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Weekly newsletter from 13-17 December
Dear Members,
We’re all aware that month of December is always very slow as trading volume drops and many funds conserve cash for withdraws and taxes. A few thinly traded commodities thus trade very volatile. History says that it is always good to stay from active trading in the month of December.
This week Fed will meet on rate decision and most of us are aware that Mr. Bernanke will not change Fed’s current policy. USA is coming back on right track but Europe and emerging markets are fighting to find a right path, and this is confusing for global investors. I had great faith in Mr. Bernanke’s astro chart and I still believe that because of him and his wisdom, today USA and world Economy have been able to skip a double-dip recession. President Obama took over power when USA economy was going through a horrible period, with housing crises and job losses, and people were expecting Obama to perform miracle. But how is that possible and there is too much expectation from him. Anyway he is doing his best and we should appreciate his efforts. I feel that he is a good human soul and a great man.
Let’s come back to financial markets: emerging markets are suffering but surely they will get help by USA indexes rising. Two months back we were talking about expensive valuations in emerging market and now everyone talks about that. Stocks are far cheaper in USA compared to all markets so I believe that money will keep flowing to USA. Also astro combinations are supporting USA market so this will add fire in rising trends. Lately we have seen that a few important economic data are indicating that USA is now on a recovery curve. On the other hand China is taking measures, though unwillingly, to slow its growth and inflationary pressure. This is the first indication that China’s rapid growth story will take a break here.
Commodities are looking tired, but still they can show some strength as their positive trend is sill supported by major planetary movement. Currency market remained volatile as many fund managers are not sure that what will happen to Euro or dollar from here. We are sure that money will keep moving back to dollar so dollar will remain stable as well as gaining value.
Uranium and alternative energy stocks are holding up well as they are still at a lower range. Last month’s recommendations ULBI (battery stock) is doing really well, and SATC is trading solidly.
Treasury bond lost some steam but still longer term thirty-year bond looks very attractive.
Tension between North and South Korea has settled down. We believe that this news was highly overrated but anyway media always have to find something shocking to report. China has become a key supporter of N. Korea and Pakistan but although on a shorter term China can sell cheap goods and defense equipment to these countries, we don’t know that how this will benefit China in longer term.
Let’s see what this week indicating for all major financial markets:
Weekly newsletter from 13 to 17 December
GOLD
Last week gold traded negatively as per planetary positions indicated. This week.
Trading range of gold will be....
SILVER
Last week silver traded in the range as per planetary movement. This week silver will follow gold
Trading range will.....
BASE METALS
This week we see....
Platinum and palladium will remain sideway, so we don’t recommend any new position in both of these metals.
STOCK MARKET
Last week all major markets trend remain sideways. This week positivity will dominate all major markets but still emerging market will struggle to take full advantage of this trend. This week S&P will touch a new high so keep adding S&P in your positions and I believe that this will be a great trade.
Cash S&P will touch 1,259 and cash Dow will move to 11,738. Indexes will trade sideways because of Fed decision on Tuesday but from Wednesday Dow and S&P will move up sharply.
European markets will also move higher due top Dow move. From Thursday and Friday Asian and emerging market will also move up sharply.
Buy all markets on weakness on Monday and Tuesday and hold positions throughout this week.
COFFEE/COTTON/SUGAR/COCOA
This week coffee will remain sideways until Wednesday but from late Tuesday coffee will move up sharply.
Cocoa prices will remain positive so add cocoa positions in your portfolio as we see cocoa reaching to $3,320.
GRAINS
This week grain will trade positively from....
OIL
This week oil will remain in a narrow range and we don’t see .....
Natural gas will remain sideways for the first.....
CURRENCY
This week dollar will remain sideways as major planetary position is giving mix signal so dollar will struggle to find clear directions. Trading range will 80.90 to 79.20...
Shorter trend dollar – sideways
Medium term – up
Longer term – Very strong up move
This week Australian dollar will try to move toward par value again and don’t miss opportunity of selling it around.....
Canadian dollar will...
British Pound will be only currencies which will find difficulties to gain value during this week, so it is clear that Pound will lose value against all major currencies.....
Swiss Franc will trade a bit positive.....
Euro will move up to 1.3520, and one can take a short position around that price. Currently one can avoid taking a short position in euro but one can buy euro around 1.3162.....
Yen will remain sideways, so we don’t recommend any trade in Japanese yen for this week. Range will be 1.1812 to 1.2070.
All currency prices are future contract of March 2011.
Note – dollar is ready to enter its biggest bull market but before this happen it will trade sideways for the next five to eight days.
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Thanks & God Bless,
Mahendra Sharma,
Predicted on 12 December