Bull is pending - Dollar and market to form bottom this week before they rise…


Dear Members,

On Friday the market collapsed globally. It was a nightmare and traders didnt have any idea what to do next. It was a disaster for traders who were betting on last weeks earnings. Last week all the major tech giants were announcing earnings and traders thought that the market can gain some value, but Microsoft, Google, Apple, Facebook, and Amazons earnings were not able to helped the markets trend. Many other key stocks like BA, UPS, VISA, and Master Card failed to help the market. When traders saw nothing happening, they started dumping stocks and index positions which created a lot of panic because everyone wanted to exit, and we are all aware that there is only one exit.

The Indian market also collapsed. The Modi government failed to help or boost the market sentiment. INDL call options lost half of their value, and Nifty lost value. All the other major markets also lost value. There were too many expectations during last week with a lot of news (earnings, FOMC, Indian Budget, and JOB Report), but nothing helped the market. It looks like the negative period we excepted for the market from the 21st to the 31st of December was extended by two more days.

Dollar was recommended against most of the currencies, and Thirty Year lost value as predicted.

There was a negative time cycle till the 31st of January. We expected the market to rebound from the 1st of February, but the market failed miserably. Let fist see what we stated in our book and analyze how the market will trade from here as many want a clear answer:

Here is from page 34/35 2018 Financial Predictions Book,

Here are the Equity Market Cycle’s for 2018:

First Cycle: 1st January to 18th February

This will be the most powerful positive Cycle which may push the market higher every single day. Many emerging markets will also move higher, I am recommending buying “INDL” Indian market as this is one of our favorite trades of 2018. If the market doesn’t fall between the 3rd of January to the 8th of January, then expect Month of January to remain very positive.

The Market can remain up throughout this Cycle. Once again from the 19th to 26th of January most of the Global Markets will trade negatively or in uncertain zone, or will witness profit booking so one can take some chips of the table before this date and reenter around the 29th to the 31st of January.  

From 31st January to 18 February all major markets can have a strong rally.

Mining stocks will outperform; Gold and lithium stocks will remain in demand, so invest in these sectors.

During this period most of the Emerging Markets will be rocking hard. The European market will trade mixed, and the USA market will make a new high.

I predict S&P testing 2848, Nasdaq 6987, Dow 26875, and Russell 1645. This is will be best Cycle to invest money in the market for the short term. If market closes above in the first two weeks of February we may see one of the finest rally in all major global markets. Emerging market like Indian, China and Hong Kong will out perform rest of the world. We are also recommending buying etfs of all major emerging markets around 30th January 2018. USA investors can take positions in call options in S&P (SPY) or in NASDAQ (QQQ). Small cap will run hard well as during this period.

During this Cycle S&P won’t go below 2725 even in the worst-case scenario so trade accordingly. 

Out of the above mentioned first sections from our book, one thing that is the most important is that the market wont go below 2725. In fact there are chances that may hold 2745 and may rebound, but when there is volatility anything is possible on an intraday basis, because even the most intelligent people make decisions in hurry and in fear.  

Last week the fall of the market on Thursday and Friday brought panic in the market and these frontline stocks not going up on earnings created more panic. Many dont see any new catalyst which could support the market soon so they started dumping. The same thing happened with the Indian market, the budget failed to help the market which created panic. 

Surely Monday will be the day of fear, and many people will like to get out of the market. Astrologically it will be interesting to watch what happens because there is a positive astro combinations on Monday so lets see whether the market rebounded on Monday or not. On Thursday and Friday the market going down created fear in my mind but I would like to watch Monday and Tuesday as these are positive days for the market.

If S&P holds 2748 and 2725 then the bull-run will remain intact and S&P could test 3200 as predicted this year.

S&P Falling below or closing below 2725 will surely invite the bear to enter.

On the top side we expected 2848 which was achieved last month as mentioned in our book. This week is the most important one because the FED meeting passed, the Job report is gone, and major earnings have already been announced, so no major event is pending in terms of news that can support the markets. The market has to support itself if it would like to remain in a bullish pattern.

There is no doubt that last weeks fall on Thursday and Friday is surely a concerning sign for the bulls, but I wont call it the beginning of a bear market. I know I have been calling a bear market from August last year, and now according to many the bear market has begun, but I refuse to believe this which is a bit strange for many. Anyway, I will watch carefully before I put out any major medium and longer term prediction. As mentioned above, I will recommend taking small longs on Monday around the lower sides. 

Our recommendations of Buying in INDL or the Indian market is still our top buying prediction, so take buying positions on Monday and Tuesday.

On the other hand Thirty Year Bond prices crashed. As predicted, this was the best recommendation and we are still recommending holding short position in Thirty Year bond.

Grains and softs traded directionless and we are recommending staying on the sidelines.

The Energy market is holding value, natural gas traded negatively so watch $2.95 closely. Buyers can only enter it if it closes above $2.95.

The Currency market treaded positively last week but on Thursday, US dollar Index started coming back. We are recommending buying USD around the lower side. It held 88.31 which confirms that the worst is over for the USD. On Monday we are recommending buying USD on any weakness.

Overall last weeks trend of the market is alarming for the bull, but we still wont call it a bear market. During this week the Scorpio Moon later in this week will dominate. Last week the Cancer Moon just provided some concerning signs, but we would still like to have more confirmation before we say not to buy or short markets.

UVXY is still a good play as insurance, and one can even hold it if you are bullish on the market.

Precious metals will gain value. Base metals looks horrible so be aware. It will be a testing time for base metals from Monday. Many talk about valuations being so high that PE ratios can not justify them, but we believe that the bull market can continue if the market holds an important astro support level. If the market closes below an important astro level then we can call for the bear market once again, which was something we expected to have anyways for the medium term from the middle of March this year.

Crypto currencies are falling hard, we are not recommending any buying. Our view has been very negative since early this year. We recommended selling bitcoin from the 7th of January and till the 15th of February, so we are not recommending any buying. Bitcoin can test $7000 very easily. Stay away from every crypto currency at this stage and wait for our buying single. It was perfect recommendation of selling Bitcoin at 20000.

I will be watching every day movements and try to update you regularly.

Our book 2018 Financial Predictions is great handbook, cost is just $1.00 for day. Those who are still thinking about buying the 2018 Financial Predictions can order by clicking here or on the order page of our website: https://www.mahendraprophecy.com/2018-financial-predictions-book.php, So far we received great response from buyers, I hope and pray that this will change traders life on better sides.

Thanks & God Bless

Mahendra Sharma