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Here is what I mentioned in my this week financial newsletter..and a great offer..

Dear friends,

This is what I mentioned in my financial weekly newsletter which goes out on every Sunday. I try to cover all major financial market incuding currencies, commodities and stock market.

Enjoy the weekly newsletter.

Thanks & God Bless



Dear Members,

There are many of my followers who may be wondering why I have constantly been talking about a bull market of the dollar as well as a bearish trend in the equity market around the globe (except the USA). However, economic data from the USA has not been very encouraging and many economists and other experts are nervous about the health of the US economy. This is bound to raise questions in the readers’ minds as to how come I am bullish on the USA dollar in addition to my positive outlook on the USA stock market.


There was a time when the USA stock market was undoubtedly the leader, with global equity following the trend of the USA. In the last few years however, we have witnessed diversions created by several emerging markets, which have generated their own trends and generally ignored the trend in the USA market. Examples include China, India, Russia and other markets which have performed quite well compared to the USA. There has therefore been a positive time cycle for emerging markets, and though I am not saying that they will collapse completely, I predict a significant question mark over these markets. At the same time, I am quite negative concerning European markets and foresee a severe economic time cycle in Europe. This is why my comments in relation to European equity markets have been negative in the last few months.


I do not have anything particular against a rising stock market or the European market: I have been predicting about the world financial market for the last 14 years and I am therefore just predicting what my theory indicates. I always write whenever I see the emergence of a strong wave. For example:


1.      Recommended buying technology at the end of 1995 and advised buying tech, telecommunication and internet stocks. We have all witnessed the great bull market in technology from the end of 1996 to the first quarter of 2000.


2.      I started advising the selling of technology in December 1999 and January 2000 because I saw a great fall. Many sold their stocks albeit reluctantly, and some were quite upset with me because the bull run continued till the end of March and in those three months, prices went up crazily. Indeed, January to March was an upsetting time for me as well, but after six months the story was different and many of those who were initially unhappy are glad that they got out in time. It doesn’t matter if I am given credit or not because it is quite easy in my work to be blamed whenever I am wrong, and I accept the blame very willingly.



3.      Another example is when I recommended buying metals and oil at the end of 2000 and in early 2001, and they failed to go up for six months following my recommendation. I know that a few of my personal friends got out from these two areas. Indeed I was off track on metals and oil for the first 6 months because they remained in depressed market. During the same period, I predicted in several newspapers as well as T.V interviews the crash of the dollar, but it remained around the same level for five months after my predictions, and then started a journey southwards. Those who have been following my work keenly or have read my books in the past know this.


Writing about all this doesn’t mean that I want to prove how accurate I am. Neither am I trying to build confidence in you that I will be right again. There is only one strong message that I would like to put across; if something is strongly indicated in planetary movements, no man or financial power on earth can change its direction or destiny. There is a very strong reason for writing of a bull market in the dollar and a bear market in world equity, especially in the European markets. Indeed, I shall not be surprised if they lose 50 percent value of their value in the next nine months. Nevertheless, I leave all decisions in your hands: plan your trades considering the risk factor, stop loss or hedging position on your trades.


Let’s see what this week is indicates.





Here are some tips for long-term gold investors:


1.      Buy gold against the British Pound and the Euro but sell the position of gold against the US Dollar. This will be good hedging position and it should give you more than ten percent returns without any risk in few months.

2.      For foreign investors, put more gold stocks position in the US Dollar as the future outlook for the USA stock market is bright. In addition, the gaining of the US dollar will provide a better return on USA metal stocks.

3.      Buy metal stocks in the US Dollar and buy gold against the Euro, Pound or Swiss Franc.


Here are tips for medium term gold investors:



Ø     I recommend aggressively buying gold and silver in the month of August. Therefore keep your cash ready -and many must have been keeping cash as I have been recommending a negative trend in metals for the last two weeks and it occurred. Those who would like to enter at this stage must avoid future contracts but buy position in the call option for December 2007.


Ø     Short-term gold investors should simply wait and watch. Once planetary indications reveal a sufficiently strong buying indication, I shall immediately write to you. For the short-term, a bull market is on the way in 2007 where gold will have a sudden rise of 25 percent in five weeks, and I am quite confident that I will give you adequate notice before the start of this period.


Ø     There is a very interesting time ahead for metal investors as a sharp rise and correction will bring many opportunities for money making. However, one has to carefully guard against one word; that is being a gold bug. Emotional attachment may prevent one from fully taking advantage and selling at the right time, for instance in 2004 when there was a fall in gold and silver prices in the month of April to June as well as in 2005 and 2006 when sharp corrections came about and gold went from $725 to $540.


This week I see stability in gold prices but the short-term indication from planetary movements is still not very encouraging. One should therefore avoid taking big positions in gold.


Ø      On Monday gold will trade sideways but gain in the last hour of New York trading.

Ø      On Tuesday gold will trade sideways and within a very narrow trading range but weak day.

Ø      Gold will begin to get weak on Wednesday in the New York trading session.

Ø      On Thursday gold will remain weak and may gain in the last hour from low of the day,

Ø      While Friday it will trade in a narrow range.

Ø      On the overall therefore, the trading range for gold will be $654.80 to $664.80. If prices break either side (especially on the downward side, then one should expect a fall of more than one percent).



This week silver will follow the trend of the gold market except Tuesday and Thursday. On Thursday and Friday, I see silver trading a bit positively than gold. The trading range for silver this week will be $12.55 to $13.05, and in any case it shouldn’t break $12.55, the magic number. This is because astrologically, this is an important figure which could compel silver to fall ten percent or more if broken. We shall however be watching the situation and I will update you accordingly, but at this stage it doesn’t seem likely to fall below $12.55.



Last week we saw a crucial indication for palladium when all the metals moved down sharply, but palladium held up strongly. We have been very positive on palladium for the last one month. For now, one can buy palladium, but there is no need to buy copper and platinum. Indeed, last week’s major fall in copper and zinc prices scared many base metal investors. From highs, copper came down almost 15 percent in the last two weeks.


This week, sell copper as well as platinum for the first three days. Buy palladium and also a small quantity of platinum on Friday. Those who are holding the short position in copper can cover the position on Thursday.



I have been quite wrong on the European markets for the last two months and I therefore don’t want to write any more predictions on the market this week. What I can say is the same thing; that a sharp correction is coming any time and it could be from Wednesday in the European market. Last week I mentioned and we got out from hedging position of the USA stock market, and indeed I will be net short in the European market from Monday.


A few months back I recommended that those who don’t want to take risks by naked short position could buy puts for December 2007 as well as September 2007, and many people have confirmed that they did those trades. I am therefore quite sure that whoever will buy puts in European markets will gain handsomely; maybe not in the short-tem but definitely in the medium term.


IMPORTANT NOTE: Markets could trade sideways or powerful hands may try to keep it around this level, but that can only last for this week as I am 100 percent sure about the fall of the market beginning next week.



This week treasury bonds will trade weakly, but they will start gaining from next week. A lot of people may be surprised since for the short-term, bonds will rise with the dollar.



Last week we had a great time trading coffee and cotton, and they moved up quite sharply. This week I expect the bull market in coffee and cotton to continue and one can therefore hold the position. Those who have not bought can buy on Wednesday’s closing. From Monday to Wednesday, coffee will trade sideways but one should not be scared by any small sudden fall that comes and should be taken as a buying opportunity. My next target for coffee is $118.80 and $51.20 for cotton.



I recommend buying sugar, but not orange juice. Sugar prices could sharply move up from Monday. Do not therefore miss this opportunity to buy because the moon is 100 percent in favor. Predicting rise more than  seven percent.



Last week soy bean prices remained in an upwards trend and soy oil traded higher. This week corn prices will come down on Monday as well as on Tuesday. Wheat will also follow the trend in corn, but the most interesting trend will be in soy products as they will remain very volatile. Indeed, they could fall very sharply if they enter into a weak trend, and one must therefore remain vigilant. One should buy soy meal following any fall as its future outlook is more positive than any other grain commodity.


Sell soy oil and buy soy meal in the next three months and the returns will be amazing.


All grains could move up from Thursday.



On Monday oil prices will remain stable but later start rising, but the interesting trades will be in RB gas as well as in heating oil. One can therefore hedge the position by buying crude oil and sell RB gas and heating oil. This hedging trade will definitely give you a good amount of returns during the next two weeks.


Wednesday’s inventory data may be in support oil, but we must bear in mind that in the long-term oil is in a bear market, and any sharp rising should therefore be seen as a selling opportunity. This week oil could rise up to $67.20, though RB gas and heating oil already touched the highs on Friday.



Indeed the dollar has manifested the signs of recovery and should trade more positively in coming days. This week I see:


Ø      Monday: The dollar will gain sharply and we shall see a sharp correction in the Swiss Franc, British pound and the Australian dollar.


Ø      Tuesday: The dollar will trade sideways or a little weakly, the reason being a sharp rising of the Japanese Yen. Tuesday will therefore be the day to buy the Japanese Yen against all other currencies.


Ø      Wednesday: The dollar will remain sideways in Europe trading session but start gaining sharply against the Euro, Swiss Franc, British Pound, Canadian Dollar and Australian Dollar in New York trading. Comparatively, the Yen will however be more positive thereby gaining against other currencies.


Ø      Thursday: The Dollar will gain against other currencies except the Canadian and Australian dollars.


Ø      Friday: The Dollar will gain in the European session against other currencies, but will have a weak trend in the New York session.


Ø      Overall, the dollar will remain positive as well as the Yen, and the latter will walk with the dollar. The best trade will be to sell the Swiss Franc, British Pound and the Australian Dollar against the US Dollar and the Yen.


I hope this new method of writing of the daily currency predictions will guide you better as you plan your trades. I shall also try to write about the currency trend as well as the market trend after the close of New York’s session.


I am happy to announce that my newsletter goes to 57 countries and I feel that it is for medium term as well as long-term financial planners. There are many times when I have been wrong for the short-term traders, but I have also been quite accurate plenty of times. My prayer and wish is that I become better with short-term trading as well.




This week trades:

Buy coffee, Sugar and cotton




Sell Pound and Swiss Franc


Avoid metals, grains and oil


Sell stock market on Tuesday and Friday as here I see end of bull market in global equity. Soon I am expecting negative news from China that may push down sharply all market and commodities.



Thanks & God Bless

Mahendra Sharma, 20 May 2007


A great offer to all:
I have decided to increase weekly newsletter subscription fee around 100% and soon new prices will be available but before I increase fee, I decided to give a great offer to my current members as well as old members as your support was always there on all occasion even when my predictions were not on track.
Here is offer for extending your current subscription or renewing start from today:
If you extending subscription for one month - One weekly newsletter will be free.
If you extending subscription for three month - One month weekly newsletter will be free.
If you extending subscription for six month - Two months weekly newsletter letter will be free.
If you extending subscription for one year - Four Months weekly letter will be free.
You can't subscribe more than one year.
Don't subscribe if you are looking for making money overnight but those who want to keep awareness and future move of market can subscribe the services.