Dear Members,

On Wednesday we mentioned that “Trump or USA policy is becoming Pro-nationalist, which is scary for global economic environment”.  Yesterday market tanks on President Trump tariff announcement on China.

This year is so far book predictions have done very well, book guiding investors very well with clear directions. Here is what we stated in book in the in the first and second cycle. I have been screaming and warning investor to watch third cycle very closely which is starting on 23 March 2018. We predicted maximum higher in these both cycle would be 2850 for S&P, which came very true.

Even though there is scary situations in global market but our view is becoming very positive on market like India and China from froth cycle. So, far Indian market is struggling but believe me it will move very aggressively higher once it turn from here, down side rise is 2% and higher side minimum 25% in this year. In fact, in our daily report we recommended medium and longer-term investors so buy stocks and Index on weakness from today or Monday but no short term trade is recommended, these buying positions are for medium to longer term.

Surely, I will put detail outlook for next cycle in the next week weekly newsletter. Here what we mentioned in the first two cycle in our book “2018 Financial Predictions” from page 34-36 for global equity market markets.

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.  

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 trade well. 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.


Second Cycle: 19th February to 23rd March

During this Cycle we see the Market keep rebounding or trading higher from any weakness because some buying or big short covering will be witnessed. Medium and longer-term traders must not buy any new positions in any stocks after this cycle, especially in the Technology and Realty areas because during this cycle one should start booking profit on any rise toward end of this cycle. Mining stocks will start outperforming. Short term traders can take small puts around the end of this Cycle, and I highly recommend remaining a short-term trader during this cycle, but you can hold some call options until end of this cycle.

We don’t see the Market testing or going close to the new high after 21st March so be aware in the next cycle. If our astro theory proves true then this will be the best Cycle for investors to close all long positions in the market without being greedy. Don’t get trap with any of good news from the FED and on the Economic front. 

A sudden rise in Dollar, and volatility in the currency Market will put some pressure on the financial market.

The European Market will start underperform compared to the other markets, and the Emerging Markets will outperform during this Cycle.

During this period NASDAQ will try to hold value but small cap stocks will move sharply higher.

This will be best cycle to cash in all your chips and take some short bet by the end of this cycle, and if I am reading astro cycle correctly then I think market must have already gained 10 to 15% value from 1st January to 21st March 2018. Keep betting on INDL, YINN, and LBJ.

Many people will still try to find my mistake from this overall cycle, but I request you to put focus on overall what we are predicting and that’s very important.

I strongly recommend reading one more time third cycle predictions carefully from book, if you have bought our book, if you haven't bought book then must buy.

In 2018 my predictions on emerging market is very bullish from May 2018, also lithium, cobalt and electric car related area will be the best one to put money. We have been recommending since last three weeks that withdraw investment from tech and high value stocks, and put money in lithium/Cobalt/Battery/Electric car/gold stocks.

Read third cycle from book – buy complete book at $351 or global stocks market sections at only $199. Investment is less than $1.00 a day.

Thank & God Bless

Mahendra Sharma