Warning sign as Second eclipse can bring disaster in many markets,
Dear Member,
Last week commodity markets remained very volatile compared to stocks indexes, currencies and Treasury. This is uncommon. This is a clear sign that many major institutions are in a hurry of shifting or restructuring their portfolios. Many of our members are now focusing on corn and after seeing last week’s trend in corn I am feeling very excited about its outlook in 2010. Last week Soy remained weak but corn performed fairly well.
We saw short term recovery in metals and it did happen during last week. Energy area also remained positive along with soft commodities.
This week another eclipse is taking place and this is second one within fifteen days. On 15 January solar eclipse will take place when Sun and moon will be moving out from Sagittarius where North node (a hidden planet) are entering to Capricorn. In the same day Mercury will start retrograding and Venus will also be changing houses. All this combinations carry great deal of meaning for those who understand planetary movements.
My calculation says that the combination of the above planetary movements is giving perfect sign of a huge correction in stock markets. I was wrong in August 2009, when two eclipse took place in the same week but market never corrected (except China) and 14 Jan 2010 solar eclipse is very dangerous for stock markets and I will strongly recommend that one should avoid holding any long positions. Don’t start selling the markets from tomorrow on but you should wait for further indications that support our weak trend predictions. As we see, markets should remain weak for the next five months.
In addition, this solar eclipse will not favor gold and other metals, and therefore huge corrections in all major metals are expected. This eclipse can bring negative news from emerging markets (India or China). Any negative news from China can bring disasters to the commodity markets so I highly recommend that you avoid any big holdings in commodities.
Energy area will also start moving down but Sun, Moon, Mercury and Venus are showing support to grains. Any negative news from China can also put pressure on grains so hold your hedging positions which we recommended last week (buying corn and selling soy).
Here is this week letter from 11-14 January 2010
Note: Monday and Tuesday Moon will be transiting from house of Scorpio and whenever Moon transit from house of Scorpio we don’t recommend people to take any new and significant positions in any market because during this period huge volatility comes on both sides in each and every market. Also any decision made on these days usually bring negative results in the longer term trades so those who are in the process of making long term decisions should also avoid these both days and start taking positions after Tuesday. Before Tuesday, try to finish pending work and enjoy time with family.
GOLD/SILVER
This week Monday and Tuesday metals will move in both directions. Any sharp rise should be taken as selling opportunity or any sharp fall should be taken as a buying opportunity.
Wednesday and Thursday metals will remain in a narrow range. Late Thursday or Friday will be the best day to take short positions in gold and silver as prices will start moving down. Planets indicate that this week’s prices of gold and silver won’t come again in 2010 so plan your trade well.
Trading range of gold will be $1,141.80 to $1,117.80 and silver will trade in the range of $18.49 to $17.88. If they break upside boundaries, then gold and silver can move higher by another percent or so but if they break on the lower sides then they can fall more the than three percent. Next week will be nightmare for metal investors.
COPPER/PLATINUM/PALLADIUM/ZINC
The worst time for base metals will start from Friday on so take the opportunity to short all these base metals as they will fall from here and they will reach multi year lows within just a few months. Take short positions in copper and platinum on Thursday or Friday and hold positions until planets recommend us to buy back. Great time has come to make huge profit in base metals.
COFFEE/COTTON
Last week coffee moved up and cotton remained weak as predicted. This week coffee will remain sideways but cotton will move down. Trading range for coffee will be $147.10 to $141.80 and cotton will trade between $70.20 to $73.30.
COCOA/SUGAR
Many great hedging trades are coming up in these two markets. In the last few months we traded very well in natural gas and oil, and last week in corn and soy, as well as coffee and cotton. This week I suspect it would be cocoa and Sugar. Buy cocoa and sell sugar. Moon will play a negative role for cotton from Wednesday but the same Moon will play a positive role for cocoa. Buy cocoa as cocoa will touch new highs.
TREASURY BOND
Last one year we did extremely well in Treasury bond as well. This week planets are recommending to buy 30-year bonds as they will move higher from here. Sun indicates that this week the Treasury bond is moving up from 115 to 117.
STOCK MARKET
Can a historic fall be repeated again from next week? We will see the first indication from this week. This week I am not giving any daily prediction for stock markets because we want to see if planets’ signals will be confirmed. This time there is a very high probability that markets could fall more than twenty percent very quickly.
We will be taking short positions from this Friday.
GRAINS
Monday one should buy corn without any fear. If you feel uncomfortable having naked commodity exposure then hedge your corn longs by shorting soy. I don’t want to convert metal investors into grain investors but surely I want to show them that there are better areas for investments that could easily beat metals in 2010.
Monday, Tuesday and Friday grains will remain very positive. Among the grains, corn is Mercury’s Favorite. On any weakness one should accumulate grains as great time for grains has arrived. Corn can reach up to $448 from $418. Avoid soy and wheat, except buying either commodity on late Thursday for a short period.
OIL
Weak trend will also be starting for oil. One should get out from long positions because anytime after late Thursday, oil, heating oil and RB gas will start moving down sharply. Trading range of oil will be $84.20 to $80.80.
Natural gas will move down sharply as well so avoid any buying in natural gas. Instead, sell or take short positions on any rise. We see natural gas moving down to 5.43.
CURRENCIES
Monday and Tuesday dollar will remain in sideways. However, any fall should be taken as a buying opportunity in dollar. From Thursday onward huge up move in dollar will come. I won’t be surprised at all if in the next two weeks dollar move up more than five percent. All currencies will crash in a big way so building your positions from the middle of this week.
Sell Australian and Canadian dollar. Sell Swiss Franc and euro.
Remain watchful as this week would present great opportunities to add USD positions. Planets indicate that dollar index won’t fall below $77.29.
Overall, in short, there are fantastic trading opportunities in many markets coming from next week on. I will write an update on late Thursday or early Friday.
Thanks & God Bless
Mahendra Sharma, 10 Jan 2010