A war has started in the financial market. In this war the Asian market doesn’t have a major role to play, but the European markets play a small role because lot Middle-Eastern countries, Asia, and Russia do more business with European financial institutions than they do with American institutions.
Wall-Street or big money is out there for war and they will kill manipulators big funds and market makers at this stage, look at what is happening in the Energy market. This confirms that many big names bank account, trading account, and energy trading funds will close down overnight.
Thank God that I never recommended any buying in Oil. On the 5th of January when oil moved higher on the Iran-USA news to $64.75, I said that it will be one of the best opportunities to sell oil as we may not see these prices again in 2020. Since then we have been recommending selling oil every single day. Now our price target for oil is $27.91, so watch this level closely and wait for tomorrows Daily Flashnews to see whether oil will be heading towards $25.00 or not, or it will hold $27.91.
On the other hand, Gold is holding above $1688, but it must close above this level to confirm a bullish trend, so wait for that and don’t get trapped as my view is cautious.
Lately there has been a 90 degree rise and fall in many Currencies, Markets, Bonds, Interest Rates, and Oil. This is scary, I was very worried about the Middle Eastern Oil rich countries and expected that major economic turmoil to take place. At this stage they can come under threat of economic fallout, we already recommended avoid any investments in Middle Eastern countries like UAE, Bahrain, Qatar, Oman, Kuwait, Saudi, and their leaders must make the right economic decisions otherwise everything can fall apart financially.
Globally the Equity market can fall further but the USA, China, and India can rebound strongly in the next 48 hours. You must read todays weekly newsletter letters.
Emerging market currencies were falling hard against USD and Euro, while the USD is losing value against frontline currencies like Euro, Yen, and Franc which is a bit surprising. At this stage selling Euro, Franc, and USD against Rand, Real, Peso and Rupee. I see major turn-around in these emerging market currencies which can make fortune in the medium term for buyers.
S&P & NASDAQ will rebound strongly, low will be formed today and todays low won’t be seen again in 2020. Remember Mercury negative cycle is ending Monday night 8.10 PM Santa Barbara time. Plan aggressive call options.
Thanks & God Bless
8 March 2020, 10.30 PM PST.