Once again, let me apologize for last week’s delay in sending the newsletter. In the previous week, metals as well as oil remained range bound; the dollar was a little weak while strong markets tried to gather momentum.
The Israel-Lebanon issue has remained a hot area for concern. For the first time in three weeks, the international community seems to have finally stirred from its slumber and is actively seeking a solution. Indeed, it looks as though the United Nations may send a multi-national force to monitor the situation and help bring progress to the region. Since I started predicting about the world geo-political situation (at the age 18), the planets have always indicated worrying trends for the middle-east region. There have always been concerns over this region, and they still remain at the present time. As a matter of fact, I will still be concerned even if the current situation manages to cool down. According to planetary movements, indications are that the on-going tensions will soon settle down. However, there could be a major escalation after 17 months in which a nuclear confrontation could ensue, leading to the death of millions of people.
I don’t know whom we should ask to save us from this situation, except praying to God. This choice is open, but it seems strange to seek help and solace from Him, even when we refuse to agree with His tenets. Whatever one’s religion, the pursuit of ungodly aims have led us to the current situation and it would seem hypocritical to turn to Him when we destroy this beautiful planet. Despite His having given us everything, we have squandered chances to make the world a better place. This is hardly surprising, since egoistic pursuit of power and superiority as well as indifference to nature has led to the disruption of the natural rhythm.
I think that this time the world will pay the price as Saturn is going to intervene and announce his ruling. In the course of my 27 years astrological career, I have seen that none has the power to escape the final judgment of Saturn. Indeed, Saturn punished me also from June 2005 to July 2006 and as my followers know, my accuracy was over 90% before this period. I had a setback in the last year and lost consistency, but my path should now show great improvement.
Despite praying to planet Saturn, I still paid the price of my bad karma -which I did knowingly or unknowingly. Anyhow, the WORLD WILL PAY THE PRICE WITHIN TWO YEARS AND THEN LOVE, CARING, HUMANITY, UNITY AND PEACE WILL COME.
There is a reason for writing all this, as my newsletter is not just a financial newsletter: I always try to connect the financial future with the occurrence of major events. As a matter of fact, it is how I was able to predict the rise of oil and metals in 2001.
Terrorists claim that Jihad is a key weapon in fighting their enemies but according to me, that is a sin. To me it is like when someone fails and then shouts at his wife, children or employees. Directing one’s frustrations at helpless and innocent people is not heroic at all and it is therefore shameful for terrorists to kill innocent people and then claim glory. Mahatma Gandhi fought a peaceful war for freedom and declared that he would give freedom to India without needlessly shedding a drop of blood- and he did it.
Jihadists and terrorists are dragging the identity of all Muslims into negativity, and I wonder if other Muslims have the courage to reverse this by striking back at them. In the rest of the world, there is a gradual but unswerving trend towards division. This vertical split is between the west and Muslims/Hindu. The gap with Muslims will only grow larger and may not diminish till there is a major disaster that will kill millions. It is extremely unfortunate that only a catastrophe can bring us together, but nature is upset: upset by seeing his children fighting daily over nothing more than a show of ego; a contest to prove power and supremacy- who is better or stronger or superior. It is tragic.
WE HARDLY EVER REALIZE THAT WE ARE ALIVE BECAUSE OF AIR, WATER AND FIRE, WHICH ARE ALL PROVIDED FREE BY NATURE. CHRISTIANS, MUSLIMS, JEWS AND HINDUS ALL PARTAKE THE SAME NATURAL ELEMENTS. NO RELIGION CAN DIVIDE THE AIR AND RESERVE A PORTION FOR ITS ADHERENTS. IT WOULD BE IMPOSSIBLE AS WE WERE MEANT TO LIVE UNITED UNDER NATURE. INDEED, THE QUESTIONS THAT DIVIDE US ARE THEREFORE SELF-SERVING AND MYOPIC AS THEY ULTIMATELY ENDANGER EVERYONE, AND IN THE FINAL ANALYSIS NATURE LEVELS US ALL TO THE SAME LEVEL.
I would like to end this topic here because the fact that the world is following the wrong path is painful. We have achieved progress and modernization in everything through change, apart from religion. When faced with difficult questions, we retreat behind religion and declare it a sensitive issue, and have therefore been unable to make changes. One way or another, this is an issue that needs to challenge mankind to find a solution that can lead to stability and peace.
I felt like sharing that with you so I decided to write it, but let me now come back to the weekly financial newsletter.
Financial predictions for July 31 to 4 August 2006:
Metals failed to perform well last week during positive days, “Thursday and Friday”. This is not an encouraging sign and planetary movements therefore indicate a weak trend for metals during this week. I therefore don’t recommend intra-day buying on falling because falling prices will continue low till Thursday.
On Monday, the higher side of gold will be $637.80 and then a fall will start around the middle of the day. We shall witness Mercury exerting selling pressure in New York and gold will close weak.
On Tuesday gold will trade positive in Asia but again, selling will dominate the metal market.
Wednesday will be also prove an ugly day in asia but New York will try to gain. Half-day of Thursday buying is recommended and one can hold till Friday...
All major markets moved up last week. Two days are positive this week, but then a weak trend will occur in all major markets from Wednesday. One thing that all my members must know is that the USA stock market will not fare badly compared to Asian and European markets.
In USA MARKET: The second half of 2006 will be dominated by sectors. Most areas will perform weakly expect metals, uranium and alternative energy. Oil stocks will be severely hammered in the second half 2006. Technology will also suffer but fibre cable and media companies will do better. Banking stocks will trade in a lost fashion but pharmaceutical and biotech will perform well.
Overall in Asia and Europe sectors will remain in depression and that is not good news. Once again, investors around the globe will see the USA market as the safest bet compared to other countries.
I STILL SEE A HISTORIC BEAR MARKET COMING IN EUROPE AND ASIA SO PLEASE WATCH YOU INVESTMENTS.
This Monday and half Tuesday will be positive for the market but then a bear trend will come afterwards and take a strong grip: all markets will lose the gains made last week.
Short term: Weak trend
Medium term: FALL WILL CONTINUE
Last week oil traded in huge volatility but once again I would like to remind you that the four years bull market in oil is very nearly ending and will enter into a bear cycle. That said, days are gone when oil traded around $20. In any case I don’t see oil trading below $40.
On the high side, the maximum that oil can reach is $81.50 while I am targeting a thirty percent slide on the downside from the current price in the next five months. Those who would therefore like to take year-end put can do so by September.
This week I see a weak trend in oil but all short can be cut on Friday AS NEXT WEEK LOOKS STRONG UP. Unleaded gas, heating oil will also fall during this week. I see oil going down by five percent during the week.
Energy stocks look very weak to me and are also entering into a long-term bear cycle.
OIL BULL MARKET COULD HOLD TILL THE FIRST WEEK OF SEPTEMBER, BUT ENTER INTO A BEAR CYCLE AFTERWARDS.
Both commodities are in a bull market, therefore hold your position or add more on Friday or late Thursday before closing.
From next week, both short commodities are going to have a negative period, therefore watch closely. Selling Orange Juice should give handsome returns in coming days.
I WISH YOU GOOD LUCK IN TRADING. HAVE A GREAT WEEK.
Thanks & God Bless
Sharma Mahendra 30 July