Dear Members,
As predicted in yesterday's letter, we are expecting strong momentum to the upside in precious metals. Base metals can also move higher, but we are not recommending any prominent long positions in base metals.
Silver could test $59.00 level, and gold could retest the previous high. We recommend taking a small call options position in silver as well as gold for some time. Don’t short gold and silver at any price at this stage, so keep this in mind. I will update more on the gold and silver moves in next week's weekly newsletter and daily flashnews. One can also subscribe to metal sections letters.
This week's rebound has been excellent so far, especially on a mixed astro day, which is the most potent positive sign for the market.
AI and Crypto stocks gained value, and real estate and regional banks moved higher. SOXL, DPST, and NAIL gained handsome value. In the last four trading days, DPST moved from $75.00 to $93.00, NAIL moved from $46.00 to $64.00, and SOXL moved from $28.00 to $39.00. Our buying call last week, Thursday, when everything was falling apart, proved to be great advice for investors.
The ongoing biotech bull market will pause soon, so book a profit in LABU. It has performed amazingly well in the last five months. It gained value from $37.00 to $165.00.
Google is in demand, and in our view, all major hyperscalers will do well. Everyone discarded GOOGL by the end of 2023, but my view was bullish. It can also test $5.00 trillion market cap. META rebounded last week, along with many of our favorite AI stocks. DELL performed very well, but ZS lost value, and we are recommending buying ZS on any further weakness.
Crypto rebounded strongly as predicted. Another 10% upside move is coming in Crypto, so stay long as recommended on Monday.
I like non-tech names, SBUX and FSLR.
Rest cover shorts in grains, softs.
Natural gas can test $4.95, so I am warning short sellers not to short gas.
Thirty-year Bond gained a big value this week as predicted.
This is what we mentioned on Monday: I would like to put a few key points moving forward before we discuss Monday's specific trend in the markets and that is:
1. Start building long positions in MP, UUUU, CCJ, SMR, IREN, and AMSC, as these stocks have been in a negative trend since we predicted closing positions in rare earth, quantum, uranium, and power generation stocks, but they will now start coming back into the picture.
2. Cryptocurrencies, especially Ethereum, have now hit their astrological lower side level, and we see it performing very positively in the coming time, so start taking long positions in ETHU and Ethereum holding companies.
3. The AI story is not over. There may be some volatility in the markets, but take any lower side moves in these sectors' companies as a buying opportunity, as these stocks will perform very well in the coming time.
Now, coming to Monday's trend. On Monday, the astro cycles are very positive for the US markets, so we recommend those who took long positions in the indexes to hold them throughout the day. We are recommending taking long positions in AI and tech stocks. Also, we are recommending staying in power generation's frontline stocks, which are making a profit and generating revenue.
Two months ago, we correctly stated that the focus should be on profit-making companies over the next two to three years. Like the opportunity is coming in AI stocks, avoid this nonsense talk “AI in a Bubble” which is spreading like fire. Keep accumulating NVDA, GOOGL, MSFT, TSLA, ANET, CSCO, CRDO, MRVL, DELL, MU, AVGO, and ALAB.
We still believe S&P and Nasdaq won’t go below 6708 and 25008 levels for more than three days. Also, we are doubling down on our predictions of the FED cutting rate in December.
Final note: Our bullish call is intact for the market; we still believe higher side targets will be achieved. Focus on US stocks as the Airavata trend continues in US stocks. Chinese and interntional markets will trade mixed.
Thanks & God Bless
Mahendra Sharma