With the price of gold surging more than $10 and the dollar tumbling, a warning has just been issued by one of the legends in the business.
Beware July 20th & 21st
A portion of today’s note from legend Art Cashin: A Vague Warning From A Friend Sparks A Trip Down Memory Lane – A friend called out of the blue, and said “I’m told you should be very careful around July 20th and 21st.” “Careful of what?”, I asked. “I don’t know, exactly but this guy, who’s very good with cycles, said that you need to be very careful around those two days”, he replied.
I asked what kind of cycle the call was based on. My friend said this was based on the position of the planets. I asked if the friend’s friend was an astrologer. “No”, he replied, “this is based on a heliocentric chart.” That’s when the light went on – John H. Nelson.
Back in the 1950’s John H. Nelson worked for RCA as a radio propagation analyst. That meant he had to determine on a given day whether the earth’s atmosphere was conducive to send a signal direct from, say, New York to London. If the atmosphere was animated, what alternate route might work?
When he began, Nelson (and the world) thought the primary influences on the condition of the atmosphere were sunspots and solar flares which could change the ionization levels in the atmosphere.
Over the decades, Nelson determined that planetary positions, particularly at certain angles corresponded with changes in solar activity. (Think of it as a tidal-like influence.)
Soon Nelson’s work was drawing the attention of Wall Streeters like Joe Granville and Arch Crawford. Part of the fascination came from the concept that increases in positive ionization is a negative mood alterer. (Google – Santa Ana Winds or Khamsin.)
Granville got further caught up in the theory when he noticed that these solar activity spikes often coincided with earthquakes on this planet and he began to predict earthquakes rather than the stock market.
At any rate, I’ll send my friend back to try to get more data on the 21st. In the meanwhile, I’ll try to get a copy of “The American Ephemeris and Nautical Almanac” to see if I can figure out what one of Nelson’s angles may pop up.
Overnight And Overseas – In Asia, most markets saw minor gains except India who had a slight loss. In Europe, London was down on more Brexit chatter. Markets on the continent were mixed with very minor changes. In other assets, crude it up yet again and holding above $46. Gold is seeing a mild bounce and the euro is firming against the dollar. Yields are down a tick.
Consensus – We get the bank earnings, so financials will be center stage. We’ll also see retail sales and inflation data. Traders think it may be a consolidation day going into expiration week. Stick with the drill – stay wary, alert and very, very mild. Have a wonderful weekend!
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