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Today's Trade & News

Most important newsletter of this here to read...Dollar is doing well...

ďTime has come for area specific investmentĒ


Dear Members,

The trend in commodities has been frail in the past week due to some unease regarding the Dollarís movement. Though the Dollar was below the $74 mark, the important thing is that it was trading positively. Nevertheless, we must not become too excited but consider carefully before placing the right trades and making moves with longer term benefit. Astrologically speaking, we are within a positive time frame in regard to the Dollar. In addition, fundamentals are well in support and analysts are also getting onto the Dollarís side. In summary;


1.     It seems that the negative news on the economic front has ended and not much additional negative news is expected. The drop in housing sales, the credit crunch problem, deficits, GDP and recession have all touched the bottom and I therefore donít expect any worse from here.

2.     Low interest rates will most likely attract new buyers and hence there will be new spending in all areas.

3.     He USA stocks valuation looks quite attractive in terms of the USD.

4.     The Iraq and Afghanistan wars are nearing an end.

5.     The fall in emerging markets as well as higher interest rates in many growing economies will surely have a negative impact on growth in the medium term.



It is clear that there is nothing more to lose from here in the USD. However, those who donít trade currencies can look for a better investment strategy. Indeed, those who prefer investing in other markets in other currencies should consider arae specific. Power and the nuclear sector especially in India since the nuclear deal has been concluded last week. One can therefore buy a few companies related to this area in India.


Uranium stocks will also be a good bet in Australia and Canada for the world has only about 50 years of uranium deposits remaining. The USA has its nuclear plants but not active; Europe is currently getting power supply from nuclear sources while India has now entered the field. This is therefore likely to be a very interesting area of investment. I am currently in India and I am doing some research about how my members could benefit from the nuclear deal. Uranium enrichment companies and reactor manufactures will make windfall profits from this boom, and India, Australian, Canadian, French and USA companies will take up part of 12 billion dollars of the Indian nuclear power industry. One should take a close look at investment opportunities regardless of where you live, as there are always some opportunity.


In addition to the uranium enrichment companies, gold/silver mining companies that have uranium deposits will greatly benefit from the boom.  



There will be major news for the Dollar as the USA will soon start exploring its oil reserves. This could not only propel the Dollar toward historic highs, but its trend could be way beyond our imagination. The USA has been consuming world oil reserves from the Middle East, Nigeria, Canada and South American countries while retaining its own pocket intact. Most of the world is unaware of how vast the oil reserves that the USA holds in Alaska and other parts of the country. As I have said in the past, the policy of the USA (Fed, intelligents and economy) is far better than any other country in the world and this will help cushion them in case of a serious and prolonged global crisis.


Indeed, many countries have had booms that burst in the last 50 years except the USA, and there was a time when Japan, Europe, Russia, Asian tigers and South America grew rapidly. They were all however unable to hold the rising trend and eventually went down below real stick value. It is well for a country to be on the path of growth, but holding this trend is the most challenging task for any central bank. Let me point out that my positivity for the USA has nothing to do with the fact that I live there: my job is to bring you awareness in order to provide an alternative path in financial market. I am very bullish about the USA Dollar as a unique and historical trend is poised to begin in the currency market.


Weekly Financial Newsletter for 4th to 8th August 2008.



In the last week metals were weak as predicted and the HUI and XAU metal stock indexes are once again testing a very important level. The HUI came to 375 in December 2007 and got to 390 in the last week of April 2008, after touching an all time high of $510 in March and the middle of June, it once more came down to 392. It surged during the middle of July and went to 480, but last week on Friday it once again dropped to 389. This is a clear indication of the volatility that has been lately experienced in the metal indexes, and I anticipate that the HUI will touch 375 once more and move up again from there. Just keep in mind that I donít see any major positive trend in metals until mid September. The HUI could therefore break the lower-side.


While our weekly newsletter will guide you on the weekly trend, it is worth noting that metals are still in a bear market for the medium term. One should therefore keep cash ready as a good opportunity will present itself to buy metals and metal stocks in the middle of the last quarter.


This week the Fed is meeting and most of people expect that their decision will leave the interest rate unchanged. While this may...... Gold will trade Positive on Monday till europe close and than fall will start in metals. Tuesday it will trade sideways. While it will trade a both side on Thursday and Friday means there will be huge volatile in gold and silver so if it fall sharply buy it and any sharp rise should be taken as a selling opportunity. Trading range......(Member part)



Platinum prices have come down to $1673, which is a sharp drop from the $2400 top. If you may recall, we recommended selling December 2008 call options when Platinum was around $1800 and suggested gradual selling of small positions on each rise since it would eventually drop to $1500 or $1275 by end of year. Indeed, the trend has been quite weak and it well possible to come down to the predicted lows.


This week side metals will remain weak and I clearly foresee a continuous decline. Any rise should consequently be taken as a selling opportunity in copper, zinc and platinum. In addition, palladium and nickel will trade feebly this week.



Both soft commodities remained a little on the upside and I see a positive trend in coffee and cotton on Monday and Tuesday. They will however be in decline the rest of the week. As stated previously, we shall buy coffee in mid August and one should hence build a position in coffee by end of next week. This week cotton will trade sideways.


The trading range for coffee this week will be $141.20 to $135.80 while cotton will trade in the range of $66.10 to $68.80.



All these soft food commodities will trade uncertainly but one can buy Orange juice on Thursday as I see a sharp rising. As a matter of fact, orange juice could move up more than 10% in the next 10 days.


Cocoa and sugar will begin trading weakly from Tuesday; therefore take the opportunity to sell on Monday and Tuesday following any rise. Lumber will remain sideways or a little weak.



The current time presents a good buying opportunity in USA stocks since that Dollar is trading weakly together with the market. My international members outside the USA should keep 90% of their money in the USD or USA stocks as the USA market and the Dollar will not look back from here.


This week Mars is changing houses, therefore retail stocks will perform well. One should buy good fundamental companies in retailer and agriculture stock. These will move up for the last time and may even touch a new high during the next two weeks before they begin to decline for the medium term.


Alternative energy stocks will trade sideways. I recommend buying battery and fuel cells stocks. Solar and alternative fuel stocks will trade sideways; therefore keep building position for the longer term in these stocks.


One can buy power and nuclear related stocks in India. I am starting a small alternative energy related fund in India and my main focus will be Uranium, therefore those who want to invest should send me an email for more information.


All major markets will trade positively during this week on Wednesday. Tuesday will therefore be the best day to acquire a position. Wall Street will rise more than three percent while the European and Asian markets will also be positive.


Japan and Shanghai will move up this week. Buy the Nikkei and DOW.


Emerging markets India, Singapore, Australia, Korea will suddenly start declining from Thursday; therefore sell upon any rise on Thursday and cover short on last hour of Friday.



All grains have dropped substantially to lows and the weak trend is not yet over. Grain prices are therefore likely to decline further this week and one should take the opportunity to sell upon any rise. I see new lows in corn, soybean and soy oil. You should buy wheat against selling as this will be a great hedging position. We shall be buying grains during the middle of next week.



Most markets have lately been trading according to planetary movement and all thanks go to astrology. This week I see a rising trend in oil from Thursday and this trend could persist till Friday. One should therefore buy oil on Thursday during weakness.


Heating oil, natural gas and RB gas will also move up from Thursday.


Oil will trade Posively on Monday till europ market close and weak trend will start from late day in USA.


Tuesday and Wednesday and you need to take the opportunity to sell upon any rise.


The trading range for oil this week will be $118.00 to $127.80.



The US Dollar has been trading positively for the last two weeks and all traders will be eyeing the FOMC this week. The safest trade will be buying the Japanese Yen against all currencies as I see it sharply moving up against commodity currencies as well as European currencies.


Monday Dollar will trade sideways against all currencies but Briish Pound will fall sharply against USD. Any fall of the USD on Wednesday and Thursday should be taken as a buying opportunity. The Dollar will however move up quire rapidly on Thursday and Friday and the Euro may once again touch or even will break $1.5380. The planets indicate that the Euro will break $1.50 in the next week and one should be ready for an amazing run of the US Dollar.


Commodity currencies are trading weakly and in fact decline more than anticipated in the last week. The same trend is expected this week. Sell the Canadian and New Zealand Dollar this week. The Ausi is also poised to be weak till Thursday.


All major currencies have entered into a long term bear trend and one should plan his trades carefully and ensure that you are not getting out will a small position. One should strive to build a core position in the US Dollar for at least seven years.


The trading range for the Dollar will be $73.29 to $74.45 and you can calculate the range of the Euro according to the one for the Dollar (two and a half times the Euro). The British Pound will continuously decline sharply during this week; therefore hold your short position.



Thanks & God Bless, Mahendra Sharma 03 August 2008,