WORLD IS DOING GREAT
Weekly newsletter from 27-31
Dear Members,
This is the final week of 2010, and it is finishing up over a very positive note, outside of Euro zone's uncertainty. Commodities remain generally bullish, while dollar remained relatively strong, and stocks market performed well. Overall 2010 has proven a sturdy year for investors.
Politically and socially 2010 was also a very calm year, except the Republicans party's reversal back to a relevant political element. Nature remained silent and the year passed without any major disaster. Among all continents Africa had very sturdy growth and we saw new investments flowing there. This is the first year in many decades that African continent remained very peaceful.
We must thank nature for providing world right directions as well as peaceful time. We don’t know what hidden power is out there but surely something is there which is taking care of us very well. So we bow our head to and give our gratitude towards that superior power.
I have very positive feeling about coming year 2011 and I must remind you to keep your positive energy. My job will be keeping to informing you future hidden path of financial markets and all trading decisions I'll leave to you.
Nuclear energy related stocks are quieting down after recent spurts but surely they're ready to lighten the world. Only nuclear power can provide the world a safer energy source and ready to take challenge on power shortage. Russia is rushing to take over uranium mining companies around the globe. Many smart people are investing big money in uranium mining companies. And our fund “5 Elements Global Fund” is ready to take a ride in the future coming, unique wave of nuclear energy.
I'm readying to prepare the first newsletter of 2011, so I am keeping this letter very short as activities in markets will be lesser as most traders and fund managers are on vacation. We also advise you to enjoy yearend time with your families and friends but in the meantime get ready for an exciting 2011.
Here is this week newsletter from 27-31 December
GOLD
Last week metals traded in somewhat directionless fashion. This week gold will still look muted without a clear path as planets won’t be able to guide gold clearly.
Monday gold will trade positively from USA market so any weakness should be taken as a buying opportunity.
Tuesday gold will open positive but after USA open it will give up gains and will enter into negative territory and Wednesday uncertain trend will continue.
Thursday and Friday any weak trend should be taken as a buying opportunity as gold will gain some ground and will move higher.
SILVER
Compare gold silver will trade more positively. Silver will lead metals. This Monday silver will move up sharply after USA market opens, but from late Tuesday it will move down. Wednesday again silver will start trading positively against gold. Thursday and Friday silver will remain positive.
Trading range of silver will be $28.55 to $30.12 or even higher but avoid silver stocks as they will trade opposite.
BASE METALS
Great time is coming to build…
Trading planning on metals:…..
STOCK MARKET
This week stock markets will remain positive. Our S&P and DOW predictions have come very accurate. Our first target of S&P reaching 1,250 by mid-December has achieved and now our next target is 1,408 by the end of March. So start building up positions by the third week of Jan 2011.
This week and next week S&P and Dow will push all major indexes higher. We see S&P reaching 1,272 by the end of first week of Jan 2011 so hold your position in indexes.
From late Monday some weakness will come in USA market and we recommend day traders trade carefully. Tuesday and Wednesday USA and European market will trade weaker but from Thursday onward USA and European markets will move up sharply.
Asian markets are not in our favorite list since last two months and they have been trading very weak. We still see sideways trend for all major Asian markets. Some sharp recovery will come from late Thursday. India, Hong Kong and Japan will struggle during this week.
TREASURY BOND
This week Treasury bond will move sharply up so accumulate positions in thirty-year bonds. Monday will be a great day to acquire positions and book profits on Friday. Trading range will be 120.10 to 124.10.
COFFEE, COTTON, SUGAR & COCOA
Last week cotton and coffee traded with huge volatility. We strongly caution you on current trends of soft commodities because in the coming time these soft commodities can fall sharply, potentially hitting limits on the downside.
This week cotton will trade weakly. Trading range will be $150.80 to $138.00. Monday cotton will trade weak and the weak trend will continue for rest week of weak.
This year in July planets guided us to predict coffee reaching $238 by the end of year and that indeed happened. This week coffee will try to reach last week's high but it will fail but our longer term outlook of coffee is still very bullish….
Cocoa will trade positive so buy cocoa and book profit once it rises over five percent.
This week sugar will move down sharply after reaching higher on Monday morning. Build up short positions in sugar by buying puts. I don’t recommend trading future contract in all soft commodities at this stage as this is year end and a few big traders can gang up together and can push these thinly traded markets in any direction.
Note: At this only trade options in soft commodities.
GRAINS
Last week grains remained very positive as predicted, this week they will remain in range bound but upper side is very limited. Corn is planets favorite but not wheat so in this week wheat falling down. Soy bean may trade sideways with meal but soy oil will trade positive.
Late Monday all grains will move down sharply so take short term selling position in grains on Monday. Tuesday and Wednesday grains will remain weak but from late Thursday they will start gaining value and Friday all grain will remain strong.
This week avoid trading Soy, avoid buying wheat and start buying corn on weakness.
OIL
Last week we mentioned that if oil trade above $89.29 then oil would touch $93.80. So expect oil to touch $93.80 during this week. Oil will continue to trade positively during this week expect Thursday and Friday. Bull market of oil should end soon but may take another few days so any sharp fall should be taken as a buying opportunity in oil, heating oil and RB gas. Tuesday and Wednesday oil will remain positive but Monday it will trade weak or sideways. Trading range for oil will be $93.80 to $87.21.
Natural gas will remain weak during this week so avoid any buying positions. If you are holding longs then get out on any rise on Monday and Tuesday. Best time to buy Natural will be on late Thursday or Friday as next week natural gas will move up sharply and it move thirty percent in the next one month.
CURRENCIES
This week dollar will remain sideways but best trade will be buying Japanese yen against all major currencies. Buy Yen against Euro, Pound, Dollar, Swiss franc, Canadian dollar. Go aggressive on Yen. Dollar Yen can trade in the range 1.1990 to 1.2380.
Pound and Canadian dollars will remain weak so any rise should be taken as a selling opportunity in both of these both currencies. From late Monday both these currencies will fall and weak trend will continue until Wednesday. Thursday and Friday they gain.
Swiss Franc will trade in a tight range, but now upper side in Swiss Franc is very limited. Trading range will be 1.0689 to 1.0310.
Euro will gain from late Monday and again it will gain on Wednesday and Friday. Tuesday and Thursday it will trade weakly. Trading range for Euro will be 1.3365 to 1.3090.
Dollar Index will trade in the range of 81.21 to 79.80. Buy dollar index on any drop.
Australian dollar will lose value against Swiss Franc, Yen and Euro but it will gain against Canadian and Pound.
British pound has been trading as predicted. Don’t buy Pound unless it drops to 1.5270. Tuesday and Wednesday and Friday there will be sharp recovery in Pound.
STOCKS
Last five months most of our recommended stocks have performed extremely well. Two weeks back we recommend buying FCEL, CPST, ULBI, VLNC and BLDP they are all doing great. We still recommend to add more during the week on above mentioned stocks. Rare earth metals are doing, three months back we strongly recommended buying stocks like REE, MCY, AVL and they gained 300 to 500%.
Wait for first newsletter of 2011 as it will have lot of predictions and outlook of 2011.
Best trade of this week:
Buy Treasury bond, Natural Gas
Buy Japanese Yen
Sell copper on rise
Buy S&P on Thursday, avoid European markets
Commodities are in final phase of running up so don’t short any commodity
Thanks & God Bless
Mahendra Sharma 26 Dec