I found last week to be quite an interesting time. Trading in commodities, currencies and the market seemed like an attempt to assure investors and traders that they are currently trading at good valuation. It appeared like an effort to persuade that buying at this point would be advisable and affirm that future growth will remain upbeat.
In effect, this is all a game of the mind and forces of large crowds, pulled or pushed by the wave of nature. We believe that the mind is connected to the universe, which is why we uniquely live on this planet. Similarly, our planet is also part of the universe, which is so vast that apart from earth, there are hidden and unexplored worlds that may take millions of years to discover.
In the last hundred years, man has made momentous strides by developing advanced technology in many areas. Consequently, the world has become very complex and we have to constantly make adjustments in life in order to adapt to new developments. The human mind is most unique and it is developing everyday, forced to work at higher levels by an incessant need to know as well as effectively respond to present and future challenges. However, it is also full of complications as it never gets satisfied with results, even after employing arduous efforts. We thus want to produce more and more results, and it is common for cutting edge technology to be rendered obsolete in a matter of just a few years.
Five hundred years back the same mind was working, though in a different direction. We now have a chain effect whereby the resolution of one need leads to the creation of other needs. For instance, the need for fast transportation necessitates the making of a car; which needs energy to run. It also needs roads to run on and the buyer must be assured of services to keep the car in good repair. Other needs include parking, security, status e.t.c. It gets so complicated that the original need is blurred by many others. At the end of the day we have an ironic situation where the need for convenience leads to more complications that give rise to other complementary industries. And it goes on and on ….
In the same way, we work in the world financial market and want to know the direction of trade tomorrow, the short as well as the long term. We consider geo-political news, natural disasters, terrorist activity, war and economic situations, market forces and even the favourite areas of the wealthy. The important question becomes the direction that the majority will follow and in a sense, it is my job to tell which way a large chunk of the population will go.
The rich go for something new or uncommon, which is often expensive and therefore follow exclusive brand and personality names. TIME IS SOON COMING WHEN WE WILL DISCOVER THE AREAS OF INVESTMENT THAT CAN BE VERY PROFITABLE.
To take an example, the population is growing everyday. Grains will therefore move up in future coming time. Similarly, why shouldn’t sugar, tea, cotton or coffee go up? If commodities prices go up, it is attributed to inflation. However, it may not be as it could be the demand of a growing population in the world.
In coming times, food and energy will play a key role compared to gold or silver, as these shall go to the accounts of rich people and financial institutions. As many are aware, my prediction of the rise of metals has a different reason.
Anyway, let me start this week’s newsletter:
THIS WEEK’S PREDICTIONS FROM 5 TO
Last week gold touched $670 and sharply went down. It didn’t act well on Tuesday and early Wednesday though they were positive days, confirmation that gold doesn’t want to go up. To me this is not a good sign for bull or buyers of metals.
After a few months of wrong predictions when major planetary movements convinced me that a fall in metals would come from 18 May, it finally did happen and I am convinced that gold could suffer a huge set back in the short term, at least for two months. Gold is down around fifteen percent from its peak and I expect the same percentage on the downward side.
This week might be more stable (not rising) and if it fails to move up, then it could be very negative news and I recommend not buying gold at any level till the end of July. On Tuesday I will give an alert to be a hundred percent sure on my advice.
On Monday and Tuesday gold will trade sideway, while it could artificially rise on Wednesday and Thursday. It will however quickly give up the gains. Do not trade on Friday as it is a negative day for both buyers and sellers due to volatility; prices may rapidly shift in both directions.
The trading range for spot gold should be from $644 to $609.
Don’t jump in to buy metal stocks. August will be the right month to enter into stocks.
SHORT TERM THIS WEEK – SIDEWAY
MEDIUM TERM – WEAK TREND
LONG TERM – UPWARD TREND
Last week silver traded quite weak but planetary movements indicate stability during this week. However, very little hope will remain for the short-term if silver prices move downward on Monday and Tuesday.
This week silver will trade in the range of $12.35 to $11.61.
Last week platinum and palladium made a huge fall and should remain down this week except on Friday. Platinum has already entered into a long term bear market. Palladium is still a better bet, though not now. Both metals could fall sharply next week together with all other metals.
Copper will move up two percent but fall another 21% in the next twelve trading days.
METALS ARE IN A BEAR MARKET BUT THEY COULD TRADE SIDEWAY OR A LITTLE UP THIS WEEK. I WILL ISSUE AN ALERT ON MONDAY/TUESDAY IF THIS DOESN’T TURN OUT TO BE THE CASE, SO WAIT FOR MY ALERT.
SHORT TERM TREND – THIS WEEK: SIDEWAY OR VOLATILE
MEDIUM TERM TREND – THREE MONTHS: WEAK
LONG TERM 6 MONTHS TO 2 YEARS: UP
Once again all major markets remained weak last week, especially the Indian market (you can trade in
The second worst performing region will be
The Australian, Asian (Indian and Pakistani) and European markets should once more move down this week. The South American market will also perform negatively; while the
SHORT TERM TREND – ALL MAJOR MARKETS- DOWNSIDE
MEDIUM TERM TREND – WEAK
LONG TERM 6 MONTHS TO 2 YEARS: DOWN
Last week Mars recommended giving a buying signal in oil and indeed I still hold my buying recommendation for this week. Oil should move towards a new high therefore remain in buying. I don’t see much geo-political risk especially with
Oil should move up from Monday to Friday.
SHORT TERM TREND – UP
MEDIUM TERM TREND – TWO MONTHS: UP
LONG TERM 6 MONTHS TO 2 YEARS: DOWN
Last week Corn and Soy bean remained up as expected. This week we shall see faster upside movements in both commodities. There will therefore be rising movement on Monday and Tuesday while prices will remain down on Wednesday and half of Thursday. There will be a sharp upward move from Thursday’s closing and Friday.
Stay long in Soybean, Soy oil and Soy meal.
SHORT TERM: THIS WEEK – UP
MEDIUM TERM (TWO MONTHS) – UP
LONG TERM – UP
I still recommend buying bonds as the next move will be new and many won’t understand why they are rising. Buy thirty years bonds as they shall walk hand-in-hand with the US dollar, which will be very exciting.
I still hold my prediction for last week of a great fall in the Canadian and Australian dollars as well as the Brazilian Real and Mexican Peso from June. Other currencies will also have negative trends against the dollar. I feel that history will remember my bull note in regard to the dollar at a time when hardly anyone recommended its buying.
Most investors, institutions, traders and banks in various regions are skeptical about the rise of the US DOLLAR but my calculations say that “a historic bull market is starting in the US Dollar for medium term.
An upward move of the US dollar is round the corner and the rise will be big. I recommend that my members start accumulating the dollar index or sell other currencies in a small way and keep adding more position.
Both soft commodities acted well during last week and I hold the same prediction for this week. “We are now entering into a buying time zone. Go ahead and buy both commodities and enjoy a great rise from 16 June”.
Once again, I hold the same prediction as last week. Both will enter into a negative trend and this should be a long-term negative trend. Consequently, no new buying is recommended.
I wish you good luck for this week.
Thanks & God Bless
Sharma Mahendra 4 June Sunday