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Rare =E2=80=9CCardinal Climax=E2=80=9D Planetary Alignment This = Summer Puts Stocks at=20 Risk, says Veteran Sky Watcher 6&n= bsp;comments

Mar 31, 2010 05:31 PM =
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This summer the planets form a rare =E2=80=9CCardinal = Climax=E2=80=9D alignment, which=20 puts financial markets at risk, says Arch Crawford. Publisher of = Crawford=20 Perspectives since 1977, the veteran sky watcher uses a mix = of=20 technical analysis and astrology to gauge which way equities and other = asset=20 classes are headed. To learn more about this unorthodox investment = process, I=20 recently spoke to Mr. Crawford about some of his best calls, what day = the=20 Cardinal Climax strikes, and how to prepare for the turmoil he = expects. Here=20 is an edited version of our conversation.

We want to talk about the upcoming Cardinal Climax, which you = say puts=20 stocks=E2=80=94and perhaps humanity=E2=80=94in jeopardy. But first, = explain to Seeking=20 Alpha readers how you invest?

Certain planetary alignments put people under extra stress. And = one way=20 this stress manifests itself is in financial markets. After all, = financial=20 markets are a mix of fundamentals and emotion. Since astrologic events = affect=20 our emotions, I find it profitable to study the planets.

Tell me more.

It is common knowledge that when there is a full moon, there are = more car=20 accidents and other forms of aggressive behavior. Since financial = markets=20 partly reflect our hopes and fears, these markets are prone to mood = swings. If=20 you can anticipate these mood swings, you gain an edge over investors = who=20 focus solely on interest rates, growth forecasts, debt loads, and = other=20 traditional yardsticks.

I have examined every substantial move in the Dow Jones = Industrial=20 Average since 1896, and I find that when planets are at difficult = angles, then=20 owning stocks and commodities is riskier.

What is a =E2=80=9Cdifficult=E2=80=9D angle?

When two planets form a 45-, 90-, 135-, or 180-degree angle, with = earth=20 as the midpoint between the two planets.

Why do difficult angles cause difficult markets?

The reasons are partially understood. In the 1940=E2=80=99s, = radio propagation=20 specialist John Nelson studied planetary alignments to time sunspot = activity=20 and solar flares, and thereby help his employer, RCA, reroute = shortwave radio=20 transmissions efficiently. Years later, when I got interested in = alignments=20 and became friendly with John, he would tell me when a flare was in = progress.=20 I would then call a broker and find that, typically, stocks were = dropping and=20 gold was rising. In concert with new and full moons, where the tidal = forces=20 brought the atmospheric disturbances closer to the earth, extreme = volatility=20 would ensue in markets where a significant emotional component was = already in=20 progress.

For instance, the highest sustained period of ionospheric = electrons=20 measured by geosynchronous satellite took place the week before and = during the=20 October 1987 crash, and then dropped back on the day of the stock = market=20 low.

Recent studies by physicists, biologists and cosmologists show=20 gravitational and electromagnetic activity affects the growth patterns = of many=20 species here on earth. Much of this data was collected and correlated = by the=20 Foundation for the Study of Cycles, in Albuquerque, NM.

I once did a study of the worst days in the stock market. = Two-thirds of=20 those days occurred in one-third of the calendar year, centered on the = Fall=20 Equinox, around Sept. 22-23. Maybe there is a symmetry that governs = the=20 universe that we haven=E2=80=99t yet figured out.

How did a physics and math major from the University of North = Carolina=20 get interested in planets?

I read about it on the front page of the Wall Street Journal in = 1963,=20 while a technical market analyst at Merrill Lynch. I was the first = assistant=20 to the legendary Robert Farrell, who was repeatedly voted best on the = Street=20 by his peers in the annual Institutional Investormagazine poll. = My=20 curiosity piqued, I looked into this subject and found that difficult=20 alignments correlated with difficult markets. The correlation was too=20 well-defined to be chance.

Give us examples when difficult alignments correlated with = difficult=20 markets. Let=E2=80=99s start with the Great = Depression.

During 1929-1932 there were several difficult planetary = alignments.

What about the October 1987 crash?

On Aug. 24, planets were in the tightest five-body = =E2=80=9Cconjunction,=E2=80=9D or same=20 ecliptic longitude, in at least 800 years. =E2=80=9CIt doesn't get any = better than=20 this,=E2=80=9D I reasoned. Therefore, =E2=80=9CA severe decline will = follow,=E2=80=9D I told=20 subscribers. Turns out, Aug. 24 was the top. From that alignment high = to the=20 Oct. 20 low, the Dow fell 33%. A difficult planetary alignment = preceded a=20 difficult stock market.

What about the 2008 Crash?

Our research showed a Mars-Uranus =E2=80=9Ccrash cycle=E2=80=9D = beginning Aug. 6, 2008=20 and ending in late-Mar. 2009. So beginning several months before Aug. = 6, we=20 repeatedly told subscribers, =E2=80=9CNeither Wall Street nor our = Government will be=20 able to hold markets up against the 'deluge'!"

Further, on Sept. 2 we told subscribers that the worst part of = the crash=20 would occur on Oct. 10, plus or minus three trading days. We repeated = this=20 forecast on Oct. 2. Our headline was: =E2=80=9CMarket Crash =E2=80=93 = Dead Ahead.=E2=80=9D Turns out,=20 Oct. 10 had the largest number of new lows on the NYSE ever, at = 1203.

Why did you choose Oct. 10?

There was a full moon after the market closed on Oct. 9. Also, = there was=20 a =E2=80=9CGrand Cross=E2=80=9D alignment at this time, with the sun = opposite the moon, and=20 squaring Uranus opposite Neptune.

So this is another example of when a difficult planetary = alignment=20 preceded a difficult stock market.

Did the planets or your technical analysis forecast the = rebound in=20 stocks which began March 9, 2009?

Our March 2 headline was: "Best Bet - Nearby Low!"

Then on March 12 we told subscribers: "We believe this rally = confirms a=20 strong buy.=E2=80=9D

Does energy from difficult alignments reveal itself in ways = that go=20 beyond financial markets?

In April 1986 we had a Lunar Eclipse conjunct Pluto. The close = proximity=20 with Pluto is rare. So we told subscribers, "If you don't feel this = one,=20 you're not alive!" We were prophetic, as the April 26^th = Chernobyl=20 accident raised radiation levels worldwide.

By the way, we have another Lunar Eclipse conjunct with Plato on = June 26.=20 Pluto =E2=80=9Crules=E2=80=9D nuclear power, debt, interest rates, and = the use of force, say=20 the astrologers. Maybe June 26 is the de facto start of the = Cardinal=20 Climax.

In November 1989, we observed a Saturn conjunct with Neptune, = both=20 opposite Jupiter to the day. This alignment happens every hundreds of = years;=20 i.e., it is extremely rare. Several days later the Berlin Wall = fell.

In our July 1990 we told subscribers, =E2=80=9CThis will be one = of the worst days=20 of the century. There will be coercion, the use of force, a large = explosion=20 and heartlessness or cruelty August 2-7." On Aug. 2, Saddam Hussein=20 unexpectedly attacked Kuwait. What alarmed me was the Lunar Eclipse = forming=20 another Grand Cross, this time with Mars opposite Pluto.

What about September 11, 2001?

In our letter mailed Sept. 4 we wrote that when Mars hits the = solar=20 eclipse point on Sep. 7^th or Sep. 8^th, then the = U.S.=20 will be at war.

Do the planets ever fool you?

We are still in the 'covered wagon days' of this as a science. = Much of=20 the time is without major significance. Also, the =E2=80=9Cbig = alignments=E2=80=9D can be=20 tricky to interpret. But some alignments=E2=80=94this summer=E2=80=99s = Cardinal Climax, for=20 instance=E2=80=94are unambiguous.

Let=E2=80=99s talk about the Cardinal Climax.

On August 1, give or take a week, we=E2=80=99ll have the most = five-planet=20 alignments in perhaps thousands of years. Known as the = =E2=80=9CCardinal Climax,=E2=80=9D this=20 is the meanest, nastiest, most challenging and most transformational = of any=20 planetary phenomena in all of written history!

We=E2=80=99re giving readers a link to a chart showing the = Cardinal Climax. What do you see?

This is the view of the planets from New York City on Aug. = 1, at=20 6am. We have the most planets in the tightest alignments and at = the=20 supposedly 'sensitive' Zero degrees of Cardinal signs. It makes the = hair on=20 the back of my neck stand up.

I looked at records going back to the 1800=E2=80=99s, and this is = the most=20 difficult alignment I found. When I was at a conference in Boston last = month,=20 someone said this was the most difficult alignment they have seen in = the last=20 "1,000 years." Another person told me this is the worst alignment = in=20 "10,000 years."

What are possible consequences?

Worst cases include a nuclear accident. Nuclear war. Massive = societal=20 collapse. Maybe a pole flip, which can wipe out nearly = everything.

Cardinal Climax is especially intimidating because of the = proximity to=20 the widely touted Mayan Calendar End Date. Plus, the Christians are = looking=20 for the Return of Jesus and/or the Rapture, the Muslims await the = return of=20 the umteenth Imam, the White Buffalo has been born, and Jews are = fighting over=20 the right to rebuild Solomon's Temple on the 'temple mount' in = Jerusalem.=20 These are all signs of =E2=80=9Cend times=E2=80=9D by many different = cultures.

The one thing most convincing to me is that there are more people = alive=20 on the planet today than all who have ever lived in recorded history. = So it=20 may be that every soul is on board for this event!

At a recent 1180, did the S&P 500 already peak for = 2010?

The top may be this month or in May, based on normal seasonal and = astrologic patterns.

Will Cardinal Climax cause just U.S. stocks to fall? Or is = this a=20 global meltdown?

Definitely global.

If I sell my stocks, as you advise, where do I put my money?=20

The best money will be made on the downside in shorts, stock = index=20 futures, negative ETF=E2=80=99s, and put options. However, we do not = recommend that=20 subscribers buy options=E2=80=94especially if they are not seasoned = traders. With=20 options, you can get the direction right but then maybe not get paid = in usable=20 currency before the whole system melts down.

Inflationists advise buying commodities, to protect against = the 21%=20 year-over-year increase in Federal Reserve assets, and the 15% = year-over-year=20 increase in U.S. public debt.

We are probably seeing a peak in general optimism about the = economy and=20 commodity prices. When suspicion arises that a double dip or worse is = about to=20 return, we will see the commodity averages slip into the tank. Even = assets in=20 the ground will not hold against a worldwide depression that is well = on its=20 way.

Deflationists say buy long-term U.S. Treasuries, because it = will take=20 years to reduce a 375% debt-GDP ratio, and because the M1 money = multiplier is=20 barely pulsing, at 0.8x.

We=E2=80=99d rather be long German, Swiss or Australian bonds, = although U.S.=20 bonds will probably do well on the initial declines. Do not overstay = as the=20 U.S. Dollar will come down hard. The United States will come apart in = this=20 Depression!

Besides selling stocks, what other precautions do you=20 advise?

Our markets may be the least of our worries, given this powerful = and=20 chaotic frame. The Mormon mandate of keeping two years worth of food = and water=20 in your home is common sense.

How do we know when it is safe to own stocks again?

"When CNBC becomes a sports station!,=E2=80=9D to quote my friend = Jim=20 Grant.

You have 55 years of investing experience. What have you = learned?=20

Nearly all of our frustrations in the market result from our = unfulfilled=20 expectations about what we thought a market =E2=80=98should=E2=80=99 = do. No one knows the=20 future.

Also, investing is probabilistic. So if you think knowing how to = =E2=80=98read=E2=80=99=20 planetary alignments increases your probability of success, then get = planetary=20 literate.

Thank you, Mr. Crawford.

Postscript:

As described in my book It=E2=80=99s Earnings That Count = (McGraw-Hill,=20 2004), I look for companies that have authentic earnings power, = durable=20 competitive advantages, and sell at a discount to intrinsic value. So = why=20 write about a technique that is diametric to my Ben Graham-inspired = formula?=20 (To learn more, please read this column http://www.fool.com/investing/general/2009/12/28/let-scroo= ge-make-you-rich.aspx=20 by Tim Beyers of The Motley Fool.)

First, this unorthodox investing method fascinates me, and I = figure other=20 market-obsessed Seeking Alpha readers are interested, as well.

Second, Mr. Crawford has made some brilliant calls. So if he = thinks=20 mid-2010 is difficult, that's newsworthy.

Third, the planetary outlook on U.S. stocks is similar to my = view,=20 although our approaches differ. From my price-and-earnings = perch, the=20 Wilshire 5000 sells at a lofty 23 times earnings, and the S&P=20 500 sells at 21 times the average of the last ten = years=E2=80=99 worth of=20 profits (i.e., the Shiller CAPE ratio). If you plan to own a stock = index fund=20 for the next decade or two, do not expect to get richer buying at = these=20 levels.

U.S. Government bonds are even less attractive. In terms of = valuation,=20 the 30-year Treasury sells for 21 times earnings (the reciprocal of = its=20 earnings yield), and the flagship 10-year issue sells at a = Himalayan 26x.=20 Also, since Federal debt and contingencies like Social Security and = Medicare=20 are now at fifty times annual tax receipts, our triple-A credit = is a=20 downgrade "lock," which will push bond prices = lower.

In sum, let's hope Mr. Crawford's dour outlook is = wrong.=20 But what's the risk of taking a few precautions?, "just = in=20 case." So please, pass the MRE.

Disclosure: = No=20 positions=20

Back = To Hewitt=20 Heiserman's Instablog HomePage =C2=BB=20

Instablogs are blogs which are instantly set up and=20 networked within the Seeking Alpha community. Instablog posts are not = selected,=20 edited or screened by Seeking Alpha editors, in contrast to = contributors'=20 articles.

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- Wild Brine
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My BIO can be found on the following Australian web site where my = writings are also available. <www.missionignition.net/btb> Enjoy = ! :)=20 Michael.
I was originally a banker working = on the=20 International scene in various parts of the world - including Wall = Street!=20 This was in the mid 1950s and '60s. In the late '60s while back in = Canada on=20 leave I became very infatuated and moved by a Canadian Buddhist monk = in=20 Toronto. At one point he shared with a small group of us a vision he = had. He=20 saw the growing chaos that would be evolving on this earth. His advice = - "Go=20 North" - there it will be safe. There we could create small = communities and=20 bring people together to move through the approaching time of = "Cleansing", and=20 be able to help and inspire others of a new way for Humanity to live = on this=20 earth. It seems we have now arrived at this pivotal point on our = calendar.=20
I live in the Yukon in northern Canada with no regrets.! Michael.=20

Apr 05 02:58 PM Reply
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- Wild Brine
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Wild=20 Brine

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My BIO can be found on the following Australian web site where my = writings are also available. <www.missionignition.net/btb> Enjoy = ! :)=20 Michael.
My Bio and picture are available = at <" target=3D_blank=20 rel=3Dnofollow>missionignition.net/bt...;

Apr 06 10:07 AM Reply
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- Jetspiral
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About 20 years ago a psychic in = Winnipeg=20 that the police have used told me Arch & I used to work together. = They=20 also told me I would make a lot of money shorting the S&P with = options=20 during a crash. Arch was going to be important in helping me time this = event=20 as well a major earthquake was going to occur around the time of the=20 high.

I did make money during the crash of 2008 based on = elliott &=20 the Mars -Uranus crash cycle from Arches research. I do not think = there was a=20 major earthquake @ the time of the high. If a crash does occur this = summer I=20 will most likely be short. I have seen with my own eyes that planetary = alignment does effect the market. Darren

Apr 06 11:05 PM Reply
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- billgeer
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Thanks for the subscription. I = followed Arch=20 many years ago during a relatively flat market, so not much happened. = I agree=20 we are overbought right now, and if this continues, the rubber band = gets very=20 tight and we have a big bang! Bill

Apr 15 11:51 AM Reply
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- Jason Farkas
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A 1991 reading of a book on technical analysis and the Austrian = school of=20 economics eventually led Jason Farkas, CMT to Elliott Wave = International=20 (http://www.elliottwave.com/wave/sa). Prior to joining EWI, Jason = worked for=20 14 years as a futures, options, and equity trader as well as a... More =

Company: Elliott Wave International
I agree with Arch that 2010 is = going to be=20 associated with some type of significant market disruption. Our work = at=20 Elliott Wave International suggests that safety is of paramount = importance for=20 the next few years. It's alarming how few investors are positioned for = safety.=20

Apr 25 11:46 PM Reply
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Very interesting article! Another = critical=20 time may be Sep.22nd - Oct.30th 2010.
For solar diagrams and more=20 information please see buryl.com

May 04 02:50 PM Reply

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= buryl on Rare=20 =E2=80=9CCardinal Climax=E2=80=9D Planetary Alignment This Summer Puts = Stocks at Risk, says=20 Veteran Sky Watcher Very interesting = article!=20 Another critical time...
=20 Jason = Farkas on Rare=20 =E2=80=9CCardinal Climax=E2=80=9D Planetary Alignment This Summer Puts = Stocks at Risk, says=20 Veteran Sky Watcher I agree with Arch = that 2010=20 is going to be asso...
= billgeer on Rare=20 =E2=80=9CCardinal Climax=E2=80=9D Planetary Alignment This Summer Puts = Stocks at Risk, says=20 Veteran Sky Watcher Thanks for the = subscription.=20 I followed Arch ma...
= Jetspiral <= SPAN=20 class=3Dgray>on Rare=20 =E2=80=9CCardinal Climax=E2=80=9D Planetary Alignment This Summer Puts = Stocks at Risk, says=20 Veteran Sky Watcher About 20 years ago = a psychic=20 in Winnipeg that t...
= Wild = Brine on Rare=20 =E2=80=9CCardinal Climax=E2=80=9D Planetary Alignment This Summer Puts = Stocks at Risk, says=20 Veteran Sky Watcher My Bio and picture = are=20 available at <mission...

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