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Today's Trade & News

Small part of this week newsletter and Thursdays update....

Dear Friends,
Here is Thursday updates and this week newsletter for you review. Financial astrology is becoming more valuable and reliable indicator. Everyone try to predict market trend and we also try same but our indicator is based on planetary movement and we are proud on our theory.
 
Thanks & God Bless
Mahendra Sharma
 
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Dear Members,
This week Markets has been trading as predicted, gold achieved first predicted target and silver achieved lowest predicted target of this week, we expected rebound on Friday so recommended buying on late Thursday but all markets went up on opening of Thursday. In this week case market won't rebound on Friday so take sell position now in metals, Dow and currencies.
 
Gold is trading at $1044.20, silver is trading at $16.68, copper at 3.090. These are great level to exit if any one bought is at lower level because tomorrow metals and can hit new lows.
 
Best trade will buy dollar index today, currently is trading at 76.12, tomorrow dollar will be on fire and may hit this months high.
 
Oil trading range also fulfilled, our trading range was $81.20 to $77.00, now one shouldn't short oil for few days but those who bought around $77 can hold position or book profit around $79.90.
 
Grains traded weak as predicted, today they rebounded because weak dollar and rebound in all commodities, after 19 November grains will start moving higher. Currently one can buy corn at $368 to $357 and wheat around $471 to $484.
 
Treasury bound trading weak as predicted, and it will trade weak from here.
 
All stock market corrected big during first three days of weak and don't expected that every day stocks will fall, today they rebounded but tomorrow again USA market will fall. Asian and European traders should take sell position on rise of tomorrow or before closing.
 
Mahendra Sharma, 29 Oct 2009
Thanks & God Bless

 

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"Do not believe in anything simply because you have heard it. Do not believe in anything simply because it is spoken and rumored by many. Do not believe in anything simply because it is found written in your religious books. Do not believe in anything merely on the authority of your teachers and elders. Do not believe in traditions because they have been handed down for many generations. But after observation and analysis, when you find that anything agrees with reason and is conducive to the good and benefit of one and all, then accept it and live up to it." 
Buddha
 

  

CSP Dear Members, 

I still want to start this week’s newsletter with USD because it is important that we discuss a few fundamental points here with astro outlook. 

A Few Fundamental Points - USD has been moving down, and this is obviously creating inflation in parts of economy, and inflation will worsen if USD keeps moving down. Is our world’s economy ready to take on inflation problems at this stage when they just came out from the worst financial breakdown in recent history? Are we ready for higher commodity prices and interest rates that result from high inflation? Many will say yes, but I will say still companies are still not comfortable with high commodity prices and interest rates because manufacturing and financing costs will move higher to impact still-fragile profit recovery. In addition, further weakness in dollar may create huge imbalances in inancial systems because USD still occupy over 60% of global reserves. 

Will USD government and Fed allow the USA citizens to become poorer day by day against other nations by ignoring fall of USD? Will other governments allow their reserves to continue to shrink?

Many export or international American companies are saying weak dollar is benefiting their competitiveness, then why don’t they want to take dollar 90 percent lower from here or like Zimbabwe so that they can earn more dollars?! This is not valid point because this is bad for the country and in the end will be bad for most companies and citizens.

 

Most of the fund managers and financial media are talking about emerging economy like China, India, Brazil and Russia but will you accept these countries’ currencies? Or will any international bank accept it if any Chinese person comes with Yuan in India or goes to any other country?  What about real, Rubble or Rupee? We are saying that whole financial system is universally built upon USD and no one will argue on this point.

According to my knowledge and fundamentals of world currencies, the system can’t live for one day without the US dollar. We pray that it doesn’t happen, but if the dollar collapse from here then the whole world financial system will go crazy. There will be a collapse of all paper currencies, the whole banking systems would just close down, and stock markets will be suspended for an unlimited period, money transfers and international trade will stop, import and export will grind to a halt suddenly. I am sure God won’t allow these kinds of days to come, and so won’t world governments. I don’t see these kinds of time coming either because we see great future for the stock markets and a great future for the world economy ahead from middle of 2010.

I am sure Ben Bernanke knows this, and I am sure all major central bank governors are aware of the consequences if dollar collapses from here. Recent weakness of dollar is the result of creations of excess cash liquidity which is created by Fed through near zero interest rate, distributed everywhere in term of USD and buying stocks and other financial instruments to stabilize world economy. It means that they are borrowing/selling dollar and buying local currencies and putting money in market in many countries.    

I feel that this game is played so well but now many big investors are trading fearlessly. They are in a party mood and hangover is still there but we shouldn’t forget that one tsunami can take everything away. My warning on markets is still there and another 30 days are remaining and anything can happen. So stay in cash and time will provide you with the best opportunity of investment.

 

Dollar is the safest currency today. Metals are in volatility and speculation is taking place there as a lot of cash is chasing gold. I am so sad gold has lost its own identity and pride because it is trapped by speculators or gamblers and I am sure gold will punish them by the biggest fall in a shorter period.

I respect gold. I also mentioned many times that gold is part of nature, gold part God and that the reason that I still hold it which I bought physical gold when it was $280 and I will never sell because I respect gold as on few days of year I pray to gold because gold as part of nature or Gold is very close to God. I am just too concerned about the current time for gold and once it passes then we will recommend buying it again but for the time being I will recommend stay away from gold and it can reach $965, $880, $750, $645 or even $550!

Hold hands of dollar for at least seven years before the whole world banking system comes under biblical threat. That will be the time one should only hold gold and by that time we may have official gold currency. I have a lot more to say about gold but at this stage I want to stay away from it and watch it for a year. If its valuation becomes attractive during anytime next 12 months then we will recommend you to buy it. Same applies for silver.

 

Here is this week newsletter from 26-30 October

 

GOLD/SILVER

Last week gold and silver traded in a tight range. It has become a safe trade if you buy around $1052 then you will get $1064 within the same day, or if you sell at $1065 then you get $1052 on the same day. Brokerage firms are having the best time because day by day huge crowd is getting together and making money on daily basis but those who are positioning traders or hold for longer term are not that happy with this choppy trading pattern.

Anyway our job is to write the overall trend as well as the weekly trend. Our job is also to create awareness so that our followers can know what is coming in future time.

This week gold/silver will start moving down. Monday gold will start falling down so take a selling position on Monday and carry forward the position to Tuesday.

On Tuesday gold/silver will trade a bit sideways but there is no need to buy, sell on rise and carry your trade on Wednesday.

On Wednesday gold/silver will move up in the morning session but sell on any rise as it will fall again.

On Thursday gold and silver will try to gain and it may move up but sell on rise. I will recommend short term traders to cover positions by the end of day on Thursday or early morning on Friday as late Friday gold and silver may rebound. Over all trend is weak.

This week trading range for gold will be $1059.80 to $1023, if it breaks $1023 then the next target is $992. For silver trading range will be $17.87 to $16.91 and if it breaks $16.91 then the next target is $16.41 or lower.

Metal stocks will have a nightmare during this week, so again please stay away from gold and silver stocks.

 

COPPER/PLATINUM/ZINC/ALUMINUM

Last two weeks we were not negative on base metals but from this week we see planetary moment is turning negative so great time to take selling position in copper, platinum, aluminum, zinc and lead. Sell copper at $303 and platinum $1395. Aluminum, zinc and lead will fall more than seven percent during this week.

 

COFFEE/COTTON

We last recommended selling coffee at around $145.20 and that has been proven very correct. On Friday coffee moved down to $136.30 from $145 and this was a huge move.  Cotton traded sideways. This week we see coffee, and cotton both trading sideways. I won’t recommend any new buying position in coffee and cotton.

Both these soft commodities will move up sharply from mid December so I recommend you buy before that, I will also remind you later.

 

SUGAR/COCOA

Both of these soft commodities traded sideways. I recommend staying away from both of these commodities. Those who are already short can hold their short positions. On Monday one can take a new selling position in cocoa.

 

TREASURY

Last week 30-year bond prices traded weak as predicted. We see a sharp fall in bond prices from this week. Those who are already short can hold their positions and those who wish to take short can go ahead after the opening of USA market.

 

STOCK MARKET

Last week all major markets traded weak. This was bit relief for us because finally some indication of fall has come. I was very surprised on Fridays move because strong results from Microsoft and Amazon were not able to keep bullish momentum in market. Both of these stocks are key stocks and the earning announcement should have encouraged investors and fund managers to buy more stocks but somebody came in and sold all other stocks. Maybe powerful people wanted to take advantage of booking profit on positive news.

Anyway our outlook is still the same. We still see a huge correction as negative time is not over yet. If the markets don’t fall in the next three weeks then we will change our perspective but until that time we will hold our bear market prediction.

All Asian markets will open down and keep moving down. Indian, Hong Kong, Singapore and all other Asian market will move down sharply except China.

Russian and South African markets will move down in a big way so if you have any investment in these markets then you should be getting out 100%. Sell ETF’s of Indian, Russian and Hong Kong markets.

European market will also move down. Sell everything on board and hold short in all European markets. Short term traders should cover their positions on Thursday evening or Friday morning as on Friday the European markets will recover.

USA markets will also move up on Friday, so you should cover some of your positions if you have. Metal stocks will be the worst performers during this week along with banking and technology, so take position in these EFT’s. Only energy stocks and retailers will support this market.

This week: Last hour of Thursday or early Friday one should cover some shorts in markets. Again, we are expecting sharp correction from Monday in all markets.

 

GRAINS

Overall we had the best time in grains in the last three weeks. Booking profit during last week has proven correct. On Friday corn and wheat came down sharply from day high. Late or in last hour of Monday grains will try to regain. On Tuesday they will fall but once again in the last hour they will try to gain.

Grains are entering the most interesting time but the shorter term time is bit uncertain so book profit in futures market and buy some calls or if you want to hold positions in futures market then take some puts so you secure you profit or simply hedge your positions.

Soybean will trade weakly. Hold core position in wheat and corn for longer term or buy calls for 2010.

 

OIL

This week oil will trade sideways. The last three weeks we were not negative on oil trend but this week we see some negativity in oil. For the whole of this week oil will trade in the trading range of $77.00 to $81.30. Buy on fall and sell on rise every day because this week oil will trade like gold did last week.

Natural gas will keep trading weak, so hold your shorts in Natural gas. I see natural gas dropping more than nine percent during this week.

 

CURRENCIES

I don’t want to write much about dollar as I have been talking too much on it. Last week Yen traded weak as predicted and we still see weakness continuing in Yen. The next target will be 1.0620. This week Japanese yen will try to gain on Tuesday and Wednesday. On Monday, Thursday and Friday Yen will trade weakly.

Commodity currencies will move down sharply so a great time has come to sell Australian, Canadian dollar and Rand. All of these currencies will move down sharply. Canadian dollar and Australian dollar can fall more than four percent (four percent is huge in currency market).

Euro and pound will also trade weakly. From Tuesday Euro will move down sharply, and Pound will move down from Monday so hold short positions in all currencies.

Dollar has become the victim of the survival of the economy. Dollar took all the pain and supported the world’s financial system otherwise I don’t know what would have happened in the last six months. Now things have stabilized and dollar will be back in the game but now game of dollar will be completely different. I still hold my prediction that dollar index will touch historic figure of 200 in the next five years. Currently you are getting dollar index at 75.50 and this is a final opportunity, just like when gold was trading $272 and we called final opportunity buying. But I don’t know how many people have actually bought and kept positions. Buy USD fearlessly and hold positions for longer terms!

  

Note: 

Note: Year flashnews subscription cost is just $1.30 day, and weekly newsletter cost less then $6.00 per day and which is nothing against the risk we take in markets. 

 

 

Thanks & God Bless

CSP Mahendra Sharma, www.mahendraprophecy.com