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Today's Trade & News

Keep adding US Dollar and keep selling commodities, I see oil toward $88.80 and sharp fall in Metals, soft & Grain...

Dear Members,

In this week newsletter we were talking negative on all commodities on Monday and Tuesday. Our low side target in oil has fulfilled and if it trades below $105.80 then next target is $98.80. As per our newsletter we expect short term rebound but sharp correction is also waiting from Wednesday evening. If oil fail to rise on Thursday then expect oil to reach $88.80 by next week.  

 

Metals will trade more weaker and soon the will fulfilled our low side targets. Two months back we strongly recommended getting out from metals and metal stocks when gold was at $970 and silver way at $19.00 but many analyst or gold bugs were making mockery about us, anyway astrology proven not 99% but 100% accurate on metals and oil call. Ignorance and misguiding analysis from key gold bugs has taken away years hard earned money from metal investors. Look at HUI and XAU chart, they are at multi year low. Many Metal stocks are trading at this stage at prices when gold was at $450. Depressing period to remain continue in metals so please be carefully because you invest. I will try my best to give you right timing to re-enter again. Since May we have been saying that gold may move down to $750 to $690 and silver $10.80 to $9.80 and we are not very far at this stage to reach these level.

 

HUI (gold bug Index) from down from March top 505 to 260 yesterday close.

 

Chart for AMEX GOLD BUGS INDEX (^HUI)

 

All major grains came down more than 30% as predicted. In this week newsletter we expected weak trend but from Thursday we expect short term rebound. Note: If they fail to rise from Thursday then I am expecting worst time ahead for grains as they can fall more then 50% from current level.

 

We recommended to avoid cotton, coffee, sugar, lumber and cocoa as we expected fall in all these commodities. I am not recommending any buying in all these soft commodities.

 

USA Stocks will gains from Wednesday and dollar will hit new high.  

 

Treasury bond will rise toward new high till Friday.

 

Here are few other gold and silver stocks and we can see that how badly metals investors are bleeding.

 

Chart for Golden Star Resources Ltd. (GSS)

 

Chart for Apex Silver Mines Ltd. (SIL)

 

Here what we mentioned few weeks back:

Our members got saved from recent crash in metal, oil and grains prices, in fact we recommended selling oil at $145, gold at $970, silver at $18.80, copper at $386, platinum at $2100, euro at $1.5800, Aussie at .9625, Pound at 1.97 and all other currencies against US DOLLAR. Also our recommendation was to sell corn, soy bean, bean oil, wheat, cotton, coffee, orange juice and sugar has paid huge returns. In fact, we were very negative on all commodities as we saw drastic fall in them. Still this is not yet over.

 

Find out when commodities will bottom out! Will gold hit $645? Silver will fall to $9.80?  oil will reach to $83? And will Dow hit 16000 by year end? I will be talking about all this in the next few newsletters. Risk you take in market is nothing against what you pay for the weekly newsletter subscription fee. We have given the most unique predictions in the last 21 years, and we never made big noise about our predictions. Also many world known financial institutions, banks, fund managers are members since last many years and they have been following our work very quietly.  

 

At this point, I must mention Bill Murphy. He silently supported my Dollar prediction and two months back he said that he couldn’t disagree more with me on the US Dollar. He is truly a man of vision and I thank him for his support.

 

Finally, one needs to trade with caution in all commodities and shake off the hangover of the last six years commodity bull market. I warned about emerging markets (India, China, Korea, Singapore, Australia and S. Africa) at the end of last year as well as early this year, but most people chose to ignore the warning because they were hypnotized by the bull market. As a result, the crash of emerging market made them eventually lose more than what they had made during the last three years.  

 

Note: I shall send you an update this week.

 

Don’t copy, edit or forward newsletter in any form. Subscription cost is nothing against the risk we takes in markets.

 
Thanks & God Bless

Mahendra Sharma, Wednesday, 9 am, Mumbai

www.mahendraprophecy.com