Page Viewed 15755978 Times.

Today's Trade & News


Dear Members,

I would like to say something very important that may be of help as you plan and make decisions concerning the uncertain financial market. In the world financial market, nothing becomes weak or strong. It is the value or price that changes due to the wave, otherwise things remain the same. For instance gold was trading at $260 and it is now at $420. The gold does not undergo any change as what really alters is the value attached to it at a particular point in time. Time plays a crucial role since you perform well when you flow with it but lose when you go against it. 


Back in 2001, there was a weak dollar wave as I had predicted. Those that stayed on and short the dollar for three years must have made a fortune. As always, it was just a matter of acting according to the wave of nature. For the last five months, I have been predicting a great rising that will hit like a “Tsunami". This does not necessarily mean that something has drastically changed; but the wave has started. It is the wave or the time factor that brings positivism that then impacts investors’ minds and causes them to be positive. Speaking of which, the current time is positive for the US dollar and one has to stay with it.


I never ignore the wave of nature; but I can ignore market noise. Indeed, I can afford to lose a friend like James Sinclair but I can't afford to lose the methodology of nature’s wave. This is because I do not write what makes people happy or say what they want to hear. If you want to have maximum benefit from my weekly newsletter, then you have to detach your likes and dislikes from the market or any commodity and stocks. Just try and flow with the wave of nature as this is what really matters since it moves in spite of our emotions.


I know that it is difficult to change our nature but one must always be willing to face challenges and difficult tasks. When change is for one’s good, there’s no use in saying we can’t change our nature, thoughts or ideology, if you want to win market. Anyhow, here is this week’s newsletter:


Last week, the newsletter was very close to what happened in the unpredictable world financial market. Let us see what this week indicates:  


Here are these week’s predictions: (Newsletter for 23 May to 27 May).



In the last week, gold broke a very important price support of $418.5. This is a negative signal that could herald a hazardous phase in its future outlook if prices don’t cross and stay above $418.5 for two days.


The dollar’s rising is coming as a clear winner against all commodities including metals. This is what I saw long back and I will be also watching the dollar vs gold relationship. I am not undermining the power of either dollar or gold.


My advice is that you wait before making medium and long term investments in gold. I do not wish to give anyone false hopes like other metal advisors are doing. Four years back when nobody else could give a convincing recommendation on strong gold and a weak dollar, I did. After that period and when gold started moving up, many new metal advisors and websites came up, advising investors to put money in metals. From the beginning of this year I saw a bad period and have been recommending that one stays away. However, there are still many advisors who are saying that the bottom is over in metals and that the false rising in dollar. One think is sure that metal investor’s are losing money day by day it doesn’t matter rise of dollar is false or USA economy bad.


My suggestion is not to buy metals under the conviction that they have hit their low point. Except for June, I don’t see a good period for metals. One could even go short in July and then buy back five times in quantity the next time.


Gold will remain weak during this weak and next price target is $412.20, while the upside will be $418.5. If gold prices break either side or it trades for 48 hours on that side, then movement will rapidly tilt towards that direction (very little chances that it can move up). Metal stocks have yet to bottom out. South African metal stocks look fine in the long term as I have been predicting a great fall of the Rand in the year 2005. 


We shall see gold prices go below $400 in the next quarter before moving towards $1000 in the next three years.


Short term: Sideways or down (10 days)

Upside $418.50 and down side $412.2 to $408.60


Medium term: Uncertain (3 to 9 months)

Upside target $441 and down side $371.70.


Long term Up (2 to 5 years)

Up to $1000 to $1200



Silver will be without direction and uncertain during this week. Silver investors can wait a week for me to give clear indications as to the next move. I don’t recommend putting your hard earned money in silver at this stage since I know how difficult it is to make money in this unpredictable market.


Silver could touch $18 to $27 within the next three years. At this stage, I don’t have a clear picture as regards the timing factor but I shall immediately avail it as soon as I get it.


I am sure that this won’t happen for the next ten months. A major bull-run in silver will therefore start about a year from now.


A short term buying signal in silver is coming in the few days from today.



I see copper prices soon going below $125.


Platinum also looks quite weak and you therefore trade carefully or get out from all buying positions.


Palladium will remain range bound.



All major predictions in oil have been fulfilled, so I will wait for a while before I start trading in oil again. Oil prices will aggressively move in both sides on Monday and Tuesday. Watch your trading therefore. Any drastic fall down can be taken as a buying opportunity for a short period.    


Those who had short oil can book profit or cover on Monday.


A short term buying recommendation will come again for oil so wait for the next newsletter or an alert during this week. I don’t see oil going above $50 in the next two weeks. After buying, one can therefore quickly book profit on rising.



During this week, the Treasury bond will remain directionless. Avoid any new trade in it. Next week I shall be able to guide you more concerning this as you all know that I see prices reaching new high soon.



Don't buy the stock market if oil prices fall with the anticipation that it may push the Dow up. A rising market should therefore be taken as a selling opportunity. This week one can sell the European and Asian markets as well as the USA market. Do not be scared if they artificially rise for a day or two.


Build up your short position on each rising. Short all high price stocks. Profit is just waiting there for you.



I was not happy with the trend of coffee last week. I would still like to see its movement during this week. They may fall or remain weak for the few days. Hold your buying position because I see prices rising up to $149.4 and then $198 (I will write on this more).



My short call on cotton was right on the spot at $59. It is now time to accumulate once again. From Thursday prices could move up very strongly.



During this week cocoa prices will remain up. However, there’s no need to buy long term basic. Short term traders can buy on Monday and book profit in the next ten days.



Sugar prices will remain firm for the next two weeks and therefore one can buy sugar on Tuesday.



You all know that this year I am very much in favour of grains, especially CORN. I recommend that my members continue to accumulate corn. Corn could cross the $300 mark in the next six months. If one wants to put $100 into grains, I recommend $60 in corn, $15 wheat and $25 in Soybean/oil/meal.



At the current stage, the dollar is in the full grip of the wave of nature and it looks as though it is on course to touch another new high for 2005 early this week. All major currencies will move down against the US Dollar.


For those who want to do short term trade, one can cover all short positions in the Euro, Pound and Yen on Monday for a short period and sell back on Tuesday evening.


Many of my members (banks, funds and financial institutions) are still discussing my prediction on the dollar’s rise as none of them saw it coming. They are still not convinced that it will happen as I predicted though they are closely watching this prediction. They are excited and proudly saying that “we are your members Mahendra, and we are learning something new, the wave of nature”.


The same thing happened back in 2001 when I predicted a great fall of the US Dollar and the Euro touching $1.36 from $0.83. At the time, my followers did not believe it. Well, such is the power of nature.




IMPORTANT NOTE – As I always share my personal information with my members, here is the new update:


I am preparing and putting things together for the unique hedge fund which will be launched by end of the year. It will be guided by a unique theory of the “wave of nature”. For the first time, I shall soon present my performance report for 2004 and 2005: “God’s Blessing” report is not only exciting but also mind boggling. In fact, one could write and publish a book on my trading performance.


Finally, several well-known funds are discussing the workout for a joint venture with me. 


IMPORTANT NOTE: We have started the final seven days grace period in which you can extend your weekly newsletter service at the current prices. After this, prices will go up more than 50%.


I am currently holding:

Dollar index (Bought at $81)

Short on Euro (started shorting at $134) 

Short on oil (sold at $57 and at $52, always buying below $50 but soon not)

Short Bonds ($115) but cover soon if they don’t fall because in long run they will rise

Also short in unleaded gas and heating oil at high

Buying small qty grains- corn, wheat, soybean, soy-meal and soy-oil

Coffee- started buying at $65 and sold at $136, bought again at $112 and sold around $130 and waiting to buy again.

Out from metals but hold long term silver call option.


It has been confirmed time and again that gains can be unlimited when you trade with the wave of nature. Here is this week's newsletter, whose cost per day is equivalent to what one spends on coffee.


Thanks & God Bless,

Mahendra 21 May 2005