We still see a 2500 Points rally in Nasdaq…avoid commodities and buy currencies today around the lower side…
Dear Members,
The only good news right now; I reached Santa Barbara, so I am hoping that investors make money. Today the commodities are crashing after yesterday’s inflation numbers, as Wall Street is expecting the FED to move aggressively on the Hawkish side, and I am still not 100% convinced and do not predict more than one hike in the remainder of 2022, so let’s see what happens in the coming time, only time will tell.
The market opened sharply lower yesterday and closed in the green, and today, they are sharply lower, and I believe it is a great buying opportunity today as the market will recover. We still do not see S&P closing below 3741 and NASDAQ 11511 this week, which should be low.
We are not expecting great earnings from the banks as we mentioned in the weekly newsletter, and the bank’s earnings may put some pressure on the markets, but we are not worried about the banks, as we are focused on the tech sector.
Commodities collapsed yesterday, and they are moving down today as well, which confirms that commodities are in a bear market, as they are unable to rebound on positive days. Watch the lower side in gold, silver, and grains, which may bring new buyers into the market, but if I have money today, I will be buying stocks.
In March when all the major commodities were moving aggressively higher after the Russia news, we said that the commodities were killing their future by moving higher so aggressively. Even early in the invasion, we went against the market and recommended selling energy and base metals, and we still believe that oil prices will fall a further 30-40% from here in 2022. We also recommended booking profit in grains around the higher side, and they have been falling. Grains have lost more than 30% value.
IMPORTANT NOTE: Our view is extremely bullish for the tech stocks, and a very aggressive bull market will start in Tech stocks, so it is a lifetime opportunity to buy semiconductor and frontline tech stocks, rather than fearing inflation and a further crash in the market.
I am a bit worried about most of the currencies trend, but as a trader, today I will recommend buying most of the currencies and selling the Dollar, as a low has taken place in the major frontline currencies today.
Buy SOXL and TQQQ, and shorting bear ETFs will be the best trade for today, and from here onwards, wait for tomorrow’s flash news as from here onwards I am feeling very excited for the market. Get ready for a 2000-point rally in the NASDAQ.
Many commodities look great buy for the long term in terms of buying call options…wait for the FED meeting as everyone is selling commodities so let them sell on inflation fear.
Thanks & God Bless,
Mahendra Sharma