we may see huge momentum developing for the USA Market which may support the other Markets as well.
My viewpoints below should be kept in mind:
The Markets are ignoring the Coronavirus impact on the Chinese Economy, USA corporates that depend on Chinese consumers or suppliers, and of course the impact on commodities as suppliers from different countries inventories are on a sharp rise. We saw some impact on Brazilian Real and Rand.
Gold is holding value well while Dollar is sitting at a multi-year high. Interest rates are at the lowest level and stock Markets are sitting at an all-time high. This could prove to be one of the best time cycles when the Astro combinations turn in favor of Gold. There is also a lot of uncertainty due to the Coronavirus that could push gold up; but the most important factor is a positive Astro Cycle.
The USA Market is playing the role of the engine, while the rest of the markets are the bogies running behind it. It is the engine that is pulling all the bogies together. If the USA Market starts shaking, then Globally the Markets will have a free fall.
In 2015 I predicted that the USA financial Market will suck all the energy (money) from different parts of the world. The rising trend of the USA Market will now allow big investors, banks, hedge funds to divert funds in different countries because the USA has been performing so well. (this is proving so true, and now the big guys are saying the same thing).
Many big names have also been saying that the valuation is has been high since 2014, however I have been saying that they need to change the method of calculating valuation.
None of the other developed world countries are ready to hike rates, and a lot of companies earnings are multiplying, so why will traders move out of front running stocks.
Overall the medium term Astro cycle is positive for the USA Market, but for the short term a few Astro combinations are a bit uncertain from the 17th, so we shall wait and watch at least for three days.
So far 2020 is on track as predicted. We saw frontline Tech stocks moving higher in 2020, Biotech to perform amazingly well, and Banking/Financial/Fintech stocks to support the Markets trend.
Yes, the Market or any stock doesn’t move higher in one direction, corrections always come in the journey, but if the Astro combinations are positive then the corrections shall act as great buying opportunities. Since 2009 many have made a fortune following our predictions because on every correction over the last 11 years, I have kept recommending buying stocks, as my target was 3200. Since last year I raised my target to 3800 - 5000 for S&P. It may take the S&P some time to reach 5000 but it is on cards. Yes, the corrections on any serious news may take the S&P towards 3000, but that will be a great buying opportunity.
Daily visitors to China have fallen to almost zero, and the same situation happened to Hong Kong for the last one year. Why would you want to be investors in these Markets at this stage? Wait for one month when the Astro cycle turns around for these countries, then surely one can invest. I give 100% focus to the Astro cycle because that’s the only theory that gives us a glimpse of the future. I am so grateful to nature for the sheer number of emails I have received from different parts of world thanking me for my guidance. Many say I predict events five to ten years in advance, and many others say that they want to become my students. All this positive feedback really means a lot to me. Yes whenever I am wrong, I am always ready to accept criticism from people as well.
Once again let’s pray for the people and the families of those who are affected by Coronavirus.
Here is this week newsletter for metals, stocks market, energy, currencies, grains, softs, and bond from 17-21 April 2020
GOLD/SILVER/BASE METALS
Last week Gold acted very well compared to the other precious metals, and base metals recovered from the lower ranges. Gold is currently running into a positive Astro cycle, and although we haven’t seen any major breakout yet, as mentioned in the first section, it has been holding very well even though the global equity Markets are at an all-time high, and Dollar Index is moving towards a high. I strongly recommend holding investments in Gold at this stage because astrologically this week is a positive week, so I won’t be surprised if Gold breaches $1600. Silver and platinum will follow Gold.
· This Monday the US Market will remain closed, so no major activity is indicated, but I will still recommend buying Gold on any weakness on Monday and hold that long position for the next three trading sessions.
· On Tuesday we expect Gold to trade positively, so you must buy on any weakness. You can also buy Silver and platinum. When the US Market opens on Tuesday you can take longs in ETF’s like JNUG and NUGT for the short term.
· Wednesday will be a positive day so hold long positions in Precious metals, so hold positions in futures and mining stocks.
· On Thursday we recommend booking short term profit.
· On Friday day traders can wait as it is not a positive Astro day, so any sharp rise should be taken as a profit booking opportunity. There is a possibility that Gold may see $1615 during this week and $1663 soon.
This is the final positive time for Base Metals till Wednesday, so do not short any base metals on Monday and Tuesday. On Thursday one can take some short positions in Base Metals like Copper, Palladium, Nickel, and Zinc, and hold the shorts till next week.
IMPORTANT NOTE:
If Gold, Silver, and Platinum trade positively on Thursday and Friday, it will be one of the best news for metals investors. I am not really excited about base metals, so do not buy them if gold is moving higher, thinking that they may move higher along with gold. However, keep in mind that they are not in a negative cycle as of yet, but they may enter a negative cycle by the end of March, and I won’t be surprised if metals like Palladium crash by 50% by the end of May. We will watch this prediction, and though I have not been very accurate with Palladium, I will try to find accuracy with this prediction. One can also take some call options in Gold and Silver if you do not want to take a risk in the Futures Market...
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Thanks & God Bless
Mahendra Sharma