Trading - Pain, joy, loses but still it is exciting game
Dear Members,
The situation in Europe is getting worse by the minute. As most of you are aware that three year ago we predicted that there would be an uncertain future for the EU and EURO as the planets clearly gave us indications of such. I am not trying to praise myself here, these all longer term predictions are provided to us by the planets. This is the only theory or indicator in our world that can give us a glimpse of the future accurately. Even policy makers, the Fed chairman and bankers are not aware of future otherwise they could make policies as per the future outlook.
Anyways astrology will always remain in the shadow in a world where modern science prevails. People will always look at this subject with question mark or doubt it. However, those who have been following our work for the last two decades have surely agreed that this subject carries too much power in it. In my next book I am writing in details on how astrology works in a common man’s life as well as financial markets. If someone asks me about how seriously we should be taking the planetary indications as far as the financial markets are concerned? My answer will be that first the presence of an astrological indicator is necessary to determine whether any market is in bull or bear cycle. After that indicator such as technical indicators, fundamentals, micro-economy and sentiments can be considered.
Let’s come back to this week’s newsletter. Last week’s trend of stock market and commodities must have shaken almost everyone who trades these markets. Everyone must be looking for answers about what exactly they are to do? where they should be putting their money for the next three months or even for the next year. Is metals are the safest buy? What will happen to stock markets from here? What will happen to European markets? Will euro survive? Several questions arise in concerned investors and traders minds due to current uncertainty.
I am trying to answer these questions here in short:
About metals:
Gold and silver remained dearer in the financial market as financial instruments among all financial investors. Investors in metals made fortunes in the last ten years. In the last few years we have always noticed sharp corrections in both these metals but after those periods they always made new highs. Last week there was a sharp correction in gold which worried many. Investors started asking whether the gold and silver bull-run has reached its end.
My answer is no! Gold and silver bull market is not over yet. As per the planetary movement my best advice is don’t rush to accumulate metals here;
1. Don’t rush to buy future contracts currently on fall but from....
2. Those who......
3. Those who like to trade safely and want to make money without taking any risk should start buying gold/silver aggressively from............
About stock markets
Overall the stock markets will perform extremely well, we are expecting all major markets to bottom out around .............. One can start accumulating from......
The best market to trade in will be the USA and Asian markets. In the USA market technology and food stocks will perform extremely well.
European markets will struggle till end of .......... but after that they will also come up.
I am sure this above outlook will help you make decisions.
HERE IS THIS WEEK NEWSLETTER FROM 26 TO 30 SEPTEMBER:
GOLD/SILVER
From Monday to ........ metals will trade weaker....
BASE METALS
This week again....
STOCK MARKET
All major markets traded very volatile. The situation in European and Ben Bernanke’s statement put traders and investors in middle of a hurricane. Investors don’t know which way to go as many are already stuck......
COFFEE/COTTON/COCOA
Except....
SUGAR/ORANGE JUICE/LUMBER
All these soft commodities...
GRAINS
All major grain kept moving down. There is still some....
OIL
Last week oil fell....
CURRENCIES
Dollar kept moving higher and higher. The planets say that it is in a longer term bull market. Lately we are suspecting the trend that is taking place in the currency market. These trends are creating many doubts of manipulation of currencies either from the government or big time hedge fund gangs.
The rise and fall of Swiss Franc remains a mystery.
Euro still holding despite of so many bad news from Euro zone is also mystery.
Fall of commodities and emerging market currencies remained the highlight and financial experts started looking for reasons.
Our best knowledge but unconfirmed – Swiss franc started rising sharply when they saw money started going out from the Swiss banking system. When depositors started withdrawing they getting low conversation rate which made depositors loose a huge amount of money. Most of us are aware that Swiss banks don’t pay any interest to depositors.
Who started withdrawals from Swiss Franc?
1. Withdrawals started from many depositors from India when huge pressure came from people and different political parties on government to bring back black money from Swiss banks. They started enquires and digging out details of account holders. Figure came out $200 billion black money lying in Swiss account from Indians.
2. Euro zone crash and downfall in other equity markets put pressure to many big stock market players who are holding big money in Swiss bank to buy stocks or do averaging.
3. Many European investors got nervous on the ongoing debt problem in EU countries, money went out from euro and entered in so called safe haven currency “Swiss Franc”.
4. Last nine months of commodity market have put huge mental pressure on depositors to withdraw money from account which is not making any money on deposits and enter in markets like gold and silver where they thought they can make a few quick bucks.
Why emerging market currencies (Rupee, Real, Rand, Peso) etc. crashed?
This year Dow remained the best performing market. The situation in Europe is getting worse by the day. Many emerging markets also have debt problems. This is making smart investors to pull out from these emerging stock markets and when you pull from markets you convert currencies and bring back home.
Lately USA is getting attractive so money is flowing back into USD also valuations in EU zone are getting too cheap compared to emerging markets. It is clear that a huge money getting pulled out from emerging market and this causing the fall of these countries’ currencies.
Last six months data shows that the inflow from foreign Institutional investors (FII) in India has dropped to lowest level in the last seven years and in the last three months they are net withdrawers. The same is in happening in other emerging markets.
Why euro is still holding?
1. Despite the worst news flowing out from the EU every day, why is the Euro still holding well? Many have asked me this question. The whole world is aware of the EU problem, and each currency trader is taking a bet against EURO. This is creating huge short positions but on any small good news or positive trend in markets making these same traders to buy back euro as they are fear that rise in markets will push euro higher again.
2. Also, the same situation is taking place here like the Swiss Franc. After 9/11 and 2008 Subprime problem created negative sentiment for USD. Many countries reshuffled their holding of reserve currency; mostly (China, middle-east, some Asian and African countries) started increasing holding in Euro. Debt Problems of EU forcing many central banks governors to start reducing holding of EURO. EU central bank has been absorbing these selling because if they don’t than they are aware that EURO would go not below par value and euro would lose status as a reputable currency and EU would shatter and there would be a meltdown.
Anyways, we are aware that in financial market these kind’s new stories always emerge. Many stories remain in the dark without the truth coming out. Common investors are always the victim of big people’s games. Investors loses faith when they lose money, they also becomes more humble because of loses, they also takes an oath not to enter market again but time passes and again the past becomes ancient history, and he buries everything and again wants to be a part of the most exciting game “financial markets” even though there is no identity of his existence among huge crowd.
Anyways, this week currency market will.......
Yen is near the top with Treasury bond so watch these trades. Also gas and cotton is still in our favorite buying list. Next week some buying opportunities will arise in many commodities so wait for our newsletter.
I will still recommend to avoid commodity market until mid October as Mars can bring huge loses to commodity investors as no one will be winner.
I am back after my Grandmother ceremony, and now I will send updates on a regular basis.
Thanks & God Bless
Mahendra Sharma
25 September