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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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  • Market Astrology: Silver and Gold Into The Future 3 comments
    Jan 5, 2012 12:14 PM | about stocks: SLV, GLD, DGP

    The following is by Karen Starich, who uses astrology to forecast events in the financial markets. She offers the premium service Astrology Traders for specific dates, economic insights, and in-depth analysis of future events in the various markets that are covered.

    In light of the last couple of articles posted on Market Astrology, I thought it might be helpful to add an explanation about how financial astrology works.  To do this I am going to use gold and silver as an example because many investors are familiar with the trading history of the metals over the last 30 years and longer.  A 30 year cycle is important because the planet Saturn has an orbit of 29+ years and also rules gold.

    With financial astrology there are cycles in sectors of the economy based on the orbits of the planets as well as the planets that rule certain sectors of the economy.  Cycles, or orbits, of the planets are very important for determining long term trends.  The planets all have varying orbits with the outer planets Uranus, Neptune, and Pluto being the slowest.  Pluto's orbit is 240+ years.  Pluto is transiting Capricorn now which is ironic in a cycle where we are reliving the "Tea Party" in politics just as we had in the 1760's when Pluto was in Capricorn the last time.  There are planetary cycles and then there are also eclipse cycles which act as exclamation points and triggers for the planetary cycles to act.

    Gold and Silver

    Gold and silver are very interesting because they represent a history and tradition of money as well as well as an asset for investment.  We have had many cycles of boom times and then bust with both gold and silver.  Astrology is useful in determining the boom and bust cycles so as not to get caught off guard.  The very long term picture for both metals is up, however there are some very significant planetary events that have occurred in recent years that help to give the investor confidence in what is the "real" trend.

    As I mentioned eclipses are important exclamation points for the planets to emphasize a theme.  Total eclipses carry the most power and then the degree and sign of the eclipse suggest where the power will come from.  The most powerful and critical degree in the zodiac is 0 degrees of a cardinal sign.  The cardinal signs are Capricorn, Cancer, Aries, and Libra.  The four signs are called the cardinal cross, and in mundane astrology represents the axis of world power, money trends, and war.

    The Power of Solar Eclipses on the 0 Degree Cardinal Cross

    Solar Eclipses on the 0 degree of the cardinal cross are very rare.  There was an eclipse at 0 degree Capricorn in December 22, 1889.  This eclipse was the hand writing on the wall for silver and gold in what would become the famous "Silver Panic of 1893."  In 1889 the South Node was conjoin the eclipse and opposing the United States Venus at 3 degrees Cancer (silver, wealth , and the security of the people).  The Sun rules gold along with Saturn (the ruler of Capricorn and government restrictions) in an eclipse at the 0 degree of Capricorn would bring a diminishing effect to gold and silver.  The eclipse suggested there would be a government takeover of the metals.   When Mars, in it's fourth pass to the point of the eclipse in 1893, triggered the 0 degree of Capricorn a bank run ensued with a panic as people made a run on the banks to redeem their silver for gold.  The bank run led to a depletion of the gold reserves in the U.S. Treasury.  Ironically, in order to keep the Treasury solvent, the United States had to borrow 3.5 million ounces of gold from J.P. Morgan and spoiled the game speculators had been playing on the chances of a Treasury default.

    The Panic Circular

    The bankers' had two major objections to silver coinage.

    1.       Silver coinage expanded the monetary base (inflation) impacting negatively the bonds, dominated in dollars and held by the banks.
    2.       The type of inflation was occurring outside the bankers' control.  The inflation was good however for the miners and farmers as it allowed them to pay off their debts.

    On March 11, 1893 the American Bankers association produced the leaflet titled "The Panic Circular" which was distributed to each national bank president:

    "You will at once retire one-third of your circulation and call in one-half of your loans.  After this you are to advocate an extra session of congress to repeal the purchasing
    clause of the Sherman Law, and act with other banks of your city to push for it's unconstitutional repeal...The future of national banks...depends upon immediate action, as there is an increasing sentiment of...silver coinage."

    Solar Eclipse June 21, 2001

    There would not be another total eclipse on the cardinal cross for over 100 years.  In June of 2001 a total eclipse would take place at 0 degrees Cancer, an exact opposite of the eclipse in 1889.  The 2001 eclipse in Cancer has an entirely different meaning.  The moon (home and security) rules the sign of Cancer and silver.  After the eclipse in Cancer we witnessed on September 11th an attack on the security of the nation and the beginning of the long bull trend in precious metals.  The eclipse shows the promise of a very long trend that will support the metals, particularly silver, as people gradually become more aware of the threat to their security in paper money.

    Banks vs Gold and Silver

    The banks are going to continue to perpetuate a fear in the accumulation of gold and silver.  In today's  market we have banks like J.P. Morgan (NYSE:JPM) that send out their own "Panic Circular" to their cartel friends to short the metals and miners,or in the case of MF Global just steal the accounts ready to take delivery.  The effects of the 2001 eclipse favors the public and not the banks, their efforts are losing strength in creating a panic however there are risks again in the astrology.   I predicted a sell off in the metals at the end of December and advised my Astrology Traders subscribers to have short positions to hedge their physical holdings.

    I advised a silver trade with a GTC order for Silver Wheaton (NYSE:SLW) in the range of $26.50-$27.50.  Going forward there is continuing stress on gold more so than silver.  The game of fiat currency for the bankers' is coming to an end and there is a very strong likelihood for a move towards a gold standard in 2013-14.  The stress on gold could be an attempt to pullback as much gold as possible into central banks before moving to a gold backed currency.

    There will be another solar eclipse at 0 degrees Cancer on June 21, 2020.  The eclipse will be a very rare repeat of the 2001 eclipse, again reinforcing the metals.

    Stocks: SLV, GLD, DGP
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Comments (3)
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  • alrisha
    , contributor
    Comments (79) | Send Message
    Revisiting this Jeff as precious metals (I hope) are bottoming. Have tracked GLD and GDXJ (which I got way into earlier this year without doing due diligence) and it seems like there will be continuing pressure on both until late 2014. Do you see the same thing?
    28 Jun 2013, 01:21 PM Reply Like
  • Jeff Pierce
    , contributor
    Comments (939) | Send Message
    Author’s reply » I've given some thought to this and I think we're close to a climax bottom. That would be the scariest and best case scenario for those wanting to see the metals rebound.


    The other scenario is continued weakness followed by short rallies that get sold. The death by a thousand cuts type correction that could last until 2014.


    I think the first scenario is going to play out due to sentiment and momentum in the gold charts.

    28 Jun 2013, 02:18 PM Reply Like
  • alrisha
    , contributor
    Comments (79) | Send Message
    Thanks so much for your views on that Jeff. It's already scary for me :-(. I didn't look at the GDXJ chart before going in...(used the inception date and 9:00 am NY) I was especially watching for the last Saturn transit to Neptune (oct 2013) but then saturn (significator of gold?) hits the sun and moon soon after. That seems to go on until late 2014 but I think not as negative. Then saturn makes a trine to the natal saturn. I was more worried about the saturn/neptune. My GDXJ is another matter and the Saturn conj Venus sq Mars will be over soon (I have found that very troublesome for some funds). Next is the conjunction to the sun/mercury and then later a saturn/neptune transit (over late 2014). I'm thinking 3 years for my fund until things get back to my cost basis (19). Hoping I'm wrong.


    So very happy to see another astrologer on here! Love your site!!
    Be well, Chris
    28 Jun 2013, 02:49 PM Reply Like
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