Dear Members,
I hope all of you have noticed the markets trend after the 23rd of March 2020, because in our book “2020 Financial Prophecies” we mentioned that the second negative cycle will end after the 23rd of March 2020, and the positive cycle will start. All major global markets made lows on the 23rd of March and since then they have been gaining value. The USA Markets tested a low on 23rd of March at 2189 and closed last Thursday at 2800. That is more than a 25% gain in the market from the lower level. Now we are very close to 2878, which is the most crucial level and if the bullish era wants to continue then S&P must close above this level for 3 days.
Last week oil traded volatile as predicted. It failed to move above $27.71 and held $21.11. Volatility is to continue in the energy market, so remain a short-term trader rather than holding positions on either side.
Gold has been acting positively, and silver is trying to follow gold, but the rest of the metals are struggling. At this stage our focus is primarily on gold if you want to hedge some positions against the current uncertainty, but surely, we will recommend trading with strict stop-loss. I am not interested in recommending any buying in base or precious metals.
The softs and grains markets are trading weaker or sideways. They are very close to the bottom and the 24th of April is the key turnaround date for Grains and Softs.
Most of the currencies recovered last week from the lower levels but our focus will be on emerging market currencies. I do not have any bullish views on the Euro so be careful. The maximum side in Euro could be 100-150 pips and on the lower side 1000 pips is indicated in the coming time. As I had mentioned a few weeks back, soon many currencies of the world will stop following the direction of the Euro so watch this prediction closely once the world situation stabilizes.
I am very hopeful that the sun rising in Aries on 15th April will bring a great hope for the world regarding the Coronavirus. I am predicting a drastic fall in Virus numbers, and I am also predicting a very sharp fall in death tolls, so watch this date closely. I also believe that from the 30th of April the world will start opening up, and by the 30th of June, the world will be back to normal. This is great news for the world so get ready for a better, brighter future.
Last week most of the healthcare stocks globally performed very well, and still they have a lot of room to move higher. We have been saying that GILD will be one of the first companies to bring out a drug for Coronavirus so watch closely and stay long in healthcare, pharma, and Biotech stocks.
USA has pumped in 2.3 Trillion Dollars to support the American economy. Job losses in USA reached 16 million which is a big number, but I am not worried about that because once everything reopens these unemployment numbers will disappear.
Note important that S&P hold 2721 level…read complete weekly newsletter or daily flashnews.
Thanks & God Bless
MAHENDRA SHARMA