Weekly newsletter, dated 16 November 2009
Dear Members,
All bets are now against USD. Everyone has ganged up together. Let's see who are they:
It has been clear that in current financial market war has been set between US Dollar and other areas of investment. Dollar is standing one side alone and the rest, like stock market, gold, oil and other commodities, are standing against it. Even Yen has been gaining against USD. In current market except USD everything else is moving up.
Media is talking negative about USD, and all negative news against USD has been highlighted with headlines. Many financial columnists are writing story about the doom of dollar and they give hundreds of reason behind it.
Fed Chairman and treasury secretary are staying quiet on dollar, but they are holding cards about the future of dollar. Between 2005 to 2007, Fed and secretary were pushing China on Yuan appreciation but that issue is quiet now. So this game is playing in a purely psychological way.
Almost zero interest rate is making many big financial houses take carry trades by borrowing Dollar. Country like Australia, India, South Africa and Brazil have higher interest rates compared to developed nations, especially dollar, and they are also very close to increasing rates from current level.
Demand has been rising for commodities as population is rising as well economic activities is rising from developing nations and rising demand of economy is pushing pressure on dollar.
Many countries are talking about shifting from USD as they see that holding investment in dollar as biggest risk of future because USA economy is not behaving well compared with other developing countries.
There are many other hundreds of reason are there which countries playing negative roles for USD. I am standing with USD at this point, although people think this Quixotic stance won’t take my followers anywhere from here.
However, we have a very simple reason to favor dollar and that is that planets are telling us to stay with dollar because the most unique opportunity will come in longer term from here. Last four months dollar has been trading in narrow ranges but it is at low so it looks very negative. I don’t want to follow all above reasons because all these above reasons are for economists, fundamentalists or chartists. We don’t include love or hatred when we predict. I don’t hate gold, in fact I made money in gold from 2001 to 2007, and I still hold physical gold positions. But when it comes to short term trading I write what I see, and I do my job fearlessly. I don’t fear to predict that gold is touching $550 in 2010. Is anyone doing so at this point? By the way there will be a small gift from my close friend and personal client Mr. Nanik if gold hits $550, I respect him a lot, he said Mahendra, he is still wonder that how this prediction can come ture. He has been trading gold the year I was born.
My best advice is hold cash, buy some puts in metals, because metals are to fall in 2010, and stock markets are to remain sideways and dollar/grains are to make history gains, so buy calls.
Here is this week trends from 16-20 November
Remember before trading on Monday and Wednesday (Monday is new Moon and from late Monday Moon is entering in the house of Scorpio) - Mid day Monday, Tuesday and Wednesday are astrological negative days for everyone. Whatever trade you do won’t be able to give you profit so don’t involve yourself into any new trading. Just finish pending work. We will see both side sharp movements in all markets so those who still like to trade should get in and get out quickly. If anything rise sharply in morning then will come down sharply in evening and if open is weak then it will close up.
GOLD/SILVER
I hate to predict when planets are very mix and no clear sign, this week first three days are same but then from Thursday situation is getting very clear like crystal. Last week we predicted that Tuesday and Wednesday gold/silver would trade positively and both of these days are important days for gold/silver. Had they traded weakly then weak trend would dominate, but last week weak trend never came on both of these days so gold and silver will trade as per short term planetary movement.
This week Monday metals will open up sharply and they will close weak or they will give up gains.
Tuesday and Wednesday any fall should be taken as a buying opportunity in gold and silver and any rise should be taken as selling opportunity.
Thursday metals will move down after trading positively in Asia and Friday take opportunity of selling as next week gold will fall sharply.
Gold and silver stocks won’t see this week prices again in the next one year so sell or go shorts in metal stocks on Monday and Tuesday. HUI will move from end of this week, so take put options in metals stocks and that will earn you great amount of money in the coming months.
Trading range of gold will be $1129.80 to $1101 and silver $17.88 to 16.81, if its break down side on Thursday then it will move down much more lower. If it trades higher more than 9 hours above $1129.80 then gold may hit $1153, silver $18.81 and that should be top of 2009/2010 but I don’t see gold reaching to that level because current week is final positive week for metals until Thursday and even current week is unpredictable as planets are not in clear mood.
COPPER/PLATINUM/PALLADIUM
Next two weeks Palladium prices would move up sharply as after one year Venus as starting supporting palladium. We see palladium prices move to $400 or above from here. Short term traders can take final positions and get out from next week.
Platinum will remain sideways or bit positive during this week, so avoid trading platinum at this level. If you remember last year when we call platinum to fall from $2250 to $900 and it was hard to believe that time but that prediction made fortune to my few close personal clients because in few months Platinum crashed.
Copper will come down...
STOCK MARKETS
This week we see huge volatility in stock markets. We see sharp rise..
COTTON/COFFEE
Last week both of these soft commodities have move down sharply as predicted. We see.....
SUGAR/COCOA
Both of soft commodities also traded as predicted. This week we see sugar prices moving up on Monday and positive or sideways trend will remain until....
TREAUSRY BOND
This week bond prices will move up and this move will surprise many.....
GRAINS
This week grain prices will remain...
OIL
Last week oil traded as predicted. This week Monday oil prices will move up, Tuesday and Wednesday oil will trade both side so any sharp rise...
CURRENCY
Last week US Dollar have shown some positive signs. All negative news and market up-trends couldn’t break dollar on the downside. USD is holding rock solid. Thursday and Friday there will be huge up move in USD so accumulate on each day on weakness. Dollar index will trade between $75 to $77.
British pound will remain the weakest among all currencies so sell pound on Monday. Pound can fall big way on Thursday and Friday. Next week we see pound prices falling below 1.60 so great time has come to make money.
Euro will also trade weakly during this week. Great time to build short positions in euro but major falls will come from next week in Euro and I won’t be surprised to see Euro fall to below 1.40.
Australian and Canadian dollar will remain sideways and volatile in both directions so trade carefully. Thursday and Friday both of these currencies will move down sharply and next week we may see blood bath of these currencies.
Indian rupee, Rand and Brazilian Real will remain stable during this week so avoid trading these currencies.
Yen will top out during this week and weak trend will begin from next week. Monday and Tuesday yen will remain stable, we see downward trend on Wednesday to Friday but huge downward will come from next week. Yen will be a currency which will gain against GOLD as well as against all currencies except USD in coming time.
Swiss Franc will remain sideways during this week. Next week Franc will fall sharply.
NOTE: All indicators are indicating fall in commodities and stock markets from end of this week and sharp fall from next week so this is a great week to build positions. Also dollar outlook is very strong from Thursday but especially from next week dollar will be ruling like a real KING. Watch our USD prediction as this prediction can make you fortune in coming time. Avoid metals and oil as they are in uncertain trend. Stock markets are trading in very confusing zone so the only clear trend is USD and one should go ahead with it.
One of the leading banks has sent us a message: Mahendra if your dollar prediction comes true then we can nominate you the best trend predictor of the decade. I am very happy to receive this message. It doesn’t matter if I receive any reward or award but one thing I want to say again is that everyone is trying to predict market trend and we also try to do so too. We don’t know how many people trust their own theory but we trust our theory 1,000%.
Fed or policy makers around the globe they changes their view as per economy data but we remain on the same line what we predicted because there was astrological reasons when we come out with our predictions. Does anyone on this planet believe that gold would fall to $550 and dollar index toward 140? I think no one does but we do because that's what planets indicate, so take put and call trades.
Trade with stop-loss as this is final week of the party and new trend is about to begin non-stop from here. Yes, we have lost money on dollar in the last four months but time is coming to repay us in multi folds. Whenever we are wrong we don’t feel ashamed. We accept that we are wrong, and we also ask apology for our incapability to see trends clearly. Whenever we come wrong, it doesn’t mean that astrology is wrong. Astrology is always right but we were not able to read it correctly.
Best trade of this week:
Once again we won’t to remind you that all false trends will take place from Monday to Wednesday, there will be sharp rise and fall in all markets so trade carefully as this is final week. There will be sharp corrections in metals any time and first correction will be more than 15%, so each rise during this week should be taken as selling opportunity. Fall can even happen from late Monday or Tuesday.
If you don’t have confident then stay away from markets as this is final week of battle in metals, stock and dollar.
Sell copper
Sell British Pound
Sell stocks and metals from Thursday
Thanks & God Bless
Mahendra Sharma