All major markets (currencies, stock market, bonds and commodities) are approaching towards a new era where a new trend will be born. We are actually not very far from that period but till then, we shall be making quick trades without staying in position for long. In the last month we have achieved returns of over seventy percent by trading currencies and commodities; all being quick or short-term trades.
There are different types of cycles that come in the market: sometimes you can have great returns by staying in the market for the long-term, while other times it is in the short-term period. There are also times when the medium term presents the most returns while sometimes you make money by not trading the market everyday.
There are a few times when investors have had horrible periods, for instance:
· The 1929 stock crash; the 1987 two-week crash in the stock market was a serious one where most accounts lost more than forty percent. The March 2000 tech crash also brought a painful time.
· From October 1994 the bond market crashed and billions were wiped out.
· In the weekend of 28-29 June 1994, severe frost affected Brazilian coffee fields and as you all know, the following Monday coffee opened forty percent higher, meaning that buyers made a fortune while short sellers lost whatever they had in their accounts, and major short seller accounts came under heavy margin calls.
· We are also aware of the rise and fall story of silver and gold during the 1980’s.
· Grains and oil also have many stories to tell but in short, all markets (commodities, stock markets, currency markets as well as the bond market) have a natural and unique way of behavior. When I am in deep study to match behavior with planetary movements, it is like solving a murder mystery. It is my passion, and I feel that my love towards the study of planetary movements and predicting the market trends has turned into a unique bond or relationship.
Commodities have crashed many times and been in long-term bear cycles for years in the last century, but a few sudden rises have given windfalls to commodity investors. Most serious investors do not have a great respect for trading/investing in commodities and the reasons have been many and varied. However, this new century is bringing attraction towards the commodity market and this wave will not stop here. One can make a fortune, but can equally lose everything if not following some trading disciplines in commodities. That is why I always say that one should not trade with love or hatred because this will shatter the discipline.
Anyway I don’t want to write much about this, as I am sure that you must be following some kind of rules while trading.
Since I started following some disciple rules, my trading results have been doing better and better with the astrological outlook.
I am very close to launching my hedge fund and will announce it when I am ready.
HERE IS THIS WEEK’S FINANCIAL NEWSLETTER FROM 2nd TO 6th OCTOBER 2006
We are experiencing volatility with thin volumes in the metal markets. Thin volumes mean that major planetary movements are not focused on one direction and this diverts thoughts and interest to different investment areas. For a few months there was too much power and focus on metals and metals were moving up strongly. However, it was an unsure trend, which made metals to fall sharply for thirty percent in one month after 13 May. Indeed, many have lost more than what they had gained.
Last week gold remain range bound and this week I don’t see much change. Gold may not be able to break last week’s higher price, as there are signs of weakness after Monday’s higher opening.
The range of gold will be $603.80 to $588.80. I see a higher opening on Monday but weakness will come later in the day after
It could be bad news if gold breaks the down side level of $588.80. Trading above $588.80 will therefore be safer for gold.
I won’t be trading gold at this stage; I am adopting a wait and watch policy.
This week silver will trade a little better than gold but the trading wave will be sideway and still looking for direction. I therefore will not recommend buying any new position in till planets confirm a positive sign.
A fall is pending, and the trading range for silver will be $11.58 to $10.88. Monday will have a positive opening but won’t be able to hold the gains.
We should wait for some more time before one jumps into buying.
All these metals are not in a great astrological time frame and one should therefore avoid any buying in them. They are in a bear market and they all should fall around twenty percent from current prices: copper $345, platinum $1145 and palladium $319.
Both these metals are nearer to breaking the bull market and it looks like we are entering into a bear cycle- this is what Saturn is indicating.
All metals are in an unclear trading zone. We will see if they move to the higher side and buy if they hold on the low side, but get out if they break the lower side.
MARS IS SAYING - Buy alternative stocks and they may gain over ten percent during this week.
BLDP, FCEL, ENER, PLUG, MAG, UQM, BCON, HYGS, QTWW, MKTY, DESC, PIEX, SLRE, ENEI.
The gains will be handsome and you may be able to pay my subscription fee for the next ten years.
My daily update will guide you on S&P trading.
Two-years, five-years, ten and thirty-years bonds traded weak as expected and they should continue to trade weak. Sell bonds and hold your selling.
Last week the bonds went down and this will not be stopping here.
Coffee prices sharply moved up last week and I expect them to move higher. Hold you long and let it cross $111.20, then add some more because crossing this price will confirm coffee first reaching $123.80.
Since the last two months, cotton has been trading sideway and it may do so for another one week. However, I will recommend buying during the transit of Venus and that time is not very far. Till then, stay sideway and wait for my buying recommendation.
A sharp fall in lumber paid us handsomely as we recommended short at $294 and we did it. Last week we cut the position and made enough to buy lumber to make a new house. Don’t buy at this point thinking that it is trading at extremely low levels. Lumber is in a bear market and it may take a few months before it rises again.
Furthermore, we shall sell more if it rises.
In the last one month lumber has paid us enough.
It was a nonstop fall for sugar and this is another commodity that nicely paid off smart traders. We saw a fall when sugar was trading around $18.10 and it come down almost fifty percent and that is big money in the commodity market.
We shall a close watch for the next two weeks.
We may start buying a small number of contracts during the Sun transit. We will let you know when to add.
You don’t have to struggle to make money and one need not only trade with what you love. Smart investors will always find areas where they can make money and planetary movements help us make these decisions. Look at the sugar chart and right at the top, we recommended selling.
We recommended selling orange juice once prices reached $184.20; we will add short and wait patiently. Hold you short as it could fall more than ten percent.
What a nice upside move that we saw last Thursday, a confirmation that grains are in a bull market. For two Thursdays in a row, grains closed up. I am just waiting for grains to do the same this Thursday: if they do, then it will be a most encouraging sign for the grain bull market.
We are holding long position in it and sold just ten percent. This week we will sell just ten percent more because we are making enough, but will still hold eighty percent in long position.
Don’t short grains; they are on fire and wheat could crazily go up. One should therefore ignore experts’ comments and those recommending selling. Grains have the full support of Jupiter’s movements.
HOLD THE GRAINS POSITION AS THEY COULD EASILY MOVE UP ANOTHER FIVE PERCENT OR EVEN MORE DURING THIS WEEK. I WILL ALSO BE WATCHING THURSDAY’S TREND.
Don’t make the mistake that they may have doubled the top, as they could move higher than those prices.
This week oil may gain a little; therefore cover your short position. However, I won’t recommend buying in big position and one can buy a small position.
Buy oil, unleaded gas and natural gas, selling once they rise three percent.
The daily update will guide you on oil trading.
Don’t buy energy stocks.
Last week I used the word “TSUNAMI WAVE” for the dollar, and there was a reason for calling it thus. I am sure that you must be enjoying the dollar ride, and this is just the start of the journey. This week the dollar should rise against all side currencies. The Euro will move down against the dollar but the Australian dollar as well as the Canadian Dollar could have a sharp downward move. The South African Rand has been making new lows and it looks like the downward journey won’t stop here.
From Wednesday evening the US dollar could move sharply up, therefore trade accordingly.
Buy the US DOLLAR INDEX.
My daily update will guide you on currency trading.
Mars has withdrawn its support to the Australian dollar and I don’t see the support coming back for at least a few months.
Look at the Rand price action for the last five months: a few of my close followers have a made fortune as in May I recommended a strong sell signal in the
This message is not a prediction or an assessment of the market outlook. This is to thank you all for faithfully following my work as well as for the part you have played to encourage me to deeply study the wave of nature. Earlier this year was a difficult time when I was wrong on my metals’ call and I was worried that twenty five years of hard work and research would go to waste if I continued to be wrong on metals. My concern forced me to consult my guru and father as to why I was coming so tragically wrong for the first time in my twenty-five years in my predicting profession in regard to the short-term outlook. His answer was quite simple, and he told me that “Mahendra, don’t expect to be correct or accurate in all your predictions because this is against the laws of nature. No one really knows what will happen tomorrow and as long as you are trying your best, it is all that counts.” My guru also told me that, “when studying planetary movements, do it with seriousness and deep concern and from a position of ignorance, for it is only then that you can learn more concerning any hidden part that you might be missing.” He added that one could get tired, old and depart without ever being able to unravel even one percent of the hidden aspects of planetary movements, but it doesn’t mean a lack of adequate study. The most important thing is to persist in study without getting upset and a satisfactory result will surely come.
The advice from these two guides helped me mentally but unfortunately very few people understood me. Many of my members and followers have kept their faith in me and I want to sincerely thank them from the deepest of my heart. I thank you for your support, for without it I wouldn’t be the same Mahendra today. I would have changed my path if I had continued to be off track after the second week of May 2006 and the only reason for changing the path was not that I was not worried about my respect or name, but that I didn’t want astrology or wave of nature theory to fall in to disrepute. The subject is a hundred percent accurate; the problem was my inability to correctly read planetary movements. For those that are still upset with me, I ask for your forgiveness.
Another thing is that some people recently told me that I take more care of major institutions and banks. However, the truth is that I treat all my members with the same respect including banks, financial institutions, hedge funds, big time traders as well as small individual investors who subscribe to my newsletter. Please therefore be assured that I have no discrimination whatsoever. Once again I would like to take this opportunity to thank you all very much for your generous support, faith and respect towards my theory. I am back again on track only because of you.
Finally, I need to make a small request to you all: Please don’t forward my newsletters or updates to other people: Let them subscribe to the newsletter and one can always get a free copy if they send us a request. Sometimes I find it hard to understand that whereas people are ready to lose money in the market, they feel the pinch and are unwilling to pay for a subscription.
According to Indian tradition, we believe that for any particular study, consultation or guidance, a person has to pay some kind of fee as way of appreciation as well as a mark of respect and surely performance results will be different. I am not trying to force anyone to pay for a subscription, but simply saying that one shouldn’t just expect anything for free.
Best trades for this week:
BUY: GRAINS AND THE DOLLAR INDEX AS WELL AS ALTERNATIVE STOCKS
SELL: Australian Dollar, British Pound and the Canadian Dollar
AVOID – METALS, STOCK MARKET AND ENERGY
Thanks & God Bless
Mahendra Sharma, 1 October