Dear Members,
Last week was quite interesting because the market and the major commodities all moved in accordance with the wave except oil. The stock market remained weak and the dollar manifested some signs of recovery. Volatility was rife in grains while cotton and coffee were on the decline. However the most interesting thing was quietly happening in the metals’ movement. Well, it is still too early to say, but signs are positive as far as metals are concerned and I shall soon arrive at a final conclusion.
Important note - I see major collapse in CRB INDEX or I can say all commodities will be on major downward side so short all commodities. Mercury is very negative.
I have decided not to write too much and we’ll go straight to this week’s predictions.
Predictions for 21 March to 25 March:
GOLD
Last week the dollar was on the gain while gold tried to stay firm without tumbling. Nevertheless, it is still too early to positively assert that gold has finally broken its relationship with the dollar. All planetary positions for this week are in favour of gold as well as the US Dollar (very strong) and it will therefore be quite interesting to witness how gold will trade during the week (I see losing battle against dollar).
I cannot yet give a strong buying signal. Traders should only engage in day trading, buying in small quantities if it is down and then sell on rising; sell high and buy low. I see this kind of movement for each day of the week. Don’t hold big positions overnight.
I am aware that many members are frustrated that I have still not given any clear buying signal in gold, despite undertaking to do so. Regardless of whether gold is up or down, I shall only do this when I am a 100% convinced and the path of its movement has been clearly revealed.
Final note - This week will be the determining factor for gold and I shall keep you updated as the situation unravels.
Trading range – Gold will move between $444.90 and $432.80. If gold breaks either of these levels, cab push prices in that direction very fast so trade carefully, about which I shall immediately alert you.
SILVER
It will also have to contend with the problem of the dollar’s rise. I shall however recommend wait and watch. I shall do so in a few weeks, by which time the prevailing uncertainties shall have cleared to an extent that you will be able to put in 80% of your money.
Tuesday will be stable for silver. There could be a rise on Thursday, concerning which I shall duly update you, but my recommendation is that you don’t keep buying positions overnight.
Very Important – This week is very positive for metals and they should therefore rise. Failure to this, there might be some reservations concerning the metal’s positive outlook for the next several weeks. Be as it may, I shall keep you well advised as I am constantly monitoring the situation and reviewing all possibilities.
Trading range – Silver will trade between $7.21 and $7.52. You can therefore trade between this range; buying around $7.21 and selling around $7.50. Breaking a either of these levels, can push prices in that direction moderately fast, so trade accordingly.
IMPORTANT NOTE - DON'T BUY METALS TILL I AM 100% CONFIDENCE, SHORT METALS.
PALLADIUM/PLATINUM/COPPER
Avoid trading in these metals for the time being because their movement is likely to be sideways. Copper should be very volatile during the first two days and it should move towards a new high. One should book profit on rising. I do not recommend new buying in copper from Wednesday.
Platinum and Palladium will both experience very slow trading and you should therefore avoid them. After a few weeks however, I shall give a strong buying recommendation in Palladium. So wait for my buying call in Palladium.
Metal stocks should trade sideways so don’t add any new position in them but one can start taking small position in South African metal stocks.
OIL
Oil will touch a new high on Monday, after which it will decline sharply. This could be any time between Monday and Tuesday. SO GET OUT FROM OIL STOCKS AND OIL POSITIONS. THERE IS MASSIVE SPECULATION GOING ON HERE. INDEED IT IS LIKE A WAR AND I SUGGEST THAT YOU DON’T GET CAUGHT UP IN THIS WAR. 1000% OIL WILL FALL ON TUESDAY.
CURRENCIES
Many financial institutions and banks are closely watching my prediction of the dollar’s rise. I am holding my prediction on the dollar for the short term. It doesn’t matter what the FED decision concerning interest rates will be on Tuesday.
I recommend not shorting the US Dollar. This is the only factor that still holds me not to give a strong buying signal in metals.
There are times when not working in the market could even save you lots of money. Any waiting period should therefore serve to instil patience until conditions are right. Sell the Euro and other currencies against the dollar.
COFFEE
Don’t buy any new position in coffee at this moment but I shall give a new prediction on coffee on Wednesday. Please therefore wait for my alert on coffee on Wednesday.
COTTON
Last week I recommended selling cotton and I am sure that many did. Cotton sharply went down and it will indeed remain weak till Wednesday. There should therefore be no new buying till Wednesday. On Thursday, one can buy a small quantity.
ORANGE JUICE
I see orange juice moving toward new high for this week and one can add positions in it.
SUGAR
During this week sugar prices should move up from Thursday. One can therefore buy or add positions in it.
STOCK MARKET
In the entire of last week, the
The market should gain from Thursday (for three days) and one can therefore cover short positions on Monday for the short-term period. I shall soon give you the selling signal.
TREASURY BOND
From Wednesday I see a very strong rise in Treasury bonds and they should move up fast. One can therefore take up buying positions in Bonds.
GRAINS
As predicted, grains remained volatile and in decline during the week. This week, my prediction is that they will further decline around five percent after which they shall be on the rise once again. I shall update you more on this.
Early this year I predicted that any time during the last week of March or early April of 2005
I have sought to make the newsletter short and onto the point and I hope that this will help you in making the right decisions.
Important Note – Whenever you are not happy with the prevailing position or when you are confused, the advisable thing to do is to get out of the position for a while and then re-enter. This is very useful in rallying your energy and in focussing onto the right path. It ensures that you are not rushed and enables you make decisions that you will be comfortable with even afterwards.
The dollar’s rise is exerting some pressure on metals because for many decades, financial market practitioners have been trading according to their movements. For the first time in the history of predictions I have stated that gold will simultaneously rise with the dollar. This may take sometime, but it will eventually be fulfilled.
I am a great believer in planetary movements and of nature’s wave. While I have great faith in my subject, I am also cognisant of the power of money and its influence which can turn the market from one side to the other, albeit for a short period. I am also fully aware of and respect the many important factors strongly connected with the unpredictable world financial market. In the face of the intricate web of dynamic factors that make predicting the market so difficult, astrology offers some means of navigating these precarious waters. In great faith many investors have chosen to follow this path. I really must thank you all for your faith in me and the support you have extended towards my work.
Finally, let me state that ONE SHOULD NEVER GET OVERLY EXCITED OR SAD BECAUSE OF A ONE DAY UPWARD OR DOWNWARD MOVE. THE IMPORTANT THING IS TO FOLLOW THE WAVE DESPITE THE SITUATION AND ACT ACCORDINGLY. THIS WAY, I AM CERTAIN THAT YOU WILL NOT GO ONTO THE WRONG PATH AND THAT YOUR EFFORTS WILL BE REWARDED IN TIME.
Thanks & God Bless
Mahendra Sharma
19, March 2005