Old Gods ... and gold

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com The following is this weekend's Eye of RA report: Week beginning April 8, 2013
A few weeks ago I urged those of you who had bought Forecast 2013 to check the state of your favorite stock index against the target prices contained in the section starting on Page 41.

If you did - and took notice of the material in the earlier chapter, Mars ... the mover of markets, which outlines a general tendency for markets to rise strongly with Mars travelling between Capricorn and Aries - you probably locked in some significant profits.

American readers would have known in advance that the 1572 level on the SP500 marked a price tag that had the potential to turn the index down. Which it started to do last week after hitting $1573.66.

Australian traders would have known that 5126 was a very key price target likely to produce a correction. The ASX200 peaked at 5163 almost four weeks ago.

DAX traders were forewarned of an upside target level priced at 7993 at the start of the year when Forecast 2013 was available. The index overshot to 8074 a month ago.

FTSE traders knew the levels of 6387 and 6550 were likely to be major turning points. The high for the year so far was 6534, recorded early last month.

Forecast 2013 contains a special section on what moves the price of gold - and that's what we'll be taking a closer look at this weekend.

Before we do that, however, I'll paste a small excerpt from Forecast 2013 relating to my home market, the ASX 200. To begin, I'll republish the chart used in the Forecast.

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And this is the relevant part of the text associated with the original chart:

"The ASX200 is a Neptune index. While its intermediate trends find Support or Resistance at other significant planetary lines, it is Neptune which provides the most striking barriers, upside and downside, during the long-range moves.

The dashed line which provided massive Resistance, broken only temporarily, at the 2010 and 2011 peaks is priced around 4770 for 2013.

Breakout above that level opens the next target area in the 5100s. The earlier IC chart showed positive divergence present in the 50CCI and it is obvious on the Neptune chart, using the 20CCI (intermediate-range).

Again, taking the state of the oscillator in isolation from all other factors, the ASX has clearly embarked on a bid to retest its former highs and there is a strong indication that while it might stall at 4770, there would be no alarm bells going off unless it hit the 5100s with clear negative divergence in the oscillator."

 And this is that chart now: - 

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I go through this exercise for a number of reasons. One is ... you MUST use a reliable oscillator and become as comfortable with it as an old glove. Not a whole stack of oscillators! That just leads to confusion and indecision. In December/January, I was able to use this long-range Old Gods chart for Auntie, in combination with an oscillator, to predict the index would go to the 5100s and we would then need to check the performance of the oscillator for signs of negative divergence.

Well, Auntie hit the level ... pretty damn exactly. The second thing we take from the chart is that the oscillator, in this case a 20 CCI, or what I call an intermediate-range Canary, actually confirmed the validity of the High. That is ... NO negative divergence. It means that sometime this year, it is likely there will be another attempt to breakout above the 5130ish level. We'll continue to monitor the Canary when that happens to see if it's still singing sweetly, or is starting to squark horribly.

Auntie is not alone in hitting the Forecast targets.

Now, there is a special section in Forecast 2013 where I reveal, I think for the first time anywhere, the two Old Gods responsible for rallies and declines in the price of gold.

And I say again to those of you who bought the Forecast ... your homework for this weekend is to reread the chapter starting on Page 61 - Old Gods ... and gold! 

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I'm not going to reveal here exactly who the Old Gods of gold are, or the mythology surrounding them. However, Forecast 2013 readers should have known in advance where the price turning points in gold would be ... and that the sharp, sudden drop into Thursday's low was likely to produce a bounce, if not a complete trend change.

And the reason it may be more significant than a simple bounce is predicted in the transit table on Page 75, which has the next few trading days specially marked as a potential trend changer.

I would like to record my gratitude to American astrologer, Pat Hardy, for sharing with me - and you - an accurate birth chart for the modern era of gold trading.

Pat runs the Energies, Trends, Cycles website at: http://www.pathardytrends.com

For many years, she produced a financial newsletter and understands perfectly the need to have an accurate birth time for any person or entity. So, she delved closely into the records, after gaining access to the logs from the floor of the Chicago Mercantile Exchange, which traded both London and NY Comex gold.

And the very first gold trade of the modern American era took place in Chicago … which suddenly produces a chart that makes a lot more sense than the New York chart most commonly used.

Okay, I'm nearing the end of this weekend's waffle. I know many readers will be mildly miffed that I'm not updating Weekly Planets charts or talking about transits.

But, if I have a duty of care, it is to those people who bought the book and/or the Forecast and this edition is tailored specifically for them.

For the most part, stock indices have been hitting key upside target levels predicted in the Forecast and we are now within a general timeframe, and at price levels, where key markets could be reversing direction.

As I indicated by using the ASX200 as an example, the state of the Canaries is not screaming alarm bells and it does seem probable that there will be another test of recent Highs, perhaps even another breakout. In the meantime, though, gold has hit one of its key downside levels - though there's a stronger one at 1518.

I know some readers get thrown by whipsaw signals from the daily Idiot when markets go into a sideways correction. Let me remind all of you that The Idiot is a three-timeframe system and you may need to re-read the first chapter of the book to remind yourself of the rules.

And one of the other reasons for the format of this edition is to remind you of another important lesson. STOP talking too much! STOP reading every Tom, Dick and Harriet with an opinion about where things are going. TURN OFF the bloody television talk shows.

And spend more time consulting your own, simple charts - preferably using just The Idiot and a single, reliable oscillator.

The point of trading is to make money - safely and reliably - and without driving yourself crazy in the analysis!


Safe trading - RA

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2013, writes a free weekly column titled, The Eye of Ra on his web site in  which he explains the potential impact of astrological aspects and the current state of technical conditions. Ashbourne's charts are revealing illustrations of exactly what has occurred in the market and the probability of what to expect.
Important reading:  Randall Ashbourne's The Idiot and The Moon, Forecast 2013 , Jupiter's cycle and its effects on Wall Street and a posting of the weekly Eye of Ra report in this blog, titled A look at the Venus Retrograde effect
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2013

The Idiot and the Moon, Forecast 2013

• Major trend change dates for the full year, plus a month-by-month breakdown of high-energy trading dates and critical reversal dates.

• An index-by-index analysis of Moon Trading across major American, European, Asian and Australian stock indices-

• Identifies the major indices where following the phases of the Moon can dramatically cut profits, or even result in large losses.

• Old Gods & Gold ... a Eureka! discovery about exactly what drives gold prices during rallies and corrections and charts showing highly-reliable target levels to both the upside and downside.

These price charts are individually-tailored to each index and cover Wall Street, Australia, Canada, Hong Kong, Singapore, Shanghai, India, England, Germany and France.

You will not see these charts anywhere else on the Internet!

And much more...

It is NEVER too late in the year to have this monthly information!