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Today's Trade & News

Here is this week letter.. Planets are guiding us in right directions on daily basis, metals and oil trading range were very accurate..

Dear Members,

I would once again like to begin this weekís newsletter by talking about the US Dollar as I donít see any other trend that could make as much money in the short, medium and long term. I have been asking myself why the planets keep pushing me to give a prediction that seems so unlikely in the face of current events, but I am safe in the assurance that there must be compelling reasons why nature is forcing me to recommend buying the Dollar. Current Planetary indications for Dollar rise are stronger than they were for the technology era of 1996-99 as well as the commodity era of 2002-07, and it would therefore be a grave miscalculation to dismiss this prediction offhand. Nevertheless, I am aware that only a handful are likely to give serious thought to my Dollar prediction, but nature is emphatic that everything will disintegrate in future except the Dollar. However unlikely this might seem, my focus at this stage is on the Dollar to the exclusion of other commodities and stock markets. All the same, I must say that alternative energy and coffee are still prominent in my list of favorites.

 

Last week the Euro zone increased its basic interest rate by 0.25 but the measure failed to prop up the Euro to move up. The Dollar index has been trading in the range of 72 to 74 and I recommend that my members focus on the Dollar. Those who donít believe in the Dollar should not renew their subscriptions because from here onwards I shall write in more details about weekly and monthly predictions with emphasis on the long term buying of the Dollar. This however doesnít imply that I shall abandon writing about other commodities and markets; I am simply saying that a journey is beginning where the Dollar will be the central point in future coming time.

 

A lot of people made fortunes when the planets recommended buying technology and commodities and I believe that the same will happen with the Dollar predictions but this time I we will walk till the last step. Back in 2001, because of astrology we made a prediction for oil to reach $100 when it was $15, and I should have stuck with oil instead of recommending booking profit around $68. I made the same mistake with gold because I expected it to reach $1000 but recommended getting out around $625 also mistake happened because astrology helped me predict weak trend from 2001 to 2007 but I came out with buying recommendation in mid 2007. This time we want to go till last day of bull of market of Dollar. Indeed, we are poised to make even more than what was realized during the tech and commodity era. I am preoccupied with planning how each of my members can benefit from the forthcoming bull market of the US Dollar, as it will be huge and last for 5 to 10 years.

 

Emerging markets are in a ceaseless decline and investors are bleeding miserably. When I was recommending getting out of emerging markets at the end of last year as well as early this year, there were those who dismissed my predictions as the rants of a crazy person. This will be no different and same way the commodity market will enter into its worst bear cycle and several banks, institutions and individual investors will become desperately trapped.  Billions will consequently be wiped during this terrible trend and we should be continually vigilant.

 

In conclusion to this introductory section, I would like to say that all credit for accuracy goes to planetary movement. Any failing or mistakes is not because of astrology but rather my inaccuracy in reading and interpreting the planets.

 

Financial Predictions for 7th to 11th July 2008.

 

GOLD

Gold will open positively on Monday but you should take advantage of selling because there will be a sharp correction on Tuesday and Wednesday. Once can cover the short position on Thursday as prices may move up and stay away from the market on Friday.

 

Lower side gold will touch $912 and one must cover short around this price. Meanwhile, metal stocks will be weak till Wednesday but a sharp recovery will follow on Friday.

 

SILVER

Silver will follow the trend of gold this week and the feeble trend will continue from Monday to Thursday morning. Those who are short can cover during Thursdayís trend and regain some cheer on Friday. 

 

COPPER/ PLATINUM/ PALLADIUM/ ZINC & NICKEL

The bull market in these side metals has come to an end and they are now poised to enter a long term bear market. One can therefore short zinc, platinum and copper this week.

 

IMPORTANT NOTE!!!

Metals are entering into a weaker trend together with other commodities and even long term traders should therefore reduce their positions in metals by half or hedge their positions by buying the Dollar. This should provide safe returns.

 

COFFEE & COTTON

Coffee and cotton prices came down on Thursday last week and this feeble movement is set to persist for the first four days of this week. One should however begin to buy coffee by the end of Thursday since there will be a sharp rise late Thursday or Friday.

 

Meanwhile keep your distance from cotton.

 

SUGAR/ LUMBER/ COCOA & ORANGE JUICE

While lumber and orange juice will continue stably, there will be a sharp correction in sugar and cocoa. I expect cocoa prices to drop in excess of 8% this week.

 

STOCK MARKET

My strategy remains unchanged - stay short in emerging as well as European markets while staying long in the USA markets and this hedging will provide you safe returns. I see a weaker trend in all major stock markets except in the USA and Russian markets in longer term.

 

I have been receiving many emails following the sharp decline of stock markets in Asia and Africa. Many seem to believe that these markets are now at a good level for buying, but I donít agree. My recommendation therefore is that one should not buy as yet since the weak trend is set to persist. In addition, South American and African markets will jointly go downhill with European markets and there is therefore little need to take risks.

 

One can begin to buy financial stocks in the USA market in addition to alternative energy. Those who are short in other international markets could also cover the short position on Wednesday onward.

 

GRAINS

This week grains prices will drop sharply, probably more than 15%. One therefore needs to go short and enjoy the ride as Mercury is firmly behind you. Sell corn, soy bean, bean oil, soy meal, canola and oat and buy a small position of wheat against this selling on Thursday. If grains fall around 15% this week, you should expect a 60-70% fall in grains in the coming time. Admittedly, the drop will be a huge one and itʼs therefore time to make money in grains.

 

OIL

Morgan Stanley had said that oil prices would hit $150 a barrel by the fourth of July but they didnʼt. I actually expect it decline sharply any time from Tuesday and the weak trend to remain for the rest of the week. I shall not at all be surprised if oil hits $135.80. This southward trend in oil is also likely to take heating oil, RB gas and natural gas. You should thus enjoy a great ride and make a killing on short positions this week but cover it once it reach predicted low.

 

The trading range for oil this week will be $145.80 to $135.80.

 

CURRENCIES

If I begin to talk about the prices of the Euro and Pound after 5 years, there will not be a shortage of people to declare me mad or ignorant of that market. I am however perfectly sane and in my senses when I declare that a time will come when one will get 3 Euros for one Dollar and 2 Pounds for a Dollar.

 

There was a great turn around for the US Dollar on Thursday following the Euro zone interest rate decision. I felt as though the Dollar came to me and kissed my forehead. There is not much I can say about the Dollar, except to ask you to stay with it in anticipation of a truly unique run of this currency. Against all odds, I am recommending buying the Dollar again and again and there are good reasons for this. Remember that I am the same person who predicted the Euro reaching 1.3800 when it was 0.8300.

 

The Dollar will start rising from Monday and the trend will continue till Thursday morning. There will however be a weak or sideway trend in the Dollar come late Thursday as well as Friday.

 

The trading range for the Dollar will be 72.90 to 74.80.  

The Euro will decline on Monday and Tuesday but we shall see some recovery late on Wednesday and Friday. Likewise, the Pound will trade weakly for the entire week, same as the Swiss Franc and Japanese Yen.

 

The Australian Dollar will finally begin its descent from Tuesday, followed by the Canadian Dollar.

 

The best trade at this stage will be buying the Dollar and selling the Euro and British Pound compared to the Australian and Canadian Dollars.

 

The other trade will be to sell the Mexican Peso, Brazilian Real, Indonesian Ruphia and South African Rand. My long term outlook for the South African Rand quite negative and I expect it to reach 15 by the end of next year.

 

REAL ESTATE MARKET

The USA real estate market will stabilize by the end of this year as well as in early 2009 but there will be a major correction in India, Singapore, Korea, Middle East, Europe, UK and South America before this happens.

 

One should be very careful about investment as the real estate in these countries will drop more than 30% next six months.

 

Thanks & God Bless

Mahendra Sharma, 7 July 2008

www.mahendraprophecy.com