Dear Members,
This will be a very short letter, as I just arrived Mumbai from New York and the time is 1.00 AM here. Last week again all major markets traded as predicted and much appreciation goes to planetary movement indications.
There was a strong reason for the heading of last week newsletter “Weakness in Wall Street Thinking”. Most investors make investment decisions based on current news without looking into future, yet future can only be guided with waves of nature and planetary movements. Day by day our subject is gaining popularity and respect because now investors are clearly seeing the unique and extraordinary value of this subject. We have seen that planetary movements can guide us on investments of all time horizons—short, intermediate and long term.
Current markets trends are still very uncertain and during last two weeks I received many emails asking mainly two questions. First, they asked: “Mahendra, are markets rebounding from here or we are heading toward a crash?” And the second question is about the future of USD. Many think that dollar will fall because they are concerned about strength of the Obama administration, and about the health of US economy.
Everyone look very much uncertain or outright confused. I have very clear answers for both above questions. I will write my answers down tomorrow morning and send them to you in a separate flash update. At this stage my duty is to write the coming weekly trend before electronic markets open.
Here is this week trend from 1-5 Feb 2010
GOLD/SILVER
Moon and Mars positions indicate that from middle of Monday and early Tuesday gold and silver will try to gain. Later from Tuesday again weakness will start in gold and silver. This weak trend will continue till Wednesday evening.
From late Thursday positive trend will start in gold and silver so good time to buy or cover for short term, and this positive trend will remain for Friday as well.
So over all planets indicating that this week gold and silver will remain in sideways trend but any rise should be taken as a selling opportunity in gold and silver and all major planets are not supporting gold and silver for the intermediate term.
Last week our lower side target in gold and silver were fulfilled, so was our first target of 375 for HUI, the gold and silver stock index. HUI came down from 520 to 375, or around 27%, within the past month, which is a huge correction.
This week trading range for gold will be $1,097.20 to $1,063.80. Once gold breaks $1063.80 then our next target is $1,042.80 and if it break on higher side then $1,107 is the next upside target. Silver trading range will be $16.57 to $15.81 and if it break then $14.65.
COPPER/PLATINUM/PALLADIUM/ZINC/NICKEL
Last week copper moved down significantly with platinum, as we predicted.. This week Venus is indicating another big down week so any rise on Monday and Tuesday shall be taken as a selling or shorting opportunity in base metals. Our next target in platinum is $1,435 and for copper $288.80.
Late Thursday or Friday these base metals will try to regain so cover partial positions and get ready to sell again in the following week.
COFFEE/COTTON
Planet Mercury and Moon guided very well on cotton as our first target of $68.80 already got fulfilled. We now see sideways trend in this week for cotton, and therefore, no new buying is recommended but next week cotton may move up.
Coffee prices will start moving up from 15 February so avoid any new position in coffee. Middle of this year we shall see huge move up in coffee and we will guide you accordingly when the time arrives. This week we do not recommend any action in coffee either.
SUGAR/COCOA
Moon is giving indication of substantial correction for sugar price from the week after this week. The downward trend could very well start from this week. Therefore we recommend buying put options in sugar as more than 40% fall is on the way. On the upside sugar price can reach $30.79 this week.
This week Cocoa prices will remain positive on Monday and Thursday. The rest of the week cocoa will trade largely weak or sideways. Avoid trading cocoa at this point as planets are not giving clear signals.
STOCK MARKET
Within 15 days, the 15 Jan 2010 second eclipse has brought disasters to stock markets around the world. Our prediction last year that US markets would bottom on 7 March 2009 has proven outright uncanny. Yet from Aug 2009 onward we never had a great touch with stock market. Our prediction that markets would start turning down did not pan out immediately as global markets (outside of China, which fell 20% in Sep 2009) continued to nudge higher, albeit only marginally so.
Since last two months, again, we have grown very confident that there will be mini crashes in all major stock markets from 15 of Jan 2010, and the expected severe downward move has started forcefully. Sometimes I don’t know that how I could express my deep gratitude towards planets for their guidance, so simply I bow my head after looking at the sky, and says thanks.
In two weeks, following our guidance, many of our members have saved or made huge amount of money by selling or shorting stocks. We still don’t recommend any buying in stocks in any markets but yes there will be short term recovery in all markets on Thursday and early Friday. Monday also all major markets will try to recover before closing. We are recommending partial short covering later on Monday and then sell again later next week because still further correction is on the way in all markets.
Honk-Kong, China and Japan will stabilize first yet USA and European markets will remain weak. Any rise should be taken as a selling opportunity.
Last week SMN, FAZ and EDZ performed extremely well, and we recommend adding more position in these stocks on Friday. TZA should be watched and buy it by Friday.
NOTE: Next week trend will be very interesting one for all major markets so wait for the following week’s newsletter of critical importance.
TREASURY BOND
Last seven years planet Jupiter clearly guided us trading Treasury bond very accurately. This week I see bond prices start moving down so one can start taking short positions in 30-year bond from Wednesday. Our first downside target is 115.20.
GRAINS
This week grains will remain sideways, as our most of members are ware that our outlook on corn and wheat is very bullish for this year. We already mentioned in previous issues that around 12 Feb grain prices will bottom out so get ready to start building significant positions after this week. In the meantime, we recommend buying May 2010 calls for corn and wheat.
This week grains will remain in sideways.
OIL
Our oil call made great profit for many members, and we are expecting some rebound in oil on Monday and Tuesday. However, one can sell on Tuesday’s rise. Once again the best hedging will be selling oil and buying natural gas as planet Mars is supporting natural gas from this week on.
Trading range for oil will be $71.25 to $75.20. Natural gas will bottom out on Wednesday so buy gas on Wednesday and hold positions for longer terms. Trading range for this week will be $5.07 to $5.61.
CURRENCIES
Details about our currency predictions and comments will be sent out in a separate flash later in the week but let me first give you a brief outlook for this week.
US Dollar performed strongly during last week, again as we expected. Globally many bankers and hedge fund managers are now reading our weekly currency outlook very keenly because they, like countless other investors, are confused on the future of dollar.
We are not. Saturn and Jupiter is guiding us clearly that a huge upward wave in dollar has just started, and we are only in the beginning stage of this wave.
Dollar may come down bit in European and USA trading sessions later in the week but one should take such correction as a buying opportunity in dollar.
This week all commodity currencies will perform very negatively so sell Canadian and Australian dollar. Higher side for Australian will be 0.8905 and lower side 0.8675. For Canadian, 0.9410 to 0.9110. Clearly, big money can be made in both of these currencies.
Euro and Swiss franc will gain in the latter parts of Monday, Thursday and Friday trading. Weak days will be Tuesday and Wednesday. Any sharp rise to around 1.3980 should be taken as shorting opportunities for Euro.
British pound will be weaker so you may ignore Euro’s move this week and sell pound from Monday on.
Late Monday one can sell Yen as this week Yen will remain weak. Our target is 1.0810 and higher side 1.1129.
Now it is 5.00 AM in Mumbai and I will stop at this point. Wait for 24 hours as I will be sending you more writing on currencies and stocks.
Thanks & God Bless
Mahendra Sharma, 31 Jan 2010