Dear Friends,
Here is small of this week newsletter I am putting here, On Sunday we mentioned that how scary Italy situation looks. I am sure you will enjoy this small part.
Thanks & God Bless MAhendra Sharma
Dear Members,
Last week European news dominated the trend for all markets. Media and many investors got very excited. They think that after positive announcements all problem of the EU will be over within 24 hours. I put medium term picture of EU on table then I will say Greece, Italy, Spain, Portugal and Ireland’s negative news will keep coming at one stage will come that everyone just ignore EU and keep investing in area where they are confident. One thing we all are aware that EU has fundamental problems bigger than USA’s unemployment and housing problem. I will recommend to buy euro if only Germany and France is part of it otherwise euro is like a time bomb for the world currencies market which can bring uncertainty in currency valuations.
In this week’s newsletter I wanted more on EU but I will keep it small and simple as I am just in final phase of finishing my book and I would like to finish it by next weekend. Before I start this week’s trend I would like to remind you; “DON’T BUY EURO FOR MEDIUM TERM ON ANY GOOD NEWS, I AM TOO CONCERNED ABOUT EURO AND ITS FUTURE.” Papandreou won vote by 153 to 147, and we all aware that Papandreou likely step-down on late Sunday or Monday this may help investor’s sentiment around globe on Monday but I see that the positivity will not last for more than a week. Yes it looks like that Greece will accept EU’s proposal and they will take the money as they don’t have any choice left. This is the another positive news is on card but all this will take place once Greece PM goes, and we all aware that EU finance minister are meeting on Monday so Greece has to do something before it gets too late for them to remain in EU. On the other hand however we have to watch Italy’s bond market as they are at important technical level. Planets says buy on uncertainty so we will advise you to do that during this week.
Currently USA is sitting in hot seat as economic data are showing improvements in USA economic recovery. Market rise or fall, one thing is very clear and that is that US Dollar is backed with pride so watch dollar trend in medium and longer term.
Italy’s bond market looks very scary so watch Italy’s bond closely during next week and you will get answers as to why I am so concerned.
I wish I had the label of an economist or financial analyst with degree. To speak with that tag so at least then media and financial institutions could have taken me seriously. However I am happy with my tag as a financial astrologer. Nature has chosen to do this job and I am doing it very faithfully and fearlessly. I thank you for supporting my work, I know many members are still with me since 2001 even though from 2005-2010 my predicting era was not that great as I was in negative Astro cycle, I came wrong on many occasion during this period. I know my wrong advise must have hurt many but I sincerely deep from my heart pray for them that from 2012 to 2014 nature returns give back many times more than what you lost.
HERE IS THIS WEEK NEWSLETTER 7-11 NOVEMBER
GOLD/SILVER
This week gold….
BASE METALS
This week copper, platinum and palladium will trade….
COFFEE/COTTON/COCOA
This week looks…..
SUGAR/ORANGE JUICE/LUMBER
Avoid all these soft commodities…..
STOCK MARKET
Last week stock markets went down 2 to 3 percent but I call it a consolidation. If the EU was not in a dangerous situation I would have advised you to go all in, in S&P.
Important events will take place on Monday after CME announcement – Most of us are aware of CME’s announcement on Friday, that for short term they are reducing maintenance margin on most of future and option trades to facilitate transfer all MF global position to other brokers so holders don’t get margin call and transferring account get settle to new brokers.
We will also get a clue in a few days once all accounts get transfer because currently all positions will transfer at lowered margin and I think that from Tuesday or Wednesday maintenance margin call will be back to normal so that will be time to watch high leverage speculative positions Institutions are holding in MF global. These institutions will have to offload in new brokers account as new broker may not allow that huge positions.
I came to know that MF Global were favoring many big clients to hold huge position with less margin so those trades have to be offloaded at new brokerage house. This will also give us indications that in which market over leverage position was building up. If we take all into account a large amount of trades will take place in future market on Monday and Tuesday. If any large position was help by other big institutions at MF global will have to liquidate at new brokerage house or they have put in money to hold that position. Monday will surely be an interesting day and this may bring huge volatility in futures markets on both sides. It will be the most interesting day as solid deep pocket will enjoy and take over position from weaker trade holders.
This week we recommend……
TREASURY BOND
This week treasury bond will trade…..
GRAINS
This week grains prices will….
OIL
This week oil will remain in…..
CURRENCIES
We are just waiting for the most important indicator for Dollar……
Thanks & God Bless
Mahendra Sharma
Sunday 10.00 AM 6 November 20122