Page Viewed 15972075 Times.
App:

Today's Trade & News

If you like to meet me, I will be in Chicago, Here is this week newsletter for free..

TAKE YOUR TIME TO READ THIS WEEK’S NEWSLETTER AS IT IS IMPORTANT FOR YOUR MEDIUM AND LONG-TERM TRADING AND INVESTMENT PLANNING

 

Dear Members,

I would once again like to start this weekly newsletter with the dollar index against the rising European and side currencies.

 

In May 2006, the South African Rand touched a new high, but it has never seen similar prices after that. Indeed, it has been trading down around twenty percent. Before it started trading it was around 6.00 for a few months and many times it went towards highs against the dollar during the same time. People got out in frustration, and I was also holding a big contract for short position in one of my client accounts. I underwent the same frustration of holding a position that was not giving profit and eventually sold the position as time demanded. After that however, the Rand never saw those prices again and though I didn’t lose money in the Rand, I missed out on a huge profit since my position was quite big.

 

This was a big lesson for me and learnt to wait patiently when planetary movements indicate a new and important direction, in order to make huge profits against all the odds.     

  

Take the example of OIL, which I very strongly recommended selling at $77 and at the same time stated that the maximum it could reach was $80. I also said that it would certainly go below $60 or even down to $55. Many people short oil but then got scared by expert views and analysis, with some news media declaring that oil was headed towards $100 and got out. Well, the world is a witness as to how fast oil came down from $80.

 

I know how difficult it is to predict the daily trend. Indeed, huge short and long positions by powerful people and institutions can even make planetary indications appear wrong for a few days or weeks, but HISTORY IS WITNESS THAT THEY WILL NEVER BE ABLE TO PROVE PLANETARY MOVEMENTS WRONG.

 

Today, my prediction of the dollar’s rise looks completely wrong. No one believes because most people are just seeing the negative points stacked against the US dollar. I am simply a messenger and I present my predictions in front of all to see, following what planetary movement indicates. If you trade with just a five percent position, then in the long run you will find that you won’t make loses and shall in fact beat all fund managers since we have the advantage of seeing new trends to come. In 2001 for instance, I predicted the Euro going from $0.83 to 1.36; oil from $18 to $80; gold from $273 to $600; silver from $4.50 to $14; coffee from $58 to $140, and of course the recent call the rise of grain prices. If you simply took positions the areas mentioned above, then your fund would be sitting right at the top.

 

There are few reasons why traders fail in trading, for instance high leverage, too much in and out trading, as well as volatility which always throws us out if one trades with high leverage.

 

We are in a new century, and new entrants are joining the commodity market each day. As a matter of fact, the force of the rising and falling trends has been very high and will remain high, as investors from around the globe either want to enter or get out at the same time. To be sure, news, media as well as technical and charts trading play a major role, but I am still very confident that all these factors will not be able to beat the wave of nature trading pattern.  

 

Planetary movement indicates that in the next one year:

·        THE DOLLAR WILL BE SITTING VERY HIGH FROM WHERE IT CURRENTLY STANDS.

 

·        THE GRAINS MARKET WILL REMAIN VERY VOLATILE AND WE SHALL THEREFORE SEE RISES AND FALLS IN THE MEDIUM-TERM THROUGH THE INFLUENCE OF PLANET MERCURY.

 

·        METALS WILL TRADE HIGHER FROM WHERE THEY CURRENTLY STAND, BUT IF GOLD DOESN’T SHAKE HANDS WITH THE DOLLAR, THEN GOLD MAY JUST REACH WHERE IT WAS IN MAY 2006. IF GOLD HOWEVER SHAKES HAND WITH THE DOLLAR, THEN GOLD REACHING $1000 BY THE END OF 2007 WILL BE QUITE POSSIBLE.

 

·        OIL WILL TRADE IN THE RANGE OF $66 TO $48.80.

 

·        THE STOCK MARKET WILL REMAIN HIGHER BUT A FALL OF THE EUROPEAN MARKET WILL BE THE BIGGEST LESSON FOR THOSE WHO TRADE WHILE WATCHING THE USA MARKET. THE FALL IN ALL THE EXCHANGES WILL REMAIN TILL APRIL 2007 AND I EXPECT THIS FALL TO START IN THE MIDDLE OF DECEMBER.

 

·        COFFEE WILL GO TOWARDS A HISTORIC HIGH, AS I SEE A WEATHER PROBLEM IN BRAZIL NEXT YEAR. ONE CAN THEREFORE BUY COFFEE FOR THE LONG-TERM.

 

I shall say more in regard to the long-term predictions in different areas during the first or second week of January 2007.

 

For now let us see what the planets indicate for the following week.

 

PREDICTIONS FOR 27 NOVEMBER TO 1 DECEMBER.

 

GOLD/SILVER

For the whole of this year I have been mentioning that gold should rise from September 2006, but the US Dollar prediction came in the way. I see that the US Dollar will turn around in a big way, and we still have to see how gold will perform during the dollar’s rise. I believe that gold will move together with the dollar, but if all major currencies of the world collapse against the US Dollar, then market forces will serve to bring down gold.

 

THE COMING TIME IS IMPORTANT FOR ALL MEMBERS AND FOLLOWERS IN THEIR TRADING CAREER. ON THE ONE HAND, ECONOMIC DATA, MARKET NEWS, WORLD SCENARIOS, EXPERT VIEWS AND CHART PATTERNS ARE ALL AGAINST THE US DOLLAR, BUT ON THE OTHER HAND, PLANETARY MOVEMENT SAYS SOMETHING DIFFERENT. I WILL FOLLOW WHAT THE PLANETARY MOVEMENT SAYS WITHOUT ANY HESITATION.

 

I USED THE WORD ‘COLLAPSE’ IN REGARD TO WORLD CURRENCIES AGAINST THE DOLLAR, AND INDEED THIS HAS GREAT MEANING.

 

Anyhow, this week gold and silver will go higher on Monday but will give up the gains before closing, so trade carefully.

 

On Tuesday, gold and silver will remain directionless and they could even move down.

 

Wednesday will be time to buy in gold and silver for short-term. You should hold your position till the weekend.

 

ONE SHOULD BUY GOLD AND SILVER ON WEDNESDAY’S LAST HOUR OR ON THURSDAY MORNING.

 

PLATINUM/PALLADIUM/COPPER/ZINC

All these metals will trade sideway or up with gold and silver. We will experience huge volatility in platinum and copper. Indeed, Copper will remain very volatile on Tuesday (the day to be watchful) and trade steady up from Thursday.

 

Platinum will move higher on but one should build a short position in it as platinum has already entered into a bear market trend and prices will fall from the second week of December.

 

Palladium and Zinc will trade in a very narrow range.

 

CURRENCIES

In light volumes the US dollar went down during the last week. Key powerful traders have caused the damage, in addition to the fact that the dollar chart looks ugly or weak, and that the expiry of options and futures contracts is soon coming. Furthermore, holders of the dollar are getting too nervous.

 

The British Pound is at highs as well as the Euro. The Dollar is trading towards the lows of May 2006 and there is talk of a collapsing US dollar everywhere.

 

Those who have been watching me for the last six years must have noticed that I don’t change my predictions, as I follow what I see. Indeed, I was negative on the market because 2005 and half of 2006 were negative, but when new planetary movements took place I started recommending buying the US market since September 2006.

 

From here on, I will either be wrong for the next one year on the dollar prediction or I shall be right because I won’t be able to change the dollar prediction for the next twelve months. This is owing to the fact that Jupiter won’t change the houses for that period. A short-term negative period will come, and I shall write about it.

 

This week, the wounded dollar will try to stabilize. Those who have lost in the dollar index for the last two weeks and are holding big positions should be careful because contracts and options expiry is coming and naughty traders will try everything to throw you out from the dollar.

 

Remember that it is always difficult to trade in thin trading at the end of the year. We would like to hold the dollar till next November.

 

This is the reason that I predict a great rise of the US DOLLAR INDEX from $83.50 to over a $100. Indeed, you will not see current prices of the dollar again in the near future, but it may take a few days to recover from the severe damage. This should happen on Wednesday evening or Thursday (the turn-around day).

 

I am not overly worried about 100 to 200 pips in the rising side of currencies. Take into account that the dollar index could go to more than 0.50 down but the important part is that you should be able to hold the dollar index or short the other currencies.

 

Don’t trade currencies with high leverage. One should add more short position in all major currencies around the December future expiry.

 

I will add more short in the Australian dollar, British pound and the Canadian dollar. Buying the Dollar index will make my short position in the Euro and Yen. The Swiss franc will also move down and one should therefore trade accordingly.

 

We have been recommending buying the Yen and we bought, but we will now sell it this week. As a matter of fact, on Monday we’ll get out from each contract for the Yen.

 

We will sell each currency on Monday opening and our focus and money will be diverted from currencies and indexes at this stage. Once again it is always touch to buy at lows and sell at highs and in currencies we have reached that point. The dollar is at lows while all other currencies are at highs.

 

STOCK MARKET

First, the bull phase of all major indexes ended on Wednesday last week. We recommended selling and we did and we will hold our short position in the market for this week as well. All major markets should remain in a weak trend during this week and so I don’t recommend any new buying in all major stock markets.

 

Selling is recommended in the Asian and European markets. The USA market will trade sideway or a little weak on Monday, but the DOW and the S&P won’t be as weak as the European market.

 

Sell on Monday and hold your short position.

 

OIL

This week oil should move up, therefore buy it. Unleaded gas, heating oil and crude will rise for the next seven days but then a fall is on the way, though this time it will unleaded gas and heating oil. They will fall very sharply after the first week of December and one must therefore keep this point in mind.

 

This week crude and gas should sharply move up from Friday closing. Look for a five to six percent gain.

 

TREASURY BONDS

This week the treasury bonds will trade weakly from Thursday, but the real weakness will start from early 2007. Do not therefore buy the treasury bond at all at this stage.

 

COFFEE

Last week coffee prices traded on the higher side and any weakness will bring a great buying opportunity. However, I don’t see any major weakness in coffee prices it may come down on Thursday and Friday.

 

That said, what I saw in coffee is still pending and  it should trade around $150 in coming quarter.

 

COTTON

Last week cotton formed a low and it has brought a great buying opportunity, therefore keep buying a very small number of contracts on each fall. We should buy cotton on Tuesday or Wednesday. Next year cotton will move up more than fifty percent and you can therefore put cotton in your watch list.

 

LUMBER/SUGAR/ORANGE JOICE

We are very near to a short-term rise in sugar prices and hence one can take a small position in sugar. Lumber will trade sideway, so avoid it for the time being. Orange juice will trade sideway as well, but the bull market is over. Prices may hang around current levels for a few weeks, but it won’t break $207 again.

 

In mid 2004 after I strongly recommended buying orange juice, we got out after a hundred percent rise and we now see a sideway trend. A weak trend should come in 2007.

 

GRAINS

Corn, Wheat, Soy, Soy meal, Soy oil and Oat have moved up and are not in a mood to give up the rising trend. HOWEVER, Mercury is giving a warning sign during this week, therefore get out from buying position on MONDAY or Tuesday morning from CORN, Soy meal, Soy oil and Oat. Wheat is not in a negative cycle and one can therefore hold position in wheat that we bought last week.

 

Soybean will trade sideway or a bit higher but this week one can take selling position in grains for the short-term and look for a five percent drop in prices.

 

 

 

 

THIS WEEK’S TRADES:

·        Though the dollar will be in uncertainty, metals won’t be able to take full advantage and will therefore give up gains early in the week. Sell copper and palladium on Monday in electronic market opening. Sell metals during New York Mid-day trading.

 

·        Book profit in grains on Monday and get out by Tuesday. However, one can buy wheat during weakness.

 

·        Oil should move up, but this won’t help metals early in the week.

 

·        Thursday will be buying time in metals for the short period.

 

·        Selling time has come for the Asian and European stock indexes.

 

 

I will be in Chicago - I have been invited for an investment conference in Chicago and will be there from Tuesday to Thursday. Anyone that would like to meet and have tea with me can send me an email.

 

 

REMINDERS:

 

Trade with very small leverage or a small number of contracts at the end of the year

 

December is a month of very low volumes and during the year’s end, most major contracts expire and prices move in the same direction for a few weeks; the way they have been moving recently

 

Funds will close this year’s books with a good picture

 

Finally, it is time to spend with family and listen to their demands.

 

Thanks & God Bless

Sharma Mahendra 

26 November, Sunday 12:20PM

www.mahendraprophecy.com