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This week newsletter and grains are in hot seat..

Dear Members,

It is important to understand my indications, therefore please carefully read this as I am trying to explain why many are still not having great returns.

 

In comparison to technical analysts or in terms of micro-economic view, my newsletter may not match their service, but I always try to give an insight of future time as I see it through planetary movements. Often times, NATURE or the hidden wave has given me accurate indications that would have earned mind-boggling returns today if one had followed those predictions. This is not withstanding the fact that I have been wrong several times, including in regard to a weak stock market trend in 2004/5. Following those predictions in the last ten years would have ensured a stable future without much fighting with the market.

 

When I constantly repeat a prediction, it means that there is something in it and that one must remain alert. It also means that one should put part of his money in that area for the long term. To illustrate what I mean, letís see how one would have faired in the last ten years:

 

1.     From early 1995, I kept repeating in every interview as well as articles that people should buy technology as well as telecommunication stocks. Till October 1999, I was still urging that one should invest in the tech area. Soon after that however, the planetary wave started indicating the end of the bull market, and with similar zeal as before, I told everyone to sell in December 1999. I actually made a fortune in this myself, investing $17000 and reaching 3.00 million by December 1999. Many fortunes were made during the same period, but unfortunately, a large number of tech investors lost money as well. Many of them are those who became greedy or thought they knew the market well, convinced that they could keep making money.

 

 

Again, we announced the bottom of NASDAQ in early 2002 and that was also proved right. My prediction of a weak market in 2004/5 went wrong because I misunderstood the role of Saturn and Jupiter in relation to the stock market and the commodity market, and that was my missing point. As for now, I see the USA stock market moving towards a historic high, with the relationship between the USA MARKET and the DOLLAR being of a rise. Commodities will however remain very volatile. 

 

2.     In early 2001 I gave an alert to put money in oil, gold, silver, platinum, platinum and palladium. At the time, oil was at $18; gold at $270; silver at $4.50; platinum at $420, while palladium was at $280. I recommended buying all kinds of mining and metal stocks as well as energy stocks. At the time, I kept recommending this every other day and in May 2005, I recommended selling base metals stocks including steel, iron, titanium, nickel etc. We all know that after that period, they remained weak and never saw those prices again.

 

 

At the end of 2005 and early 2006, I recommended selling gold and silver though I was early in my prediction, since I was uncomfortable with some planetary movements. However, we also made a good return on investment though many kept buying. Prices and now back there and many stocks are lower than the level at which we sold.

 

As we can see below oil and metals have turned around from 2001, but is this run over? For oil, yes; but for metals, no; as there is still a new era that is pending.

 

3.     In the middle of 2001 I very strongly recommended selling the dollar as I saw it selling off against other currencies in the international market. During the same time, I recommended buying the Euro at 0.83, the Pound at 1.38, as well as the Japanese Yen, the Canadian as well as the Australian dollar. This occurred as predicted, but in the first week of 2005 I came up with a reverse prediction recommending buying the dollar. This was great timing because I expected the Euro to go to 1.36 against the dollar, and it actually did. At the time, currency traders made a fortune.

 

4.     There are many other predictions like the rise of coffee, treasury bonds, orange juice, lumber and grains, which have caused us to do quite well.

 

As a member, I would like you to understand my messages as you follow my work. Among my members, there also are many financial institutions, banks as well as big traders who and they analyze and give serious attention to my predictions. As I have mentioned before, it is important that you understand my work, and my way of writing. Here are a few points that one must bear in mind:

 

1.     Whenever I come up with a new trend in any commodity or currency, there is a reason behind it. However, it could sometime take a few weeks or months for the prediction to fall into place, and therefore one should not trade aggressively on my trades. Instead, one should take a three percent position investment and only start adding the position after seeing that the wave is finally in full control. Sometimes, you can build pyramids- I have done that many times and made fortunes for people.

 

 

2.     After you start building up your position, you must also follow (twenty percent) charts, the news and other market indicators like geo-political situations, world economic health, who is buying, volume, people or media interest, open interest, commercials position as well as news- since most big people trade with these indicators.

 

 

3.     Nature doesnít like hatred or love because they always force a break in the line of discipline. One must never become hypnotized by the mere fact that I or indeed someone else is saying that gold will go to $1500. The Moon controls the mind and one could sometimes take the wrong decision.

 

 

For instance, I have been saying for the last two months that gold will reach $1000 in the long term. However, I have also been recommending staying away as there is a short-term negative period. It is therefore very important how one makes his decision. In the present case, one should wait owing to the short-term negative spell, which could push it down $550, $500 or even lower.

 

Money management skills are very important here with stop-loss and investment strategy being very helpful. Most importantly, it is only prudent to buy when we see planets favoring gold or that it is holding up well even during a negative period.   

 

Just look at how many big people have lost or got stuck in oil and metals at higher prices. Being powerful, they may be able to take this kind of hit but if you are a small or medium investor, you donít want to get into these kinds of situations. The point here is to avoid extremist views, and not get hypnotized by their recommendations, for history shows that extremist views are always destructive. We want to be logical, intellectual, and intelligent, staying with the system and following the wave when appropriate, while avoiding the harmful ones.

 

I just wanted to share my feelings and my views as I predict the market and trade at the same time. I will soon be launching a unique hedge fund. I AM NEITHER TRYING TO SAY OR CLAIM THAT MY WORK OR I ARE PERFECT, NOR THAT YOU SHOULD FOLLOW ME. I am a learner; conducting research of planetary movements or the wave. I am simply presenting a theory that is harmless and that gives great benefit when well followed. As demonstrated in the last ten years, it is a theory that works and has benefited us.

 

I give great importance to nature, as we are alive because of nature; ultimately, we shall go back to nature for we are part of it. Why donít we therefore flow with nature without greed or excessive expectations and experience natural happiness? Do not take a risk that is too great, do not imagine that we can work wonders overnight, for the wave takes its own time, and no amount of prompting or wishing can alter its course. For instance, the technology boom (1995-1999) and metals/energy (2001 to 2005) were waves that took place at their opportune time, and ultimately faded after running their full cycle.

 

To conclude this first part, my daily updates are for the day traders; while the weekly newsletter speaks of the weekly trend as well as the overall scenario of market trends, including the medium as well as the longer-term views.   

 

Let us see what this weeks holds for the market:

 

Financial predictions for 9th to 13th October 2006:

 

GOLD

Last week we recommended a wait and watch policy for gold, and were also sure that gold wouldnít trade above $603. This is what happened, since $603 was the top for last week.

 

This week gold will open high and trade higher on Monday. I therefore recommend buying for a day and getting out by Mondayís closing, as a weak trend in will start ANY TIME from Tuesday.

 

Gold will trade with huge volatility and should get weaker again in the last two days of this week (Thursday and Friday).

 

We are now quite close to a turn around, it will be better to just let the next five days to pass. We shall soon make a decision therefore wait for my alert, which may come anytime. If there are any signs of uncertainty in the international scenario, gold could reach $584.80 to $588.80.

 

I normally send an update from Tuesday for the daily trend, and you will receive an alert towards the weekend, therefore wait for that.

 

SILVER

Compared to gold, we were more optimistic on silver last week, and indeed it acted accordingly. This week silver will trade positively on Monday and may trade in a higher range. However, it will be weak from Tuesday, hence trade accordingly.

 

The trading range for silver will be $11.30 to 10.62. One should buy silver on Friday if it trades lower. My daily update should guide you more.

 

PLATINUM/PALLADIUM/COPPER

All these metals will trade higher on Monday and may remain stable except copper, for which I see a sharp downward trend from Tuesday. Platinum and palladium will trade sideway or in a small trading range, therefore avoid trading these metals. One can sell copper.

 

STOCK MARKET

This week the US stock market will trade sideway or in a very small range and I would therefore recommend avoiding trading the market. Donít buy any indexes this week. Sell the Asian and European markets.

 

Take advantage to sell the markets in the last hour of trading sessions in Australia, Japan, Singapore, Hong Kong, India and all major European markets. Cover back all shorts on Thursday or Friday.

 

S&P will fall around 12 points in volatile trading on Tuesday and Wednesday but over all USA market toward to new high.

 

TREASURY BONDS

Last week bonds went down as expected and they should remain weak during this week- take advantage and sell in any re-bound.

 

COFFEE

Last week coffee prices remained weak. Major planetary movements indicate buying coffee on Thursday in the last hours of trading session. We should be buying as we expect a twenty percent rise in it.

 

COTTON

We recommended staying away and still have the same opinion. The time to buy cotton is near but it is more prudent to wait, probably for another one week.

 

SUGAR

By selling sugar at a higher price around $18, we made good returns. Meanwhile, Saturn declares that the downward trend is still not yet over and we should therefore avoid any buying in sugar. We will grab the opportunity to sell if prices rise more than three percent.

 

LUMBER

After selling at $294 we covered position at $233. After a sharp fall, lumber moved up a bit last weekend and we should be selling if it moves three percent higher from this lower price, as Mercury is not showing signs of recovery. Instead, it will change houses after two weeks and this might bring the prices up; but till then, we should be doing what we need to.

 

GRAINS

I am thankful to Jupiter and other planets, as we have had the best week ever in grains. Trading both sides made what some would be happy to make in a year. We have been buying, and added some more early last week, further adding some more on Friday during weakness. There is reason to add grains at this time of the year when fund people usually go short. Historically, the trend also remains weak. Many brokering houses recommended shorting and many small investors have been stuck with short position. Everyone is expecting a fall anytime, but the million-dollar question is whether this will occur.

 

There is no hurry in selling your position in grains. Last week we mentioned that we sold ten percent of buying and sold twenty percent more at Thursdayís high, but bought back on Friday during weakness.

 

Warning - I expect a very powerful wave in grains therefore donít short grains. If one wants to book profit, there is no harm in that part of it every on rising, but donít short.

 

We will add soy, soy meal and corn at this stage and we will hold position in wheat.

 

The daily update will guide on trading, but one can book profit if they rise more than five percent.

 

OIL

Once of the best predictions I have made in my astrological financial predicting career is the rise from $18 to $80, and the bull market ending at $80. Since the last two months when prices reached $80, we called the end of the long-term bull market in oil. We recommended getting out from oil, gas, heating, oil and unleaded gas, and that has proved to have been great advice.

 

We still donít recommend any buying in crude, unleaded or heating oil, but at the end of this week we may recommend buying natural gas. Nevertheless, wait for my update.

 

We should take the opportunity to sell oil on Mondayís higher opening- donít short natural gas- but cover all short by Friday because we may buy oil from Friday for the short-term.

 

Wait for the alert.

 

CURRENCIES

I would like to thank you all as I have received many emails from investors in different parts of the world in regard to the prediction of the dollarís rise. However, as far as I can see, the dollar is still at lows, and it has just taken a few tottering steps like a baby learning to walk.

 

There are many financial institutions and banks that are closely watching the dollar prediction. They are still not convinced that the US Dollar can rise, since they hold a list of problems that make this improbable. In addition to several other issues, such factors include: the geo-political situation, cost of wars, diversification of currency holding of different countries from the dollar, risk of inflation, housing problems, Chinaís currency issue, dependency of USA trade on a few countries like China and Japan, the deficits issue, increase of economic activities in emerging country like India and increased investment in these countries, e.t.c.

 

Indeed, I would also not hold the dollar if I gave serious thought to all these points, but I put more than sixty percent weight on planetary movements -and they are saying to me, ďbuy the dollarĒ. Indications are that the dollar will gain against all currencies and people will soon get tired of holding other currencies when they see losses in currency valuation against the dollar.

 

The US stock market will gain and those holding US stocks will gain double since their investments will be in dollars. When they take the dollar home, they will gain double against their home currencies.

 

Last week was the best for us as the Australian dollar, British Pound and the Euro sharply went down while we were short. Each day we are adding the dollar index from profits of other trades and this week we will add more position in the US dollar and sell all side currencies. I hope you understand when I say side currencies.

 

IMPORTANT NOTE:

Metals are facing a charge from the US dollar and the fight will continue. It will be interesting to watch this fight between the Elephant and Rhino, though they will soon have to become friends. They both know that they donít have choice but to live in the same enclosure.

 

TRUST Ė Once again, please refrain from forwarding this newsletter to non-subscribers as it is only intended for your use. Just as you have faith in me, I have the same trust in you.

 

We will send a sample copy to anyone that makes a request.

 

Thanks & god Bless

Sharma Mahendra, Sunday 8 October, 3.00PM Santa Barbara

www.mahendraprophecy.com