How to trade in the rest of 2012

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
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.
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
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
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.
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 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 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
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
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
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
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)
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.
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
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
Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma
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
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
Sugar prices fell as predicted, avoid any position in
sugar, those who are short can book 50% of their profit
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
Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma
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
Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma
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
Natural gas is a great buy at the current levels so
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
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
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
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
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Weekly Newsletter from 23-27 April 2012 by Mahendra Sharma