Today's Trade & News

Dear Members,

Once again, I would like to remind you something that I have been saying for the last month regarding trading strategy and the current time. The situation does not favor long term positions, and it is time for buying on the sharp falls and selling upon sharp rises. Once again, the dollar is trading towards historic lows and commodities lovers, gold bergs and miners are trying to convince people from different sources that commodities are still going to fly higher and that the dollar will decline further. Indeed, some are declaring that the future of the dollar is so bleak that it is going to become like toilet paper. However, I do not believe that because I see the beginning of a very unique era for the US dollar. I do not want to argue with anybody at this stage on USA dollar movement because everybody has their own right to predict what they see according to their theory. We all try to predict the market in our own way with our own theory and I am here and doing the same job.

I am not an extremist in regard to any particular area of the financial market, but I simply write what I see in planetary movement. I believe in time cycle; which creates waves that result in bull and bear markets. The same astro cycle is in the life of human beings, supporting and resulting in people making fortunes at certain times while at other times the same person could lose money. If I could use my own experience as an example, my track record for the last 25 years of making predictions has been amazing, but the last two years have been marred by constant negativity and I am glad that it ended few weeks ago. I also therefore have gone through tough times as nature never leaves anybody untouched. My objective is to simply guide you without hatred.

The commodity bull market looks very shaky at this stage and one should therefore adopt a short and medium term trading strategy to realize good results. Just hold enough cash because we shall buy or sell on any turn around in the market.

Last week all major commodities came down and the dollar gave signs of recovery. We should be opportunists when investing our money like when we saw the technology boom of 1995 to 1999, buying in and getting out at the opportune moment. When we similarly saw an opportunity to buy commodities (especially metals and energy) in 2001, we made a shift. I now see an opportunity in the US dollar, as well as in countries like India and China and also in the USA market. These are opportunities that we should grab and position ourselves to reap the benefits.

Let us now see what is in store for this week’s trend.

Weekly Financial Newsletter for 3 to 7 December:

GOLD & SILVER

They both traded weakly in the past week and I don’t see any further upward trend if gold fails to cross $808. Compared to gold, silver will perform better in the medium term, and we should therefore closely focus on it. One should sell gold from Monday to Wednesday on rising and cover back when it falls about 1%. Our strategy will therefore be very clear, selling on rising or selling if it reaches $808.

You must buy gold and silver on the Wednesday during weakness because I see a rising trend on Thursday and Friday. Percentage-wise, silver will rise two times the trend of gold. Metal stocks will perform according to the metal trend.

Those who do not like to sell metals on the rising trend on Monday and Tuesday should buy the position before Wednesday’s closing because Thursday and Friday will provide a good gain. In addition, all short term traders must get out on Friday before closing.

PLATINUM, PALLADIUM, ZINC & COPPER

All these base metals and side metals are struggling or trying to save their names because they are trading in depression except platinum. During this week, one can take a buying position in these metals on Wednesday because they will rise sharply on Thursday and Friday.

COFFEE & COTTON

Coffee has done well in the last week as predicted and it should continue to do well for this week as well. Keep a close eye on coffee; buyers should hold their positions very tightly and they could even add more position as the next target for coffee is $138.80. There is a great opportunity to buy cotton, therefore do so on Monday.

SUGAR, LUMBER, ORANGE JUICE & COCO

Sugar and coco will sharply rise, and one can therefore take a position in both soft commodities this week and look for a 5% rise within the week. Orange juice and lumber are poised to remain sideways.

STOCK MARKET

I will be very happy if my advice will result in my members making money in the stock market as I really care for them. I also know that many must have gone through agonizing times due to my dollar rise predictions and I therefore wish everyone success because time has now come to make up in multiples what we have lost.

All the major stock markets will remain stable this week. As the last month of the year, many people will doubtless want to take it easy in December and try to spend more time with family. Indeed, I recommend the same and urge that one should not take make aggressive trades. Overall, the trend in the USA market will be positive on Wednesday, Thursday and Friday, though we may see some weakness on Monday and Tuesday.

I highly recommend not taking any big position in any Asian market because they will perform negatively during the month of December. This week is the best time to book profit in these markets, especially India, Hong Kong, Singapore, Russia, South Korea and Australia. China will remain stable and could even move up.

The European market will be side way and I highly recommend taking out money from the European market and invest it in the USA market or stocks. This week will trade sideways enter into a weak trend, therefore sell the European market.

Short term (Two weeks): Side ways

Medium term (Six months to year): Bull market in USA, China and Russia

Long term (3 to 4 years): Bull market Expecting Dow to reach 41000 and Indian stock market BSE to 48000, Chinese Shanghai to 18000. Honk Kong, Russia, Korea and African markets will also participate in this rally. European markets will be worst performer in long term.

OIL

Last week the moon guided us quite accurately on oil predictions. This week I see a buying opportunity on Monday because Tuesday and Wednesday will be positive for oil. However, there will be a weak trend on early Thursday. Compared to oil and natural gas, heating oil and RB gas will move down therefore take a short position in RB gas and heating oil and hedge the position by buying natural gas.

On the higher side, $92.80 will be the best selling price. If it crosses this price and trades above it for more than 36 hours, then I may recommend buying oil again. However, we need to wait till then.

GRAINS
Grains have finally started moving down and why not; they have already entered into a bear market. One should therefore take a short position in bean oil, beans and wheat. If you want to hedge a position, then one can buy corn.

During this week grains will remain weak from Monday to Wednesday. I recommend that you cover the short position in the last hour of Wednesday’s trading because there will be a sharp artificial rise on Thursday and Friday, therefore trade accordingly. One could also sell grains in the last hour of Friday’s trading and those who do not want to take a risk can sell on Monday’s opening or on Sunday in the electronic market.

CURRENCIES

The dollar is finally showing signs of recovery and I want each of my members to watch dollar very closely. It doesn’t matter how much you hate the dollar, and those who do not want to buy the US dollar should at least be selling it. During this week the US dollar will try to uphold the last week’s recovery but it will lose the battle against the Euro and the Japanese yen on many occasions. Nevertheless, you should be waiting for any weakness because it will be a buying opportunity.

We are likely to see some recovery this week in commodity currencies like the Australian and Canadian dollars. Those who have short these currencies at high prices can therefore partly book profit at this stage and get ready to sell again.

The British pound and the Euro will try to rise against the US dollar. Any sharp fall during this week should hence be taken as a buying opportunity while sharp rises should be taken as selling opportunities. I can therefore clearly call this week as one for intra-day, day trading pattern. Look at Friday last week’s chart in grains and oil and you will realize how much they moved in intra-day on both sides before they ended in a weak trend.

The Japanese yen and Swiss Franc are going to remain weak, therefore take a short position in both these currencies.

As for the USA dollar, one can buy a long position on each fall.

Short term (Two weeks): Side ways but time to accumulate

Medium term (Six months to year): Bull market in US Dollar and Yen against all currencies

Long term (3 to 4 years): Bull market in US Dollar, Chinese Yuan, Russian Rubble, and Indian Rupee. Euro and Pound will be worst performer

ALTERNATIVE ENERGY

I received many emails from members thanking me for putting them into this area of investment. One thing I want to bring to your attention again is that one should not make the mistake of selling these stocks thinking that a weak trend in oil will bring them down. You take my word; these stocks will not move down, and it doesn’t matter how much oil falls. In the last week more of our stocks performed quite well, including CSIQ, EEEI, ENEI, SPIR, SLND, STP, FSLR, SPWR and many others. If you are closely reading my predictions on alternative energy, then you must have noticed that I never recommended buying bio-fuel, bio-mass and ethanol stocks. One should however buy now as the time has come to add these stocks into your portfolio as well.

Here are few stocks of Bio-Fuel, Biomass and Ethanol: PEIX, ADM, VSE, MGPI, BIOF, AVR, EBOF, RTK, EPG, VRNM, XNL.

CRB INDEX v/s DOLLAR INDEX

I would like to bring your attention to two major indexes which controlling trend of world economy and direction of world financial market including all major commodities and currencies. Yes, I am talking CRB INDEX and DOLLAR INDEX, they both move in opposite direction because that is their relationship. Look at the first week of 2002 when dollar index touched new high and same time CRB index touched new low. 

Here is CRB Index monthly chart from 1999-2007

Here is dollar Index monthly chart from 1999-2007

ALTERNATIVE ENERGY

I received many emails from members thanking me for putting them into this area of investment. One thing I want to bring to your attention again is that one should not make the mistake of selling these stocks thinking that a weak trend in oil will bring them down. You take my word; these stocks will not move down, and it doesn’t matter how much oil falls. In the last week more of our stocks performed quite well, including CSIQ, EEEI, ENEI, SPIR, SLND, STP, FSLR, SPWR and many others. If you are closely reading my predictions on alternative energy, then you must have noticed that I never recommended buying bio-fuel, bio-mass and ethanol stocks. One should however buy now as the time has come to add these stocks into your portfolio as well. Here are few stocks of Bio-Fuel, Biomass and Ethanol: PEIX, ADM, VSE, MGPI, BIOF, AVR, EBOF, RTK, EPG, VRNM, XNL.

Thanks & God Bless

Sharma Mahendra, 3 December

www.mahendraprophecy.com