Dear Friends,
Here is this week letter, 50% discount offer is ending in few hours.
Thanks & God Bless, Mahendra
Dear Members,
Today I completed one more journey in my life. Yes day by day we are approaching the final destination of life. Success and failures, ups and downs, days and nights—everything has two sides and as we progress in life we experience all these. We shouldn’t always expect positive outcomes because oftentimes pain is a necessary preclude. Once you have suffered the pain and you will understand the value and meaning of happiness on a higher level.
I also go through these volatilities of life. As a market forecaster and advisor, when my prediction fails, I put more effort and hard work to see why I fail? Financial markets are unique because the basic nature of financial market is uncertainty through which we experience gains and losses inevitably. Yet through introspections and meditations emerges the real causes of mistakes and next time we make one fewer kind of mistakes.
Anyway life is the most interesting subject. To continuously deal with situation with right tools makes it most more valuable. I never fear of coming wrong and I never get too excited coming right. Yes whenever I am wrong I analyze as well. For example, during the last two weeks, volatility dominated all major markets, much more pronounced than either a bear or bull trend. Finally I found that Retro Mercury played the critical role in pushing everything up. This Mercury will remain in this position till 12 September so markets will remain very volatile before then. It’d be very risky to trade till 12 September and on 15 September Sun will join Mars and Saturn will wreak havoc in markets. Prices can fall without any reason and suddenly the whole rosy situation of a bull market will turn into an extremely pessimistic bear market. And this situation will continue until 14 October after which a historic bull market in stocks, metals and other commodities will take place.
I hope you take my words seriously and just throw all your other indicators to the dust bin until 12 October. After 12 October you can again start using your tools (fundamental, technical and economic analyses). Yes this is a very strong statement I am giving here and we will review on this newsletter how my prediction fares on 12 October 2010. Go for the bear trend from this week on if you are not afraid of volatility, but trade with very small positions. Those who want to wait until 15 September can wait.
In the past many time we were right on bear trends, but last two weeks we were wrong and we found the reason. Now it’ll be great time to make money when the bear trend approaches with extremely high speed. Once again this bear trend will just last for three to four weeks but many traders will remember this bear trend for years. Like still our followers couldn’t digest that how we able to predicted oil falling to $50 when it was trading in bull phase and reached $140 and many were targeting $200. Metal investors or commodities investors need deep mediation before taking actions because I hope they don’t lose what they made in the last three months.
Monday USA markets will be closed but the electronic market will be running for half day and many other markets will be also trading.
WEEK NEWLSETTER FROM 6-10 SEPETMBER
GOLD/SILVER
Last two weeks we were absolutely wrong on metals predictions. During both weeks’ Tuesday (Mars) turnaround occurred in gold and silver prices from their lows. The previous week gold jumped from $1,211 to $1,238 and this week again from $1,233 to $1,251.
Last week gold made high of $1,259 and silver $19.97. It is a big lesson for me because I never gave Mercury that important role in metals’ trends. I hope that from here on I will able to predict far better in metal trends during volatile times.
This week Mercury and the combination of Mars/Saturn will create volatilities so traders should be very careful. This is a warning sign for buyers as well sellers because if buyers don’t book profit then they may miss the big pie and if short sellers go aggressive with high leverages then they can also lose as this week is still quite uncertain. I don’t want to predict anything for this week but in short gold and silver will move both sides aggressively.
Metal stocks will have final laugh before they start falling with metals any time after 15 September.
I don’t want to predict specific of highs and lows during this week (they won’t able to move much higher from last week $1263 and $20.09) but surely I’d like to warn gold and silver traders not to trade big positions at this stage and the best advice I can give buyers is that you should be 100% out from future contract and if you don’t like to go out of 100% then sell all your buying in futures market and buy calls for December or next year so if any drastic fall comes you don’t lose what you made in last few years.
One thing is for sure: gold and silver has very few days left before they correct, and yes they can correct substantially. Sun transit is guiding me that both these metals can fall between 10 to 30% in the next 38 trading days.
For intraday traders in gold/silver - Monday, Thursday and Friday sell on the rises and Tuesday and Wednesday buy on the falls. This week planetary position indicates that from late Thursday 9 Sep metals will start moving down.
HUI index will top out this week around 495 and from her precious metal stocks will move down big.
COPPER/PATINUM/PALLADIUM
Last week copper and other side metals remained very positive. It was purely phenomena of Mercury and till 12 September I don’t want to predict any big trade but calculated risk of selling will pay you huge in coming time after 15 or 18 September because Sun is saying sharp fall is on the way.
For intraday traders – Platinum will remain in positivity so buy on weakness on Thursday and Friday (but remain watchful as upper trend is ending this week). Copper will remain positive on Tuesday, Wednesday and the first half of Thursday.
Note: Potential for higher prices in the metals is not much from here but volatility will play a key psychological factor in traders’ mind.
COFFEE/COTTON
During this week coffee and cotton will trade sideways without any major movements. As we see the whole commodity area will get hurt very badly after 15 September so we highly recommend to stay away from even coffee and cotton. We don’t see much downside in coffee from here but prices will fall around 10-12% by the end of September and early October.
Meantime we don’t recommend you to short coffee because coffee is one of our favorite commodities which will have a unique bull market in end of 2010 to 2012. In the next three years coffee prices will move to $390 to $450. This year coffee paid huge returns to our members as this was our most favorite in 2010 with Dollar, grains and stock markets.
Cotton prices will remain sideways or bit weak so avoid trading cotton at this stage.
COCOA/SUGAR/ORANGE JUICE/LUMBER
This week orange juice will move up big and this rising trend will end by next Wednesday so you have eight trading days to trade orange juice. We see 12 to 15 percent rise in orange juice. Buy Orange juice on Tuesday.
Sugar prices will trade sideways so avoid trading sugar as again, currently the whole commodity area is volatile and moving very close to a final albeit temporary top. Sugar prices will fall more than 30% in the coming month. Lumber prices should move up sharply from this week, even in last week newsletter we recommended buying and up move will come surely from this week.
Cocoa has been trading weakly and will stay weak. Those who are short on cocoa can cover positions at this stage though Astro chart is not indicating any rising trend in cocoa so avoid any new trade. Sun changing and Mercury changing houses in October will push up cocoa prices so remain watchful and I will update you on this.
STOCK MARKET
Last week global markets remained sideways but USA market performed far better and this was a confirming sign for us that in the coming time USA equity market will outperform all major markets. Yes India will be one of the markets which should be following USA market neck to neck. The unfortunate part of the India market is that it doesn’t have many listed companies in alternative energy stock as well as uranium stocks. There are few companies like Suzlon, Indowind, Stone India, Moser Bear, XL Telcome, Pael, Sujana Tower and Websol but USA and China has lot of these companies.
Lately I have not been mentioning Canadian markets but keep in mind they have a large number of listed companies in uranium, lithium, rare metals and alternative energy stocks so surely the Canadian uranium mining sector will be rocking along with alternative energy stocks in coming bubble time.
If you have not, I strongly recommend that you start planning very seriously about the coming bull market of historic proportion, and about the coming bubbles in (alternative energy) stocks. Start preparing a list of these stocks, and start adding them and finish buying these stocks by the end of October.
This week markets will remain positive. Money will keep coming into the markets so we are not recommending shorting stocks. If you’d like to play the short side then buy put options in the markets. USA market has already absorbed the negative trends so far but some weakness will come after 15 October because overall financial market sentiment will get negative but you should be getting ready for buying opportunity during that weakness without thinking too much on the current weak trend. No doubt on Dow touching 42000 and Indian market 48000 in the next five years.
TREASURY BOND
This week bond prices will rebound strongly but the overall trend in the bond market will remain sideways. On the higher side you should be getting out and take selling opportunity but buy during next week as one huge up move is pending in 30 year bonds.
GRAINS
Last week grain prices moved up sharply on Friday. This week soybean, meal and soy oil trend look weak compared to corn and wheat. One can still hold positions in corn and wheat for the short period but get out from soybean or one can take short positions in soy. Rice made us good money in the last one month now it will trade sideways or bit weak up to Thursday before it moves up big again.
Below are the weekly trends I predict in grains:
Corn will remain in the range of $469 to $448
Wheat trading range will be $745 to $703
Soy bean range will be $1,057 to $1,018
Soy meal and Soy oil will follow Soybean.
By the way, a few months back very few people agreed with us that the recent huge movement can occur in grains.
OIL
Last week natural gas moved up significantly as expected and oil remained subdued. This week we will see positive trend in oil compared to metals, grains and soft commodities. We see oil moving up from Monday and the positive trend will remain till Wednesday. Thursday oil will trade weak, (in mid week update we recommeded buying oil from late Thursday as next few days oil may move up sharply). Oil trading range will be $76.10 to $73.20.
Natural gas will remain positive and trading range will be $3.88 to $4.12 (Next month contract). Stay long in gas. Wednesday and half Thursday will be negative for gas but rest of other days gas will remain positive so accumulate on any intraday weak trend.
CURENCIES
Last week dollar remained sideways for the first few days and then went down sharply. This week dollar may remain sideways or a bit weak against Euro but dollar will gain value against Pound and other currencies. Trading range for dollar will be $81.30 to $82.79. Monday, Wednesday and Thursday will be positive days for dollar. Keep adding dollar on weakness as we are predicting dollar and stock markets to move up together in coming time and this unique combination will force dollar Index to cross three digits.
British pound will trade weakly for the whole week so any rise in pound should take as selling opportunity. Last week pound trade weak as predicted, this week we see pound going nearer to 1.5190 on down side and on upside we don’t see it cross 1.5530. Tuesday, Thursday and Friday will be negative days for Pound.
Swiss Franc will remain in sideways so any rise should be taken as selling opportunity. Higher side 0.9875 and lower side 0.9680, Monday, Tuesday and Thursday will be negative days for Franc.
Canadian and Australian dollar will remain negative during this week from late Tuesday so it’s a great opportunity to sell both of these currencies on any rise on Monday or early part of Tuesday. Both of these currencies will lose huge value against Euro and Yen.
Euro will gain value against all most all currencies during this week, but the best trade will be buying Euro against Australian, Pound, Canadian and Franc. Trade smartly and you can make good money during this week in Euro. Dollar will struggle during this week against Euro but still able to hold.
Yen traded at multi year highs against all major currencies. Any sharp correction should be taken as buying opportunity in Yen against any currencies. Once again on Tuesday Yen will try to gain value but it will struggle. Last nine months we our prediction on Yen came very accurate and it did touch multiyear high but now it won’t able hold here for longer term so slowly get out from long position within next two weeks. Yen can touch 1.2080 against USD, before it move down sharply.
Indian rupee, Rand, Real and Peso will gain against USD but they will lose value against Yen and EURO.
BEST TRADE OF WEEK
Buy Orange juice, lumber and buy oil but get out once our target gets achieved
Hold natural gas, Avoid currencies and metals
Keep adding alternative energy stocks
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To remember – A huge fall is coming in metals. It may start from Thursday but surely anytime from 15 September.
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Thanks & God Bless
Mahendra Sharma