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I knew something was coming. The Astrology of Jupiter & Saturn told me so. But, I had no way of knowing it would be this….

In the Introductory remarks in my 2020 Financial Astrology Almanac ,I pointed out that 2020 would be the end of the current 20 year Gann Master Cycle and the beginning of a new cycle. I cautioned that 2020 would be a critical year for financial astrology. I hinted that 2020 could well mark the end of financial astrology as a tool if markets continued to power irrationally higher nurtured by a steady diet of low interest rate liquidity being injected into the system. What I did not know and could not know is that two Black Swan events would swamp the global economy starting in February 2020 – a crushing oil price war and the spread of a virulent flu strain that stands to re-shape leisure activity, social activity and indeed life as we know it. What we are all experiencing right now is the power of fear. Financial markets are a forward looking, discounting mechanism dominated by two emotions – fear and greed. When one of these emotions decidedly disappears completely and the other comes to dominate entirely, financial astrology as a tool breaks down.

How did we get to this position of fear?

I think what precipitated the entire calamity across markets was a breakdown of trust in the credit markets. I believe this breakdown may have started already in September 2019 when the overnight lending rate momentarily spiked, causing the Federal Reserve to start injecting massive liquidity into the banking system. The average investor scarcely took notice as all appeared well in the economy and across markets (at least according to Bloomberg, CNBC and others). It would appear that credit market matters did not improve, despite the liquidity injections. During October, November and December the amount of money injected into the system was staggering. In fact the injections were being dubbed ‘not-QE4’. Finally in February 2020 the strain on the credit system was too much and selling began in earnest by parties seeking to raise cash and reduce margin leverage. What should have been a 10-15% correction then suddenly spiraled out of control in Black Swan-like fashion. The Saudis and Russians could not agree on Oil output levels and a price war erupted, driving WTO Crude sharply lower. The spill-over effect drove equity markets lower, triggering more margin woes for over-leveraged players. Then the corona virus arrived on North American shores. Next thing you know, outright fear took over and a market selling frenzy resulted. Fear was now feeding on fear and investors were fleeing the markets.

There is only one cure for fear and that antidote is called optimism.

I remain optimistic that common sense will return to the situation real soon. I remain optimistic that this virus, like so many other virus organisms before it, will fade away as the weather changes now that Spring is here. In coming issues of the Astrology Letter, I will offer you some opinions on some large cap stocks that I feel have been overly beaten down. As the economy claws its way back to normalcy, these larger cap issues will hopefully lead the way. I will also offer some reviews of key financial astrology concepts so that as things return to some semblance of normal, your astrology skills remain robust. I remain optimistic that financial astrology will resume its place as a powerful tool for analysing markets.

Be well. stay safe.

Northen Dynasty Mining has a hidden secret that few know about. It has the power of Astrology working for it.

Northern Dynasty Mining (TSX:NDM) is a classic textbook case of Astrology at work. The company started trading on a recognized financial exchange back in 2007. The following image depicts the planetary placements on the day it started trading. Note the odd looking shape that I have outlined in yellow on this horoscope. This pattern is what Astrologers call a ‘KITE’ and of all the patterns out there, this one is uber-powerful.

Northern Dynasty has been to hell and back what with its battles involving the EPA and the Army Corps of Engineers. In my mineral exploration days I had a brief run-in with the Army Corps of Engineers and believe me – not a fun bunch of people. But despite all, NDM keeps surviving. This is the harmonious energies from the KITE formation at work in the background.

I analyze stocks using the 1937 McWhirter method. Simply put, I look for transiting planets to pass by the corner points of horoscope patterns and I also look for transiting Sun and Mars to pass by the natal Sun and natal Mars positions.

At one point in 2011, NDM was trading at the $21 level. But then, share price melted down. My analysis shows that this peak and subsequent reversal came as Mars and Sun both passed by the apex of the KITE pattern at 3 Pisces. This is classic Astrology at work.

In early 2016, the situation appeared grim when the share price hit 30 cents. Quite a tumble from $21 in 2011 to be sure. But, white knight investors came to the rescue and invested heavily in the company. Again transits of the corners of the KITE came into play. As the stock was hitting 30 cents, Mars was passing the natal Sun position. In mid-2016, the share price started to rally with determination, just as Sun and Venus were passing the corner of the KITE home to natal Moon and natal Mars.

Mid to late February, 2017 will see Sun transit the natal Node position. Coming into June,we will see Sun transit past the corner of the KITE where Sun and Mars reside. At each of these critical corner point transits, I will be looking for a price reaction. I doubt very much if price will suffer a melt-down at these transits. Rather, these transits could see sharp accelerations in trend to the upside. When using Astrology, it is critical that one use a suitable trend indicator such as the DMI (Directional Movement Indicator).

It gives me quite a thrill these days to be using chart indicators and Astrology to analyze stocks and commodities. Back in the day when I was a retail Investment Advisor I started down the road towards my CFA designation. Sadly, I had to withdraw after Level 2. I could not take the pompous arrogance any longer. Fast forward to today and I am happy to say that Astrology good and well warned of the 2008 market meltdown while the CFA Institute sat by with wide-eyed amazement as their dividend discount models crashed and burned.

If this blog has grabbed your attention, I have a number of published books available that will enlighten you on the subject of Financial Astrology. Meantime, keep your eye on Northern Dynasty Mining – this company is going places powered by Astrology….