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Today's Trade & News

Metals and world financial market risk..

Dear Friends,

Let me first take this opportunity to thank you as I have received a lot of supportive emails from many members during the last three days. They all made encouraging comments, with some saying that we are human beings and that a few errors are bound to occur. Others also said that they take into account this kind of risk. But I am not happy as I saw a rally and the metals didn't move up as I had anticipated, though all other predictions in newsletter for last week went very well. So once again, my focus will be on metals in this week’s newsletter.

 

My conclusions on the last 5 days metal trends:

1. Gold has not fallen that much compared to silver.

2. Silver has created panic in metals.

3. The interesting point is that- Metal stocks have performed very well.

4. The fact that I saw gold rising from 4 September and it has not performed as I expected may create doubts in my mind on metals’ future trend; but I won’t make any hurried announcement. I will therefore wait for a few more weeks and carefully watch the trend in metals.

 

Here are this week’s (newsletter) predictions from 13 to 17 September: 

 

WORLD EVENTS

All planetary combinations for this week are giving warning signs and indications for world peace and safety are not good. I see some big negative occurrence taking place. This happening is either by nature, terrorists or in the middle-east. We must therefore pray that peace and security will prevail in the world throughout the week.

 

LAST WEEK: I recommended that one should put money in metals and buy all currencies against the USD. Though the currencies, coffee, oil, copper, other  commodities predictions went very well, I am still waiting for metals to perform well in September and in the first two weeks of October. My strong recommendation for this week is to sell in the stock market and buy grains, coffee as well as Metals.

 

RISK FACTOR

Those who trade or are involved in the uncertain world financial market should be ready for the uncertainty that is bound to prevail for a few hours or days when some events take place in the world. For instance: When the announcement of the capture of Saddam was made, gold went down, while the US Dollar and the market rallied, though this did not have any long term impact.  After few days gold started going up again and dollar came down.

Another interesting point - After the war on Iraq and the capture of Saddam, oil prices in fact sky rocketed; why? Innocent people must have thought that the good times had now come because oil would come down and that would help the industrial sector and the world economy in general. But now no one is asking the question whether the USA went to war for oil prices to sky rocket? In my upcoming book, I shall write several points in which I shall expound on the role of destiny.

 

For instance, supposing some major event like the following was to happen tomorrow? My answer follows;

 

1. Osama Bin Laden - The capture of Osama would be the good news for the stock market but only for 48 hours and then 5000 points tumble (Destiny says 5000 points tumble is written, weather they capture Osama or not) . Gold would also go down for one or two days following the news but then a major rally taking gold above $600 by the middle of 2005 would commence. I feel sorry when people connect gold's rise or fall with Osama? Osama was just born into the world, while gold is part of nature and people have known it for thousands of years. Destiny forces us to play a role because destiny is a part of nature and the nature created humanbody, mind and soul that is why we are alive. We breath air (one part of nature) and we can't stay alive without air, no matter who we are (Bush, Osama, Bill Gate or me).  Nature creates a wave in mind and slowly it spread, like for example, 2000 and 2001 nobody wanted to put money in market but after 9/11 attacked market sell-off and than new wave created by nature in investor's mind that is market bottom-out? and people started talking that yes all bad is over and now time to buy. We all know since than market started going up. Through astrology I am trying to learn more on nature and connection of each soul to one another because astrology is a part of nature like air but it is hidden and have just given a name astrology. I would like to share more on this in my coming book. I am also unfold hidden relationship of human mind (which rule by Moon and Mercury) with world financial market (Jupiter) and role of destroyer of market or loses (Saturn, Mars and North Node). Just yesterday thought came that I may start giving lesson or lectures from 2006/7 on relationship between nature (astrology) and world financial market. 

 

2. Any economic data or news that people think are negative for gold would also make gold stronger in the long run because it would absorb all the negativity before rallying.

 

My advice is therefore that you keep the long term trend in mind before entering or exiting. Short term traders can never win in the market because most of them play try to flow current trend and they ignore long term trends. That is the reason chartists or those that play with rumours or try too much to understand trend can never win the market or they can never become a successful investor or money makers in long run - if they don't know the long term trend. It is easy to make money in short term when things are going in one direction and everybody is making with wave even if market are moving opposite direction with long term trendline but in long term it is very difficult to survive with short term trading if you don't know the long-term trendline. Many expert came and disappear because this world financial market is like sea, few survived like Mr. Buffett because they knows there long term planning.

 

Example - In 1991, I predicted a major rally for the USA market for 8 years. Of course it also went down on many occasions in the short term but that doesn't matter because those who short the market and made small amounts of money missed out the eventual major eight year rally in the DOW. Same I predicted for NASDAQ in 1995 for four year hot bubble rally. Ultimately, many went out of the market in middle of trend because they thought that it had gone up enough and many started shorting in middle of upward trend (I personally know a few of them).

 

Now interesting point - I predicted the same for gold in mid 2001 and revealed that gold would rise for 52 years. If those who entered during that period can do an account today, they must have gained. Getting in and out is the problem for each investor. In the month May, I said that those who would buy gold at $378 and silver at around $5.60 would never make losses. Indeed, those who bought around these prices must have gained handsomely. It is in the same way that I now recommend that those who will buy gold at around $400 and silver at around $6.00 will not incur losses and in medium and long term they will make fortune.

 

I do not know the financial strength of each and every member or to what extent they can take a beating. So at this stage, one can invest 40% money in metal and wait to put in a further 30% around 21 September. From here, the maximum down side in the worst case (like the news of Osama Bin Laden’s capture,) is 2% for gold, 4% for silver and 8% for metal stocks. On the other hand, the USD could gain 3% and the stock market 2%. This takes place because the force of a big majority of the human minds goes into that direction for few days, then settles down and the original wave takes place again. It’s like when a typhoon comes and nature goes crazy, leaving everything calm thereafter. 

 

I hope that this will help my members to make the appropriate decisions in the most unpredictable world financial market.

 

Once again thanks for your support and faith in my work.

 

NOTE: Prediction on Gold, Silver, Platinum, Palladium, Copper, Oil, Coffee, Stock Market, Currencies and other commodities I can't put here because membership policy so one can apply newsletter. On Wednesday or Thursday I will put my newsletter on my website for visitor's.

 

Thanks & God Bless,

Mahendra Sharma

www.mahendraprophecy.com