Gold should act positive: Small sections from this week weekly letter from metal sections “This week we are recommending buying gold and silver on Monday and staying long for this week. Gold and silver must not trade negative in any case during this week as this is the most positive week for precious metals in a long time. My view on precious metals has been very bearish since 2011, when gold was trading at $1925 and after that we never recommended buying gold except for many short-term trades that we recommended. Our view for the longer term is still bearish for gold and silver but for the short term we are recommending buying”.
On other hand our view is very bearish for the base metals from today 28 August, I still believe 30% fall in base metals (Zinc, Lead, Nickel, Palladium and copper) very quickly.
Dollar tested $92.50 as predicted early this year after recommending closing all long at around 103.50, now maximum down side risk is 2% and higher side 7% rally is on way in the USD.
In the last 18 years, we enjoyed predicting oil trend, and we were lucky to get every move in oil very accurately. Since 2014 our view on oil is very negative, if Hurricane Harvey don’t help sentiment of oil then expect major corrections in oil in few months.
I was able to predict the last two bear markets very accurately. Yes, I was early by three months in both the previous bear market predictions. Last year we predicted that the bear market would start any time from the middle of July 2017, but nothing major has happened yet; but I still believe that the market will crash in the next two months. If the market doesn’t fall as predicted then this prediction will go into the list of my worst predictions I ever made during my career. At this stage the Technicals are very strong; central banks and politicians are using a supportive tone for the market; major investment banks and financial institutions are long in equity and they are expecting the market to keep rising further on Tax reform agenda. Micro and Macro both look okay except for our Astro cycles which are showing a major hidden crack in the market, but at this stage no one seems too concerned about crack and that’s the reason we see the market falling sharply lower.
I am very disappointed with the sideways market move during last week as I have been predicting a bear market trend. I expected a major bear market or a crash in the global equity markets. We expected the market to form a top and then crash around 20 to 30 percent by the end of October. Yes, the markets have formed the top but are not falling as hard as expected. We are now we left with 60 negative days and I am keeping my hope alive that the market will crash in a big way and that the fall will be sudden and without any reason or indication.
This Wednesday will be crucial, and I would like to see some indication of weakness. By now many have left the hope of a crash but I haven’t. In 2014 when I predicted a crash in the oil market, no one was ready to believe that oil could fall from $100 to $30.00, and it happened very quickly. Very big names in the oil Industry asked us what the hidden reason was that forced me to predict that crazy a fall. After the 2014 fall many traders in the energy market became our fans.
Currently book price we reduced from $795 to $295, price of book will be move back. I still believe 2017 Financial book is worth every penny.
I will be turning 50 on 4th September, I will announce something very exciting on 3 September.
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Thanks & God Bless