Dear Members,
In the last ten years, metals remained weak only on few Tuesdays, and whenever they traded weak on Tuesday’s, short term outlook become uncertain or I can say weaker. After a long gap, first time metals traded weak on Tuesday, the day when Mars (ruler of Tuesday) changing house. Yes, it is concerning sign for metals for shorter term, so I won’t recommend our members to do any speculative or big trading in metals. Negative time will get over on 27 October as mentioned in newsletter but rising cycle will start from 12 November and there is gap of 16 days, so best advise to buy metals around 12 November.
Down side gold can reach up $1308 or $1265 and silver $22.88 or 22.10. In any circumstances both these metals shouldn’t break lower-side target. Upper side we already mentioned in this week newsletter (gold $1374 and silver $24.59), which already achieved on Monday so I am not expecting any new high for the next 20 days.
All base metals will have setback in coming time.
Best strategy for metal investors will be, hedge some of your buying positions by buying puts options of near term if you still like to hold your long in metals.
Oil missed whole bull market run of last three months. On rise one can build selling position in oil. Natural gas is great buy, we recommended buying last week Friday and this week Monday. Hold your long in Gas as next target is $4.18 (December contracts).
Stock market is ready to enter historic bull, only two weeks are pending so get ready, those who like to hold buying position should buy some puts options for shorter period because we see some uncertainty or weaker trend for the next two weeks in all major markets.
Rare earth metals are flying, they are in bubble market but still lot to come, watch there few stocks very closely – REE, GDLNF, ARAFF, MCP, AVARF, LYSCF and many more. Same time Uranium stocks are also performing very well. In the last two week we kept saying that sell metals stocks and buy Uranium stocks, this advise has turned out prudent.
Grains are trading positive, keep Corn and coffee in your buying list as they will move toward historic high. In 2010 they were our favorite and in 2011 they will remain our top favorite list.
Dollar rebounded very well from $76.45 and on upper side it touched $78.60. Yes this was huge move in the last three trading sessions. Today dollar again down, but as per my astro calculation dollar has already entered in rising cycle, this rising cycle will remain there for the next NINE MONTHS. Currently dollar is trading 77.32 and what a life time opportunity to buy Dollar, please don’t miss this opportunity.
Thanks & God Bless
Mahendra Sharma, Wednesday 11.00 am New york