I have been predicting the dollar's rise and the dollar have been moving. It is however quite a tough situation to continue holding a position when something is going down. Indeed, many may have lost hope of the dollar rising since it looks so negative at this stage and while most predictions are for a weak trend. At the moment, no one is recommending buying the dollar because it technically became negative, but I am holding the DOLLAR and actually adding small quantities on each fall since this is what the planets are recommending -to buy the dollar.
The reason for holding onto the dollar and adding more is that the rise will be so aggressive that most in the investor community will be unable to even get in. The dollar will gain what it lost for the last five and a half years in one year or eighteen months. This is therefore why I am holding the dollar and recommending buying it. My position is not based on any love or affection for the dollar, as I just predict what I see. I predicted the same for the dollar in 2001 when I predicted a sharp fall and people made fortunes from 2001 to 2004.
One request Ė Once you see the dollar rise, whether tomorrow, this week or next week, just jump in because this kind of opportunity does not come often in life. We were lucky to buy gold and silver in 2001, but those days gone: we bought oil around the same time. Except for a few other areas, we are not blocking our money in other trades other than the dollar.
For the short-term, I SEE a rise in metals but the best trades for the longer term are in alternative energy stocks, Uranium and the dollar. We shall also be buying coffee and I will update you on this. Metals, oil as well as grains will trade in the trading zone and we shall be looking forward to buy metals in the near future if they come down.
This week's predictions from 16 to 20 April:
I see a sharp rise in gold and it looks like it will cross $700. Indeed, gold should touch a new high this week if it trades positively on Tuesday. I predict a short-term bull market for gold. Tuesday is an important day, and gold will not look back in its match ahead if the day is in full support.
However, a decline on Tuesday will lead to a sharp correction in coming days and we shall therefore be closely be monitoring the situation. What is certain is that at this stage we shall hold the position in gold and add some more if Tuesday passes smoothly.
The trading range for gold this week will be $692.80 to $677.80. As previously mentioned, gold will cross $700 if there is a rise on Tuesday.
Monday should have a mix trend and one should buy on weakness. I am however not so sure about Tuesday, but it will certainly trade in one direction; either a sharp rise or a sharp fall. There will be consolidating on Wednesday and then a rise for the rest of the week, especially on Friday.
I see a sharp rise in silver prices during this week but I would still like to monitor the trend on Tuesday. I recommend that you buy or hold the position in silver as we could see new prices.
We shall witness major volatility in silver prices this week and any fall should therefore be taken as a buying opportunity. Silver will follow the trend of gold.
The trading range for this week will be $14.42 to $13.82.
Donít buy platinum at this stage even though I am predicting a rise in metals. I advise that you sell Platinum around 1389. My views about Palladium are opposite to platinum and one can therefore buy at this stage and book profit at $378. We shall buy again in May.
The trends in platinum and copper will follow each other and I predict a sharp correction in copper, though I am optimistic on other metals. If copper moves up on Tuesday, then it may move up for a short period and may reach $358.80 on the higher side.
In regard to the stock market, my focus is in alternative energy stocks, that is solar, Uranium, battery, bio-fuel and ethanol, but solar and Uranium are my favorite for the next thirty months. The bull market in these stocks will be bigger than the technology boom of 1996- February 2000. As a matter of fact, you should transfer part or at least half of the portfolio to alternative energy stocks if you are holding a lot of metal stocks or any other stocks. If holding alternative energy stocks then just lock it in and open your portfolio after two years and I am sure that you will not believe the figures that you shall see.
For instance, look at a few solar stocks charts Ė TSL, FSLR, DSTI,
For the long-term, I am very much optimistic about the
Last week bond prices remained weak and they should remain so for this week as well. However, one can buy or cover the short position on Friday.
On Thursday coffee prices sharply moved up and that confirms that a bull market in coffee is right around the corner. Buy coffee around $110. The trading range for this week will be $110 to $115.
In early 2005 I made good money for my client in coffee, yes because Mercury gave very clear sign of sharp rising and again same period is coming after some time.
Cotton prices have sharply come down in the last few weeks. One can start an aggressive buying of cotton from Tuesday and book profit if you make more than ten percent on your investment.
Orange juice prices corrected sharply as predicted in the last week, and we were holding a short position. Prices have come down more than fifteen percent in the last three weeks and there's more to come. We shall however be covering part of our short position this week on Tuesday or Wednesday and continue holding part of that short.
We strongly recommended selling orange juice around $200 to $205 and expecting prices to fall twenty five percent so hold you short position at this stage.
I still donít see any bull market in lumber, therefore donít involve your money in this market. Indeed, I see prices touching a yearly low once again.
One can buy sugar at this stage and sell part of the position on Friday as it shall rise this week. Sugar prices should move up more than seven percent for this week.
End of April in 2006 we recommended selling sugar and expected fifty percent fall and it happened. Now it is time to buy for three months as I see now rising from current level.
Those who have bought cocoa should book profit during this week since it will decline till the middle of May, therefore don't tie your money in cocoa.
Grain prices remained quite volatile in the last week. In future, a sharp fall will always be an opportunity to buy while a sharp rise will be a selling opportunity, therefore trade accordingly. Donít hold a long-term buying or selling position.
This week grain prices are poised to decline again and one can therefore take a short position. Sell corn, soybean and wheat. I see grains being weak, therefore don't buy. If you are buying on fall, then put a stop loss since I donít know how much lower they can go.
Oil traded as expected in the last week. For the short-term, the prospects for oil are not very encouraging and one should therefore avoid taking any buying position in it. I see a sharp correction any time from this week, therefore trade accordingly.
The planets guided me to buy oil when it was trading around $18 and expected it to reach $80 or $100, and I am the same person who is not very optimistic in the longer term since planetary positioning declare a decline in the longer term. As a matter of fact, oil should be back to $25 within five years. However, there is no need to be surprised even if it goes below that because the world will have a lot of other options to oil as an energy source within that time. As an illustration, there was a time in
I recommend that one invests in alternative energy as that is the future. Saturn very clearly shows that this will be the case hence I have no doubts. There will be new innovations in modern machinery and equipment in the form of batteries, solar and other alternative energy sources, which will last longer than before. Cars, machinery, power and other articles for daily use will undergo major improvements. In future, mechanized items will be in such a way that oil be be rendered obsolete.
Time will come when a laptop battery will last for a month, and solar and other alternative energy sources will help create a whole new revolution in energy demand and supply. The most important factor is that the world will run on clean energy hence helping save our beautiful planet from climate change, global warming.
I have no negativity for oil, but Saturn indicates something else and I must therefore faithfully predict what I see, which is my job anyway.
Sell RB gas, Heating oil and oil during this week. Oil should touch $60.80 and could reach $64.80 on the higher side (I am taking about May contract).
Once again I give my apology, since I have been wrong for the last few months on my prediction about the rise of the US Dollar. I however donít have a choice because this is what planets are guiding me. I am upset with myself that I should have waited for some more time after I got the indication instead of passing it immediately. To avoid a similar trap, I have said that oil will fall, but do not expect it to fall immediately or donít think that the story of oil will be over by tomorrow. Just know that it will in the longer term.
The Sun has changed houses and that gives me more emphatic support to predict a rise of the dollar from this week.
On Monday the dollar should rise, and we should also have a sharp rise again on Tuesday. However, on Wednesday it will move down a bit and the same thing will happen on Thursday morning. However from Thursday by 10.30 AM
I really appreciate your support and the faith you have kept in my work; we all have negative time cycles sometimes as at the end of the day, we are merely human beings.
I am sure that my newsletter might be making you think about alternative paths or new thoughts about investment.
What I can say is that one should try to reduce speculation and focus on the future, and I am sure that success will come slowly but surely. Over speculation canít make you smile everyday, therefore be very careful when taking your positions.
This week trades:
Buy metals in weakness
Sell grains and oil
Buy sugar and coffee on weakness
Off course Buy dollar, sell Australian dollar on Thursday
PLAN TO BUYING SOLAR AND OTHER ALTERNATIVE ENERGY STOCKS AS WELL AS DOLLAR FOR LONGER TERM.
I wish you a good trading and investment week.
Thanks & God Bless
Sharma Mahendra, 15 April, Sunday