Today's Trade & News

Dear Members,

Last week major metals hit multi year highs, oil scaled to a three month high while currencies remained in range. Major stock markets looked exhausted and merely refused to go up. Well, this is not surprising as the hidden or third eye clearly sees the coming of a dangerous wave. It does not matter whether major market pundits, hedge funds or institutions see it or not- the worst period is on the corner.

TALKS IS GOING ON – 2006

China is planning to up its metal reserves, there is rising concern about Iran going ahead with its nuclear ambitions (which I have been predicting for the last two years) while Arab countries are accumulating gold as a safe haven and alternative investment. This is after gradually withdrawing their money from western markets as well as bonds. Indeed they are now flourishing with oil and metals investments and their infrastructural and housing development is just mind boggling. Every one has been predicting new historic high for all major stock markets.

Everyone is now seeking alternative investment. Gone are the days when all other countries only looked at the USA for investment targets. As a matter of fact, the USA’s own investment is moving out of the country. Companies and funds are putting in their money in countries with better returns, where the cost involvement is less; making them more competitive as well as helping increase profit margins.

Hedge funds and money managers are becoming like hungry hyenas, with no regard to whether or not oil reaches $200 or $500 as long as they are making money. They don’t seem to care how the middle class will fare or the dangerous phase the world will inevitably get into if commodity (energy and food) prices move continuously higher.

Anyhow, I shouldn’t be talking about all this as the weekly newsletter is based on planetary movements; and if planets are in favour, then nothing can stop something from going up. As a matter of fact, this is what has been happening for oil and metals for the last four years. My working and reading have been on the right track in regard to metals as well as oil. However, I have been off track on the stock market for the last twenty one months. This doesn’t mean that planetary movement has not affected the market: it is a clear indicator that the path I had been following for the last two years was wrong. I have since changed course since the last three weeks. At this stage, the previous as well as the new theory both indicate a great fall in the market. We shall confirm this in time to come.

LET’S SEE WHAT THIS WEEK INDICATES:

THIS WEEK I AM PREDICTING WEAK TREND IN METALS, GOLD MAY TOUCH MAXIMUM HIGH $568.80 AND SILVER $9.28, NO ONE CAN STOP THIS FALL ALSO DOLLAR RISE STOCK MARKET WILL FALL. I WANT TO SEE WHO IS POWERFULL WAVE OF NATURE OR (MONEY, TRADERS, BANKS OR INSTITUATIONS).

I WILL FOLLOW THE WAVE OF NATURE AND YES I WILL SELL.

GOLD

ONCE AGAIN I AM PUTTING LAST WEEK’S NOTE HERE:

This week it will move down as Mars cannot influence it much but next week will have more influence. Mars will be saying bye-bye (for the medium term) to the metals bull market in the last week of this month, it should therefore remain very volatile for the next three weeks.

IMPORTANT NOTE: The futures market can give big knock during high volatility if trade is on the wrong side. Till the last week of January, one should thus take selling position of gold by trading options (call/put) and that can give you huge returns in medium term. I may sell May and September call or buy put strike of $500, $480 and $450.

SILVER

COPPER/PALLADIUM/PLATINUM

EACH WEEK, SIGNS OF WEAKNESS SHOULD BE NOTED BEFORE YOU TAKE A BIG SHORT POSITION. I hardly trade the market but I am now planning to divert a 20% part of the portfolio into shorting the market, which may include metal, oil and hot rising stocks. On the buying side, alternative energy stocks should still be on top of the list. Last year they paid quite handsome returns.

Early last year I recommended stocks like ENER, DESC, DSTI, SPIR, FCEL, MDTL, ZOLT, FCEL, ESLR, MCEL, BCON, QTWW, USEG.

This year I bought stocks like WWAT, XSNX, EEEI, FCEL, ULBI, MDTL, ZOLT, CY, PWTC and a few more. Water related stocks are also favourites, and power and nuclear sector related stocks will also dominate this year. In mining stocks my target is uranium and the coal sector.

This week the market should remain sideways. Therefore watch carefully and wait, as we can wait another two more weeks. In the meantime, buying PUT till then is not a bad idea.

OIL

CURRENCIES

I don’t care what most of the major banks, hedge funds, Buffet or George Sores is doing. Let OPEC members diversify their part of oil pool money, let China and other countries look for diversification of their holdings in currencies, let the Euro zone increase the interest rate or let Japan discard hype-loose monetary policy during this year or let the Federal reserve end their 18 months dollar boosting interest rate. ALL THAT NOTWITHSTANDING, I AM STILL RECOMMENDING BUYING THE DOLLAR AT THIS STAGE. I DON’T KNOW WHAT WILL HELP THE DOLLAR TO MOVE UP, BUT SATURN AND JUPITER (TWO LONG CYCLE PLANETS) ARE IN FAVOUR OF THE DOLLAR AND THEY WILL BE FOR THE LONG TERM.

TIME WILL REVEAL ALL THE ANSWERS

I am also coming up with my Astro-wave chart theory, which may help you to understand my work more easily. This unique way of predicting the market may help you make all important decisions concerning trades and options. You don’t have to be 100% right but if you are right over all, it is enough to beat Wall Street or any other market. 

Mahendra 16 Jan 2005

www.mahendraprophecy.com