This week we expected sideways trend without any major movement in all markets.
We predicted Gold and silver in range bound and they have been trading between $1048 to $1068 and silver $17.83 to $17.30. The current market trading pattern is favoring short term traders because every day the market is touching the same highs and lows. Today we recommend taking selling position in gold and silver after the USA market opens or at around $1065 to $1068 and silver around $17.87-95 because next week we see weak trend.
A few weeks ago we mentioned that the maximum for copper on the higher side would be $303 and it has been trading at that price for the last two days. This will be best price to take a selling position in copper as well.
Friday after opening of USA market one can take a selling position in oil as well. So planets are indicating clearly that all the commodities will move down sharply from Monday.
Stock markets will move down sharply from Monday on some negative news from government or any big company. Hold your puts or add more on opening without seeing price movement Microsoft and Amazon.
Currencies traded a bit positive but are looking negative. I see now that from either late today or from Monday a big negative period is starting for gold, silver, stock markets and currencies. This will be one of the best times in the traders lives for those who have been following us. Dollar index you are getting it like free around $75.30. Now bull trend in pound and commodities currencies is overing.
Newsletter members should wait for next week newsletter on Sunday because interesting time ahead.
Don’t hate or ignore USD or USA, 18 October 2009
Dear Members,
Finally the most awaited date arrived and passed; now we don’t have any new date for excuse. The markets have to fall, metals have to fall and dollars most awaited prediction has to follow the path of the instruction of nature.
Many challenges like these come in our life but, many thought that markets would keep following the opposite of what we see but nature or astrology always came in rescued us and we expect the same this time as well.
Yes, we are confident of Dow hitting 32000 in the next five years but we are also very concerned about the fall in Dow from the 13th of October 2009, and we are concerned because we see fastest fall of history on the way in market. One of these days, on fine morning when you wake up you will see stock tumbling more than five to eight percent in a one trading session, there will be a blood bath on wall street and many other international exchanges, it will be too late for those who wanted to take positions. Yes, this was the reason I have been warning, people or investors to forget about early this year when stocks were tumbling, at this stage we are not recommending holding any positions in stocks, except if you want to hedge positions. Our warning is on because the fall in markets will be more than 20 percent.
Another concern prediction is for metals. Yes, we are very concerned about gold, silver, copper and other base metals, fall in precious metals can bring huge damage to the lives of metal investors because metals and metal stocks will fall non-stop and sharply with in short period. Our warning is on, and the fall in metals can be more than 30%.
The final most awaited prediction is for USD. We see dollar index going to 200, but at this stage it looks like the dollar history is ending. At this stage dollar looks like it is dying or in the final stages of its life. Many followers are concerned; they say that I should forget my favorite Mantra of “historic rise of dollar”. Yes, there is no arguing because currently dollar is falling against all currencies like dollar rise story is ending. It is great challenge for my work, I am buying dollar, holding dollar and will be adding more dollar. Short term traders should put strict stop-loss; long term traders should add more call option like we bought silver option in 2002. We are at a crucial level, most of my members have lost hope in dollar as most of them might have stopped out or many couldn’t be able to hold positions because dropping prices of dollar index.
The last five days, I had a great spiritual time, today is last day that's why I was unable to send Newsletter before electronic market open on Sunday and from tomorrow I will be back to normal activity. Here is this week’s trend of different markets:
Weekly newsletter from 19-23 October
GOLD/SILVER
This week gold will try to hold level of.....
PLATINUM/COPPER/ZINC
Once again this week side metals will try to remain in a tight trading range as this week’s planetary movements are not negative. Short term traders should take trading buying position ....
COFFEE/COTTON
This week both of these soft commodities will remain sideways. One should avoid trading in coffee and cotton during this week. From the middle of next week both these soft commodities will move down more than 20% so a great time is coming ahead for trading. Coffee can move up to $145.90 but....
SUGAR/COCOA
Both of these soft commodities will fall sharply from...
TRESURY BOND
We see Treasury bond moving down; our recommendation of selling at $123 provided good returns. Selling Treasury bond on late Monday will provide you with good returns. We expect 30 years bond coming to $115.80.
STOCK MARKET
All major markets are ignoring history and moving without creating a clear path ahead. Yes our outlook on stock markets is very bullish but we are very concerned around what has happened in the last two months. We are aware that there will be a meltdown in the whole world’s financial system after Dow crashes from 32000 that's the time I see gold hitting $5000. Dow will remain in a downwards trend many years from 2016, like Nikkei did in after 1987.
We will be very happy once Dow moves down around 20% and then we can recommend buying. At this stage there is too much day trading, too much easy money and trading with technical points. I am sure we will get the right time to enter the market after our first entry point which we did in March 2009.
Last week the markets behaved with uncertainty, and this week we see the markets trading in uncertainty and trying to hold around current level with a little weakness. The fall from next week is so certain that one should be adding more positions of puts in market.
I don’t want to write daily trend for this week on all markets because we have been off-track on short term market prediction. Our members should hold short positions and those who want to add can add more positions by buying puts as you lock risk amount.
On rise of Monday and Tuesday one can sell small position with stop-loss and see that if markets are falling from Wednesday or not, because if market doesn’t fall then may Dow will hit 32000 without any major corrections.
GRAINS
In the last one month grains prediction we made a good amount of money. We recommend buying grains from....
OIL
The last two weeks we were a bit positive on oil but negative on gas and our prediction still remains the same. Oil can easily move up to $80.20...
CURRENCIES
For the last few months dollar has been trading in depressed market, we are not able to find astrological reason why Dollar is behaving so negatively. We see upside blow in US Dollar which will start from next week but.....
Best trade of this week:
Sell December Natural gas around $5.79, Sell cocoa around $3290, Sugar $24.05
Avoid trading oil or sell if it reaches $80.20
Buy grains on Friday or next Monday, book profit on Monday opening,
Major Fall in all stock markets is around the corner, metals may try have final battle and we knows that Tuesday and Wednesday will be key indicator days, if market doesn’t fall from here or next week then Dow will hit 32000 without any major corrections. Our long term outllok is still bullish for Dow. Since early this year we have been Predicting Dow toward 32000, but we saw short term weakness from END OF July 2009 and most negative date was 9 Sep and Oct 13, 2009 and both these date passed without any damages. We will be happy, if Dow quickly correct 20% but, if not that means our longer term prediction is over-ruling short term trend.
Thanks & God Bless
Mahendra Sharma, 18 Oct 2009