Dear Members,
The rebound in the Chinese market was so sharp that many short sellers have fallen into trouble, e.g., Quant Hedge Fund, which hit a margin call. Two weeks ago, we predicted a sharp rise in the Chinese market, and we recommended buying YINN at $21. We also recommended buying other ETFs like CWEB and stocks like BABA, BIDU, and PDD.
The Chinese ETF doubled in value and is now at a crucial level where some selling will occur. This week, we recommend closing long positions in Chinese ETFs and Stocks for the short term, but they can rebound in the short term. The medium-term trend still looks uncertain for China as the overall Astro combinations are unsupportive.
$42 is the first Astro resistance level for YINN. Due to a Chinese National Holiday, the Chinese market will be closed from Tuesday to Friday.
On Tuesday, higher-side profit booking or selling in commodities is recommended as weakness is expected for the short term.
Oil closing below $65.68 will bring a disaster, so watch this level closely. One can cover shorts around this level. I am not recommending buying any in oil, but one can cover shorts for around $65.68. Stay long in Natural Gas.
Currencies will lose significant value, so keep building short positions in the frontline currencies. The dollar Index tested our Astro support level of 99.98 and rebounded twice, which means that the Dollar has achieved a bottom and may not fall regardless of the future FED move.
I won't be surprised if commodities fall sharply on Wednesday. One can take long positions in UMC, IMMR, ERIE, FIX, and ALAB.
IMPORTANT NOTE:
From next week, the 7th Astro cycle will start. The next cycle is critical for market, so tread carefully, as the bears and the bulls can be burned badly.
The Indian market achieved a top as predicted and is ready to crash 10-12% lower.
Must read our weekly newsletter carefully if you need more money to afford to buy our book.
Thanks & God Bless,
Mahendra Sharma