After exactly two years, I am writing this newsletter from my Nairobi office. I shall be here for a week and soon expecting to move back to the USA. As you all know, I have been in Dubai for the last 11 months, during which time many of my predictions have been off-track. Compared to my 20 years predicting career, I must say that Dubai has not suited me spiritually as well as mentally. My feelings, vibrations and sixth sense have all suffered and haven’t been in co-ordination with my astrology. If you can remember, my astrological accuracy was amazing for the two weeks that I traveled to Santa Barbara after 12th May 2006. I have realized that there are three places in which I get positive vibrations and where the co-ordination runs smoothly: USA, Kenya and South Africa. Anyhow, this is something that I just wished to share with you so lets go straight to the newsletter.
In last week’s newsletter, I mentioned that there would be uncertain times as we are in a negative time frame as regards world peace. First, we have witnessed the sudden escalation of the delicate Middle-East situation in the last eight days. Indeed, we are rapidly approaching a horrific scenario that could spell “death” for any peace efforts in the region. Secondly, there was another blow to world peace following the terrorist attacks in India. There seems to be a certain level of indifference to the whole situation especially from key world leaders. Instead of squarely addressing the issues besetting the world, there is an attempt to keep lobbyists happy. I think that it is time to properly sort out the major concerns, otherwise the next two and a half years promise to bring suffering and death to a lot of people in the Middle East, including Israel.
This is a very serious issue that has given me plenty of anxious moments and I intend to write more details in my upcoming book. Of course you subscribe to the newsletter for the trends of the financial markets, but we are all part of this planet and should discuss such issues. As a matter of fact, major events always ultimately have an effect on us and we should therefore not be aloof to their occurrence. As you know, nature has been quite kind on me and has guided me to successfully predict major world events in the last twenty years. I am also surprised when I look back to what I have been able to do, and I thank nature and astrology for that. My work for the last fifteen years clearly shows that the Middle East has always been an area of interest and concern to me. The next two and a half years will be very important, as there could be major changes in the world map. Once again, let me state that there could be bloody times ahead and the last seven days are just a confirmation of what could happen.
Back to the world financial market, the Middle East crisis or war situation is a major threat for oil as well as gold prices, and last week I was completely off track in regard to metals as I hoped that the problem would not occur. However time was negative and it happened, resulting in a sharp rise of metals but it was false one. Other areas like the stock market, currencies and oil remained as predicted. The situation is now different; therefore let’s see what planetary movements indicate for the world financial markets.
PREDICTIONS FOR 17 TO 21 JULY 2006
Gold is widely considered a safe haven and therefore most people take refuge in it as soon as trouble appears in the world. It drastically moved up in the last week by about four and a half to five percent following the Israeli-Lebanon standoff. With the persistence of this problem, gold should trade higher though planetary movements indicate that I should not predict higher prices for this week. Monday will have a strong opening, as the moon will be in support. Indeed, gold may touch $671 on the higher side in the Monday and than sell-off from high. If gold trades negatively on Tuesday, it will mean the start of a second bear trend for the short term. The first wave was in May 2006. Tuesday will therefore be the decisive day. Tuesday to Friday should be negative and gold should drastically fall during the three days if it is negative on Tuesday. Furthermore, we may see a 5% correction this week in gold prices. I shall sell on Monday or around $670-71 and may hold my short position for the next few weeks.
For these side metals, a negative time has started and I am therefore not very upbeat about them. Do not buy silver at this stage even if gold goes higher. Those who are 100% sure that they want to remain in gold (I won't stay in gold at stage) should hedge by selling silver/copper/platinum/palladium at this level so that risks can be well diversified, and this will prove to be of tremendous benefit. The red planet for copper is changing houses, and we should therefore wait to see what effect it will have on copper prices (it should be sharp down one). This week will be decisive for the side metals and if what I see occurs, then they may trade negatively for six weeks. It is therefore an opportunity to sell them on Monday’s higher opening around $11.80 and may fall more than ten percent during this week.
As predicted major stock markets were in negative territory during the last week, and more negativity is yet to come. Major markets around the world from Asia, Europe, Middle East, USA and South America should test negativity and approach new lows.
Please take this prediction seriously as I have been on the lookout for a bear market in the last two weeks, and I feel that it is round the corner. This will be a long-term trend and there is therefore no need to buy hurriedly. Whatever strength remained in the markets was revealed two weeks back, but then they failed. The bear has the bull by the horns, therefore get out 100% from market investments and wait on the sides. That is my recommendation.
In the last week, grains were volatile, moving sharply upwards, only to drastically go down. Low prices are a great opportunity to buy. For this week, grains should behave much the same way.
Corn and soybean are in a long term bull market and prices should move higher. Though weakness should be construed as a buying opportunity, avoid the weak markets for the time being.
I see higher prices next week for grains therefore trade accordingly.
Last week prices moved up, and they will rise again during this week. Do not sell oil till prices reach around $80, a level we are nearing. I shall be sending an alert when it is fulfilled. Those who want a 100% certainty and want to sell oil should wait for two months. On the higher side, this week should touch $79-80 and hover around that level with weak trend.
Heating oil and unleaded gas will also remain higher but time is soon coming to sell both products. Natural gas has been trading low and should strongly rebound during this week. We shall closely follow the Middle East situation for it doesn’t seem to be good. However, there could still be sudden new developments on Thursday geared towards peace in the ongoing conflict. Let us therefore wait to see what role the hand of Jupiter will play in support of peace.
The dollar is gradually gaining strength. It is firmly standing steady and fending off all attacks and just waiting to surge forward. The move could be a very drastic one and currency traders therefore need to be very careful as the dollar is entering into an interesting era. History attests that a strong upward move of the dollar can hurt commodity prices. An interesting time is coming ahead I see a great future for both commodities as well as the dollar. I don’t know how to explain it, but it is like when I predicted the dollar and gold walking hand in hand, and it happened last year. If the situation unfolds similar to what happened last year, it will catch many experts flat footed.
This week, I see the dollar making short-term new highs; therefore remain long in the dollar index. Side currencies have been trading weak, the Canadian and New Zealand dollars, as well as the South African Rand. This week I predict the same and they should trade on the lower side. Watch the Australian dollar as it could give up gains and have a drastic fall. Therefore start selling the Australian dollar as soon as you detect signs of weakness.
I know around the globe most of analyst, fund manager and traders are predicting negative for dollar but I am very much optmistic on US dollar.
The US treasury market -30 year bond- is a great buy at this level and I therefore still recommend it. It will not be affected by a strong dollar, and this will be surprising. Though it is currently neither in the bull nor bear trends, it shall soon be decided and lean towards the bull.
Both soft commodities should trade up quite strongly. It will be a great opportunity to buy these commodities on Monday. Hold your long now for at least two weeks, as they are entering into a bull cycle that will be long-term.
Both should trade weak and if you are currently holding positions, you should get out as they are entering into a long-term bear cycle.
IMPORTANT NOTE: I would once again like to bring to the attention of all my members the need to trade very carefully as the war situation could give rise to major volatility in commodities. You all know the risk factor in trading commodities, and I am just predicting the trend. For this week, forces in support of metals will not be very powerful, therefore watch out for this week.
Finally, I have been traveling for the last week, and shall continue to do so for the next four weeks as well. I should be in Santa Barbara in the last week of August.
I wish you good luck in your trading this week.
Thanks and God Bless,
Sharma Mahendra www.mahendraprophecy.com 16th July 2006