Dear Members,
Here is small part from this week's weekly newsletter of 13-17 May:
INDEXES
Last week proved very volatile and traders didn’t have a clue about whether to remain invested, or close and get out of the market. S&P came down from the higher level $2948, and made a low of $2822, which is around 120 points. For the last month we have been talking about S&P to struggle to close about $2948, and we also recommended closing positions around that level, and that proved very right.
It is not important to see what happens from here, because investors want a clear answer from me, whether the US/China trade war will bring a longer-term bear market, or whether this problem will be resolved, and the market will continue to move higher. I think that the investors community is just focused on these two issues, but my view is completely different because I am not focusing on the trade war, I am focused on the overall market and astro cycle scenario.
As per my study, the market will ignore the US/China trade war issue, at least until mid-June, so any sharp weakness should be taken as a buying opportunity. I clearly mentioned in the first section that the US is in a win/win situation in this trade war with China.
Last week on Thursday and Friday we strongly recommended buying positions in the market around or below 2845, and that proved to be very sound advice, as on Friday the market made a low of 2822 and closed at 2882. It was a fantastic turn around.
President Trump is going head to head with China, and it doesn’t look like he will bend against China, which could help him in the coming election. In the medium and longer term this trade war will benefit the US a lot. The industrial sector in the US can revive; and their dependency of importing things from China can reduce drastically, which can help the US employment market. There is no doubt that Trump is in fact trying to make America Great Again; especially on economic grounds.
This week on Monday once some uncertainty will continue but lower side buying is recommended in the most of market. Tuesday will be most crucial; market must close positive and if fails then we see uncertainty to continue. On Wednesday we see the market trading uncertain to negative, but on Thursday and Friday once again recovery will take place in the market. If the market moves positive on Tuesday as per what I see, then we may see S&P going back to 2919.
This week, I recommend buying emerging markets. Tuesday will be key as markets must recover; I will send small note after seeing Tuesdays trend. If you want to remain a short-term trader, you can trade in and out. The European and Indian market will perform very well, and we strongly recommend buying INDL.
Monday’s astro combination recommendation: Buy S&P between 2843 to 2855 levels on Monday. Buy INDL.
Monday’s trading ranges: (June 2019 Contracts)
HONG KONG (cash) –28812 to 28301
NIFTY S&P (Spot) – 11348 TO 11211
NIKKEI – 21651 to 21351
CAC – 5301 TO 5259
DAX – 12205 TO 12100
DEX EURO STOXX – 3365 – 3311
FTSE – 7221 TO 7151
DOW e-mini – 26125 TO 25751
S&P e-mini – 2893.00 TO 2853.00
NASDAQ 100 e-mini – 7639 TO 7505
RUSSELL e-mini – 1579.00 TO 1555.00
Thanks & God Bless
Mahendra Sharma