Weekly Newsletter from 28 June - 2 July
FED shakeup commodity market and currencies, frontline tech stocks are our favorite…
Last week was a fantastic week for the US equity market. Frontline tech stocks performed very well, and even many biotech stocks, EV related stocks, Solar stocks, and stocks like Nike did well during last week. Many parts of the world are still under lockdown, or restrictions. International travel still hasn’t opened freely, but economic growth in the US is looking very promising. Just imagine what will happen in the US once the world normalizes. The US will be rocking to the next level.
Last week the US Dollar remained in a sideways trend, but the commodities struggled to move higher, except for Oil and Natural Gas which performed very well. Grains remained the worst performing commodity during last week.
Lately there has been a lot of talk about inflation but prices of a lot of commodities have come down since Fed meeting. Surely Commodity prices have been rising since middle of pandemic because of other factors like lack of labor and higher transport costs which is pushing commodity prices higher. Astrological signs indicate that inflation as well as interest rates may keep moving higher over the next eight years, so please take this into account from middle of 2022 onwards. Though we may not see interest rates moving higher immediately, the first rate-hike will surely come in the 2022.
As predicted, I see the world start opening gradually after the cancer Mars ends (20th of July 2021), so a better situation is coming for the world economy. Leo Mars will be so powerful that it will lead the world to victory against fear and the disease. We are just three weeks away from the best time starting in the world, and we should be ready to celebrate on the 21st of July 2021 for coming time.
The markets are gearing up for a historic bull market. In 2009 we predicted that the market would move up in 5-7 phases, and that the last two phases will be euphoric era for market, so I will not be surprised at all if S&P moves to 15000 before this bull cycle ends. I still see NASDAQ moving to 50000, which means that the greatest era is coming for investors in the next seven years.
Our view is still very bullish for frontline tech stocks, the EV area, as well as the alternative energy area. Stay invested, and focus on quality stocks, and I am sure that you will not have any regrets for the next 6 years.
“2021 Financial Prophecies” We entered the most important astro cycle, and it looks like our book is revealing the future amazingly. I am sure most of the buyers must be incredibly happy. I stated that every penny invested in our book will save or earn you millions. Nature was so kind to narrate 2021, I was merely playing the role of the typist. It is a must have book for anyone who has even a small investment in the market.
Watch the important Support & Resistance levels for this week (28th June – 2nd July 2021):
· Gold, Silver, and Base Metals acted mix last week, now Gold will be $1830 astro resistance and support $1768, and Silver astro support $25.65 and astro resistance will be at $26.53. Closing below or above these levels will push market another 3% in that direction, at this stage lower side level will hold. Platinum astro resistance will be $1151 and support at $1041.
· Base metals are on fire, Copper’s Astro resistance will be at $442 and support at $411 and $375. Palladium astro resistance will be $2773 and support at $2195. Other base metals like ZINC, NIKCEL, will also trade negative.
· As predicted S&P’s close above Astro resistance $4278 so now 4351 will be next level. Nasdaq support will be 14223 and astro resistance will be at 14898.
· Oil’s Astro support will be $72.78 and Astro resistance will be at $77.78.
· The new level for Natural Gas will be from $3.78 to $3.33.
· Bond resistance will be 161-30, and on the lower side 156-00 is the support level.
· Dollar Index has an important Astro resistance at 92.95; and we don’t see it closing below $89.79.
· Euro will have an important astro resistance at 1.2398, Pound 1.4288, Franc 1.1397, Canadian at 0.8331, Australian dollar 0.7988, and Yen 0.9708. All higher side prices achieved, and currencies started losing big value, now first important astro support will be at for Australian 0.7275, Canadian 0.7844, Pound 1.3563, Euro 1.1711 and Franc 1.0635.
· Dollar index held value of 89.38 as predicted and now higher side 92.75 to 93.55, then we may see USD/Rand 13.01, USD/Peso 19.32, USD/REAL 5.00. Most of these emerging market currencies achieved top and they are ready to lose 10% value.
· Sugar has an astro support at $16.71 and resistance at $18.28. Cotton has an Astro support at $77.48 and resistance at $88.91. Cocoa’s Astro support level is $2235 and Astro resistance $2575.
· Coffee has an important Astro resistance level at $163.75 and the Astro support will be $148.75.
· Corns Astro support at $538 for wheat and support at $611 for corn, and Soy astro support $1223.
This week’s Newsletter from the 28th of June to the 2nd of July 2021:
GOLD/SILVER/BASE METALS
Last week precious and base metals remained in a mixed direction without any move on either side. On the lower side gold was holding $1771, and silver $25.61, which confirms that a low has been formed in precious metals. Even though it may take a few more weeks before the bull era begins, surely every moment of weakness will be a great buying opportunity during the next two weeks. A few weeks ago, the FED scared metals investors and Gold collapsed more than $100, while Silver lost more than $3. However, we are worried about this short-term fall because we know that soon Silver is heading towards $39.00, and Gold will be back to $1900. Silver will be the only commodity that will outperform. We already predicted $75.00 for Silver, and most of you are aware that we never change our predictions, so Silver will test $75.00, and this may happen in 2022.
Here is what the Astro combinations indicate for this week:
On Monday the Astro combinations are mixed for precious and base metals. There is very much a possibility that base metals may fall, and precious metals will trade on both sides.
On Tuesday precious and base metals will once again trade in a mixed direction so trade in and out by following our daily ranges.
On Wednesday we strongly recommend taking long positions in precious metals around the lower side. Shorts can be covered in base metals.
On Thursday we see a sharp rise in Gold, Silver, and Platinum prices. Base metals will hold value.
On Friday once again an upwards move is indicated in precious metals, so stay long in Gold, Silver, and Platinum. On the higher side one can take a profit booking opportunity if you are a short-term trader.
One can buy mining or metal ETFs on Wednesday before the end of the day.
Important astro support for silver will be at $25.61 and resistance $26.55, and for gold $1755 to $1795. For all platinum and other base metals, just follow above mentioned ranges in weekly trading ranges and strategy.
Monday’s Astro combination recommendation – On Monday trade in and out in precious metals. Selling is recommended in base metals around the higher sides.
Monday’s trading range: (July 2021 future contract):
GOLD: $1790.00 to $1768.00 (Spot: 1788 to 17699)
SILVER: $26.44 TO $25.91 (Spot:26.36 to 25.81)
COPPER: $432.5 TO $425.00
PALLADIUM: $2651.00 TO $2615.00
PLATINUM: $1117.00 TO $1083.00
INDEXES
Last week the US market performed amazingly, and the rest of the global markets also acted positively. S&P is close to 4278 which is opening the door for it to move towards 4351. NASDAQ is also ready to test 14988 which clearly indicates that the market is not in the mood to look back. Mars in Cancer will end on the 28th of July, and it is not a good combination for most, so many investors might have felt uncertainty or frustration over the last month, and the same kind of situation may continue for the next 3 weeks. So far, we are happy that the market is moving higher steadily during the Cancer Mars.
Mars will move in Leo on the 20th of July, which could be a very bullish sign, and the market can move aggressively higher till the 15th of August. NASDAQ stocks should be in your watchlist or in your buying list from the 2nd week of July because we expect robust earnings in the tech sector.
This week the Astro combinations are mixed to supportive, so weakness should be taken as a buying opportunity in most of the markets. I am not recommending shorting or selling any stocks. We are still not recommending any buying in UVXY or the VIX. European and Emerging markets will still underperform compared to the US market. One can buy YINN or Chinese stocks. BRZU and INDL looks mix. We will send some stocks to buy in separate email later today.
Here is what the Astro combinations indicate for this week:
On Monday the Astro combinations are mixed but buying is recommended around the lower side. The Emerging markets will trade mixed on Monday along with the European markets. Tech stocks will trade mixed as well, but S&P and Small Cap will act positive.
On Tuesday the Astro combinations are still mixed, and action in the markets will be on both sides, or slow in most of the markets.
On Wednesday we expect some weakness in the market, so we strongly recommend buying the markets on weakness. Buy frontline tech and financial stocks as we expect a positive trend to develop on Thursday.
On Thursday we are strongly recommending buying some aggressive positions in the market. Stay long in Financials and Tech. If you are a short-term trader then buy some short-term calls options in frontline tech, financials, or in NASDAQ on Wednesday evening or Thursday opening.
On Friday the markets will move higher so stay long.
Monday’s astro combination recommendation: On Monday most of global markets will trade mix, trade in and out without making any side big trade in European and Asian market. USA market will hold value, some profit booking may witness in the tech stocks. S&P will have astro resistance at 4352 and support at $4211,
Monday’s trading ranges: (June 2021 Contracts):
HONG KONG (cash) –29483 to 28235
NIKKEI – 29188 to 28889
NIFTY S&P (Spot) – 15848 TO 15743
CAC – 6668 TO 6605
DAX – 15671 TO 15533
DEX EURO STOXX –4129 – 4082
FTSE – 7086 TO 7031
S&P e-mini – 4291.00 TO 4261
NASDAQ 100 e-mini – 14423 TO 14302
RUSSELL e-mini – 2351.00 TO 2327.00
DOW e-mini – 34523 TO 34275
ENERGY
Last week Oil prices gained value along with Natural Gas. Natural Gas prices have been rising aggressively. It almost gained 20% since we recommended buying it, and there is still a possibility that can gain another 7-10%.
At this stage Oil may see $77.71, and that could be a great selling level for closing all the long positions in Oil. On the lower side $72.88 is the Astro support level. For Natural Gas our predicted level of $3.78 should get achieved, and on the lower side it may hold $3.38.
Here is what the Astro combinations indicate for this week:
On Monday the Astro combinations are not that supportive for Oil, but trading in and out is recommended as per the ranges mentioned below. Natural Gas will trade positively.
On Tuesday Oil, Heating Oil, and RB Gas will witness some selling pressure around the higher side, so trade in and out by selling around the higher side. Natural Gas will trade in a mixed trend.
On Wednesday trading in and out is still recommended, as Oil’s Astro combinations will be mixed. Monday to Wednesday are mixed days for the energy market so no major buying is recommended.
On Thursday we see buying coming back in the energy market and Natural Gas so stay long.
On Friday I will recommend closing long positions in Oil, Heating Oil, and RB Gas. In fact, one can take some short positions in Oil, Heating Oil, and RB Gas. Natural Gas will still trade positively.
If you are long Energy stocks and ETF’s I will recommend closing these longs on Friday.
Monday’s astro combination recommendations for Oil – On Monday mix astro combinations so trade in and out, or higher side selling is recommended in heating oil, RB Gas and Oil. Natural gas will remain in the positive directions, it may test $3.78 level.
Monday’s trading range (Continued future 2021 contracts):
OIL: 74.55 to $73.55
NATURAL GAS: $3.57 to $3.44
HEATING OIL: $2.1861 TO 2.1335
RB GAS: $2.2842 TO $2.2335
CURRENCIES
Last week most of the currencies recovered from their respective lower side levels. Brazilian Real remained the best performing currency as it never fell even after the FED statement. Real has been in our buying list, and continues to remain in our buying list, but not the other emerging market currencies. We do not see any major movement in the currency market, but surely a positive trend could be witnessed in the USD in the coming time. We have been stating that we do not see any major bear market in the USD, so one should keep this in mind before they make any trade for the medium to longer term. Dollar rebounded very strongly from 89.38, and we still do not see Dollar falling below this level, which means that the low in Dollar, and high of most of the frontline currencies has been achieved.
This week the Astro combinations are supportive for the Dollar, so one can take short positions in the frontline currencies around the higher side. We see a negative trend developing in the emerging market currencies from the middle of this week, so remain watchful.
Here is what the Astro combinations indicate for this week:
On Monday the Astro combinations are mixed for most of the currencies, but on the higher side one can short the frontline currencies.
On Tuesday we still see a mixed trend in most of the currencies, but we still recommend taking short positions in the frontline as well as emerging market currencies.
On Wednesday we recommend taking some aggressive long positions in Dollar, or short positions in most of the frontline and emerging market currencies.
On Thursday Dollar will move higher against most of the currencies.
On Friday some profit booking will come back in the Dollar around the higher side. Stay short in South African Rand, Mexican Peso, and the Indian Rupee.
These have been the selling levels in most of the currencies for the last one month, and they are still at our selling levels:
British Pound trading levels for the medium term will be 1.4287 to 1.3511.
Euro trading ranges for the medium term will be 1.2377 to 1.1783.
Australian dollar trading ranges for the medium term will be 0.7988 to 0.7178.
Canadian Dollar trading ranges for the medium term will be 0.8177 to 0.7755.
Swiss Franc trading ranges for the medium term will be 1.1468 to 1.0688.
Japanese Yen trading ranges for the medium term will be 0.9587 to 9201.
Monday’s astro combination recommendation – On Monday we are recommending taking sell positions in the most of currencies around higher side level mentioned. Real will act positive, selling is recommended in Rand and Peso around higher sides.
Monday’s trading range: (September 2021 future Contract):
DOLLAR INDEX – 91.98 to 91.65
AUSTRALIAN DOLLAR – 0.7606 to 0.7568
CANADIAN DOLLAR – 0.8152 to 0.8099
BRITISH POUND – 1.3933 to 1.3851
EURO – 1.1970 to 1.1925
JAPANESE YEN – 0.9050 to 0.9001
SWISS FRANC – 1.0945 to 1.0880
USD/RUPEE – 74.30 to 73.93 (Spot)
USD/RAND – 14.15 to 14.01 (Spot)
USD/PESO – 19.91 to 19.65 (Spot)
USD/REAL – 4.97 to 4.88 (Spot)
GRAINS
Last week Grains traded as predicted as huge selling pressure came in at the higher side, and on Friday Grains prices lost significant value, especially Soy products. We do not see any major upwards trend in the grains market, so remain a short-term trader by following our ranges. We have already mentioned that November will be the best time to re-enter the grains market. During the month of July Grains prices will trade in a mixed direction. Among the Grains, at this stage Corn, and Wheat look like far better trades compared to Soy.
This week we are expecting Grains prices to gain value on Thursday and Friday so one can get ready to take some positions accordingly. Carry forward premiums have fallen significantly for the September contract, so it will be interesting to watch and see whether new buyers enter the market at these lower prices.
Here is what the Astro combinations indicate for this week:
On Monday the Astro combinations are negative so selling is recommended around the higher side in grains. Wait for the rebound and take short positions.
On Tuesday weakness will continue in Grains so stay short in most of them and avoid any buying.
On Wednesday cover the shorts in Grains and buy some long positions.
On Thursday Grains will recover sharply so stay long.
On Friday one can book profit around the higher side.
Lower side we see support at $505 for corn, $605 for Wheat, and $1223 for soy. Do not buy soy Oil and soy meal as weakness will continue.
Monday astro combination recommendations – On Monday higher side selling is recommended in grains and cover back around lower sides. No net buying is recommended in grains at this stage. In the short term $503 for corn, wheat $605 and soy $1223 are astro support level.
Monday trading range (Continue Future contracts 2021 contracts):
CORN: $540.00 TO $518.00
WHEAT: $652.00 TO $633.00
SOY: $1321.00 TO $1292.00
SOY MEAL: $354.00 TO $343.00
SOY OIL: $59.80 TO $57.53
SOFT COMMODITIES
Last week Softs also traded mixed, except for Coffee and Sugar which recovered value. Lumber has been falling non-stop, and prices have lost 50%. Cocoa is still struggling, and Cotton has been trading sideways.
Once again, I am coming back to Coffee, because that is our favorite trade, and so far, investors have done very well this year. If Coffee prices close above $161.75 for three days, then we may see a mega rally in coffee which could even push prices above $200.00. The good news for traders is that Coffee has been holding at $148.75 which is the most important Astro support level. Cocoa is very close to the bottom, and one can start buying Cocoa from this Thursday, because it can gain 15-20%. On the other hand, Cotton and Sugar will trade mixed.
Here is what the Astro combinations indicate for this week:
On Monday soft commodities will trade in a mixed trend.
On Tuesday some selling pressure may be witnessed.
On Wednesday once again soft commodities will trade in a mixed trend.
On Thursday and Friday soft commodities trend looks very positive so take long positions in Coffee and Cocoa.
Monday astro combination recommendations – Soft will trade mix but watch coffee prices closely because if coffee closes above $161.75 level for the three days then we may see bull market to taking lead.
Monday’s trading range: (Continued future 2021 Contract):
COFFEE: $159.20 TO $156.25
COTTON: 87.61 - TO 86.61
COCOA: 2403 TO 2351
SUGAR: $17.42 TO $17.06
THIRTY YEAR BOND
Last week Bond prices long value from the higher levels as predicted, and we still recommend taking some short positions around the higher side, even during this week. We do not see Bond going above $161, and on the lower side we may see prices coming close to $155. Overall, our longer-term view is negative for Bond.
Here is what the Astro combinations indicate for this week:
On Monday Bond will trade mixed so trade in and out.
On Tuesday further weakness will start so stay short in Bond.
On Wednesday some recovery will come in Bond.
On Thursday take some aggressive short positions in Bond.
On Friday weakness will continue in Bond. There is a possibility that Bond will trade closer to 155-00.
Important trading ranges for the medium term will be 161-00 to 155-00.
Monday’s astro combination recommendation – Selling pressure will continue on Monday in Thirty Year bond.
Monday’s trading range (September 2021 contract):
TREASURY BOND – 159-05 TO 158-06
CRYPTO
Last week Crypto’s traded on both sides. Bitcoin has been holding $29,000 on the lower side and has been struggling to move above $39,000 on the higher side. Now the immediate short term Astro resistance level will be $36,339, so this will be the selling level in Bitcoin. At the same time most of the other Crypto currencies will follow Bitcoin. Either remain a short-term trader or follow the medium-term ranges with tight stop loss to make trades.
Here is what the Astro combinations indicate for this week:
On Monday Crypto currencies will face a tough time remaining in the green so one can take short positions on the open.
On Tuesday further weakness will be witnessed so we still recommend remining short.
On Wednesday there will be a sharp correction in the Crypto currencies.
On Thursday and Friday, we see a positive trend in Bitcoin and the other Crypto currencies.
Thanks & God Bless
Mahendra Sharma
27th June 2021, 03:00 PM, PST