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Today's Trade & News

Financial astrology, Part of Last week newsletter

 

Dear Members,

In last week newsletter we mentioned that we were concerned about Friday’s markets because of Solar eclipse. Sure enough, Friday’s trend in all major stock markets confirmed a big storm is on the way. A powerful hidden wave will shift market trend from bull to bear suddenly. Planetary movements indicate that uncertain time will create panic in markets.

Our wave of nature indicators have already turned against stock markets as the second eclipse of 15 Jan indicated that a sizable correction is due and we should get ready for that without thinking or analyzing twice.

Last week each and every market traded as planet guided us. At this stage we are very much concerned about bank’s liquidity because money has been either been pouring into speculations or piling onto cash deposits, with no true economic fundamentals to support current asset valuations or investors’ optimism. We don’t know whom to blame: “banks or banks’ clients”!

Let see what this week says, weekly letter from 17 to 21 January

 

GOLD/SILVER

Last week planets guided us very well. This week we still see weaker trend in gold and silver on Monday and Tuesday. During these two days gold can break $1,100.

Wednesday and Thursday we see some buying coming at lower levels but prices won’t able to move up that much. Friday again weaker trend will dominate.

Trading range can be $1,134.80 to $1,098, and silver’s range will be $18.63 to $17.23.

Metal stocks will keep suffering, so at this point we strongly recommend against buying at even lower levels.

NOTE: This week silver will trade weaker than gold.

 

COPPER/PLATINUM/PALLDIUM

This week base metals will fall sharply so it’s great time to sell short base metals and metal stocks. We have noticed that in Asian markets base metals stocks have been making new highs and time has come when they will move down sharply more than 30% in a very short period of time.

This week copper, palladium and platinum will move down more than gold and silver. Therefore, sell on each rise.

 

COFFEE/COTTON

This week both these soft commodities will remain weak and we don’t recommend any buying. Coffee will trade positively on Wednesday. Cotton will turn around on Friday for a short period.

 

COCOA/SUGAR

Mercury is favoring cocoa so we strongly recommend against selling or shorting cocoa for the next few days until Mercury changes house. Sugar will remain weak so hold your short positions. We see sugar prices dropping more than 40% in the coming days.  

 

STOCK MARKETS

Last Friday gave us clear indication that stock markets will move down sharply from here. No power on earth can save stock falling from here. Before sharp correction take place we may see some volatile sessions on both sides.

In USA and Europe, banking and technology stocks should be targeted for short positions.

In Asia, technology, mining and metals stocks will be on the top of the selling list.

Monday USA market is closed but all other markets will open lower. Tuesday USA stocks will try to move up again but will move down sharply in the last trading hour.

Wednesday onward weakness will dominates in all stock exchanges.   

We see at least 9% correction from here in all major stock markets. Those who don’t like to take naked short position can take puts in all market so you can cap your risk.

 

I will write alternative energy stocks list during this week.

 

TREASURY BOND

Last week we were very positive on 30-year bond prices and they moved up sharply. This week we see some weakness coming in bond prices on Tuesday and Wednesday but again from Thursday on bond prices will move up and they will close sharply higher on Friday.

 

GRAINS

What a great opportunity coming in grains! A few powerful traders played a fantastic game to scare off grains investors last week and they succeeded.

This week wheat and corn will stabilize. Corn is our favorite of 2010 Saturn is in FULL support of corn.  We believe that corn will give its investors profit windfalls.

Late Wednesday and Thursday corn will move up but Friday again it will trade weak.

Avoid soy and wheat at this stage.

NOTE: Aggressive move in corn and wheat will come from 14 Feb 2010 on.

 

OIL

Last week oil and natural gas traded as predicted. This week we don’t recommend any buying in either oil or natural gas. The whole energy sector looks rather weak.

Tuesday to late Thursday oil will trade weakly, but Friday we may see some short covering. Trading range in oil will be $80.90 to $75.80.

On each rise one can sell natural gas. Again, avoid any buying in natural gas for now. Trading range of gas will be $5.70 to $5.21.

 

CURRENCY

Last week weak days passes smoothly for dollar, Friday was only positive and dollar performed very well. This week Monday and Tuesday dollar will perform extremely well. From late Thursday dollar will march toward new high. Trading range of dollar will be $77.23 to $78.89.

Among currencies Canadian dollar will fall sharply so one can take short position in Canadian dollar, we see Canadian dollar will fall more than three percent. Trading range will be 0.9780 to 0.9545

Australian dollar will remain volatile, from Wednesday Australian dollar will move down sharply and falling trend will continue for rest of week. Range will be 0.9300 to 0.9130

British pound will move down from Tuesday but from late Thursday it will gain. Range will be 1.6333 to 1.5990.

Swiss Franc and Euro will down from Wednesday and hold short position. Range of Euro will be 1.4390 to 1.4090.

Japanese Yen will remain positive so buy Yen on any deep.

 

Thanks & God Bless

Mahendra Sharma