Here is last week newsletter for you to review and it advise that don't ignore the "wave of nature", Please overlook goldbugs advise to buy here, let them buy because I don't want your hard money to go in gambling in support of metals. Subscribing monthly services is just like you paying for newspaper and coffee. Here is last week flash news and weekly newsletter which is quite negative on metals medium trend.
Flash news of 15th May
Weekly newsletter of 11 June
Mass psychology always plays a major role in the rise and fall of commodities, indexes, currencies and other investment areas. Due to various factors, an area that was a favourite yesterday can easily become detested today. Our inner resolve may waver or become shaken, resulting in doubts and conflicting signals. While trading the market can be amazingly simple, it can also be a disastrous undertaking. One can make a fortune, but one could also lose everything.
For the last hundred years, many intellectuals have attempted to perfect their projection skills, but no one has yet reached a level where s/he can claim ability to predict the market with a hundred percent accuracy. We have all failed in understanding and none is either 100% wrong or right.
From the time I started getting messages through the “wave of nature” or astrology, I have noticed that I have usually had the correct indications well in advance. All would be well if we simply traded according to what nature said, and investors would make fortunes. Unfortunately, greed and too much information come across our way, and many of the times we end up on the wrong path.
I am simply a messenger and all messages are 100% true. However, I have on several occasions failed to accurately predict timing. This is because I have still not reached the level of awareness where I can fully understand the timing of messages.
In the past, I revealed predictions like the rise and fall of technology, gold and oil rises from 2001, collapse of the stock market from 2005 onward as well as the fall and rise of the US Dollar.
All major predictions have been fulfilled, except the fall of the stock market. While it is true that I have been wrong timing-wise, there is still hope that this prediction will soon come to pass.
I have not been very optimistic in regard to metals in 2006, but I have maintained that they will experience a great rise in the long term. The message indicating a short term fall in metals kept coming up because planetary movements were not healthy, a fact that still scares me till August 2006. I don’t know what the down side will be, but the message was clearly given in the 13th of May’s newsletter. It was as follows and we can see the value of the message:
A new planetary combination will occur in the next ten days, and that is not a good sign, as it could affect each and every area of the financial market.
To my knowledge, it will give indications that the trend will follow the same path without changing:
1. If any commodity or market moves down, the downward trend will remain for some few months.
2. Take an example of metals: if they start moving down, then buy back after the next two months that they bottom out and it will be a good time to buy them. This is the master key for you to make your decision accordingly once you feel and see. This could be a big turn around for your portfolio or money management, return-wise as well as risk protected-wise.
3. There will be negative news for some financial firms and it looks like a few financial scandals will break out.
4. JUNE AND JULY ARE NOT GOOD FOR BUYERS. Till now they have enjoyed whatever they have touched.
THE NEXT TWO MONTHS: In my view, this new planetary combination will affect commodities and the stock market as shown below:
METALS: They should start getting weak and negativity should start with red metals (copper) and then silver, platinum, palladium and gold. My longer term view on metals is very much optimistic from but the short term (two months) is very negative, (I see a major crash). Still those that are not really worried about a short term downward trend can hold on partly to buying position but be careful.
If what I see for metals comes true, then:
Copper should trade 50 percent down from the current price of $390;
Gold should trade twenty percent down from $710 and thirty percent down for platinum, palladium and silver from $1330, $395 and $15. THERE WILL ALSO BE A GREAT BUYING OPPORTUNITY FROM SEP 2006 IF THEY FALL AS IN THE LONG TERM, GOLD IS GOING TO HIT $1600 AND SILVER $50.
This is not my personal feeling and I have no intention to either be against or in favor of metals or any other commodity, currency or stock market.
OIL: During the next two months, oil will be very volatile. ‘Enter and exit’ will be the right trading pattern. Oil should touch a new high in the month of June. In the next two months oil may trade in the range of $63.80 to 81.80.
CURRENCIES: During the next two months all major currencies will fall sharply against the dollar. Trading range of the dollar should be $83 to $91.
STOCK MARKET: There will be a negative trend for all major stock markets. Asian and European markets will be hard-hit. I see a 21 to 30 percent fall in these stock markets.
If any of these markets trades in the opposite direction, then it will hold on that direction, but chances of this happening are quite slim- I shall update you accordingly.
PEOPLE WITH WEAK HEARTS SHOULDN’T BE TRADING COMMODITIES OR OTHER MARKETS FROM 18 MAY 2006. DURING THIS PERIOD, TRADERS, INVESTORS, BROKING HOUSES AND BIG FINANCIAL INSTITUTIONS MAY GO THROUGH THE WORST ROUGH PATCH OF THEIR LIFE TIME.
I don’t have to be right everyday for I follow and try to guide on the overall position and situation of the world financial market.
Let’s see what this week says:
Predictions for 12 to 17 June 2006.
Last week gold traded down more than $25 but a few reputable websites and metal analysts blamed the downward trend on the assassination of al-Quiada’s leader in Iraq, Abu Musab al-Zarqawi. It is shameful that some metal supporters want problems to persist in the world as evidenced by not applauding such news as the death of one of the world’s most wanted terrorists. This is simply for because they wish that the world remain in trouble and uncertainty so that gold can keep moving higher and they can make money. To me, this is a sinful and ill manner of thinking.
I am really upset with the way some people in the metal community think. I don’t believe that gold should ride upwards on the troubles of innocent people; therefore we don’t need war or uncertainty. As I have mentioned several times in the past, gold will move up on its own strength. I will hence be very delighted to witness it move up in a peaceful world.
Gold should trade weak during this week. I recommend not trading on Monday, though one can sell if it moves higher and buy if it sharply moves lower.
Tuesday it shouldn't go down and if it does could be a warning for investors in the medium term. If gold falls on Tuesday, there could be a sharp fall of more than twenty percent. Wednesday and Thursday will be sideway, but one can buy a small position before Thursday’s closing. Those that are short can cover their position.
Gold should move up on Friday.
The trading range could be $616 to $562.
These metals are in a negative trend and don’t expect them to rise except some technical rebound or short covering, and all four will remain in a medium term bearish cycle.
Silver will attempt to stabilize, but don’t place too much hope on it. This week’s trading range will be $11.44 to $10.14.
Copper will this week touch a few months low therefore be careful in its trading. Do not buy reckoning that it has sharply moved downward.
This week’s trading range will be $308 to $339.
Compared to all other metals, Platinum and Palladium will trade weakly, therefore trade accordingly. Furthermore, platinum is in a long term bear-market.
FOR ALL METALS:
SHORT TERM TREND – WEAK/VOLATILE
MEDIUM TERM TREND – THREE MONTHS: WEAK
LONG TERM 6 MONTHS TO 2 YEARS: UP
I would once more like to remind you what I stated on 13 May:
“Last week, major Middle-East markets touched an 18 months low. It is now time for the Asian market and European market to move down. I see a great opportunity to make money selling major stock markets, though the USA market trend looks side way.
The Indian stock market, DAX, FTSE, CAC, SPAIN and Swiss market look very negative and they are entering into a long term bear cycle. The South America stock market, Canadian and South African markets will also follow the same trend.
This week all major markets will trade in a cautious trend.
In the longer term, only the USA market looks okay compared to the melt down of the other markets.
FOR THE NEXT TWO MONTHS – The current time is a great opportunity to sell oil, metals (Gold/silver), basic material stocks including copper, zinc, aluminum, platinum, palladium and steel.
Longer term - Uranium, gold/silver and alternative energy will out-perform major sectors in the next three years. If you remember, in 2001/2 I mentioned that gold, silver and metal stocks would out-shine other sectors and indeed we have experienced that.
Last week the market suffered huge loses, especially the Indian and European markets. This week, major markets will attempt to stabilize for the first two trading days but these will be false moves. Don’t therefore trap yourself into a buying position.
The USA market will remain side way or up, but the Indian and European markets should sharply fall from Tuesday. Asian, European and the USA markets could rise around two percent for the first twenty four to forty eight hours.
Australian and Canadian markets are entering into a historic bear cycle, and one should therefore start taking short positions when the weak trend starts taking control of these markets.
This week oil should start rising towards a new high. Failure to do this means that oil prices will be under pressure for another two weeks.
I see a bull trend taking control from Wednesday; otherwise I shall give an alert.
This week oil will trade in the range of $69.80 to $74.80
Last week grains remained a bit weak but the story will be different this week. I recommend that my members buy grains from Wednesday evening and on Thursday as well.
Soybean, soy meal and soy oil will sharply rise with corn.
For the short and medium terms, grains are in a bull market therefore trading accordingly. A sharp rise can occur on Thursday or Friday, and this rise could persist for a while.
This could be the final chance for you to accumulate the thirty years bond. I strongly recommend buying bonds from this week.
We have experienced huge volatility in the currency market. I still remember six weeks back when I recommended selling the South African rand when it was trading around 5.95. It is now 6.75, a fall of almost fifteen percent, which is big in the currency market.
Similarly, a major fall is pending for the Canadian and Australian dollars as well as South American currencies. The fall in these currencies should start any time from this week or the next, and it will quite nasty.
Best trades: Sell all these side currencies and buy the US Dollar index and Japanese yen.
The Indian Rupee will also come under intense pressure and it might move towards a historic low.
Both these commodities are trading side way and short term prices could correct sharply if they don’t move up from 16June. Wait for my alert on 17 June. I still believe that both soft commodities should rise and my medium and long term views are quite optimistic.
Both commodities will remain weak therefore trade accordingly.
Important Note: Please don’t forward the newsletter to other people in any form as you risk having your subscription cancelled. Let others order for their own subscription.
Please use all other tools of information before you make a trade as future trading is highly risky.
I wish you good luck for this week.
Thanks & God Bless
Sharma Mahendra 11 June