Avoid hate and love in market because it is money matter
Dear Members,
Billions have been whipped out from hedge fund portfolios and also from investors wealth. From time to time nature brings agony and terror into the world financial markets and history proves that investors always forget the time of yore (past) and they keep repeating mistake again and again. Many people get indications in their minds, and their sixth sense tries to tell them that they are going to lose money in certain trades, but their ignorance and unawareness of the situation is far too great, so they choose not to take any further action on the situation and end up watching as their portfolio sinks like The Titanic. The incident of The Titanic happened once in history but incidents of similar significance in investors lives keep taking place again and again.
Stock prices came down in many sectors and it has made many investors greedy but not many people had the money to take the full advantage of this move. If you are holding stocks then hold on to them tightly without any fear because the planetary movement is indicating such a great bull market that has never before been seen which is due in the future coming time. One important thing to remember is that this bull market will only take place in a few sectors. Once again, the alternative energy bull market will not only frolic at the centre point of the Earth but it will twirl and spin all over the planet. Agriculture is another area which you should not be overlooking or just giving a quick glance at. In the final phase of the bull market which will be around the year 2015, the metal stocks will go wild. At times like this we should be thinking about things that may take place in the future because the medium and long term trend is essential in every traders life in this new century in which swing in markets will be very wild and volatile.
Countries whose economic base is dependent on the financial services such as
Come on, put a wide smile on your face, forget about today and focus on what is going to happen tomorrow and in the future coming time. Hold your stocks and get a break and if you cannot just do some other activities, just keep your stocks and keep putting small amounts of money in the stocks every month. The time has come, not to keep money in the bank but to remove it from the bank and start shopping for stocks. This transition period will be there for around three to six months and then Dow will start walking on the red carpet of a historic bull market.
FINANCIAL NEWSLETTER FROM 27-31 OCTOBER
GOLD/SILVER
Last week metals traded as we had predicted. We had expected gold and silver to remain sideways or bit positive on Monday and Tuesday. Monday and Tuesday they can reach up to $752.80 and 9.98 and lover-side $712 and $8.80, but One should sell around topside on even Monday and Tuesday. From Wednesday keep selling on any rise on Thursday as well as on Friday. I have been saying that gold is no more “safe haven investment instrument”, those who believed that Gold is safe haven have unfortunately got caught up in the recent meltdown in the financial market. One thing has been confirmed; that metals and metal stocks are not welcome in the list of safe haven any more. In the last hundred years, how much money had been made in gold investments? Compared to other financial assets like property or stocks. Except world war two and 1977-1980, metals remained too hot but after that, it took thirty years to come back again, but property and stocks never took that long period except 1882-1896.
The new century planets gave the indication that there was going to be a bull market in metals, and metals did trade positively. Those who never got greedy made a great amount of money on our recommendations but unfortunately greed makes its path leading into every investors mind. It doesn’t matter whether he/she trades in metals, stocks or currencies. Once you can control your greed then you can make safe money in any area of the market and that is why I was recommending getting out from commodities and commodities stocks in late 2007 and 2008.
In the longer term after the year 2014 silver will move towards $50 to $80 and gold toward $1800 but I don’t know how investors will survive to see that time (in fact, in the next three weeks many metal traders will lose a lot of money if they do a lot of high leveraged trading).
Get out from emotional affection and trade or invest in metals like any other investment instrument. Don’t get attached to them and I am sure in coming time you will make tones of money. In the last century story of gold was different but in 21st century it will trade differently.
Once again, I confirm that in the medium term gold looks weak and this weak trend can continue for the next three weeks. Gold will remain weak until it bottoms out. I expect the same to happen for silver and the other base metals. Gold will move to $650 and silver $8.80. If they break these levels then gold can move down to $590 and silver $6.80. Top-side prices already got achieved in Asian market so keep focus on buy at lower side on Monday and sell around at predicted high.
On Monday and Tuesday, gold and silver may remain positive so buy them during weakness. They can reach last weeks lows so safe buying will be at the lows of last week, but please keep stop-loss as there are another twenty negative days pending in metals.
On the other hand, metal stocks should bottom out before metals, so hold short in metals and buy metal stocks. Avoid metals trading but buy metal stocks.
One of my investment strategy that is getting very popular is : BUY Gold against all currencies except USD. Hedge buying gold against selling gold in USD term and you will make risk free returns during 2008.
COPPER/PLATINUM/PALLADIUM/NICKEL/ZINC
There were few people who were forcing the prices of the base metal to the sky but look at these metals which are now as they are having a free fall. We don’t know how many bull operators have made money. All that I am hearing is that a few billionaires have lost a huge amount of money in the fall in the base metals.
These metals have been trading as predicted and still I see the weaker trend to remain in them. Don’t buy these metals for a few more weeks as they will continue falling. After a few weeks these metals will bounce back and will gain 20%.
COFFEE/COTTON
Like metal traders, many of the soft commodity traders are thanking us on our recommendation of getting out from these markets. We are close to the bottoming out in coffee but cotton is to remain weak for few more months.
One should buy coffee at around $108 and sell it at around $116. In the medium term coffee is going toward to $96. Avoid these soft commodities for the time being.
SUGAR/COCOA/ORANGE JUICE
All these food related commodities will remain weak this week. Avoid all these commodities for a few more weeks. Technically sugar may bounce back on Thursday but that will just be short life rise.
STOCK MARKETS
I don’t have any words to describe this horror in international markets. Once again I would like to bring to your attention that all major world market went down sharply on Thursday but DOW closed 175 points up on Thursday. On Friday there was horror in Asian and European markets but
One non-disputable thing is Dow moving toward 32000. Time as well as I will guide you as to when is the best time to enter whole journey of Dow reaching 32000. This journey will be a very interesting one. In the next two months I will do my best to look deep in to weekly, monthly and yearly trend of DOW, Nasdaq and S&P.
Dow reaching 32000 is not really an exciting news for most of the other markets because many of them won’t able to perform against DOW.
This weeks uncertainty will still dominate the world market and I am sure that the Moon will bring stability on Monday and Tuesday buy I will recommend just take selective pick in market. If you don’t want to take any risks in trades then hedge the positions. There are two ways you can put your strategy in to place:
A. buy
Asian markets will have a good recovery on from Tuesday. On Tuesday, they will trade sideways in morning so take a opportunity of buying. European markets will trade sideways. Don’t sell from Tuesday to Thursday, just hold your position if you are buying on late Monday and Tuesday.
Dow is holding well above our predicted price and I am still sure that it won’t break 7800. Buy Dow around 8155 and target 8690 during this week. Don’t expect to make money instant but sure accumulation here in Dow will going to make you tones of money in coming. Buy 10000 calls on March 2009, and 14000, 15000 call of December 2009 as you are getting them very cheep.
Soon, I will come out with detailed weekly predictions on all major stock indexes.
GRAINS
During last week only grains markets remained stable compared to all the other financial instruments. I recommend you should finish buy Monday as I see major rising on the way from Thursday and this up rising will continue until next week.
OIL
Oil is showing very strong bond with stock markets because recently oil has been moving parallel to the stocks indexes. Many are talking about recession and oil is following that, at this stage it looks like oil is scared of recession and if recession comes then there is no doubt that oil will touch 49.80 soon.
At this stage, I see oil moving up strongly from Wednesday, it will be sharp move and this move can push oil up by almost 9%.
Buy oil, heating oil and crude oil on Tuesday. Those who don’t want to buy oil can wait or take a small position in it on late Monday or before closing. Hold your position until Friday.
Trading range of oil will be $61.80 to 69.80. Buy oil around $62 to $63 with stop-loss of $59.80. Buy heating oil and RB Gas on Monday. This week avoid natural gas.
CURRENCIES
Last week
Industries hedge their positions either with export or import because they can either import raw material of export finished goods. Dollar is important for them and the same with raw materials.
Currencies are important for financial people, like hedge funds and banks because their investments are diversified and currency fluctuation play a very important for their portfolio.
Currently, many emerging Asian countries hold huge foreign reserves because of inflow of fund from 2003 to 2006 and when international institutions started pulling back their investment from these countries, the currencies value and stock prices started tumbling. Recent example, the Indian rupee is getting weaker day by day and already touched all time. International institutions are taking dollar back and the reserve bank is finding it difficult to give them back so they are going aggressive to buy US dollar. This is not only case of
Currently a huge amount of money is flowing back to
This week - US dollar will take some break here but don’t get out from core position of USD. One can book partial profit in short term position in USD. Yen will crash down in a big way but at this stage it is moving up so watch carefully but you should get out 100% from Yen position around 109.80.
All currencies have made low during last week and I see short-term bottom already took place and all these currencies will gains value against USD and YEN. Don’t sell core position of Dollar as we want to walk with dollar for the next five years cycle.
This week buy Euro, Australian dollar, Swiss Franc and Euro on Monday evening. Euro will hold $1.2275, Pound will hold $1.5280 and Ausi won’t fall below 59.80 in current weak trend rally so if they reaches these prices then take a position in these currencies. Canadian dollar,
Best trade of week:
Buy grains
I would like you to read once again two chapters from new book:
This whole sections of real-estate is taken from my new book "2008-09 World & Financial Prophecies" from page 51-54.
Thanks & God Bless
Mahendra Sharma, 26 October, www.mahendraprophecy.com
