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Last week we were right almost 90% and this week planets help our members to make 95% right trades...

Astro Financial weekly newsletter from 2 to 6 June 2008

By Mahendra Sharma, date:1 June 2008




"Learn to get in touch with the silence within yourself
and know that everything in life has a purpose."
-Elisabeth Kübler-Ross (1926 -)


Dear Members,

In the last week the markets traded as we predicted. I would like to reiterate that the move of the dollar in coming time will be crucial for all traders, as a rise could play a spoiler’s role for commodities. Nonetheless, commodity traders should be content as the market has remained in a bullish phase for more than six years. As I have emphasised before, we must always keep in mind a basic principle of the market; the fact that “a bull or bear market trend always ends at some point once wave is over and the planets are creator of wave”.


One of our subscribers by the name “Jamie” usually sends me notes to the effect that fundamentals always play a key role in the market. While I do not disagree with him, I must also hasten to add that fundamentals don’t work until the bubble is burst. Once this wave comes to an end, then all fundamentals can come into play and the market begins to trade and respond to ‘fundamental news’.


There are analysts of diverse knowledge and varying experience, and each will try to depict the best picture in accordance with his own opinion. For a example; those who support metals will therefore come up with a thousand valid reasons about why metals are likely to go up. The same happens with supporters of oil and any other market, the basic principle being that one usually supports what he likes or is favourable to him. Consequently, one is naturally against anything which could be an obstacle to the attainment of his favourite trend. That is to say that people are inclined to oppose or support a certain trend or situation depending on their own preferences and expectations about the end result.


Metal advisors are currently becoming tragically blind and committing the worst mistake of their lives by calling a further collapse of the dollar. The only reason I can deduce for this is the control by ego and fear since the fundamentals show that a rise in the dollar could result in immediate negative impact on gold. These advisors are however unwilling to acknowledge this and so they forget the basic principle of nature. My own opinion is that those currently following and supporting such experts will regret when they become irretrievably stuck. It will therefore be too late when they ultimately discover that they had become blinded by love.


Thousands of people who follow my work must wonder why I went against the trend of metals and recently went against oil and grains. This is after having recommended buying all of them back in 2001 when hardly few had such a strong message of a bull market in commodities. The same question confronts me from people who cannot understand my sudden reversal in mid 2007 after predicting a historic bear market for the US Dollar in 2001.


As always, my simple answer is that I respect what astrology and the planets tell about future trends. I cannot make people happy by retaining a bull market in metals or in commodities and a bear market in the dollar. I simply follow the wave of nature as faithfully as I can. For a few years when all is well and things are looking bright, I could get huge numbers of new members, only to become an object of hatred once that trend comes to an end. With the end of the technology bull for example, most of the analysts disappeared and little is heard of them nowadays; but such is the nature of life in the markets.


From the end of 2001 I supported the bull market in metals, oil and other commodities simply because of planetary movement. Can we find any one who officially predicted oil reaching $100? when it was struggling at a paltry $14. When the Euro was at $0.83 we mentioned in my book that it would reach $1.3880. We also predicted that silver would go up to $14 and $21 when it was at a mere $4.40. When I felt that the predicted target had been attained I conducted a detailed study and discovered the trend of the US Dollar and began to favour it. I am simply trying to show that I don’t just develop attachment and soft corners for anything in the market. The day that I begin to be moved by my love for particular areas of the market will mark the last day of my career since my purity will have been dented by selfishness.


I beg forgiveness before I say this, but people are selfish: they are unwilling to remember my prediction of the Euro rising from $0.83 to $1.3880, but they will gladly crucify me for my wrong prediction because the Euro went from $1.3880 to $1.5880.


Many of the members who currently subscribe to my newsletter have been long time followers of my work and I respect them. I shall therefore give them special recognition in future concerning their subscriptions. At some point the price of my newsletter will go up by 100%, but current members will not have to pay more than they now do for the next three years. The rate for their subscriptions will therefore remain the same for that period. Once again I thank you for your support and belief in my work.


My advice is to stay long with the US dollar and alternative energy stocks for the next seven years. You should not worry even if oil keeps declining in the coming period as new babies in energy have been born and nature will take care of them. The dollar will be the only survivor at a time of the worst turmoil in currencies. I shall not delve into much detail about the future of currencies as many will not believe it, but my advice is that you stay with the dollar.






Gold and silver traded as per our predictions during the past week. Indications for this week show that meals will be unable to move positively and a rising trend should therefore be taken as a selling opportunity on Monday. Consequently, gold and silver will move down together from late Monday in New York trading and it will not be surprising if they both touch near of last month’s lows. One can cover the short this week on early Friday as they will have a sharp rising trend. Nonetheless, the rise will prove to be short-lived after (Monday).



Last week all these side metals sharply fell as predicted and we still expect a weaker trend this week as well. One should stay short this week as I see copper and platinum falling more than five percent. Base metal stocks will perform weak with precious metal stocks.



I know that trading in the futures markets is a very difficult undertaking as they are very highly leveraged. I have provided some ETF information at the end of this newsletter and those unwilling to trade futures can therefore buy. This year I expect frost in coffee and members should therefore all have some position in coffee. I have completed a detailed study on frost and planetary movement for the last 100 years. We have not seen any real frost after 1994, but we are poised to witness it not only in year 2008 but in 2009 as well. All Astro indications for coffee point to a very bullish trend as there will also be a drought between the two frosts.


Frost in Brazil is very closely related to Mars and the combination with the North node. Whenever frost has occurred in the last hundred years, the Moon has come very close to the North Node. During a transit period of 60 hours, there has been extensive damage in the Brazilian coffee crop. We can even predict the dates because my astro calculation system can take me even 1000 years from today.


For instance, 20-22 June, 17-19 July and 14-15 August 2008 we shall have severe cold in South West and South N/S Brazil. These are therefore the likely dates during which frost could hit and you need to take position beforehand. Furthermore, one should not neglect to do the same by Thursday’s closing.


One should maintain a small position now and keep cash handy to buy coffee during the dates mentioned above.

Coffee Frost and Drought History


Severity (Damage)

Coffee Frost or Drought

1902 (Late July/early August)



1918 (June 24-26)



1942 (Late June/early July)






1953 (July 4-5)



1955 (July 30-August 1)


slight F




1962 (July 25-26)



1963 (August 5-6)


F and D




1966 (August 6)


slight F

1967 (June 8)



1969 (July 9-10)



1972 (July 8-9)



1975 (July 17-19)

Very Severe


1978 (August 13-16)



1979 (June 1)



1981 (July 20-22)



1984 (August 25)



1985 (August-November)






1994 (June 25-26 and July 9-10)

Severe/Very Severe

F and D

1999 (August to November)

Severe (40% crop lost)


2000 (July 17)

Moderate (est)




Chart shows coffee can become most volatile commodity if any weather related news hit the market.


Coffee "C" (NYBOT): Historical Chart



Last week cotton traded weakly and one should avoid any new position this weak as it will continue to be weak. Buy or cover cotton on Friday if you have any short position.



All these food commodities will stabilize this week. I recommend buying cocoa on Thursday as I see prices rising again. Cover all short in these commodities by the end of this week and we shall aggressively buy sugar and orange juice and from 21st June.



Major markets will be positive this week including Asian and European markets, therefore one should cover shorts in all markets on falls. Buy the USA market and get some position in the chemical and agricultural sectors, including sugar, fertilizer, food and agri-chemical stocks. These stocks are set to move higher for the next one month. In general, Mars and Mercury both indicate a bullish scenario in the agricultural sector. Watch IPSU, FEED, SEED and Monsanto. DCR will be out from trading from 24 June so no need to take risk, you can do DUG.



Oil finally began to trade weakly, though the ride was a roller coaster with many contemplating an end to their trading career in oil. It was however a great relief, thanks to the Sun and I expect oil to move down sharply from Tuesday. Nevertheless, it will still trade weaker from Monday and one therefore needs to build a short position and cover on Friday. Heating oil and RB gas have drastically come down in the last week, and they should continue trading weakly till Wednesday. 


Oil will trade weakly and in one direction from Monday to Wednesday. There will be an intra day rising from Thursday and Friday, therefore a sharp correction should be taken as buying opportunity on Wednesday or Thursday. Furthermore, a short term or sharp rise on these days should be taken as a selling opportunity Friday before day ends.



Once again, the dollar demonstrated signs of recovery last week. The US Dollar is holding well and it will continue to hold above current levels. From Monday to Wednesday this week, the dollar will be positive but we may see some weakness on Thursday on half day and on Friday.


The Australian dollar will be weak on Monday and Tuesday but there may be some recovery later this week. Meanwhile, the trading range for the Australian dollar will be $0.9590 to $0.9310.


The Canadian dollar will likewise trade weakly this week and I expect a 200 pips fall.


The Euro will remain weak together with the British pound the entire week except on Friday. The Euro will touch $1.5325 this week, and it will important to watch this price target: once this price is broken and it trades below $1.5325, then expect $1.4800 by 12 June.


The Japanese Yen will trade stably and I therefore don’t recommend selling.


On the other hand the South African Rand is ready for a major downturn and one should maintain a short.


South American currencies will move high, therefore don’t short the Peso and Real.


Time has finally come for another prediction to become fulfilled: two years ago I predicted that Arab countries would soon withdraw from the Dollar fix rate and begin a free floating in the exchange market. Though this may result in some uncertainty in the dollar, destiny is compelling Arab countries to steer their currencies onto a different path. In the long term however, these currencies will have a terrible free fall like they are worthless.


As promised, here are ETF coffee details:


ETFS Coffee

Investment objective

ETFS Coffee (COFF) is designed to track the DJ-AIG Coffee Sub-IndexSM and pays a capitalised interest return which cumulates daily. The Sub-Index is an “excess return” index and the interest component combines to give a total return investment.


About the security

COFF is a secured note that can be created or redeemed on demand (by market-makers). It trades on the Exchange just like an equity and its pricing and tracking operate similar to an Exchange Traded Fund.

COFF is backed by matching Commodity Contracts

purchased from AIG Financial Products Corp. (AIG-FP) whose payment obligations are guaranteed by American

International Group, Inc (AIG).

�� Able to short, and margin eligible


About the index

The DJ-AIG Coffee Sub-IndexSM is based on the coffee component used in the DJ-AIG Commodity IndexSM. The

Sub-Index is priced off NYBOT Coffee futures contracts. For additional futures contract details, please refer to the DJ-AIG Commodity IndexSM Handbook which can be downloaded at

The Sub-Index is calculated each DJ-AIGCI business day. It is published by Dow Jones Indexes, a business unit of Dow Jones & Company, Inc. (at and distributed through many data distributors, including Bloomberg and Reuters.


Trading data and listings

Primary listing London Stock Exchange (LSE)

Trading Normal Exchange hours

NAV Daily NAV at

Base currency USD (no hedge)

Minimum investment 1 security

Security codes

Listing London

Exchange code COFF

Currency USD

Bloomberg COFF LN <Eq>

Reuters COFF.L


Other listings Amsterdam, Frankfurt (Xetra),

Paris, Milan

Security features

Index DJ-AIG Coffee Sub-IndexSM

Underlying exposure Provided by AIG-FP

Product manager ETF Securities Ltd


Coffee 100%

UK Representative - Tel: +44 20 7448 4330

Symbols for additional information


Excess Return Index Total Return Index





Additional information on Bloomberg: AIGI <GO> and DAIG <GO>

Other exchanges:

For more information

About ETF Securities Other sources of information



Telephone of the UK Representative: +44 20 7448 4330

About ETF Securities Limited

The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs) with the

world’s first listing of an ETC in 2003. Now ETF Securities has over 40 ETCs listed on 5 European Exchanges with over US$1

billion in assets. Our range of products include:

�� ETFS Oil Securities – 8 ETCs tracking different oil returns

�� ETFS Commodity Securities – 29 individual and index ETCs tracking DJ-AIG Commodity IndicesSM

�� ETFS Metal Securities – 5 ETCs tracking precious metal prices and which are backed by physical metal in a vault

Frankfurt Amsterdam Paris Milan


Bloomberg OD7B GY <Eq> COFF NA <Eq> COFFP FP <Eq> COFF IM <Eq>




Trade of week:

Buy US Dollar against B Pound and Euro

Sell grains and oil on Monday.

Buy PEIX, FCEL and add more SATC, LTHU and XSNX.

Buy coffee call of September price $170.

Buy September Puts of Euro 1.43, Pound 1.85 and Australian 0.85.


Like you trust me, I trust you too but still I am putting here a small request again: Please don’t forward newsletter to non subscriber.



Buy book (Has details predictions of 2008-09 for world Financial market:
Subscribe weekly newsletter services (Weekly detail trend with each day movement of all commodities and currencies):


I have had put a very important note on 21 May for all traders and I would like you to review once again:


Thanks & God Bless

Mahendra Sharma, 1 June, 2008 Sunday