Dear Members,
Yesterday, first time precious metals gave weak sign. 27 May 2010 is just around the corner and any worst is possible in world financial market. I highly recommend currency traders and commdoity investors to stay away from any buying though preciuos metals are still in positive trend but it can be very risky. HUI gold bug index fell sharply and that surprise many metal lovers. Avoid buying at lower in gold and silver. Silver can come down to $17.42 and gold $1165, these are very important Astro level and they should be breach other wise gold and silver can crash big. If both these metals hold these levels then they will remain in safe zone.
Among base metals, yesterday platinum went down more than $95, palladium was down 11% and silver around 4%. Warning on base metals proven very right in the last three weeks, as they have come down substantial level and still lot weakness is pending. This week platinum/palladium may come down to more with base metals and metals stocks.
In this week newsletter we predicted that oil will stabilize during middle of week atound $69, prices will fall more from next week so watch carefully and sell on any rising.
Grains are trading bit weak but corn is trading very stable, buy corn as lower side is very limited (maximum down side is $348). Avoid soy and wheat.
Weak trend in stock markets will start from next week, so avoid any aggressive buying on lower side. Great time to sell German and other EU market on Monday. Alternative energy stocks came down substantially on worry of withdrawing European subsidiary or cutting on funding. Yes, short term this is concern issue for alternative energy stocks but medium and longer term story is intact so keep accumulating these stocks without worrying much because Astro time cycle is supporting this sector and once Astro or wave of nature supports then we don’t have to see other indicators.
USD is trading sideways so medium term and longer term investors should accumulate dollar index around 86.00. We may see dollar index range from 85.77 to 87.48 before it move up sharply to 90.20.
Thanks & God Bless
Mahendra Sharma, 19 May 2010