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Today's Trade & News

This week part of news letter is as a gift.. Natural disaster, metals fall and market..

Dear Members,

An ever-increasing number of investors are joining the commodities and currency markets. There is a corresponding loss of interest in the stock market, whose charm is gradually being eroded due to diversification of big money where the result is in zero sum and of course quick gain and loss, though people donít mind.


Since the last six months we have been experiencing major volatility in the commodities market, especially the metals market. Oil is trading at almost all time highs while currencies are not sure towards which direction they want to move. Grains and coffee remain on the higher side though they pulled back a bit during the last day of trading.


The N. Korea issue remained intense in the last week and the situation should defuse during this week. There is therefore not much to worry about in this regard. Similarly, the issue concerning Iran should also be settled soon, most probably by the end of July. There are therefore no worrisome pointers in this respect as well.


The real estate market should cool down round the globe including the USA, Europe, some ASIAN countries and South Africa. However, the worst hit areas are going to be in the Middle East or gulf countries like the UAE, Saudi Arabia, Qatar, Kuwait e.t.c. In 2002, my theory predicted a great property rise in these regions and I advised many to invest. However, indications now show that an anxious period may be ahead and speculators as well as investors should therefore carefully watch over their hard-earned money. On the other hand, the property market in India and Hong Kong should sail through quite okay.


I see a major crash in the gulf region property market from February 2007 onwards, and the weak trend should remain for at least six years.


Another twelve days remain negative for world peace (war/attacks) and there may be some major accident, plane crash or natural disaster. It could be an earthquake, fire or water related disaster or volcanic eruption. This could affect millions of people and there is need for caution if something like this starts to occur, and people must be evacuated immediately. All I can tell is that there is a northern connection, and it could take place in the northern Hampshire or northern side of a country.


Letís see what this week is indicating:





Last week gold prices remained in high volatility after news broke out of N. Korea testing its missiles. The current period still remains volatile and may remain so for another twelve months but one thing is sure, and that is metals are not in a great mood. A fall is waiting to happen and there was a negative sign on Friday, even though it was a positive day.


I recommend staying away from gold buying at this level. Whereas Monday.....



Compared to gold, silver prices may attempt to remain more stable during this week, but will eventually fail. As I have mentioned in the gold section, Monday is a positive day but negativity will also present a stiff challenge. The resultant fall might therefore be quite sharp the positive wave cycle is broken.


I see silver moving down more than.....  



Last week all major markets showed signs of negativity AND once again confirmed that all is not well with the stock market.


All major markets will trade in volatility on Monday, while Tuesdayís trend will certainly be on the negative side.....



They are trading.....



The world is showing little concern following the upward move of energy prices. Everyone is silently paying for there doesnít seem to be any alternative. Of course the very rich are hardly affected as they drive their big cars since they can well afford it. However, the vast majority of the world population is worried by the increments, especially those that fall in the middle and lower middle classes.


I feel that the energy issue should be key as powerful individuals/traders as well as financial institutions are playing a major role just to make their billions. A big game is taking place on the trading floor and it is under their full control. Saturn is supporting it and may continue to render its support for another two months. Indeed, energy prices will be the only talk for the next two months as I see oil reaching above $80. I have been predicting this for a while and one should therefore not go short in oil, as the powerful people will emerge victorious. However a disastrous period will soon start.


Oil should trade....... 



The dollar index is well trading in a one point trading range and I canít wait to witness..... 



Friday will...



Coffee prices made a high last week but sharply came down on Friday. Indications are that coffee will remain....



Last week cotton prices remained weak. This week it will consolidate at the current price.....



Time is almost over for orange juice and a fall is round the corner. Donít miss the opportunity to go short in it when you see a weak trend.



This week, sugar prices should move higher. Nevertheless, do not forget to get out on Friday.



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Thanks & GOD BLESS

Sharma Mahendra

9 July 2006