Wednesday’s Daily Flashnews (Unedited copy)
Geo-politics v/s gold and markets
Dear Members,
On Tuesday market sell-off on opening as traders are worried about geo-politics situations. Once again Syria and N. Korea v/s USA and on other hand Russia standing with Syria but standing mum. Gold prices moved sharply higher and hit 5 months high. Yesterday we recommended buying in USA market around lower level ranges and market received from those ranges. This is what we stated: For Monday, we are predicting a negative trend to start so selling is recommended on the higher side in every market. If the market corrects sharply then you can cover positions around the lower sides as on Tuesday, we may see some buying coming back for the short term so a selling opportunity will come again.
From 8 of April we expected some kind of uncertainty to come back in market which we saw yesterday. Gold moving above $1275 surprised us, currently gold is around $1280, so let see it remains above $1275 level or not. I am wrong gold predictions, but still somehow don’t see any major bullish trend even if market collapses or even if geo worries rise. Higher side in gold is very limited. Next five trading sessions will be very important for gold.
Last week I said: Currently, the stand-off between the USA/RUSSIA on the Syria issue is pushing more investors to buy yellow metals. If the astro cycles were positive then I could have predicted Gold to hit $1500 to $1800, but overall the astro cycles have been negative since 2011 when we predicted a bear market to start in gold from $1800, and the astro cycles still haven’t turned positive.
Base metals lost big value and base metals to remain very negative. Grains and other side commodities closed in positive.
Emerging market closed positive and still they can hold value.
At this stage UVXY and DUST is great hedging trade, if DUST moves lower than UVXY will move higher. Down side is limited in UVXY. UVXY and VIX moved higher on Tuesday, stay long as these are great trade. We are strongly recommending to stay long in UVXY against DUST long. UVXY moved up in the last five trading sessions from $15.15 to $20.75 level. Short term traders can book profit if it moves toward $26.50 level.
On Wednesday, we see uncertainty to continue in markets, but don’t short emerging markets. Base metals will trade negative, stay sideline in gold and silver without any positions for the next three trading sessions.
Currencies will trade both side and Thirty Year will remain in positive directions.
Astro combinations are not showing any danger to world at this stage so I won’t bet on this news. Yes, as mentioned last week that astro combinations will create a fear in investors mind and that what is happening now.
Stay long in UVXY and VIX, as expected big move came on Tuesday but DUST lost big value due to gold move. Friday is holiday so this week is very short.
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Thanks & God Bless
Mahendra Sharma