CRASH IN COMMODITY PRICES AS WELL AS IN EMERGING MARKET IS ON THE WAY – BUY DOLLAR & BUY
I mentioned that I am busy with my book so I will be unable to respond to each and every email so I decided to give a brief answer in the newsletter. Most of the emails were concerning weakness in stock market and according to many members the
On the other hand commodities and the currencies traded as expected so let’s see what this week indicates for the World Financial Market.
Financial weekly letter from 21 to 25 January
GOLD & SILVER
During last week, gold and silver traded in the range that was predicted. During this week gold and silver prices will remain stable and any weakness or sharp falling during any day should be taken as a buying opportunity.
On Tuesday any correction should be taken as a buying opportunity as gold and silver will recover from the low.
On Wednesday the price will trade in a narrow range but on Thursday upward trend should be taken as selling opportunity into gold and silver. Positive trend should be taken as a selling opportunity on Friday.
There are two factors and that is why I am not recommending anyone to buy long term position at this stage. The first factor is that major planetary movements are not in the favor of commodity markets and they are giving indications that bull-run in the commodity has ended last week or are going to end this week. The second factor is the US dollar bull market.
Members should book the profit in metal stocks and in metals because the coming trend is very uncertain and you are going to get a great opportunity later to buy the metals back.
PLATINUM, PALLADIUM, ZINC, NICKEL & COPPER
All these side metals remained weak during last week but during this week they will trade sideways except for platinum and copper. This week the overall trend in metals will remain positive but we will see that platinum is running out of strength because the planet Venus will stop supporting the bull market of platinum.
COFFEE & COTTON
Coffee and cotton prices have been trading stable. Oncoming weakness in commodity market will not be able to put any major weakness in both these soft commodities. During this week one can buy coffee and cotton on Wednesday because they will rise sharply from the last hour of Wednesday or from Thursday. My next target for coffee is $147.80 and for cotton it is $74.80.
I am not in favor of buying any international markets and emerging market (sell international market and if you want to hdge than buy USA market slowly). For the last few weeks I have been advising that one must book the profit in all the hot rising market as the fall in these markets will be quite a nasty one. Emerging markets mean all major Asian market including
My outlook is also very negative on European markets in short, medium and longer term and the only market that I am very optimistic on is the
Today we are standing at a stage where what I was talking about is starting to make sense because dollar is not falling further and the stocks have come down to a very attractive valuation and my third week of January call for “buying call” is there.
During this week I see a sharp correction in Asian market and European markets and on the other hand we will see some recovery from lower level in DOW Jones from Tuesday but do not make any mistakes by buying international markets thinking that the turning around of
Short term and Medium term: All major international market will turn in to BEAR MARKET except
I am too much worried about Asian market so please trade carefully. They can fall 30% in the month of January. Indian market can come down to around 14000 or even it can fall to 12000 and same for other Asian markets.
SUGAR, LUMBER & ORANGE JUICE
During last week sugar prices went limit up and our aggressive buying recommendation of December have made substantial amount of profit for many members. This week sugar prices will remain stable but soon they will rise again so wait for my buying recommendation. Avoiding lumber and orange juice has saved a lot of money for my members for the last few months and I am still not recommending any buying in both of these commodities.
During this week, 30 year Treasury bond will start moving down after touching $120 but they are not in the bear market so take a buying opportunity if they fall to $118. In a few weeks time the Bond prices will move to $125.
Last week oil traded weak in our predicted trading range, our selling recommendation have made us great money. During this week I see oil trading in narrow range. One can buy oil on the weakness of Wednesday and sell back the positions on rising trend of Thursday. This applies to heating oil and RB gas as well. During this week natural gas will trade in a very narrows range so I am not recommending any short term trading in both oil and gas. It will move to $87.80. Wait my update on it during week.
Grain prices came down sharply after opening limit high on Monday. In the last few months all major grains have been trading in a huge trading range every day and this is very scary for small time traders if I am wrong for three days and if your account is not well funded then account can close down. If you see the history of grains, whenever they act aggressive they remain aggressive for a few weeks. In the past, many people have made and lost fortunes in grains so please trade very carefully with very low leverage and if it is possible then take options positions.
This week I see weakness remaining in grains so one can take a short position but make sure that you are covering back your prediction before they close on Thursday. We will see weakness particularly in soy bean areas meaning bean, bean oil and soy meal. Any rising trend in wheat should be taken as a selling opportunity and any fall in corn should be taken as a buying opportunity because I see corn prices coming higher in the coming weeks.
The best hedging of this year will be selling soy bean products and buying corn and wheat against them.
During last week we have seen some recovery in the dollar index as predicted. All major currencies remained weak against the US dollar except Japanese Yen and Swiss Franc. Even during this week we will see stable trend in Swiss Franc compared to all other currencies so I hold my prediction not to short Swiss Franc and Japanese yen against US Dollar for now.
During this week all major currencies will gain some momentum on Tuesday so I recommend not adding any new short position in all these currencies (only this week). Dollar index will remain in a narrow trading range or bit weak and $76.30 will be the best buying level. After Thursday onwards dollar will rise sharply so those who want to take a short term positions can buy Dollar Index during weakness on Thursday after
Commodities currencies will remain stable but Euro will fall sharply after Thursday reaching high. On Monday and half day of Tuesday, Euro will remain weak but from Midday on Tuesday, positive trend will start for Euro which will end on Thursday. British Pound will remain weak.
Note: Those who don’t want to take short term buying and selling can hold just buying position in Dollar as US Dollar trend is very positive for short term, medium term and longer term. Dollar index is moving towards $81.80 within next three weeks.
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Thanks & God Bless
Mahendra Sharma, 20, Jan 2008, www.mahendraprophecy.com All copyright reserved.