Dear Members,
Last week S&P made its biggest gain since July this year and we are expecting it to perform well in the coming time. Last week Europe plugged more money into its system to control the ongoing debt crises. The story of the debt crises will remain in the financial street for at least the next three years.
UBS “Delta one“ trading desk has given $2 Billion loses by single traders. UBS sued Kweku Adoboli for Fraud charges claiming that false accounting dating back to 2008 for some of transactions. Many banks have been taking too many risks with people’s money. They have also tried to make a few quick bucks by allowing traders to make risky trades. So far all major loses came to banks by derivative trades and the banks are aware of these risks with all kind of derivates trades but they can’t handle pressure of loses so they blame the traders. They sue traders to cover themselves, or in other words they try to show clients that they lost because of a particular traders mistake.
We all aware that most of banks are making huge bets in derivate trades. They are taking huge risks by creating products such as the ETF, ETN and other high leverage financial instruments with people’s money. Money serious investors don’t like ETF’s as no one is aware of how safely that product is covered. Like in many countries currently GOLD EFT is trading and we are not sure that these eft’s hold actual gold or not. Anyways you can get so much inside information’s on all these so let me come back to this week markets trend.
I am bit concern as last week was supposed to be the best week for commodities but all major commodities performed poorly and this may be an alarming sign for the next one month. I will explain in brief on each market as I am going to give my last tribute to Grandmother.
Last week I was not focused mentally due to my Grandmother and I saw that even my predictions were in a mix but now I have recovered so I will able to predict back on track by the help of astrology.
This week’s newsletter from 19 to 23 September
GOLD/SILVER
Last week gold and silver traded as predicted but I still didn’t like the trend so I am giving you a strategy of short and medium term trading.
1. Planets are giving a very clear single of a major bull market in gold and silver after Mid October so longer term buyers should start buying gold and silver positions form Mid October.
2. Until mid October gold and silver will perform as per the short term planetary movement so one should trade in and out. You must buy them one day before markets closing whenever you see indications of buying in our weekly newsletter before positive day starts. Sell on last positive days before negative days.
3. Mars is damaging the trend in commodities which will last until Mid October. On the other hand it is supporting Stock indexes so money will keep moving into stock markets from high leverage commodities.
As mentioned above, metals will trade in the range and most of time they will trade weaker on slightly weak day, and they only perform positive when there will be very positive days.
This week gold and silver will trade negative on Monday from middle of the day and weaker trend will continue until Thursday so one can sell on Monday and hold sell position until Thursday. Cover all shorts on Thursday and buy some positions on late Friday as next week Monday will be a positive day.
Fridays close. Maximum gold can reach $1827 and silver $41.18 (these are great levels to sell).
BASE METALS
Base metals...
This week will remain weaker for copper, palladium and platinum.
COFFEE/COTTON/COCOA
During last week....
SUGAR/LUMBER/ORNAGE JUICE
Last week..
STOCK MARKETS
This week all major markets will remain....
GRAINS
Grain market have suffered a huge set back....
OIL
This week oil will....
CURRENCIES
The last twenty days dollar performed very strongly. It has entered into longer term bull market so it will be life time buying opportunity....
Longer term trade:
At this stage...
Remember two points:
1. Avoid commodities until mid October
2. As per most of analyst current picture is very gloomy for world financial markets but planets says great buying opportunity as amazing future is hidden, just don’t take high leverage position, do small trade and build keep building position in markets, by Mid October you should be 100% invested and you will make fortune in the 2012. On 6 March 2009 we planets gave clear indications for buy stocks and we all aware that market bottomed out on 7 March 2009 after 2008 crash.
Thanks & God Bless
Mahendra Sharma
Sunday 18 Septmber