Weekly Newsletter from 1-5 December 2014

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2 Edition: November 2014 Weekly Newsletter from 1-5 December 2014 Dear Members, I have been living in USA for the last 11 years. In 2004 I saw the madness of black Friday as well as when I took my family to Vegas in December and we couldn t move on the streets. This simply was happening due to the housing bubble as people thought that they had disposable income which was actually not there, it was in the banks and on paper. Yes, I went out with my family for Lunch and coffee and I saw the same kind of madness as people shopped crazily, and according to my view, this was the biggest day for retailers. I won t be surprised at all if retailers open sharply higher on Monday when the USA market opens after the long weekend (Thursday was holiday and Friday was half day but it was thin trading as most people were with their family and friends celebrating Thanksgiving). Those who like to invest in commodity and many commodity funds are on the verge of collapse after a weaker trend in commodity in Our weekly newsletter has constantly been guiding you on the right path of not buying commodities including energy, metals and grains in In trading the most important thing is not to lose money; even if you don t make money its fine because you are preserving your capital. We receive many s every single day regarding how our advice saved money for our members, and surely most of have done amazingly well following the bullish predictions in the equity market. On Monday gold will react to the Swiss referendum. Also during this week the ECB will meet on central bank policy and on Friday the monthly employment data will be out. Traders will be watching oil and metals trend from Monday as Friday was proven to be one of the worst days for oil in six years. USD has been performing very solid as predicted so we still recommend holding positions in USD; Yen may stabilized but we don t see any positive trend in Euro. From Monday we are entering the final month of 2014 and from the middle of December many would like to spend their time with family and friends so the volume will get light and traders will like to close most of positions by 20 December. I am sure most of our members must have done very well in 2014 so we will recommend taking out profit from 70 to 80% positions and keep it in cash from the third week of December. No Aggressive bets recommended in any financial instruments (Indexes, commodities and currencies). In the month of December the overall trend will be: Weekly Financial Letter by Mahendra Sharma Page 2

3 Stocks and Indexes: Very bullish; S&P shall hold 2043 and on the higher side we may see it touching 2130 which we predicted early this year. I will be a very satisfied person as advisor if this target gets achieved. We don t think anyone on this planet predicted S&P moving above 2000 when three years ago it was at We are still confident of it reaching 3200 in a few years time. Most of the other markets also performed very well as predicted. Metals & Energy: Weakness will still continue, and metal investors should get worried if gold breaks $1143 level and trades below this price for two days. Mid this year we mentioned that if oil breaks $93.78 then a bearish trend could start and this is exactly what happened. Metals and energy fall predictions have done very well in Our advice of staying away from metal stocks have saved many peoples retirements. Grains and Softs: In 2014 among all major commodities our buying call of coffee did amazingly well. We still recommend holding positions in coffee. Selling and staying away from softs has also done very well for short term and positioning traders. USD positive trend continue: in the month of December USD will keep moving higher until 18 December but after that we recommend staying away as some corrections may come so avoid any aggressive trading in currencies after 18 December. Thirty year bond: Early this year our predictions of selling bond came to mark but in the second half of the year Bond prices performed oppositely. In the last quarter of 2014 we have been recommending taking longer term selling positions in bond. Stocks and sector: In USA, India and internationally, banking and financial stocks will perform very positively. Also healthcare (biotech and pharma), transport, consumer staple and retailers will keep moving higher. If all these sectors move higher than we are sure that S&P will move up aggressively in the next three weeks. As predicted one should keep avoid buying any commodity related stocks. We recommend please take out three to five minutes in the morning to spend time with yourself, this is what I call mediation. Sit in a quiet place, take a cup of tea, coffee or even hot water and plan what you would like to do during the day. Which trade you should take, which you would like to avoid, if you need money then from which investment you should get out. Put everything on paper than start your computer. I am sure your results will be different. Please practice this for a few months and then write to me telling me if this really helped you or not. Though since the last fifteen year we have constantly been recommending doing this to our members and many must be doing but those who do not should start from today. The Moon and Sun says, don t watch the computer screen for too long as it will drag your energy into it and you won t be able to make the correct decisions. According to the astro cycles we recommend everyone to get away from the screen every 40 minutes which is equal to 10 degrees of one ascendant. Talk to your friends, colleague's or family and when you come Weekly Financial Letter by Mahendra Sharma Page 3

4 back to the screen you should close your eyes for a few minutes to recap everything before you start making trading decisions. I am 100% confident you will start getting inner messages of the on oncoming market moves, and you will able to make the correct decisions. We would also like remind you one more time that don t buy any markets because of love or don t short any market because of hate. Many gold bugs love gold and lately the fall in gold prices has destroyed many s hard earned money. At the same time many hate the stock market and US dollar but selling these also brought huge loses. We always recommend following what the astro cycle is indicating. When in 2001 the astro cycle turned positive for metals and commodities we kept recommending buying and people made fortune s and since the last few years we have been recommending avoiding metals and metal stocks so basically we just recommend what the astro wave is indicating. We don t love or hate any market, we just want you to flow with the waves. From 1 of January I am starting something very unique plan. I will create a trading account, and I will put a screen shot every single day of what I bought and sold; what I am holding; and how my account has been performing every day, weekly, monthly and yearly. It will be an interesting challenge because I will put out real time records and on one has done this so far. May few traders do it but only after they have performed well. Let s see what this week is indicating for all major markets, Weekly newsletter from 1-5 December 2014 for all major markets: GOLD/SILVER/BASE METALS Last week precious and base metals lost value, expect for Palladium which gained some value. So far this year Palladium prices are still up by 14%, so our hedging trades worked very well for investors. On Friday HUI and XAU index lost around 8% value which clearly shows how badly metal mining stocks are doing. HUI gold bug index touched Jun 2003 price levels, and in 2003 gold was trading below $400 level which is clearly indicating how bad metal stocks have been performing because currently gold is still around $1170 and stocks are at when gold was below $400. I feel pain for the people who invested in gold, gold ETF s and gold mining stocks with their retirement money. We still recommend keeping your affection and love toward gold away for some more time. Last week gold prices came under pressure after fall of oil on the OPEC decision. After oil OEC decision now on Sunday the Swiss will vote on a referendum on gold to add around 1500 tons Weekly Financial Letter by Mahendra Sharma Page 4

5 or 20% of gold in the central bank reserve holding. Yes the vote will surely give a huge relief to gold prices but we don t see this happening and NO demising short term hope for buyers and prices may retest $1142 and if gold trades below $1143 for three days then it will surely take gold prices towards $1000 and silver $13.83 or even lower. Weaker prices in metals can push base metals lower. Platinum, copper, lead and nickel will fall but palladium, aluminum and zinc will stay in bit sideway so don t short these metals. Last week on Friday metals energy etfs moved more than 20%: DUST 3x bear gold miner s etf (moved 27% up) JDST 3x bear small cap gold miner s etf (moved 37% up) GLL - 3x bear gold etf (moved 6% up) DSLV 3x bear silver etn (moved 20% up) HUI represent gold bug index have been performing horribly, it trading around 2003 lows when gold was below $400. This week on Monday precious metals will trade negatively, but on Tuesday we see that both side moves will continue and a both side trend will continue on Wednesday and Thursday. Late Thursday we see a great selling opportunity in precious and base metals. Hold buying positions in palladium, and the lower side ranges one should take buying positions as this will be a great hedging trade. This week Gold will have a difficult time closing above $1175 and the lower side support will be $1142, and silver will follow gold. Our predicted resistance selling level of $1205 performed very well. The overall trend in precious metals to remain weaker in the month of December. Weekly Financial Letter by Mahendra Sharma Page 5

6 Gold has been trading stable against Euro, Pound, Swiss Franc, Yen and other currencies except USD. USD has been performing very well against most currencies as well as commodities, and most commodities have been losing great amounts of value, so in short USD performed very well as a financial instrument. Most gold advisors and analysts put metal investors life onto the most dangerous path by advising a one sided trend for gold and silver and predicting that gold will be moving towards $3000 or $5000. I am so thankful to nature and the astro cycle for guiding our members. We were very bullish about gold from 2001 to 2005 and we kept predicting that gold may move towards $1600 to $1800. When gold reached $1600. I saw in India that people are trading one contract of gold and their monthly income is $100 to $200. We felt that Mars and the North Node will be playing a speculative role and after that trip to India in 2011 we called that gold has fallen into speculators hands so treat gold as any other financial instrument (Many gold bugs got very upset). With any investment it is important to save your capital without losing it. Metal investors should meditate seriously about what s happening in the gold market, and what happened in the mining sectors. CEO s of mining companies are doing great even though the prices of their stocks have fallen; metals have fallen; but you as investors are having sleepless night so please don t fall in love with any stocks or any financial instrument when are you investing money in it. For the last two years I have been trying to convince metals investors and traders not to follow the advice of gold bugs as they may influence your mind by talking about big moves coming in gold. I am not against gold but I just write what I see. Keep your love towards gold away otherwise it will be a disaster. We will recommend when is the right time to enter so for the time being just throw gold experts views in the dustbin. Keep your feelings and thoughts that the world is ending away, and we are sure you will save your hard earned money as well as capital. Just enjoy life with your family and spend your money on whatever you would like to do rather than investing in gold. Investing in gold has been good for thousands of years but not anymore because Saturn has taken control of the current time cycle. Treat gold as any commodity or financial instrument as all financial instruments have negative and positive cycle. The positive cycle for gold ended in 2011, some positivity will come back from the middle of 2015 and we will recommend buying gold once we enter a positive cycle. Here is Monday s range: (March 2015 contract): GOLD: $ to $1151/1142 Feb 2015 SILVER: $15.50 TO 15.21/14.95 Weekly Financial Letter by Mahendra Sharma Page 6

7 COPPER: $ TO $ PALLADIUM: $ TO $ PLATINUM: $ TO $ Jan 2015 INDEXES Last week tech stocks performed very well which helped NASDAQ outperform and on the other hand Russell struggled; in fact Russell moved sharply lower on Friday. Retailers went higher and international markets were holding value. The emerging markets struggled but the Indian market among emerging markets gained value and closed at an all-time high. Currently the astro indicators are showing very positive signs for USA and European markets so one can hold positions and add more on the lower sides. Avoid new positions in energy and the emerging markets. South American markets and other emerging markets are ready to remain weaker except for the Indian market. One can hold positions in the Indian and Chinese market as these both are our favorites. INDL and YINN are our favorites and these both these markets are doing very well. Our view was negative for the Chinese market for the first half of 2014 but from the fourth quarter we have been recommending buying and we are still recommending holding positions in YINN. The Indian market is our favorite and one can still hold positions. Last week S&P struggled to move above 2080 and we would like S&P to move to 2080 for two trading days which can push S&P to this year s ultimate target of This week the astro cycles look positive and on the down side we don t see S&P going below 2045, and on the higher side Weekly Financial Letter by Mahendra Sharma Page 7

8 it can move towards We recommend buying S&P around 2057 if it comes down this level but NASDAQ has a very limited down side because most of the planets are supporting tech stocks as well as biotech stocks. This week financial, retailers and transporters will perform very well which will support S&P s and Dow s trend. In short every sector will perform well except for mining and natural resources. Don t short the market or stocks as we are in a historic bull market. Hold call options and buy positions in futures and our favorite stocks. On Monday the markets will remain in a positive direction, and on Tuesday the USA market move to an all-time higher so buying is recommended around the lower sides. On Wednesday we may see the market trading on both sides and on Thursday we see profit booking coming from the higher side so one can book some profit around the higher side predicted range in daily Flashnews. On Friday we see some weakness continuing but we are not recommending positional short selling because again the markets will start moving higher again from the middle of next week. Overall the trend in market will remain positive so hold positions in the markets until 20 December and after that one should go 100% flat till the end of this year. Here are Mondays ranges: (December contracts) HONG KONG (cash) to NIKKEI TO NIFTY S&P (Spot) 8635 to 8551 CAC 4407 TO 4355 DAX 9993 TO 9890 DEX EURO STOXX FTSE 6745 TO 6681 FTSE/JSE (Cash) to S&P TO NASDAQ TO RUSSELL TO DOW TO Weekly Financial Letter by Mahendra Sharma Page 8

9 THIRTY YEAR BOND Last week thirty year bond prices moved higher as expected but the medium and longer term looks very negative for thirty year. This week bond prices can still gain some more value, but the higher side will remain limited. We recommend taking put options in June 2015 futures. Currently it is trading around 153, and one put options of 147 will cost you around $1800. This is a great trade so medium and longer term position holders should take positions slowly during the next two weeks. Short term traders should trade in and out without taking any major risk or overnight trades. TMV which we been recommending buying, so wait to add more positions if it reaches towards $ The Sun will be changing house on 15 December and astrologically around this day buying puts or buying call in TMV for 2015 will provide you with great returns. On Monday we see positivity continuing in thirty year and buying around the lower side is recommended. On Tuesday some weakness will start so selling around the higher side is recommended for day traders. On Wednesday once again Bond will gain value from the lower side and positive momentum will continue for the next two days. Overall for this week we don t see any major negativity in Thirty year. Monday trading range (December contract): TREASURY BOND TO Weekly Financial Letter by Mahendra Sharma Page 9

10 SOFT COMMODITIES Last week cotton gained value from the lower sides as predicted. Coffee and orange juice traded in a mixed range. Lumber, cocoa and sugar lost value. Our astro indicators are not showing any major positive trend in softs during this week except for cotton. We are recommending not taking any aggressive positions in cotton, so stay away, however one can hold small positions in coffee and cotton. We recommend taking and buying call options in cotton and coffee. Watch the $185 level in coffee as if coffee breaks this level it will confirm that a weaker trend is coming back in coffee and it may retest $162 level so buyers should hold it with strict stop-loss of $182. We recommend buying cotton without any fear, and keep adding positions in cotton on any weakness around $59.00 level. Avoid the rest of the softs at this stage. In 2015 softs are our favorite trades so wait for our 2015 books to know the overall trend in softs. Avoid sugar, orange juice and cocoa. On Monday a sideways to weaker trend will continue in softs, but on late Tuesday or from Wednesday positivity is indicated so take buying positions around the lower side on Tuesday. Cotton is a great buy so don t miss this opportunity. Monday trading range: (March 2015 Contract) COFFEE: $ TO $ COTTON: $60.77 TO $59.70 SUGAR: $15.75 TO $15.45 GRAINS Last week wheat and corn gained some value and soy products remained in a weaker trend as predicted. Soy products will trade weaker during this week so selling around the higher side is recommended. Wheat and corn will be great hedging trades. Our prediction of soy s fall from $1550 to $970 did well in the last six months, it touched $902 and bounced back. We don t see soy falling below $902 so longer term Weekly Financial Letter by Mahendra Sharma Page 10

11 traders should buy positions if it comes back to that level. Currently Jan 2015 contracts of soy is trading above $1020 and weakness is still indicated for the medium term. For the short term we recommend trading in and out in soy, meal and soy oil. Wheat is trading positively as predicted, but this week the higher side will remain limited, so selling on any rise above $600 level is recommended. Corn will trade less volatile compared to all other grains. Trading in and out will remain the best strategy in grains rather than positional trading. From Monday to Friday we are recommending trading in and out. On Monday and Tuesday Grains prices may try to recover from the lower levels. From Wednesday onwards they will find it difficult to remain in the green. Monday s trading range (March 2015 contracts): CORN: $ TO $ WHEAT: $ TO $ SOY: $ TO $ (Jan-15) SOY MEAL: $ TO $ SOY OIL: $32.75 TO $32.02 ENERGY Fall in energy was expected by most traders except for energy market lovers. There are many genius advisors who were talking negatively for energy prices but very few were saw oil moving below $ We won t be surprised at all if oil moves below $60.00 level in the next two weeks. We don t know why everyone was so focused on the OPEC meeting and we are not sure why oil fell so hard after OPEC the announcement because most people were not expecting cut in productions. It clearly shows that energy traders were over leveraging to hold prices at higher levels and once the trade started going against them they may have started doubling positions and this might have caused this drastic fall on Friday. Heating oil, RB gas, Brunt oil and Crude all came down more than 7%. Weekly Financial Letter by Mahendra Sharma Page 11

12 ERX (Ultra bull ETF for energy stocks) also lost more than 24% value on Friday (look at five days and six months charts here). Natural gas also lost value, and $4.62 resistance proven to be very accurate as we recommended selling around this level. Compared to oil we see natural gas performing far better. At this stage one can buy gas on weakness or around $3.92. We don t see Gas going below $3.72 level. On Monday oil prices will trade negatively but some short covering may come around the lower level. We are not recommending any buying in oil as oil prices may touch $64.20 level during this week. If someone would like to take buying positions then he can do so at $64 with a very small trade and $58.34 will be right prices to enter in oil. On Tuesday both side moves will come in oil so trade in and out. On Wednesday some buying may come but by the end of the day prices will close lower and on Thursday the same trend will continue. On Friday oil may gain some value from lower levels. Energy stocks will struggle so we are not recommending any buying in energy stocks. Monday s trading range (January 2015 contracts): OIL: $67.69 to $65.29 NATURAL GAS: $4.19 to $4.02 HEATING OIL: $ TO $ RB GAS: $ TO $ CURRENCIES Last week dollar traded positively against most currencies, and there is no doubt that USD rise is surely depressing commodities and the other markets in which people have been investing. Investments in instruments other than USD dollar are not performing well. During this year if you invested in other countries or in other financial instrument apart from USD assets people lost AROUN 12% on USD appreciations. Weekly Financial Letter by Mahendra Sharma Page 12

13 Swiss Franc started falling from 2011; then weakness started in Japanese Yen in 2012; in 2013 emerging market currencies lost big value; and then Euro started falling from It is clear that withdrawal of USD started one by one from the currency zones. I don t know why traders and investors are not talking about the rise of USD and this really surprises me. I think a positive trend in the equity market is shadowing a rising dollar and this can be the reason why people are not focusing that much on USD. After over a decade USD started its solid rising journey without any major corrections from This year we predicted USD reaching and we are there now and we recommend holding the same positions until it move to level but at least book profit with 50 to 70% positions and get in it again if USD moves down to 85 levels early next year. At this stage euro is in the most dangerous zone for the next three weeks. We won t be surprised at all if euro moves down to 1.18 level which we predicted early this year. Swiss Franc will follow Euro, and other currencies will also refuse to move up. We still see emerging market currencies will hold well against USD, in fact in 2015 emerging market currencies will gain value so we recommend not shorting any emerging market currencies. During this week USD will keep gaining value from any weakness against Australian dollar, Canadian dollar, Swiss Franc, Euro and Pound. Japanese Yen will gain value from later Monday so taking small buying positions in Japanese Yen will be a great hedging trade against USD or euro/usd trade. We see Yen going back to , currently it is trading around levels. On Monday we see a positive trend in USD continuing, but Yen will gain some value from lows so we recommend buying some positions in Yen for the short term. Overall medium and longer term trend in Yen to remain weaker. Some buying may come in currencies on Tuesday during the Asian and European sessions but will fail again by the end of the day. On Wednesday and early Thursday most currencies will trade mixed but late Thursday will be a great time to add more selling in Euro, Franc, Pound, Australian, Canadian and Yen. On Friday Dollar may make another high against Euro and Franc. Monday s trading range: (December contract) DOLLAR INDEX to AUSTRALIAN DOLLAR to CANADIAN DOLLAR to BRITISH POUND to Weekly Financial Letter by Mahendra Sharma Page 13

14 EURO to JAPANESE YEN to SWISS FRANC to RUPPEE to (Spot) RAND to (Spot) Final note: A weaker trend in commodity will continue so don t buy on an intraday basis even if prices start trading sharply lower as prices can fall further below our levels. A positive trend in stocks will continue during this week, Europe and China will start showing positive sign Thanks & God Bless, Mahendra Sharma, 30 November 2014, 3.00 PM Santa Barbara Make wave of nature/astronomical cycle an integral part of your trading/investment strategies! Reading daily range: When we predict a weaker trend it means prices can break lower side and they can trade below predicted lows. (You can cover short but don t buy extra at lower levels until our indicators give buy signal). When we predict a positive trend, means daily price can break upside and they can trade higher than predicted price (you can book profit but don t short that market). Copyrights: We have just updated the copyrights of our work on, under the USA and under international laws. There will be heavy penalties and legal charges against individuals, groups or firms who are copying, editing or forwarding our work in any form without authorized permission. Members or Subscribers of mahendraprophecy.com should do their own research and due diligence before investing in any of recommendations. Investing in stocks, futures and options is very speculative and carries a high amount of risk. Subscriber may lose money trading and investing in such investment. Weekly Financial Letter by Mahendra Sharma Page 14