JUNE AND JULY ARE NOT GOOD FOR BUYERS. Till now they have enjoyed whatever they have touched.
THE NEXT TWO MONTHS: In my view, this new planetary combination will affect commodities and the stock market as shown below:
METALS: They should start getting weak and negativity should start with red metals (copper) and then silver, platinum, palladium and gold. My longer term view on metals is very much optimistic from but the short term (two months) is very negative, (I see a major crash). Still those that are not really worried about a short term downward trend can hold on partly to buying position but be careful.
If what I see for metals comes true, then:
Copper should trade 50 percent down from the current price of $390;
Gold should trade twenty percent down from $710 and thirty percent down for platinum, palladium and silver. THERE WILL ALSO BE A GREAT BUYING OPPORTUNITY FROM SEP 2006 IF THEY FALL AS IN THE LONG TERM, GOLD IS GOING TO HIT $1600 AND SILVER $50.
This is not my personal feeling and I have no intention to either be against or in favour of metals or any other commodity, currency or stock market.
OIL: During the next two months, oil will be very volatile. ‘Enter and exit’ will be the right trading pattern. Oil should touch a new high in the month of June. In the next two months oil may trade in the range of $63.80 to 81.80.
CURRENCIES: During the next two months all major currencies will fall sharply against the dollar. Trading range of the dollar should be $83 to $91.
STOCK MARKET: There will be a negative trend for all major stock markets. Asian and European markets will be hard-hit. I see a 21 to 30 percent fall in these stock markets.
If any of these markets trades in the opposite direction, then it will hold on that direction, but chances of this happening are quite slim- I shall update you accordingly.
PEOPLE WITH WEAK HEARTS SHOULDN’T BE TRADING COMMODITIES OR OTHER MARKETS FROM 18 MAY 2006. DURING THIS PERIOD, TRADERS, INVESTORS, BROKING HOUSES AND BIG FINANCIAL INSTITUTIONS MAY GO THROUGH THE WORST ROUGH PATCH OF THEIR LIFE TIME.
Thanks & God Bless
13 May 2006
