Sunday, June 12, 2011

6/15 Lunar Eclipse Crash Alert

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On Wednesday of this week the second longest total lunar eclipse of the century will occur, where the moon passes directly in front of the center of the Earth's shadow (more at Wiki).

The last lunar eclipse closer to the center of the earth's shadow was on July 16, 2000, and the next central total lunar eclipse will be on July 27, 2018. This lunar eclipse is part of a rare solar-lunar-solar eclipse series that began with a partial solar eclipse on June 1st.

As noted in recent blogs, in May a very significant and rare planetary alignment occurred. This planetary alignment may have correlated with a stock market turning point into Primary Wave Three down of the Grand Supercycle bear market according to the Elliott Wave Principle....what I've dubbed the 'Apocalypse Wave':

Importantly, stock market analysts have noted that lunar eclipses can act as 'triggers' to crashes.

Consider the following excerpt from Peter Eliades online "Current Observations":

We seldom use much newsletter space for the ideas of others, but the theories we are about to present fit together so well, we believe you will find them as interesting as we do. The two researchers are Steve Puetz (pronounced "pits") and Chris Carolan. Chris just won the 1998 Charles H. Dow Award for his original research and the complete article is offered on his website at . The research by Puetz was first noted in our October 10, 1995 newsletter. Here is what we wrote:

"Puetz attempted to discover if eclipses and market crashes were somehow connected. Without discussing our own opinion on the potential connection between astronomical configurations and market timing, let's simply relate to you the basic findings discussed by Puetz. He emphasized that he is not contending that full moons close to solar eclipses cause market crashes. But he does conclude that a full moon in general and a lunar (eclipse) full moon close to solar eclipses, in particular, seem to be the triggering device that allows for the rapid transformation of investor psychology from manic greed to paranoia. He asks what the odds are that eight of the greatest market crashes in history would accidentally fall within a time period of six days before to three days after a full moon that occurred within six weeks of a solar eclipse? His answer is that for all eight crashes to accidentally fall within the required intervals would be .23 raised to the eighth power less than one chance in 127,000."

". . .Puetz) used eight previous crashes in various markets from the Holland Tulip Mania in 1637 through the Tokyo crash in 1990. He noted that market crashes tend to be lumped near the full moons that are also lunar eclipses. In fact, he states, the greatest number of crashes start after the first full moon after a solar eclipse when that full moon is also a lunar eclipse . . Once the panic starts, Puetz notes, it generally lasts from two to four weeks. The tendency has been for the markets to peak a few days ahead of the full moon, move flat to slightly lower --waiting for the full moon to pass. Then on the day of the full moon or slightly after, the brunt of the crash hits the marketplace."

An example of this phenomenon occurred in the wake of a manic stock market peak with the Harmonic Convergence planetary alignment in August of 1987. Following a lunar eclipse on October 7th of that year an all-out crash in equity prices unfolded climaxing in the Black Monday panic on October 19th:

While in 1987 the 'mass panic' was constrained mainly to Wall Street, in 1990 this phenomenon played out again, but this time it involved an outbreak of war. With a planetary alignment with a solar eclipse on June 22nd, stock prices reversed after peaking at a closing high of 2999.75 on July 16th and 17th (yes....the DJIA closed two days in a row a quarter point below the psychologically important 3000 mark, never closing above 3000 until the following year):

Precisely at the top, Saddam Hussein made a speech threatening Kuwait. With the solar eclipse/planetary alignment on July 22nd, Iraq started massing troops on Kuwait. Then came a lunar eclipse on August 6th.

In the Market Watch section of the July 16th, 1990 issue of Barron's, there appeared an excerpt from the newsletter of financial astrologer Arch Crawford. It read in part:

"...Aug. 6 (Lunar Eclipse squares Mars + Pluto). Expect some major catastrophe on that last one, Aug. 2-7, as something explodes in a big way... Astronomically similar to the Chernobyl disaster..."

On August 2nd, Iraq invaded Kuwait precipitating the Persian Gulf crisis and by October of that year the DJIA had fallen more than 20 percent from the 3000 mark.

The parallels of the current situation to what happened in 1987 and 1990 are significant. First off, there was a major planetary alignment in May of this year similar to what occurred in August of 1987 and July of 1990. Secondly, stock prices have reversed after nearing the 13K mark and, as of Friday, the DJIA closed below the psychologically important 12,000 mark. Third, a lunar eclipse is about to occur that may act as a trigger point to a crash in mass mood.

An issue that remains is whether or not any forthcoming crash in mass mood takes the form of negative historical events like Iraq's invasion of Kuwait in 1990. Hopefully if any negative developments are about to unfold, this will be constrained to financial and economic affairs. However, given that the potential Grand Supercycle scale of the next major leg down in stock prices, one has to be mindful of the possibility of literally apocalyptic events.

God have mercy.

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