Wednesdays Daily Flash news (Unedited report)
Bank stocks performed well but Trump tweet drag market down…
Dear Members,
On Tuesday most if global market traded well, but USA market gave away gains after Trump said that long way to go to finish trade deal with China. Goldman, JP Morgan and Charles Schwab moved higher after earning.
Metals came down sharply lower after dollar gained value against Pound and Euro. Rest of currencies also lost some value against USD.
Coffee and other softs lost value; coffee came down sharply lower after yesterdays nice gain.
Grains traded also traded lower as predicted but coming closer to buying level.
Oil prices also lost value, we expected fall in oil and stay away from any buying.
Wednesday after market it will be big day, because NFLX will announce earning. Also SKX will announce earning also. We are expected both stocks to perform well.
Palladium and gold traded sharply lower, but silver and platinum performed well.
It looks like 3027 level is important astro resistance level so watch this level carefully. We don’t see any bear market, but we need to watch this level whether market take out this important astro resistance level smoothly or not.
Here are the trading strategies and ranges for Wednesday:
GOLD/SILVER/BASE METALS
On Tuesday gold lost value, silver and platinum gained value. Palladium lost big value, but Zinc and Nickel gained value.
We are not recommending any buying in precious metals on Thursday and Friday, but Wednesday some recovery may come in precious metals. Base metals, specially palladium is in our selling list. Copper and rest of base metals will trade mix. First important astro support is at $1490 level in palladium so watch carefully this level. Copper will be good short around at $278.00 if it goes there.
Avoid precious metal stocks. In this week newsletter we mentioned that silver and platinum to perform well, buy some aggressive positions in platinum.
This is what we stated Monday: Gold will be stuck in a range of $1433 to $1368 for time being. Copper will be great sell $278, palladium at $1588.
Wednesday’s astro combination recommendation – Wednesday some recovery will come but buy platinum and sell palladium will be great hedging trade.
Wednesday’s trading range: (September 2019 future contract):
GOLD: $1416.90 to $1397.50 Aug (Spot ranges $1416.20 to $1397.00)
SILVER: $15.71 TO $15.41 (Spot ranges $15.71 to $15.41)
COPPER: $271.05 TO $267.05
PALLADIUM: $1531.00 TO $1497.00
PLATINUM: $857.00 TO $837.00 Oct
INDEXES
On Tuesday most of market gained value but USA market give away gains as soon as President Trump tweet that long way to go until they reach to trade deal with China. USA market reacted immediately and closed lower.
Surely 3027 level proven first important resistance level though in future coming time we may see S&P going toward 3200 as predicted. Tuesday was unpredictable day because of Cancer Mars and it always unpredictable for any market, like coffee and gas lost unexpected value, grains and metals moved sharply lower along with currencies so rapid moves came on Tuesday and we recommended to remain watchful.
Wednesday will be also volatile day but surely Thursday onward calmness will come. Trading in and out will remain best strategy for Wednesday.
Tech and banks still look good. Buy SKX as it will move higher after earning.
The next level for S&P is 3027, and 3059 on the higher side. We do not see it going below 2975 on the lower side.
Wednesday’s astro combination recommendation: Trade in and out in the most of markets.
Wednesday’s trading ranges: (September 2019 Contracts)
HONG KONG (cash) –28611 to 28405
NIFTY S&P (Spot) – 11638 TO 11550
NIKKEI – 21555 to 21359
CAC – 5639 TO 5579
DAX – 12451 TO 12351
DEX EURO STOXX – 3529 – 3480
FTSE – 7529 TO 7471
DOW e-mini – 27389 TO 27252
S&P e-mini – 3015.00 TO 2997.00
NASDAQ 100 e-mini – 7969 TO 7910
RUSSELL e-mini – 1572.00 TO 1556.00
ENERGY
On Tuesday oil, heating oil, RB Gas and natural prices went down as expected. Wait for gas to come down to $2.22 level to buy back positions.
On Wednesday oil prices will lose more value so selling is recommend on higher side in energy and energy stocks. Oil is ready to test $55.11 this week. Don’t buy any energy products. If oil closes $55.11 then we may see $51.01 level very quickly.
Overall, in the last three years, this is what we stated: So far, short-term trading has provided great returns in the last 18 months after my selling recommendation at $97.00 mid-2014. You must remember what we mentioned two weeks ago. In 2001, we recommended buying oil at $16.78 with a target of $100 and higher. In August 2008, we recommended selling at $145 with the target of $32.00. Once again in 2014 we recommended selling oil at $100 with target of $27.71. I couldn’t ask more from nature.
Wednesday astro combination recommendations for oil – Take sell positions on higher sides.
Wednesday’s trading range (August 2019 contracts):
OIL: $58.98 to $56.71
NATURAL GAS: $2.35 to $2.26
HEATING OIL: $1.9268 TO 1.8783
RB GAS: $1.9282 TO $1.8603
CURRENCIES
My predictions was wrong on Tuesday as I predicted that dollar will lose value on Tuesday but it didn’t. On Tuesday Pound lost more than 100 pips, Euro lost 40 pips and other currencies also lost some value. Dollar bounced back but still not able to close above 97.18 level which confirms that dollar still will struggle. If dollar start trading negative from here than we may see 3 points fall in USD so remain watchful.
In our weekly newsletter we mentioned that most of currencies will gain value from evening of Thursday so let’s remain sideline on Wednesday and wait for Thursday to acquire positions in currencies.
Emerging market currencies will trade negative to mix Wednesday, stay sideline. Thursday will be interesting day.
Stay away from Yen, Canadian dollar and Swiss Franc. On lower side I don’t see much weakness in most of currencies from todays level.
This is what we stated on Friday: By Mid-next week we see Pound may test 1.2775, euro 1.1.435, and Australian dollar 0.7118 level very quickly. Canadian dollar will gain more than two and half percent.
US Dollar won’t able to remain above $97.18 level for more than three days so keep building sell positions. Dollar index will test 96.61 and 96.11 level very soon. At this stage maximum higher side in euro could be 1.1424 to 1.1475, and Australian dollar 0.7115 to 0.7175, and Pound 1.2788 to 1.2818.
Eight months back we stated - Great selling in euro around 1.2488 to 1.2555, Pound 1.3988 to 1.4375, Canadian 0.8188, and Australian dollar 0.8098.
Wednesday astro combination recommendation – Buy Australian dollar and Argentina Peso.
Wednesday’s trading range: (September 2019 future Contract)
DOLLAR INDEX – 97.29 to 96.82
AUSTRALIAN DOLLAR – 0.7050 to 0.7000 (Spot 0.7036 to 0.6987)
CANADIAN DOLLAR – 0.7665 to 0.7633 (Spot 0.7655 to 0.7616)
BRITISH POUND – 1.2502 to 1.2400 (Spot – 1.2460 to 1.2365)
EURO – 1.1300 to 1.1232 (Spot – 1.1242 to 1.1180)
JAPANESE YEN – 0.9320 to 0.9251 (Spot 0.9281 to 0.9210)
SWISS FRANC – 1.0218 to 1.0151 (Spot 1.0163 to 1.0095)
USD/Japanese Yen - (Spot – 108.57 to 107.81)
USD/Franc - (Spot) – 0.9903 to 0.9851
New Zealand Dollar (Spot) – 0.6735 to 0.6670
USD/RUPEE – 68.84 to 68.50 (Spot)
USD/RAND – 14.01 to 13.88 (Spot)
USD/REAL – 3.78 to 3.75 (Spot)
USD/PESO – 19.16 to 19.01 (Spot)
Thanks & God Bless, Mahendra Sharma
16th July 2019, 03:00 PM, Santa Barbara