After waiting for a year, finally planets green signaled for mind boggling bull market in metals
HISTORIC MOVEMENT OF NEW LOVE OR AFFAIR – With in few days or weeks GOLD AND DOLLAR will start walking on same path. Why you are scared with US Dollar? Metal investors should also to take part in this historic walk and I am sure you will have great fun.
The markets are currently trading with a lot of volatility, especially the stock markets, which is a clear sign that too much money is involved at present. With volatility so high, many rules are consequently not working under present conditions; for instance keeping a strict stop loss or even trading with small leverage. Some people assume that my predictions of weekly trends should be fulfilled 100 percent, but you shouldn’t expect that. In my newsletter, I simply attempt to guide you about the direction to which we are headed, and I do not expect to be utterly correct; and neither should you. I can give many examples but a good example is orange juice: at the end of last year when I predicted the onset of a weak trend, I kept writing that for about two months (Oct to December 2006), during which period orange juice prices remained quite volatile between $192 and $207. I kept recommending selling futures and buying puts or selling calls and very clearly mentioned that prices could fall more than 30 or 40 percent. At the time, it was a difficult trade for short-term traders because volatility was so high. However, those who planned their trades well have earned huge returns as orange juice came down from $207 to $138.
My hope is that one can engage in deep thinking and long-term planning as this could result in great returns as opposed to engaging in too much trading.
Important Note – I have found a way of making my work help you better.
For any new prediction which indicates a substantial downward or upward trend for any market, you should act as follows: During that period, your action should first be to take a very small position or an option with limited risk for the first one to three months. After that, you should aggressively go into that direction once you see if I am in right path.
My work is to always try to point out new trends just developed or likely to be generated, as well as tell whether the trend will be for the short, medium or long-term. If the trend is for long, then I keep writing and reminding you again and again that you should closely watch that area so that you don’t become a victim of ignorance.
At the end of the day, I leave all decisions to you because you must have your own strategy for trading. I hope that this will help you trade on my recommendations.
Coming back to the current market scenario, last week Friday was triple witching day for stock indexes and those who have been trading in the market understand its importance as well as volatility during expiry week or expiry day. Billions of dollars float during this period, especially when markets are on the extreme higher side, in order to keep the market up as well as ensure a smooth roll over. I don’t like to trade in the last week of the expiry period of any important market. In the last ten years I have observed that when a bull market is taking place in any specific area, the area normally remains very strong during the last week of the expiry period. On the other hand if any area trades weakly for weeks or months, it settles into a depressing period because buyers get stuck with their positions while sellers take advantage. However if sellers gets stuck with short positions, then the buyers or bull take advantage and try to push prices hard during the last week or last few days of expiry. This is what happened in the stock market last week.
Let’s see what this week says about the future market:
THIS WEEK’S PREDICTIONS FOR 18 TO 22 JUNE
After so much struggle finally gold is entering is powerful bull Astro-cycle but same time many metal experts are skeptic at this stage for short term and medium term outlook. Metal advisors are nervous at this point because of the rising USD and the selling of gold by European banks. As predicted since the last one month, gold has been trading in uncertainty, thereby making metal traders uneasy. However, I am not nervous because the trend of gold will be a very exciting one in the coming days. At the same time, I see huge volatility on both sides.
This week I see gold prices trading positively, and they will try to walk with the US dollar, which will be a very surprising but exciting event for serious traders. A lot of metal investors are more concerned about the dollar’s rise and the current rise in the bond yield which is causing uncertainty in future interest rates, and those who are hedging gold against inflation.
Anyway, I am not giving importance to these micro-economic indicators, but I recommend that you buy gold on Monday as well as on Tuesday during any weakness you should accumulate. This week gold will be trading positively and one should therefore buy gold during weakness. Current planetary movement shows a positive trend in gold and I am thus quite optimistic about it for the short as well as medium term. The trading range for gold will be from $648.80 to $665.80. If it breaks the upper side, then the next target will be $678.80. On the downside, I don’t see gold breaking last week lows, and this week will clearly be positive for gold. If gold remains positive this week, as a forecaster I shall be quite happy as MY PREDICTION OF GOLD TOUCHING....