Dear Friends,
Here is this week newlsetter I am putting after I received so many request from visitors but in future I won't able to do it as our members feel unhappy as they pay huge subsription fee.
Thanks & God Bless
Sharma Mahendra
We are here to just fulfill our Karma, rest is illusions, Mahendra Sharma
Weekly newsletter from 7-11 December, prediction date 5 December 2009
Dear Members,
From Thursday last week USD finally started giving positive signals. Dollar moved up on Friday on a positive employment report. Traders were confused about whether the positive news would support dollar or not. This is because lately all positive news in the economy has been supporting the stock markets and not dollar but yesterday something different happened. Each and every trader will remain confused from here on the economic news because market trends are not behaving in a way that makes sense. After a long period of time we have seen dollar moving up with huge volume and closing at the high at the end of the day.
Dow went up sharply on the employment report but it gave up all its gains by the end of the day. This is a clear indication that fund managers want to book profit before the end of the year so that their books look healthy.
The recent star performer Gold had huge corrections. Gold stock index came down from 515 to 470, and gold touched a low of $1147 from the high of Thursday which was $1225. Last week the “Times Group” news paper interviewed me and there was a news paper carried article with heading “Speculation in gold like oil?” In this news paper I predicted that from the current week gold will start moving down and that this fall will stop at around $750 to $800. Yesterday many of our members called and they said that the buying puts advice in gold making them very comfortable. They want to hold a physical gold position but currently they want to follow my advice. I really appreciate their support and this gives me more confidence because people trust our work, though we have not been very accurate on metals and dollar lately.
The rest of the commodities traded as we had mentioned in the previous newsletter. Thirty years bond prices came down sharply from $123 and a few weeks ago we mentioned that bond will top out at $123. This week they closed below $120. The last three months buying and selling recommendation of natural gas has been 100%correct.
One thing we have noticed is that during the last two weeks, metals have been trading in an uncomfortable zone and this is very negative for metals trend. I trust our theory and that is the reason we are talking negative about gold trend.
December 2009, contract of currency expiry period is coming. This week options and next week future contracts will also expire. Due to this we may see volatility but slowly and surely dollar will move up. Also December is time of holiday so we will see the volume dropping after this week as many big traders will start taking off from office.
This week’s newsletter from 7-11 December
GOLD/SILVER
Last week the lower side price target got fulfilled in both metals, and this week we see a weak trend dominating metals on all days except late Monday and Tuesday.
On Monday gold & silver will trade sideways but on Tuesday gold and silver will move up and take this as an opportunity of selling them in the USA market before closing.
On Wednesday gold and silver prices will move down and should touch the low of this week. The weak trend will continue on Thursday and Friday. I have been warning metals traders not to buy gold & silver on falls thinking that they will rise from here, as we see the fall continuing. We are expecting the same for metal stocks.
The trading range of gold will be from $1169.80 to $1125 and silver from $18.68 to $17.62. If gold & silver move up on late Monday and break the upper side range then gold will move up to $1182 and silver to $18.89. On the other hand, if they break the target on the lower side of the predicted target then we expect gold to move down to $1105 and silver to $17.23.
This week: Monday there will be a sideways or weak opening, buy on dip but get out by late Tuesday or mid Wednesday, and longer term traders should hold shorts or one can add more shorts.
COPPER/PLATINUM/PALLADIUM/ZINC/NICKEL
All these base metals will remain positive on Monday and Tuesday. From Wednesday they will move down sharply. Selling on rise should be the right strategy in base metals. This week Palladium, Platinum and Zinc will move down sharply. Copper will start moving down from Wednesday. Copper will fall up to $307.80.
This week: Sell Zinc, Nickel on Tuesday, sell copper on Wednesday
STOCK MARKETS
Last week the markets tried to gain but they kept losing their strength. I am expecting a huge correction in Asian markets. I see Asian stocks performing the worst during this week so stay away from them.
Japanese stock markets were the star performers during last week. This week we see Nikkei giving up gains so one can book profit in Japan on Monday. Hong Kong markets will be one of the worst performers among all markets. Indian markets will also fall sharply. Chinese markets will remain stable as compared to the other world markets.
Among European markets, London market will be the worst performer as compared to DAX and CAC. Overall, the trend will remain weak.
USA market will start moving down from Monday, so stay away from any buying. If you are holding any stocks, you should book the profit. If you are holding shorts in DOW and S&P then you should hold onto them. This week I see a sharp correction in USA markets but they will still perform better as compared to all the other markets, except China.
This week: Sell Hong Kong, Japan and India. AVOID selling China.
COFFEE/COTTON
Last week coffee and cotton traded as predicted. This week we see a weaker trend continuing for both these soft commodities but we won’t recommend going for shorts as we see a positive trend coming from next year. Simply avoid any new trades and wait for our buying call in both of these commodities.
This week: AVOID TRADING IN THESE COMMODITIES
SUGAR/COCOA
Stay away from sugar and cocoa. Yes on Monday and Tuesday we will see both of these commodities acting positively but from late Wednesday they will move down. Don’t trade or invest any money in sugar and cocoa as dollar and metals markets will be very active and there will be a lot of opportunity to make money in those areas.
This week: AVOID TRADING IN THESE COMMODITIES
GRIANS
This week grains will remain sideways, but from late Monday we may see a recovery and this recovery to continue until Wednesday morning. From late Wednesday, grains will trade sideways or weak. Avoid all grains from Wednesday.
This week: Buy on Monday, sell by Wednesday
OIL
Last week oil and natural gas traded as predicted. On Monday and Tuesday there will be a small rise in oil prices, and we see a weaker trend in oil coming from late Tuesday so take advantage of short term buying on Monday and selling on Tuesday. After Tuesday oil will start moving down. Natural gas will remain positive during this whole week so good time to make money in gas.
The trading range of oil will be from $75.25; once it breaks below $75 then we see oil dropping to $72.10 to $70.10. Natural gas will be move from $4.50 to $4.98.
This week: Buy oil and Natural Gas on Monday, sell oil by Tuesday, and hold gas
CURRENCIES
Finally last week huge turn around in USD made big money for many. We expected a major turnaround in USD on Thursday and Friday and that's exactly what happened. Yen and Euro came down sharply from high, and dollar index moved to 76.00 from 74.23.
This week we see the rising trend of dollar continuing. On Monday I see dollar moving up more than half percent. On Tuesday dollar will try to stabilize. From late Wednesday or early Thursday again dollar will move up and may touch a few months high. We expect Dollar index to reach $78 and lower side around $75.72 will be great buy.
This week Canadian dollar and British pound will remain weak with Australian dollar. We expect more than a three percent fall in these currencies.
Yen will gain value from Monday and will remain sideways, so we recommend covering all short positions in Yen. Swiss Franc will be another currency which may move up a bit or will remain sideways.
One of our members sent this char on Thursday saying that “Mahendra most amazing upward trend is showing in chart, he said it is rare case of strength”. He also believes that dollar will move big from hear.
Hi Mahendra,
When you get some time, please have a quick look at the dollar chart. (attached)
I have charted this and I have noticed some interesting things that go along with your great predictions!!!
I know that a lot of people are going against you and institutions are against the dollar, but those shorting the US dollar better watch out!!!!!
WHY? Because of the technicals.
Technically the USD is slowing down in terms of selling pressure and on the chart I have found more than just one reason for this. It is very VERY interesting.
On my 'indicators' I have found what I call quadruple bullish divergence, I dont see this often on my charts, infact hardly ever but this is the strongest signal in technical analysis I must say. I was a amazed when I saw this as, because you will only see this on the charts before a big change of direction in a stock or commodity. So this is supporting technical evidence that the USD may have already bottomed.
Great work Mahendra....keep up the GOOD WORK!
Please feel free to pass this on to your paid members (as I am one of them)
Have a great day friend.
John.
This was his note on dollar chart.
We wish you good luck, trade carefully, I am here just to guide you but you have to plan all (short term, medium term and longer) trades. If you have any questions please send me an email and I will reply as soon as possible.
Once again my request - Please don’t forward our newsletters to non-subscriber, as this is your personal copy and you shouldn’t be sharing it with other people. I still don’t understand why people want to take knowledge or advise for free, if they want gain then they have to pay in terms of fee like in olden days we use to say “Guru Dakshina”.
I will be writing updates.
Best trades of this week:
Sell all major Indexes,
Sell metals on rise, weak trend will start from Wednesday
Hold dollar,
Avoid grains, oil and soft commodities
Thanks & God Bless
Mahendra Sharma, 6 December