Dear Members,
The fire in the commodities bull market that started after 11 September 2001 is now off. There is always a three-year as well as a thirteen months cycle by Saturn and Jupiter, which are important for any trade, and time is now ripe for a change. A major planet will soon shift houses from one zodiac to the next cycle and this means that we shall soon be seeing some difference, as is always that case whenever a planet changes houses. The effects of these changes may be early by a few months or even late, but they must inevitably take place. At this stage I am hesitant to speculate about the possible effects, but I feel the wave and we shall trade accordingly once it is properly confirmed.
For the last several months we have been trading in the right direction as we saw a weak trend in oil, a rising trend in the dollar as well as a weak trend in metals, and we must thank the planets for giving us clear signals. We have been waiting for grains to bottom and they finally did this last week on Thursday as I expected, despite a few weeks’ delay.
Coffee and cotton have remained weak even though cotton has not been at the top of our buying list. As I mentioned last week, coffee is ready to turn around especially from the 18 of September and we shall therefore be on the lookout for this week.
Most of my followers know that my prediction of a weak trend in the
We are achieving great returns with trading and hope to do the same for this week. Just trade in the most positive or negative and focus on a few trades where you can make money. It is not advisable to be in too many things at the same time, and it is possible to have a good performance in a few well-considered areas. For instance two weeks back we sold metals and bought the dollar, and I believe that we are doing just fine. Furthermore, we have been accumulating grains and are planning to do some more and then hold for three months. As for getting in or out of the market, I shall guide you through the updates as well as the weekly newsletter.
Without further delay, let us examine what is indicated for this week:
FINANCIAL PREDICTIONS FOR 18 TO 23 SEPTEMBER 2006.
GOLD
Last week gold broke $580 and moved down to $571 but came back during the closing hours. Everyone is wondering whether the bull market is over or if gold still has got the strength to move up once again. The faith in the metal community has been shaken and there seems to be some confusion. The hope is that there will soon be a turn around.
For this week, my recommendation is not to buy gold unless it trades above $584.80 for two days, if it breaks $584.80 and trades above this level for the stated period, then it will go up to $596.80. However chances of this occurring are not too great.
Astrologically, Monday as well as half of Tuesday are positive days, though major planetary movements are not in support of metals. This is to say that any gains made are unlikely to hold. IF GOLD MOVES DOWN ON MONDAY AND TUESDAY, THAT WILL BE A NEGATIVE SIGN THAT WILL CONFIRM ITS DECLINE TOWARDS $500 OR BELOW. AS STATED I SEE GOLD TRADING POSITIVE ON MONDAY BUT MAY NOT BE ABLE TO HOLD THE GAINS.
For the short-term my concern is still in regard to a STRONG dollar, which could put pressure on gold for a few weeks or months, though currently dollar is not in a great mood.
I shall guide you further through the daily update.
SILVER
Silver sharply moved down and this is a worrying trend. Silver should move up on Monday and Tuesday, otherwise the first target is to reach $9.95.
The trading range will be $11.12 to $9.95 and if it trades above $10.98 for more than two day, then one should buy, but till then just watch it. Above higher side one can sell and lower side one can buy.
(I am talking about the spot price in both gold and silver)
PLATINUM/COPPER/PALLADIUM
In the last week they all sharply moved down and look very scary especially COPPER and Platinum. For this week, they could move down daily, therefore don’t buy a single contract of these metals.
We sold two weeks back and are holding short.
From 7 September copper came down sharply and yes, the red planet –Mars- is supporting this downward trend.
This week’s trading range for copper will be $320 to $338.
The trading range for platinum will be $1090 to $1170.
IMPORANT NOTE: If both metals break the prices mentioned above and trade below the lower level for forty hours, then they could be on a consistent decline for six weeks and fall for over twenty percent.
Venus is saying bye-bye to Platinum as a clear sign that the bull market is over and could move down to $950 by the end of this month.
Monday and Tuesday’s positive trend could help these metals a little-bit but it doesn’t look very promising. I therefore don’t see copper, palladium and platinum moving if gold and silver move up on Monday. Take the opportunity to sell on Monday.
STOCK MARKET
I see a rising trend for the
Buy the
The DOW AND S&P soon will hit a new high.
Sell the
The Russian and South American markets will trade sideway or follow the
The trading range of S&P will be 1332 to 1315.
TREASURY BOND
The thirty years bond will be weak, therefore avoid trading. For this week, the two years, five years and ten years bonds will trade weak and one can therefore sell at this level. However, the long-term trend is quite different and one can therefore wait for my buying signal in long-term bonds.
COFFEE
This week will be testing time for coffee and it should move up from the 18th of September and since this is the first day of trading, we shall keep an eye on Monday. If the rising trend starts, then I see coffee likely to move to $109.80, which is a very important figure. Coffee has to trade above this price for three days for it to go $150.
COTTON
I see a turn around for cotton from the 21st of September; therefore we should start buying from Thursday. However, we shall first make sure that it wont have broken Mercury’s figure of $50 for if it does, then we shall have to wait another thirty days.
OIL
For the last seven weeks, oil has been moving down with big buyers turning to sellers. There has been an influence by planets that brought a change in the thinking process. In the last months, many of those who thought that there would be a weak trend became buyers instead. Prices are falling and the market has made people so confused that they finally started trading without conviction and losing money in the process. This is why I often repeat the mantra: “Don’t trade with love or hatred in the market. None of the stocks or commodities is your friend or enemy- just trade with the wave”.
On Friday oil turned around and for a few days it may trade sideways or up. However, don’t hold buying position for a long period as the oil bull market is over.
This week crude oil could touch a maximum of $64.80 while on downside, it could move to $61. It should move up on Monday with the rising trend likely to remain till Tuesday. Trade cautiously as Wednesday will be a volatile day while Friday could be the worst days.
Unleaded gas and natural gas will follow the trend of crude oil. Natural gas could move up on Friday and the following Monday.
In the first two days, I see a four percent upside move in crude, unleaded and heating oil.
Standby for my daily updates- they shall guide you regarding daily movements.
GRAINS
For the grain section, I just want to say something very brief and sweet:
All grains have entered into a bull market following the turn around on Thursday. BUY SOY, MEAL, CORN and some wheat. Hold position, and buy calls as well. We shall hold our positions and shall certainly make money. If grains rise more than five percent from current prices, then one should sell sixty percent holding because we want to add again once they fall two percent.
Buy SOY, meal and Soy oil and Corn.
CURRENCY
Last week the US DOLLAR remained strong as predicted. Jupiter is very happy and looks forward to support the US Dollar for rest of the year.
This week trade in currencies:
Buy the US Dollar on Monday opening; Sell the Euro, British Pound, Swiss Franc and Canadian Dollar but from Tuesday my daily update will guide you. The Japanese Yen will trade sideway so don’t short it.
The next target for the Dollar index is $87.10 and that in few weeks.
The negative impact of Mars on the commodities’ bull-run: On 12 May 2006 I warned of this and since then they have been falling, and I don’t think that we can ask more from the wave of nature. Commodities are falling quite fast and though we may see a small technical rise, a few months are still pending for the downward trend. Grains may help the CRB index a little bit.
The Goldman Sachs commodities index, which is heavily weighted on energy, has been indicating that a fall has just started and it has a long way to go.
This week’s trades:
· BUY GRAINS
· KEEP BUYING THE DOLLAR INDEX ON EACH FALL
Thanks & God Bless
Mahendra Sharma, Sunday 17 September,
www.mahendraprophecy.com