Today's Trade & News

Dear Friends,

Enjoy this week letter as this is my gift for New-Year. By Friday I will put 2008 out-look here. One can subscribe newsletter to review in details. I wish good luck for 2008. 

Dear Members,

First of all, I would like to wish you all a happy and prosperous 2008. This week’s newsletter will be a short one. I am doing a detailed study of 2008 and you will receive the overall outlook of the year within a week. Markets have been moving as we had predicted but it will be a tough task because initial study of 2008 shows that a few markets will be very volatile during the year and history will remember this volatility so be prepared for it.

As all of you are aware I have stopped writing publically about the world’s geo-political situation because there has been a great amount of pressure on me not to predict anything which can cause tension and uncertainty. In my 2002 and 2003 book, I indicated that Pakistan would divide into 3 countries and we are very close to that happening within a few years, so I would like to bring attention of international authority and intelligence agencies in Pakistan to watch this situation closely. On the ninth of September 2001, my interview with the South African broadcast T.V was the most important interview that I ever did in my life but at the same time it turned out to be one of the saddest moments of my life as after 42 hours of the interview 9-11 took place and many innocent people died, and as you are all aware that planet Mars forced me to predict to warn of extensive terrorist attack against the USA. Sometimes I feel that I should not be making these kinds of predictions but then again another part of my mind insists that it is my duty to put in front of world. It has been a difficult life for me as so many vague pictures come to me and I try to portray them and a few times I went wrong on the timing factor because it was my inability to understand the complete picture.  

Let me start this week’s newsletter here:

Predictions from 31 December to 4 January 2008

GOLD & SILVER

Last week gold and silver remained positive as predicted and during this week I see gold and silver trading in a very thin trading range so any sharp rising should be taken as a selling opportunity. Get out from long positions in gold and silver on Thursday and Friday. Any fall on Monday should be taken as a buying opportunity for short term and sell your positions on Thursday as I see gold and silver approaching towards a correction in mid January. During this week on the higher side, gold will touch the previous high and you can expect the same for silver during this week ($875 and $15.72).

Important note: I am predicting a great crash in marketing after Mid January so trade carefully.

PLATINUM, PALLADIUM, COPPER, ZINC & NICKEL

Do not buy any of these metals at this stage as they will move down continuously. Those who are interested in trading in zinc, nickel and copper should keep cash ready as after a few weeks I may recommend buying these metals very aggressively and the prices may move up around 30 to 50 percent.

COFFEE & COTTON

For the first four days of this week, one should not be adding any new positions in coffee and cotton as the trend may remain a bit weak or sideways but surely we shall be adding more positions on Friday and next week.

LUMBER, ORANGE JUICE & SUGAR

Sugar has been performing well and those who have bought it two weeks ago have made good money and in the coming time they shall be making good money as I see sugar prices moving another 15% from here. Lumber and orange juice to trade sideways so there is no need to involve money there. Hold your positions in sugar.

STOCK MARKET

We are very near to the beginning of a great new era in USA stock market and definitely Japan will follow the race after January. Other markets will struggle so wait for my 2008 outlook prediction. This week markets will remain sideways and those who want to accumulate the positions shall slowly do it.  Right time is coming to accumulate the only banking and financial stocks during weakness in the market till 21 January and buying is only recommeded only in USA stcoks around 21. I have been very negative on all major sectors of investment incl financial, banking and housing in 2007. In 2008 all emerging market will crash big way but USA will start moving up from end of January. 

Asian markets will trade in uncertainty, especially India, Hong Kong and Australia. European markets to remain weak or sideways and any rise in European and Asian market should be taken as a selling opportunity and that money you should invest in USA market. I see a Crash is coming so get out 100% from Asian and European stock market.

OIL
Crude prices are very near to a historic high but at the same time astrologically, they will turn on the down side. Monday, Tuesday and early Wednesday oil prices to remain higher but then from Wednesday late afternoon or from Thursday, big correction is coming so one can take a short position by closing on Wednesday and Thursday. In the worst case scenario oil can remain in the upward trend till next Monday but the chances are very less so taking a put options or selling calls may give huge returns in the next two weeks. Trading range for oil will be $98.80 to $94.80. If oil trades above $98.80 for more than three hours then oil will reach up to $101.20 and then that will be the best price to short oil. Heating oil and RB gas will follow oil closely, trade these energy products as per oil predictions. Natural gas to remain sideways without any major movement.

GRAINS

Last week on Thursday the grains bull market got over so there is hardly any risk pending in selling soy bean, soy oil and wheat. During this week grains will enter in a bear market from Wednesday and the fall in soy bean products can be a very nasty one so those who trade grains can take a short position and those who have never traded grains can also take a small short position. I recommend to start shorting grains on rising durint this week and the next week till 14 Jan. From here I am expecting minimum 18 percent fall so big money can be made here within a short period.

CURRENCIES

Last week we were expecting weakness in dollar and we saw weakness but this week there are clear buying opportunities in US dollar so do not miss it on Monday and Wednesday. This week one can sell Euro, British Pound and Swiss Franc on Wednesday as Wednesday and Thursday will be the final rising days of five years bull market of these European currencies.

Australian Dollar and Canadian Dollar will also move down but sharp correction in these currencies will come from next week son one can take a short position in these currencies on Friday morning. Japanese Yen to remain sideways during this week so I am not recommending any big trades in Japanese Yen.

Once again, buy dollar index around $75.80 because we will not see this prices again in the near future.

ALTERNATIVE ENERGY

In 2007, especially solar stocks have provided mind boggling returns. This is my favorite area of investment even now and will remain for the next two years without any doubt; I see a unique bull trend starting in cellulosic ethanol, bio-fuel, hybrid, and fuel-cell sector. I know that more than half of my followers are from the metals sector and I recommend them to sell 50 to 75 percent position in metal stocks and buy these stocks because they will be tomorrow’s leaders not the metal stocks. I know that many investors have sentimental values for metal stocks but I strongly believe that we have to move with the time and metal stocks have given us a great return in the last five years so now it is the time to diversify those returns from here.

Once again I am wishing you a great 2008 with good health, happiness and prosperity. I would like to take this opportunity to thank you for supporting my work and keeping faith in me. Please do not forward newsletter to any non subscriber but yes you can give to review my letter if someone is interested to subscribe.

Thanks & God Bless

Mahendra Sharma 30 December 2008