Dear Members,
It is always a concerning time for investors when I land in India. On Tuesday, the markets witnessed immense selling pressure, especially in tech stocks across the board. Tech and cryptocurrency-related stocks went down sharply. Crypto-related stocks and ETFs have been falling nonstop overall for the last eight days, but the selling pressure created some panic in the market on Tuesday. We will discuss the market trends in detail in the index sections from here onward. Markets just entered Monday in the seventh cycle, so we need to analyze very carefully. This week, the Jackson Hole meeting will provide some directions. Next week, NVDA’s earnings will be the key one. Fed minutes and the Jackson Hole meeting will be key events.
In the very short term, S&P and NASDAQ are in our buying list in the USA trading sessions around the lower sides, which should be at 6401 and 22288 (September futures contract), these are the buying levels. Must read our book carefully, as markets have entered the seventh cycle, which favors bull and bear with a short-term trade-in and out strategy.
On the other hand, precious and base metals prices struggled as predicted. In this week's letter, we recommended selling metals on Monday and covering back on Wednesday, during the late USA trading sessions.
Energy prices are struggling as predicted, and more future weakness is expected.
Softs gained some value. Grains acted mixed on Tuesday. Take aggressive long positions in cotton and short positions in cocoa.
The Dollar Index is coming in our buying list, and most currencies are coming in the selling list from today, so plan your aggressive trade accordingly. The Brazilian Mexican Real, Peso, and South African Rand are ready to fall big as well, so it's a great time to make money. Watch our higher side level in the euro, Franc, Yen, Australian dollar, and emerging market currencies to take aggressive short positions. The dollar index will make a significant upside move in the coming time.
Cryptocurrencies lost value, but it looks like the worst is over in the short term. Crypto stocks and etfs will do well from the middle of September, as per our book, and October onward, a one-sided rally in crypto is expected.
Next week NVDA earning is coming and it will come in our buying list, as I don’t see it going below $168.00 level.
Thanks & God Bless
Mahendra Sharma