Wednesday, 20 June 2007
I was very excited about metals after reading current planetary movement on last Saturday but first three trading days of this week metals remained very quiet. I am still very much optimistic of short term as well as medium term bull market of metals (at least next four months). I believe that gold and silver should reach new high with in few months, which means gold will be touching $800 and silver $18.80.
Dollar rise and stock market fall can bring small uncertainty with gold market but nothing to worry about as opposite relationship of gold and Dollar soon will break soon and they will walk together. It may take few more days for gold to adjust and making a new historic relationship with the US dollar. BUY GOLD AND SILVER ON ANY DIP and this opportunity should come on Thursday.
Important Hedging or trades: Hedge buying position of gold with buying of USA dollar because that will secure your investment in short term uncertainty as well as in medium term. Both gold and US dollar will make money for you.
One request - Metal traders shouldn't keep a hating attitude towards US dollar in this current unique era. Once again buy gold and dollar.
Cotton hit new high of 2007 as predicted in newsletter and on the other hand coffee and sugar are enjoying the positive trend. They should move higher from current level so hold onto your positions in these soft commodities.
Oil trading is reversing from important astro resistance level of $69.80 and this figure is very important for energy traders. Don't hurry to buy oil as weakness is still pending.
We were expecting weakness in stock Market from Wednesday and yes they suddenly turned negativity on Wednesday and they should move down another three percent so stay in short position. Friday will be the right day to cover part of your position in stock market but we shall be selling the stock market again next Tuesday. Start buying short position in European market aggressively as sharp correction is due for next forty eight hours.
Dollar is holding well and there is no reason why it should not be standing as firm as Mars, Saturn and Jupiter as they are all in its full support. Dollar index toward $90 and gold toward $800 (Isn't this quite interesting?)
Thanks & God Bless
Mahendra Sharma, Wednesday 8.20 PM Santa Barbara