Monday, 07 August 2006
Respected Members,
I would like to confirm that in the last one year, I have not really focused on the newsletter format, or on proper messaging that would make it easier to understand and helpful in daily as well as weekly trading. There is a reason for mentioning this, since the old time has passed when a move of ten cents in silver or four dollars in gold would count as major moves. Quite often, we are now experiencing three to four percent movement in metals as well as huge volatility in other areas. Continuing with the old format might not be of much help to my members especially during this volatile period. I am therefore planning to reformat the newsletter so that it will be easier to understand the daily as well as the weekly trend. Furthermore, I shall be sending a small market update on a daily basis.
In the past, I have been used to sticking to my predictions. However, I will now be closely monitoring them, since I want to make sure that I do not make mistakes in reading planetary data and their movement. I know that it will be taking up quite a bit of time, but I want to do it happily and with dedication. I know that I have made some major mistakes in ignorance: and for this I ask your forgiveness. I don’t want to dwell much on the past- I am now back in Santa Barbara
I SHALL NOW HAVE AN EXPANDED FORMAT IN WHICH PLANETS WILL PLAY THE ROLE OF:
- BIRTH OF NEW CYCLE BY SUN
- COOL AND CALM MOON
- FIRE OF MARS
- DEDICATION OF MERCURY
- JUPITER'S MANAGEMENT
- MARKETING BY VENUS
- DESTRUCTION BY SATURN AS WELL AS
- THE HIDDEN WAVE OF THE NORTH AND SOUTH POLES.
THIS WEEK’S NEWSLETTER:
PREDICTIONS FOR 7 TO 11 AUGUST
GOLD
I was off-track during last week from Monday to Wednesday. For this week, major planetary movements indicate that gold should make a top on Monday and should end the week without a major upside. However, we are approaching a historic bull market in gold, and this period should start after a few months. The last one year has been amazing for gold and it kept making new highs, even THOUGH it wasn’t really in a great cycle. In May this year when major planetary movements went against metals (I warned the metals crowd but only a few paid any attention), it lost the battle and tumbled to $550 from $722.
We should still wait for a while and get a better price before re-entering into gold.
Monday
Gold should trade positive on Monday in the Asian market as well as in Europe- with volatility. I however won’t recommend trading on Monday, as Tuesday is an important day for gold. It looks very difficult for gold to break $652.80 on the upside, and I am confident that it will correct from this level.
Tuesday and Wednesday
If gold starts trading negatively on Tuesday, this will confirm a sharp downward trend on Tuesday as well as Wednesday. One should take advantage of selling on intra-day recovery during these days.
Thursday and Friday
Both days are not positive at all so sell on opening and one must cover selling position during a weak trend in last hour these days.
IMPORTANT NOTE OF WEEK: The Sun has changed houses and has full heartedly supported silver. For the next nine days, the trend in metals will therefore be decided by silver and not by gold. If you see silver getting weak, it means that there is going to be a downward trend in other metals. One should therefore closely watch this event and I am sure that it will help you make a decision in trading.
If on Monday gold corrects from $651.80, then it could go down more than four percent in a week.
SILVER
The Moon is the water planet, and it rules silver. Water is the most unstable element as even a small gust of wind can greatly manoeuvre it, while larger forces can cause hurricanes, floods, etc. However, it should be noted that after getting to a certain level and meting out its destruction, the hurricane usually subsides. In the past, silver has behaved in the same way and will behave in the same manner even in the future. The reason for this is that the nature of behavior is very difficult to change, and so is the nature of trading patterns of commodities and markets. This week silver will be in a fire mood but one thing we must remember is that the trend formation of silver is always a bubble of water and air; and when it bursts, it does so quite nastily.
Monday
Silver prices should move up on Monday though it very unlikely that it will hold on to the gains. Most technical analysts are in favour of the silver as technical charts look attractive, but I would like to watch Tuesday’s trend. On the higher side one can sell on Monday and buy back during closing. Silver can make a high of $12.49 on Monday and should correct from this level.
Tuesday to Friday
This period doesn’t look promising for silver but I would like to see the trend and it will be amazing news for silver if it gains (I don't see it). Tuesday’s trend will dominate the whole week’s trend and the price movements will behave accordingly, therefore let us wait and see Tuesday’s trend.
As I promised, you will receive an update every day.
COPPER
Copper should trade weakly during this week, but today I would like to say after reading the future trend of Mars, indications are that copper will still remain on the higher side for at least the next seven months albeit with huge volatility.
This week doesn’t look promising for copper and I therefore won’t recommend buying at this level. I am trying forget about my last one years predictions therefore don’t get surprised with my new predictions on all the areas including currencies, stock market and other commodities. I want to once again become the old “Mahendra” and forget the chapter between September 2005 and 5 August 2006.
Early last year I used to tell my close friends that copper might hit 300 or more when it was trading around $124, but I unfortunately never mentioned it in the newsletter. If you remember, in the 2004 book I mentioned that copper prices would double from 0.68 and at the time, I bought at 0.71. Earlier, I had bought silver at $4.80 as well as gold at around $300. I would like to keep all things in mind and once again try to guide my members on my favorite areas. If I am right in seven areas out of ten, then you shall make enough.
The period between Monday and Friday doesn’t look promising, but Mars will support this red industrial metal. On Monday it may reach $369.80 and should come down during the USA trading. However, I would still like to watch Tuesday and will send a report on the same day (Tuesday).
PLATINUM/PALLADIUM
The trend of both metals for this week will not depend on other metals as Venus might give a new message after three weeks. Monday will have a positive trend, but it will be time to sell and buy on Wednesday for a short period, if it trades weakly.
Right Trade: For a few weeks, we should remain positive in Palladium compared to platinum.
WHY THIS WEEK IS IMPORTANT FOR ALL METALS: IF A FALL DOESN’T TAKE PLACE DURING THIS WEEK (LOOKS LIKE FALL WILL COME AND I WILL UPADTE IN NEXT WEEK NEWSLETTER), IT WILL BE CONFIRMATION THAT WE ARE CLOSE TO A MAJOR BULL MARKET IN METALS, WHERE IN ONE YEAR PRICES OF GOLD CAN REACH $1090; SILVER MORE THAN $28; COPPER MORE THAN $500, PALLADIUM $700 AND PLATINUM $1800.
WARNING: BEFORE YOU JUMP IN, LETS FIRST CONFIRM THE TIMING FACTOR. IF A WEAK TREND STARTS WITHIN TWO WEEKS, THEN METALS WILL FIRST TOUCH A LOW OF JUNE AND REMAIN DEPRESSED FOR A FEW MONTHS BEFORE THE BULL PHASE STARTS.
Lets work together and communicate on a daily basis and start a new journey. I wasn’t replying to some of your emails, but I will try and make sure that I do.
STOCK MARKET
Last week the markets remained directionless or unwilling to move ahead, which is a sign of decreasing support from Saturn. This week, the markets will remain directionless though the USA market will still perform better in the longer term compared to other major indexes around the globe.
Once again, Asia will remain weak this week with huge volatility, and will end in the red.
All major European markets will trade weak and it is a great opportunity for selling, therefore don’t miss to sell on Monday.
South American markets will remain weak too therefore trade accordingly.
From Monday to midday Wednesday, the USA Market will trade weak. Thursday and Friday will be days of rising.
SHORT ALL MAJOR EUROPE INDEXES AND HEDGE THE POSITION OF LONG USA MARKET FOR TWO WEEKS.
BONDS
Avoid trading bonds during this week as they will trade both sides. If you would like to trade, just trade for a short period of time with stop-loss.
OIL
This week energy prices should take a new trend, which should be a rising one, although the trading pattern and price movement will be very slow. One thing that I would like to say is that whether the middle-east problem gets prolonged or sorted out, oil should move higher, therefore don’t short it- cover it if you have. I was not recommending buying in the last two weeks. KEEP IN MIND THAT OIL BULL MARKET IS NEAR TO END.
Monday
Trend will remain in oil so take the opportunity of buying during New York trading hours.
Tuesday Friday
Oil should remain positive during these four days and might move towards a high. If the trend doesn’t take place as predicted, then wait for my daily alert though out of ten, seven points are in favor of oil rising but...
Unleaded gas and Heating oil should also march ahead and move towards a new high in early weak but wait for alert as oil bull market is nearer to end.
Oil moving higher this week doesn’t mean that all commodities including metals move higher.
GRAINS
Since the last three weeks, grains have been trading weak with huge volatility. They are not giving any direction but a hidden wave says that you should stay long in them.
Monday and Tuesday
All grains will start trading weak but should come into the positive territory by Monday closing, or early Tuesday. Once again, it is a great opportunity to accumulate.
Wednesday to Friday
Soybean meal and corn should make a strong upward move and it is therefore a great opportunity for buying.
If on late Tuesday and Wednesday grains fail to rise, then I will recommend that you get out (chances are very slim) and wait for my email. As I have already said, I shall now be writing everyday predictions on the market.
COFFEE/COTTON
Both soft commodities made a strong upward move during last week. Monday and Tuesday might be slow days for both of them but after Wednesday onward, they will both gain momentum and I therefore recommend buying.
ORANGE JUICE
This week orange juice should trade side ways and I consequently don’t recommend any trading in it. However, I advise that you take short position in December contract or alternatively take puts.
SUGAR
Monday is the right day to buy sugar; start accumulating it. I see prices moving up more than ten percent during the next two weeks.
LUMBER
We should witness huge volatility in lumber during this week and traders can therefore take advantage of rising or declining trends as it will move both sides. Keep in mind that in the medium-term the trend is weak and that a sharp rise can therefore be taken as a selling opportunity.
COCOA
I don’t write much on cocoa but whenever I see any new cycle taking place I recommend trading. The current time is in favor of cocoa and I therefore recommend buying cocoa around $1500 and look for a five percent gain.
CURRENCIES
On Friday, a sharp fall came in the dollar index, the Pound made a new high while other currencies were also boosted by weak sentiment of the dollar. Only the Canadian dollar remained weak. I did my study on US dollar and I don’t have a choice but to say that the Dollar rising cycle has already taken birth. It is still young but I am sure that it will soon start walking: in fact it will start running soon.
Though it is difficult to believe, we have to for I don’t want you to miss a historical long-term bull market of US Dollar.
Important note: All side currencies are entering into a long-term bear cycle and these are: Canadian dollar, Australian Dollar, New Zealand dollar, South Africa Rand and many other side currencies.
The Euro and other strong hold currencies should move down.
Monday to Tuesday
The Dollar should stabilize and start moving up. The Euro, Swiss franc and Japanese yen will suffer losses. The British pound will make another new high on Monday but start giving up gains on Tuesday. These two days should be the final ones when all currencies will make a top, after which we won’t see these prices again in the near future.
Wednesday
The Dollar will trade side way. The Canadian dollar and the Australian dollar may gain for a day.
Thursday and Friday
On these two days, the dollar will gain strongly, while the Pound, Euro and Swiss Franc will have a sharp fall in the same period.
INTEREST RATE
This week Fed is meeting and every one is betting on pausing the rate but inflation's is rising and only time will tell if this step will pay off or not. I see more rate hikes on the way after this pause, with at least one or two in the next five months. We shall see more once again in the coming time.
Around the globe, I see higher interest rates in the next thirty months from now, and it is your job to judge accordingly and formulate a plan and investment strategy. One thing I can confirm is that there will be high demand for money even at higher interest rates, from individuals to the corporate sector.
ONCE AGAIN
My job is just to write what I see in my theory, while it is up to you to make your decisions. The amount of risk that you want to take in the long and short-term trade is entirely up to you. You must carefully watch risk factors, stop-loss and leverage while trading.
FORWARDING OR REPRINTING IN ANY FORM IS PROHIBITED.
Thanks & God Bless
Sharma Mahendra 7 August