Publishing letter since 2001 Edition 679.0 April 22, 2012 How to trade in the rest of 2012 Dear Members, Metals are trading mixed, and the most positive time is slipping away from the positive Astro cycle. Most of our members are aware that our view on silver for the month of April and May is very positive. We still expect silver to perform well in the next 38 days. We won’t be surprised at all if silver moves to around $37.50 and then $42.50. The move can be very rapid but once this positive cycle ends, you should be out from your metals position. After S&P, our soy predictions proved to be very accurate. Soy prices moved up more than 40% in the last four months. Our view on soy and soy meal were extremely positive and both these commodities can still move up. Last week Apple stocks came down sharply, so don’t miss a great opportunity of buying on Monday. Uranium stocks started moving up, thus one should have investments in this area. Bull markets in uranium have already started as per our uranium newsletter of this month so don’t miss the great opportunity. Emerging market currencies have been trading weaker and these currencies have lost value against all major currencies like Euro, Pound, Yen and Dollar. Emerging market currencies are nearer to the bottom. 1|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma The European debt concern is still lingering, and elections are taking place in France. The current President Nicolas Sarkozy, has been getting closer to Germany ever since this year after Debt issue. France and Germany has interests in saving the EU and Euro but if the election outcome brings Socialist candidate Mr. Hollande into power then many experts fear that Mr. Hollande may disagree on many terms that are put down in the EU and may disagree on many issues with Germany. On the other hand Ten year Spanish Bonds slipped, yield rising more than 6%. Spain remained in the headlines to Bond Yield rising all of last week. Many big investment houses are nervous, and they are concern that Debt sovereign crises will pose on global growth. Astro indicators and the wave of nature clearly showing signs of problems getting over for years before the EU and Euro collapse. This week the markets will trade on both sides but still the bull trend in equity will remain intact. Parliamentary elections for the Greek legislature will be held on 6 May, and Opinion polls indicate that parties opposed to austerity could make big gains in the elections. Last month, Mr. Papademos’s Government secured Greece’s second international bailout after reaching a deal with private creditors for credit swap aimed at reducing its debt burden. This week the Fed’s rate decision is impending, we are all aware that the interest rate is to remain at historic lows, but traders will try to find clues from Fed Chairman Bernanke’s comments in press conference. Metals and markets always remain too sensitive on Fed meets. Bottom line: All these events have short term effects on commodities, currencies, Bond and stock markets. For the last eighteen years, my personal experience says that the medium and longer term trend is already decided by the wave of nature and planetary combinations, and when you read Astro charts you can view everything very clearly and make decisions without doubts. Those who follow’s fundamentals, charts and macroeconomic theories always have doubts because all these things they don’t give a clear picture of the future. 2|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma S&P’s prediction of reaching 1420 is a great example. While the whole situation looked very gloomy, we were very confidence about the most exciting bull market. The same applies to the metals trend today. Even though it looks very gloomy, the planetary positions are clearly indicating that each investors must hold silver, uranium, coffee, cotton, and grains positions in their portfolio. I am not trying to convince you, neither am I trying to force anyone to believe what I predict; I just predict what I see in my study. This week www.mahendraprophecy.com will cross 10 million hit, and this is thanks to all your support towards our work. Important message: Last quarter of 2011, we kept mentioning that 2012/13/14 are great years to make money. Six months have passed S&P and Soy, Soy meal and Yen traded 100% as we predicted. Silver was a disappointing trade even though it did very well a few times in the last six months when it moved up from $27.00 to $37.50. We came 100% wrong on Natural gas prediction. I don’t feel ashamed to accept my wrong predictions, yes I am wrong in gas, I miscalculated the planetary movement. The rest of the markets traded mixed as predicted, so we are satisfied, but we will feel very excited if silver moved to $42.50 in the following few weeks. Here is this week newsletter from 23-27 April 2012 GOLD/SILVER Gold has been very quiet, but it is still holding very well even though everyone is talking about the negative trend. Most of the analysts are recommending selling gold, and I know most of gold lovers/buyers are out of gold and stay away from gold but gold is still performing very well by holding $1600 market and it is just a few hundred from 3|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma the all time high. Gold started moving up from $271 and it is still trading above $1600, apart from a few commodities and the Apple stock, no other market has bee trading more than 600%. Look at silver; it is still trading more 700% up from low of 2001. For any market to hold or perform constantly for 10 years and then hold its value is very difficult, but gold, silver and few other commodities are doing well. Anyways, I am not trying to present a case for gold and silver, as we already predicted that gold and silver entered a 52 year bull cycle in 2001. Currently only eleven years have passed, so my $300 silver call should be reached in the next ten years. Hold physical silver, and any weakness should be taken as a buying opportunity. Keep buying longer terms call and don’t pay too much attention to short term noise if you believe in our theory; as so far it has given us great market predictions. This week is the final uncertain week for gold and silver, which means that I am calling bottom for gold and silver. Load up on gold and silver on Thursday. Short term traders should watch day range, and keep buying at lower side range. Here is Monday’s range: GOLD: $1632.1 to $1654.80 SILVER: $31.38 TO $31.93 BASE METALS This week base metals will trade positively compared to precious metals. I recommend taking positions in copper, palladium and platinum. We see an at least three to five percent upwards move in base metals during this week. Our longer term view for palladium, copper and platinum is very bullish, by end of this year all these three base metals will move above their historic high, so this is a great 4|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma time to build trades for the shorter term. August will be a great time to build medium and longer term trades. On Monday and Tuesday base metals will trade positively. On Wednesday they may move down but the rising trend will start again from mid Thursday and prices will continuously move up on Friday. Here is Monday’s range: COPPER: $364.1 TO $373.05 (buy) PALLADIUM: $668.9 TO $684.80 (buy) PLATINUM: $1574 TO $1595 (Buy) STOCK MARKETS This week the markets will remain in a tight range, and this is a great week to put money in emerging markets. The planets are turning positive for the first time in 2012 on the emerging market side. One should start buying China, South Africa, Singapore, Hong Kong, Australia, Brazil and Russia. The Japanese stock markets will also move, in the medium and longer term S&P and Nikkei will be the best performing markets. Many investors and buyers of my book are currently asking about the Uranium sector, as in our book very clearly mentioned that the uranium sector will outperform all other mining stocks, even gold and silver and yes we confirm here in this newsletter same. If I have hundred dollars to invest in precious metal stocks, then I will withdraw 90% from precious metals stocks and put 50% of my money in Uranium stocks, 20% percent in agriculture and potash stocks. Ten percent in R and ten percent in rare earth metal stocks. Anyways this week, European markets may remain uncertain but emerging markets will outperform. Don’t short USA markets at all. Apple and Uranium stocks are our pick of this week. 5|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma On Monday all markets will trade sideways or a bit weaker, and on Tuesday all markets will trade in a tight range. We recommend taking positions on late Wednesday as the markets may start moving up from Thursday and Friday and the positive trend will continue. Here is Monday’s trading range: AUSTRALIAN – 4357 to 4395 (buy at low) DAX – 6821 TO 6693 NIKKEI – 9568 TO 9700 FTSE – 5763 TO 5692 NIFTY S&P (Spot) – 5369 TO 5333 (Buy) S&P – 1369.75 TO 1387.00 SINGAP0RE (Spot) – 2992.7 TO 3005 (buy) NASDAQ – 2699.5 TO 2661 HONG KONG (Spot) – 20710 to 20975 (Buy) RUSSELL – 810.75 TO 796.25 CAC – 3070 TO 3161 DOW – 13055 TO 12921 TREASURY BOND This week bond Thirty year bond prices will remain sideways, or range bound, and any sharp rise should be taken as a selling opportunity on Wednesday as longer term weaker trend is starting. 143-12 will price to watch. Monday’s trading range for energy June contracts: TREASURY BOND – 141-25 TO 142-29 6|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma COFFEE/COTTON Last whole both these soft commodities remained in a tight trading range. Both these soft commodities are in our top five picks of 2012. I highly recommend building option call positions in both of these soft commodities. Coffee planting session is coming nearer, and farmers are looking for Soy crops as soy prices and demand is very high from China so soy is a favorite in farmer list. Surely traditional farmers or coffee farmers will stick with coffee. The coffee market is very sensitive and any frost news or bad weather can push the market crazily up so all our members must have small position in coffee. On Monday and mid Tuesday coffee and cotton prices may move up but on late Tuesday and Wednesday prices will remain sideways. Buy from late Thursday as the price will move up and on Friday the trend will remain up. Monday’s trading range, all July contract: COFFEE: $176.50 TO $181.10 COTTON: $90.73 TO $92.79 COCOA/SUGAR/ORANGE JUICE Sugar prices fell as predicted, avoid any position in sugar, those who are short can book 50% of their profit and cover rest around $19.20. Cocoa and Orange juice will remain sideways so need to involve any trade or money there. Monday’s trading range, all July contract: COCOA: $2301 TO $2234 SUGAR: $21.39 TO $21.87 ORNAGE JUICE: $148.10 TO $153.10 7|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma GRAINS Soy and soy meal is constantly moving up, so don’t short soy and soy meal. Wheat and corn are also trading positively but I won’t recommend any big positions in wheat and corn at this stage. Another grain commodity which can move up more than 30% is rice, so one should buy positions in rice as compared to corn and wheat. Hold soy meal and rice trades during this week. Any weakness in rice should be taken as a buying opportunity. On Tuesday and Wednesday grains may remain weaker so avoid any new trades but from Wednesday onwards grain prices will rise again. We recommended rice around $14.00 and it is already trading at $15.82, our short term target is $16.18 and medium term target is $19.80. Here is day trading range for Monday: CORN: $595 TO $611.75 WHEAT: $614.25 TO $630.5 RICE: $15.63 TO $15.91 SOY: $1435 TO $1465 SOY MEAL: $402.5 TO $414.01 SOY OIL: 56.00 TO $56.79 8|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma ENERGY Oil prices have been trading in the recommended trading range for the last two months. We still recommend trading in and out in oil rather than taking any trades. Natural gas is a great buy at the current levels so don’t miss this buying opportunity. This week oil prices may come down so sell oil on any sharp rise. Our daily flashnews will guide you. Monday’s trading range for energy June contracts: OIL: $103.01 to $104.99 June contract NATURAL GAS: $1.965 to $2.061 June contract CURRENCIES Dollar will remain in a sideways trading range, and a rising trend may come but the higher side is limited for dollar at this stage. Any rise in Yen should be taken as selling opportunity on Friday. British pond is the only currency which moved up sharply higher against all world currencies. This week Pound will also perform well, so hold your trades in Pound until Wednesday. Emerging market currencies will bottom out during this week so by Friday one should cover all shorts, especially in Indian Rupee (One of the worst performing currencies in 2011). Australian and Canadian dollar will remain positive during this week so one should buy both these currencies at the lower range of the day. Swiss France and Euro will also gain for the shorter term, so don’t short both these currencies. If you ask me my view for these currencies after three years! My answer will 9|Page Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma be, both these currencies will trade below par value and slowly move down toward historic lows. Monday’s trading range is here: DOLLAR INDEX – 79.08 to 79.57 EURO – 1.3271 to 1.3179 AUSTRALIAN DOLLAR – 1.0357 to 1.0269 CANADIAN DOLLAR – 1.0081 to 1.0021 BRITISH POUND – 1.6190 to 1.6073 JAPANESE YEN – 1.2312 to 1.2225 SWISS FRANC – 1.1050 to 1.0962 RUPPEE – 52.23 TO 51.68 (buy) RAND – 7.82 to 7.72 (Buy) Thanks & God Bless Mahendra Sharma 22 April 2012, 11.50 AM Santa Barbara 10 | P a g e Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma
© Copyright 2024