Astrology and “weed” Stocks ( OTC:CANN)

Medical marijuana is a hot topic these days – and getting hotter. Here in Canada where I sit, we are seeing struggling small cap junior mining companies “re-create” themselves by planning to get into the pot growing business. How many of them will eventually succeed remains unclear at this point. But there have been companies to date that have made the switch and seem to be making money either growing weed or supplying infrastructure and equipment to those who do grow it.

A case in point is a US firm that was born in 1987 as ProMap. This company started life with a plan to sell maps to the oil and gas industry. Not that long ago, ProMap changed its legal name to Advanced Cannabis Solutions ( ticker CANN on the OTC market) and started providing commercial space and equipment to licensed growers in Colorado.

The following stock chart shows the explosive ride the stock has enjoyed.

Interestingly enough, the rise in share price co-incided with Saturn passing by 0 degrees (conjunction) to the natal Sun position in the natal horoscope of Nov 12, 1987.

Interesting further is that the price rise effectively stalled out as both Saturn and Mars turned Retrograde earlier this year.

The good news is, Saturn will not make another 0 degree conjunction to natal Sun for a very long time. Mars is due to pass by natal Sun in November. In a recent edition of the E-Alert, I advised that people put CANN on their watch list. I suspect that Mars may spur some price action as it conjuncts natal Sun. This stock has had one explosive ride upwards. Another one is not out of the question…

CANN

Astrology and non-North American Stocks

YES Bank astro

I was recently approached by a subscriber from India asking me whether astrology could be used to interpret the price behavior of a stock listed on the Indian Stock Exchange in Bombay. He gave me a list of stocks he follows and I randomly picked one from the list – an entity called Yes Bank.

I approached this question with great trepidation. After all, India is half a world away from North America and the Indian culture has its own variety of astrology (Vedic Astrology). What I found shocked me. As the above chart shows, events such as transiting Sun making hard aspects to the natal Sun position in the Yes Bank first trade chart align to changes of trend and the crossing (up and down) through moving averages. Jupiter events also align to significant price changes on the stock.

This brief investigation suggests to me that the entirety of humanity is impacted by events in the cosmos, whether we follow traditional western astrology or not. I shall be making it a point to look at other Indian-listed stocks going forward to see what other astro phenomena can be used to interpret price actions.

 

 

Sun-Jupiter Conjunctions and the Toronto Stock Exchange

Transiting Sun and transiting Jupiter are making a 0 degree conjunction. This has implications for the Toronto Stock exchange in Canada. As the following weekly chart illustrates, Sun-Jupiter 0 degree aspects do have a tendency to align to times of trend change on the TSX Composite Index. The TSX has had a healthy run of late and a retracement from here would not be out of the question. This does not suggest a dire market crash, but rather a normal, healthy pause to let corporate fundamentals catch up with share price.

This is the type of stuff I seek to address in my Astrology E-Alert which goes out to subscribers weekly. In each weekly edition, I aim to enlighten readers on astrological phenomena that influence human emotion. It is human emotion (and the changes thereof) that drives people to buy or sell on the markets. Therefore, I argue, that the price activity on the markets is not driven by analyst reports or P/E ratios, but rather by events in our cosmos.

Please be sure to visit my website at www.investingsuccess.ca to learn more….

 

TSX Sun Jupiter

Of Jupiter and Megaphones…..

In a recent edition of my Astrology E-Alert I weighed in on the topic of the megaphone pattern which many market analysts claim to be seeing right now.

Image

Bulkowski in his  Encyclopedia of Chart Patterns defines the megaphone pattern as one in which there is 2 lower bottoms and 3 higher tops. Following the 3rd top, there can be a nasty correction often in the 30% range. The image above shows this pattern.

If we next look at the S&P500, the argument for a megaphone falls apart because the so called 3rd top has actually broken out of the formation.

Image

But, here is what is interesting. If one takes a measurement of the price increase on the S&P500 from the 2002 lows to the 2007 highs, that distance is about 819 points. The price rise from the 2009 lows to the current time is closing in on a Fibonacci 1.618 extension of the 2002-2007 move.

The story takes an added twist if one stops to consider the declination activity of Jupiter. Jupiter is a massive, slow-moving outer planet. It will carve out its declination maxima and minima slowly over about a 1.5 year time frame. From one maxima to the next maxima ( or from one minima to the next minima) will be 12 years. Curiously enough if one looks at these maxima and minima events, one will note that important market actions have aligned to them. From 2000 to 2002, Jupiter slowly registered its maximum declination. The North American equity markets peaked, sold off and bottomed in this time. From 2007 to 2009, equity markets sold off and made a critical bottom. From 2013 to present, Jupiter can be seen making a declination maximum. We have North American equity markets now at important highs ( many say too high for the economic fundamentals…). We further have the S&P500 at a critical 1.618 Fibonacci extension.

The entire subject of economic cycles is a fascinating one. I highly recommend the writings of U.K. economist Fred Harrison. He talks about the 18 year economic cycle (which in my opinion is the McWhirter 18.6 year cycle). He notes that in every cycle there is a period of attitude adjustment which comes about 7 years into a cycle. We are now approaching that point in the current cycle.

So…adding up the evidence leads me to conclude that: (1) the economic fundamentals are decent, but they could be a whole lot better. (2) Jupiter is making its declination maximum which in past has aligned to significant market action. (3) The S&P500 is making a Fibonacci 1.618 extension. I would say we are headed for a corrective phase of some sort on the equity markets. Once this correction runs its course, the remainder of the economic cycle will play out. The latter parts of these 18 year cycles are usually the most powerful. We could well see the S&P500 correct and then go on to make serious new highs in the coming years. But…caveat emptor…the current cycle will probably peak in 2023 and make a sickening completion low in late 2026 ( with a Jupiter declination maxima).

 

 

 

Soybeans and the Mercury Influence

In a recent edition of my Astrology E-Alert, I penned a quick note for subscribers on the topic of Soybeans to illustrate the connection between Beans and Mercury Retrograde events.

The daily nearest chart embedded in this post has been overlaid with red boxes to denote the Mercury Retrograde events. I have further added the 18 and 55 day moving averages as well as a Jupiter harmonic line.

Note that in late January 2014 and into February, price action was below these moving averages. As Mercury turned Retrograde, price action moved up through these averages and a nice rally followed. As Mercury turned retrograde again last week, price action slipped under these moving averages and Soybeans now can be seen to be less than attractive from a chart technical point of view. We have about 12 days remaining in the Mercury retrograde event. Watch for some interesting price action to occur in alignment with the remainder of this Retrograde event.

 

 

GSCI

Wheat and its natal Sun

In a recent edition of my Astrology E-Alert, I included some comments on Wheat futures. In particular, I noted…..

Wheat futures started trading for the very first time (the “first trade date“) on January 2, 1877. At that date, Sun was at 12 degrees of Capricorn. This is what is then called the “natal Sun position” for Wheat.

As transiting planets pass the natal Sun location, turning points can be seen often on Wheat prices. The following chart illustrates monthly nearest price action on Wheat futures.

Note that in early 2008 as Jupiter was passing the natal Sun position, wheat made a significant price high. Jupiter will again pass natal Sun 6 year from now in 2020.

Notice that in 2012, a rally in Wheat prices was halted as Mars passed through a 90 degree aspect to natal Sun. Mars is again passing 90 degrees to natal Sun right now.

Note further that I have overlaid this chart with a large green wedge. Wedge patterns will always resolve themselves – either up or down. Wheat is at a critical juncture right now as Mars makes its 90 degree aspect.

In November 2014, Mars will make a 0 degree aspect to the natal Sun location at 12 Capricorn. Watch for a significant price development at that time too.

You will further note that I have overlaid this Wheat chart with Jupiter 1st order harmonic lines. I calculate my harmonics using the equation advanced by Italian mathematician Fabio Oreste. Study these harmonics closely and I trust you will agree with me that they seem to align to those events when significant aspects were made to the natal Sun.

Wheat is at a critical juncture. If you are a Wheat futures trader, watch for something possibly interesting to happen to Wheat prices in the coming week as the wedge pattern tries to resolve itself under the influence of a Mars aspect and under the influence of a Jupiter harmonic line……

Image

 

Mercury – Retrograde and Elongation

Image

In a recent edition of my Astrology E-Alert (see www.investingsuccess.ca) , I went into considerable detail for subscribers on the topic of Mercury. Here is what I discussed:

Traditional astrologers will tell you to be careful when Mercury is Retrograde. You can easily flip open the pages of your Ephemeris and read the dates when Mercury will be Retrograde. Traditional astrology says do not sign any contracts, do not start any major new projects, do not cross the street, do not get out of bed and so on….when Mercury is Retrograde.

Mercury does not orbit the Sun in a perfect circle. It is subject to the gravitational pull from the Sun. Hence, its orbit is more like that of an ellipse (oval shape). This means that in its orbital path, it will have periods of time when it is farther removed from the Sun.

These times of maximum elongation determine whether we can see Mercury in the morning sky or the evening sky . These maxima and minima of elongation from the Sun are also closely associated with Retrograde events and as such must be used in combination with the Retrograde events to properly interpret the markets ( or human behaviour for that matter).

In 2014, Mercury will make 3 cycles around the Sun and with each cycle there will be a time when Mercury is at its maximum easterly elongation from Sun and a time when it is at its maximum westerly elongation rom Sun.

These dates are: Jan 31 (easterly elongation) and March 14 (westerly) ; May 25 and July 12 ; Sept 21 and Nov 1.

Sandwiched in between these dates are the time spans when we mortals on Earth view Mercury as being Retrograde. The start/stop dates for Retrograde in 2014 are: Feb 6 / Feb 27 ; June 7 / June 30 ; October 4 / October 24.

The above chart illustrates daily nearest price action of Dow Jones futures so far during 2014. I have overlaid this chart with red boxes to show Mercury Retrograde events. I have also added arrows to show maximum elongation dates.

Note that the sell-off that gripped the market early in 2014 ended as a Mercury Retrograde event started.

 Note that the Dow peaked just as Mercury turned Retrograde again last week.

The conclusion that must be drawn from this study is that Mercury, its Retrograde and its elongation events, cannot be ignored when studying the equity markets. Somehow its orbital action has an effect on the human psyche and that effect manifests itself in buying and selling action on instruments like the Dow Jones futures.