Eclipses Historically Make The World Go Crazy And Often Crash Markets!

It appeared that an ‘AWFUL LOT’ went crazy last week. ALL except Sir Charles, ‘The Round Mound of Rebound’ whose words last week most agreed upon. My point today is that people and masses always go a little crazy before full moons and even crazier before Total Lunar eclipses. It is a fact that people will act out during these times of the month and worse during eclipses. Animals we know, possess a keen sense of danger, innately feel potential foreboding danger and become agitated. They will try to hide before an eclipse just as they do before a storm or tornado begins. The differences are apparent an impending darkness versus an atmospheric temperature pressure change as temperatures drop precipitously. They know immediately when something doesn’t feel right, and they act on it without hesitation. During a recent Annular (large partial eclipse) people stayed home out of fear. Very few ventured out onto the streets to shop or eat at restaurants and even hotels saw their business drop. It was estimated that businesses would lose $700 M in lost productivity during the current eclipse.

Eclipses (Lunar or Solar) can be significant turning points in both stocks and commodity markets. That self destruction happened after March 7^th, 1970 Total Lunar Eclipse passed over the US (yes, the media got it wrong again). Seven weeks later on Earth Day April 22^nd,^, computer and tech. stocks dropped some 85% dissolving $450 M paper value for Henry Ross Perot (presidential candidate of 1992 and 1996). The cause of the market crash was low or no earnings which sounds very familiar. An eclipse is not always the case for a market slip. However, we also see a Hindenburg Omen (named after the Hindenburg crash) which has been showing up with much regularity. What this means is that more stocks are hitting 52 week lows than 52 week highs on the NYSE. This event USUALLY leads to poor returns in the forthcoming days. In May of 2015 the omen showed up but nothing happened. However, in 2007 stocks fell by 4% in two weeks…and more was to come. Most alarming is that five out of the last six Hindenburg Omens DID result in a big reversal in the stock market.

Are your senses alerting you to a potential dangerous course? Remember Lost in Space and Dr. Smith’s robot alerting Will, “DANGER, Will Robinson, DANGER”, “Does not compute!” “I cannot accept that course of action.” One might want to temper your greed for more gains in stocks and be early to leave the party rather than too late. I recall Dr. Smith who was always in trouble for failing to heed the B9’s warning and cackling comments like, “You bubble headed boobie!”

This chart of Gold Futures shows the day to day gold movement to watch - and dropping below the red line which would be REAL bad for gold, which would support my belief that we are going lower in perhaps a big and final way this year or next.

During the year 1970, a lot was happening as Nixon invaded Cambodia and the Vietnam War wore on. Everyone had figured out that we either shouldn’t be there because we weren’t going to win or the government wouldn’t let us win. Next, the Apollo 13 mission was almost ‘Lost in Space’ literally as a rupture caused loss of oxygen, water, all power and propulsion. I was tuned in more than the normal kid as my uncle worked for Rocketdyne in CA, the jet fuel company provider. Remember the movie starring Ed Harris as Gene Kranz the NASA flight director? Next throw in a recession engineered to fight inflation and a slow economy. Then in May, campus riots protesting the invasion broke out and a thousand National Guardsmen were called out to calm the student protestors. What happened next horrified the nation as four white students were killed at Kent State and two black students at Jackson State. I recall thinking the world seemed to be falling apart, my older sister was at school and my graduating brother’s draft number was eleven and the hot summer had not even begun.

The world is still crazy 47 years later and not much has really changed except we finally got a President a lot like Perot, a non-politician. I like to imagine what the world would look like if we had elected Perot back in 1992. There would have been NO NAFTA…as Perot had warned of its danger. He predicted what would occur with his remark of a “sucking” sound of jobs going to Mexico and the threats of illegal immigration growing rapidly! If only historical choices had been different, we ALL would be better off today in a different world, another reason to keep our history. Now don’t miss your chance to protect your family before it’s too late!

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