Dear Members,
I am now back from my trip to India, where I spent several days at my “Guru’s” spiritual retreat. It was a necessary interlude for introspection since as you have all witnessed, the last three months have been a tough period for me in predictions. Indeed it is the roughest patch that I have had in an astrological career that spans 25 years, having started predicting at the age of 12. As a result of being uncertain, the last seven months have been a trying period that saw me going against my own prophecies of a major bull market in metals. Even after affirming (in my 2004 book) that silver would reach $14 if it traded above $7.95 for twenty one days, I inexplicably ignored this.
During this journey of deep self-searching, I tried to find answers to explain errors.
During this trip, there is something that I ascertained and it will greatly help you in your trading. This could ensure that you do not lose anymore following my advice:
If I am consistently wrong for more than five days in any commodity, it means that I am not on the right track; while being wrong for more than twenty one days undoubtedly shows that I am following the wrong path. In the first scenario, you should stop trading on my recommendation till I am back on track. On the other hand, an invalidity of twenty one days should definitely be alarming as it means that advice on that particular commodity does not hold and one should therefore not follow it.
This is what I got for you from this trip of “search for truth” when time is playing a volatile or uncertain role.
THE PREDICTIONS FOR THIS WEEK 24 to 28 April 2006
GOLD
This week should be a most interesting one as major players (buyers-sellers, hedge funds) will have a fight. Astrological calculations show that the medium term bull-market trend which started at the end of last year should end by next week Monday. It is hard to believe while everyone is in a buying mood, but I will follow planetary movements.
This week gold should trade very volatile from Monday to Wednesday. If the USA gold market opens weak during these three days, it will confirm a major downward trend on the same day. Any negative trend could spoil the gold market bull-run.
Metal investors should keep their eyes open on Thursday because if metals start trading weak, it could spell disaster for gold as well as for all metals.
On Friday, gold will trade in an uncertain direction.
THERE ARE SIX FINAL POSITIVE TRADING DAYS FOR METALS/METALS STOCKS LEFT, AND EVEN THESE CAN BE SPOILT IF METALS START TRADING NEGATIVE IN NEW YORK DURING THIS WEEK.
If a negative trend occurs during this week, then gold will break $600 soon.
SILVER
Last week silver remained very volatile and it sharply went down on positive days, a move I am still unable to digest. That was confirmation that BUYERS in metals should be very careful as any major crash in metals could ruin everything.
This week, silver will remain volatile on Monday and Wednesday, therefore trade carefully as we may experience a sharp rise and fall. Day traders should sell at higher price if it moves two percent higher from the previous close.
Thursday is an unpredictable day and I don’t want to take a risk by predicting THURSDAY'S move. Any negative trend in the electronic market will confirm a major fall of silver on the same day.
Friday will be a mixed day.
This week silver will trade in the range of $13.45 to $11.90. Breaking either of these prices will push another six percent move.
If downward prices are not fulfilled this week, then they should in the next week.
COPPER
Though trading thin commodities like copper can be suicidal, prices have been rising for the last one year and it traded at historic high on Friday. Whether it will go to $400 or toward $240 is the million dollar question and I believe that I have the answer for you.
Sell copper if till Thursday there is a negative trend in New York market. Those who don’t want to take a risk should sell on Friday, no matter what the prices are that day.
A fall could come this week but from NEXT WEEK THE WORLD WILL WITNESS A FALL OF COPPER PRICES.
PLATINUM/PALLADIUM
Both metals are very thinly traded so trade carefully. I don’t recommend a single contract in buying position as next week a fall will heavily damage both commodities.
COFFEE
This week coffee prices will trade in a very small range. I don’t recommend any buying at this stage, but from the middle of May- YES.
COTTON
Time will now turn for cotton, therefore start accumulating position in cotton from Monday. Prices will rise from next week though they will trade in the range of $50.10 to 52.90.
STOCK MARKET
All major stock markets are trading at a higher level. Unless they fall for five days in a row, my prediction won’t come true. However if major stock markets trade in a downward trend for twenty one days, it will confirm a weak trend in all major stock markets for the next five years.
This week all major markets should move to the downside. Furthermore, Thursday is a very important day for all major markets and the market falls on this day, it will be confirmation that the top has been posted.
TREASURY BONDS
The current period offers a great opportunity in the thirty years bond. I recommend buying in it for the next ten days as a sharp rise is coming.
GRAINS
This week grains should trade positive though the trend will be uncertain on Thursday and Friday. If they rise sharply on Thursday, then one should book profit and buy if they fall sharply.
Soybean, Corn and Wheat are in a Medium and long term bull market.
OIL
I have been totally wrong in the oil area for the last six weeks. This week oil will trade side way. Wednesday and Thursday should remain very volatile, therefore a great opportunity for traders. Buy if it falls sharply and sell if it sharply rises.
From next week I see a weak trend in oil, unleaded gas and heating oil, but natural gas will rise.
CURRENCIES
The US dollar has remained weak for the last two weeks. This week it should trade positively on Tuesday and Wednesday. Thursday will be a very interesting day as I see major positive news for the US dollar.
We won’t see current prices for the Pound, Euro, Swiss Franc, Canadian dollar, Australian dollar and South African rand for the next two months, therefore trade accordingly.
A major positive trend is starting anytime from Tuesday this week for the US dollar.
Once again, please remember the trading pattern as earlier explained.
If I am wrong for more than five days in any of commodities, it means that I am not on the right track. If I am wrong for more than twenty one days, it means that I am following the wrong path. In the first scenario, you should stop trading on my recommendation till you I am back on track while you should not follow at all in a particular commodity if I am wrong for more than twenty one days.
Thanks & God Bless
Mahendra 24 April
