Today's Trade & News

Dear Members,

For the first four days of last week, the US Dollar made gains, but only to give them up on Friday and therefore closing unchanged for the week. The same also occurred with gold. Against what I had predicted, energy stocks and oil actually rallied quite strongly. The stock market closed at a new three year high while grains remained stable after a fantastic upward move. Just as I had anticipated, palladium paid off very handsomely.

Today I have decided to dwell on each section in more detail since some members are still perplexed on what their next move should be. The question they are grappling with at this stage is whether to sell or buy the dollar and oil or not. There is also the significant matter of what new decisions need to be made given the resurgence of the stock market culminating to its hitting a new high.

Well, here are some important points concerned with past, present and future moves that may help you make the right decisions. Indeed I hope that they will because there are times when members have misinterpreted my statements and predictions.

Let’s start with gold:

I need not dwell too much on my past performance as far as predictions on gold are concerned. I believe that you are well aware of it and the history of my predictions can bear me out. Nevertheless, I would like describe the relationship with nature. I would also like to make it understood that I don’t shoot an arrow into the air without aiming it on spot. The future wave gives me reason to predict and even though some are off track on short timing, one thing is sure; most of my predictions on the world financial market are usually proved right (I am thankful to astrology, grandfather, father, Guru, Nostradamus and nature). For example, you can take the stock market (granted, I have not been accurate for the last 5 months but quite accurate since the last nine years), or metals, oil, currencies or even coffee.

I would like to share a secret with you: those who consistently remain in the top five areas of my recommendations always gain in at least four of them. The loss ratio is therefore quite low and one should reap rewards at one point since you cannot continually lose on a yearly basis. 

Once again, I’d like to mention something on the past, present and future and how it all relates to your planning.

PAST:

In early 2001 I saw the onset of a very positive time for gold that would commence from the middle of the same year. Therefore, something had to happen so that prices could embark on the predicted upward drive. Even as I stated this, I also mentioned three other factors that would also play a crucial role in the unfolding of the entire scenario.

1. The fall of the Dollar

2. Terrorist attack

3. Iraq war

All four predictions came to pass:

*Gold started the journey from $255 up to $455.

*Unfortunately, the terrorist attack prediction was also fulfilled, with terrorism becoming a hot issue throughout the USA, Europe and even Asia.

*Dollar went down against the all major currencies. Example - The Euro went up from 0.83 to 1.36 (almost 50%), while

*We all know about the Iraq war.

PRESENT

*I see a rise of the Dollar occurring any time albeit just for the short term

*I don’t see any major terrorist activity

*The Iraq war is over

*Negative news may emerge from China any time thus affecting the commodity market.

True, these points are not in favour of metals and also the current time (astrologically) is not favouring metals (for the few weeks) but then remember also that my prediction favouring metals for the next 48 years.

FUTURE

For a while now, I have been saying that the USA government is slowly but methodically acquiring gold. Investors don’t smell a thing but the intelligence of many other countries will get wind of it and many countries will also embark on a gold accumulating process.

A major meltdown of all paper currencies is also on the way (after a year).

The US will make other countries banks to short gold derivatives.

These three points are enough for me to predict a great future for gold prices, but of course this won’t happen tomorrow. Time will come when gold will move $50 to $100 in a day due to overwhelming demand. People will be more than willing to pay high prices for gold, which means that they shall lose faith in currencies and its future value.

There will be a war between powerful nations to acquire gold, just as I predicted in 2001 in regard to the “oil war”. As a matter of fact, I see the gold war starting from the end of 2006.

It is my sincere hope that the foregoing will help you make long term decisions for the next 10 or even 50 years in anticipation of the ‘golden era’.

Next week I shall write details concerning oil, which will then be followed by details of the stock market, grains and the future of the currency markets.

The current scenario concerning gold is quite different. Let us therefore see what this week indicates:

Predictions for 7 March to 11 March 2005

Last week, gold remained in the same range of $429 to $436. I see major volatility in the movement of gold prices for this week and there may be a $20 move on either side. My recommendation is that you should still avoid any new purchasing at the moment. Furthermore, I would like to study Tuesday and Thursday as they may well be the deciding factor.

If Thursday opens stable and starts moving up, then you can only take a buying position for the short period! I shall send you an alert on this and my advice remains the same; don’t jump to buy for a mere 1 or 2% gain because you could incur huge losses if trade goes against you.

I would also like you to buy on the right day and for purposes of caution, one can afford not to trade in the market for a few weeks.

This week I may send an update on gold everyday. This is because many members would like to be frequently informed especially when matters are as confusing as they presently are.

Any downside (more than 20%) in metal stocks will present you a buying opportunity soon. However, one should hold silver stocks in comparison to gold because they will perform far better than gold stocks in 2005.

Short term – Uncertain or sideways

Medium term and Long term – up

Recommendation – Wait and watch

SILVER

Silver will be uncertain for this week. One can however engage in some little trading for short intervals which may give good return (if drop too fast - buy and sell on the same day or if rise too fast - sell and buy back on the same day). Don’t keep a position overnight.

I have great faith in silver’s performance for the next two years but I am not happy with current planetary movements. However, I cannot advise you to buy silver just because I like it. I shall advise you to buy when it is the right time as past experience has shown that it comes down quite sharply after undergoing a rapid rise. 

Short term – Sideways or uncertain

Medium term and long term – UP

Recommendation – Wait and watch. 

COPPER/PLATINUM

THE SAME PREDICTION AS LAST WEEK HOLDS TRUE. For the last three weeks, trading of both metals has been range bound. Their immediate outlook is bleak as they could decline remarkably fast. I therefore recommend that you don't hold them. Copper’s downward move will also destroy the recent upside move in basic metal stocks and I recommend that you sell even those stocks as well.

Copper may experience significant volatility as a major planetary movement will occur during this week.

Short term – sell Copper by Friday

Medium term – Sideways

Long term – up

Recommendation – Avoid trading in copper. INDICATING MAJOR VOLATILTY.

PALLADIUM

Palladium moved up last week by 15%.

Patience is always rewarded if one trades with the wave of nature without taking too much risk and some members have sent me congratulatory emails in regard to my prediction on palladium.

This is what I said last week concerning palladium. As a matter of fact, I hold the same prediction: “It looks stable and indeed it will surprise all metal investors by moving up when all other metals will be going down. Only palladium will be on the upswing and I recommend palladium if you are looking for a safe investment for the next 20 days. Buy palladium.”

Short term – Sideways

Medium term – UP

Long term – UP

Recommendation - Don’t forget to book small profit on each rise.

OIL

For the last four years I have advised on oil quite accurately but the last two weeks have been wide of the mark. I actually I came wrong by recommending selling when oil was $49. There could be a conflict of my long and short term predictions since as you know, I see oil going to $75 or even above. This is something that I actually predicted 18 months back when it was at $32.

Current planetary movement for this week are mixed and I therefore see oil trading around the same levels or little bit low. It may however fall on Tuesday and Wednesday.

Early this year, I predicted that oil would start getting weak any time in the month of March till May, after which it would rise again.

I have done my calculation again and it shows volatile and uncertain times. At this stage I won’t recommend any buying because I don’t see it going above $55.80.

Next week on Tuesday, there will be a major planetary realignment for oil. It is only after this that I shall be in a position to confirm whether or not oil’s weakness for March and May will persist (I still feel that once again it should touch $41). After that I may recommend buying even at $55 so please wait another week for my final answer. This may yet prove to be a great opportunity when one could make a fortune once I confirm the true position. I only urge you to go along with the wave and you shall never be wrong.

Short term – Volatile or down (hold short position and at $55)

Medium term – Sideways

Long term – UP

CURRENCIES

On Friday last week, the US dollar and all currencies closed at the same prices as they opened on Monday. From Tuesday to Thursday the dollar advanced, give up all the gains on speculative Friday.

Once again I confirm that the US Dollar will have a major upward move. All other currencies will collapse against the dollar for the short term (a few months). I know that out of 100 experts, 99 are talking of a weak dollar but my work shows a major turn around of the US Dollar. It will bear upon other currencies, unstoppable “LIKE A TSUNAMI WAVE”. Many experts or market guru’s are advising selling dollar should watch their recommendation carefully because on their advice many investor’s or currency trader’s can go bankrupt.

Short term – Immediately cover all short in the US Dollar and buy whole this week US Dollar.

Medium - Dollar will be up

Long Term (after 6 months) - Down

COFFEE

I still hold the same position on coffee as predicted last week: “Most of the predicted prices for coffee have been fulfilled and it will now rest for a few days. I therefore don’t recommend any new position in coffee. It will not however fall too much, but wait and watch for my next newsletter.

Last year when I predicted that coffee would rise from $65 to $128, a lot of people thought that I was joking and dismissed me as one who knew nothing about the coffee market. Nonetheless, I am happy that nature/time has amply demonstrated that if it is in support, nothing is impossible.”

COCOA

This week I see cocoa prices moving up. Remain in buying position or one can add on Tuesday. A sudden drop will occur on Thursday but the prices will once again be upbeat on Friday. The rise will steadily be maintained for the entire of next week.  

COTTON

Last week I recommended buying cotton on Friday because I saw this week’s rise. This rise will remain until Wednesday. Thursday could be a very negative day while Friday will present a buying opportunity once again.  

SUGAR

I now recommend buying, though in small quantities on each fall.

STOCK MARKET

Last week I said “A WEAK TREND WILL COMMENCE ANYTIME ON MONDAY AND THE MARKET WILL COLLAPSE MORE THAN 200 POINTS ANYDAY DURING THE WEEK.”

On Thursday evening I sent an alert that it may rise another 130 points as it did not decline on Monday as previously predicted. The market actually went down 75 points but didn’t fall in the next two days.

I am not at all content with my stock market prediction. It might be that destiny does not want to inflict a horrible scenario on wall-street; BUT MY WARNING IS STILL ON. I will continue to closely watch the market for the next ten days. In fact, I am in a major search for something, and I know that I shall soon hit it. Indeed I feel that I am already there but I still can’t find that which I seek.

The market has not gone up a lot from the point where I recommended selling last year at (10776).

EXTERNAL FORCES ARE PUMPING TOO MUCH MONEY INTO THE MARKET AND IT REMAINS TO BE SEEN WHO WILL EMERGE VICTORIOUS. WELL, LET US WATCH AND SEE WHETHER IT IS THE POWER OF MONEY OR NATURE’S WAVE THAT WILL EVENTUALLY CARRY THE DAY.

For the time being, I will patiently watch and wait for another few days (probably even weeks but certainly not months).

GRAINS

I am fully satisfied with my grains predictions though I waited for almost ten weeks before it was fully achieved. This week I recommend to book profit each day on rising and just watch and wait. I see a small downward trend in grains, after which I shall recommend buying once more.

Short term – Down

Medium term – UP

Long term - UP

TREASURY BOND

For the whole of this week, the Treasury bond will move within a very narrow trading range on downside.

Thanks & God Bless

Mahendra Sharma

5^th March, 2005

www.mahendraprophecy.com

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