IT IS assumed by the author that following the forecast just “blindly” may cause severe losses and some experience is necessary to recognize that. Once in a while, when the forecast indicates a top and prices have been declining constantly until that day, it cannot possibly be a top, but a bottom. This means that while the date of change is correctly analyzed, the direction may be at fault due to the fact that the forecast is made three months in advance. To circumnavigate this difficulty, the author has inaugurated a special service, weekly, to analyze stocks and wheat also cotton at close range.
Most traders are aware of the fact that practically each year just while we go out shopping Christmas gifts something unpleasant happens in the market—it usually goes down just before Christmas.
This year should be no exception. Astrological calculations point to a top the middle of the month, the 14th to be more exact, should for the time being end the big long cycle that began with the bottom of April 30th, last. We most likely will have reached
our Dow Jones level of 198 by then, confirming my statement made long ago that we are heading for this level. This was the low reached November, 1929 (November 13), after the headlong decline that began September 3, of that year.
The spirited advance during the latter part of November should keep right up unabated with only one day sharp decline (December 4 to 5), until December 14, 1936. After that, weakness should get into stocks until the 20th, followed by another upward move which, however most likely will not reach the old high any more made December 23rd, 1936 the day after Christmas should bring a very much lower opening in the stock market, and at the same time another bottom, calling for buying once more for another push-up which, however, should miss the high of the previous movement again. A top is indicated for the 29th of the month.
We are getting into a distributive market in December and in such markets a lot of money is made and lost depending whether or not you catch the movements just right or whether you just get what is commonly termed in Wall Street “whip-sawed.” Unless you are close to the picture, i.e., the market, or your actions are corroborated by special close analysis of one who knows markets well and the action of planetary
forces in particular as they affect stocks, the suggestion would be to hold stocks until the 14th of December, and sell then all on that day, turn around and do your Christmas shopping and enter the market once more after the New Year. This may not sound to be a good business principle on the surface, but having been in the market on the bull side definitely since last July 6th and only once bearish during October, you should have made some nice profit to be able to take a vacation for two weeks. The January issue will reach you in time to make your plans for the new year.
WHEAT FORECAST FOR DECEMBER, 1936
At the time of writing this forecast (October 2, 1936), some traders cannot very well see that in December Wheat should be about another 30 cents higher than its present price. To those be it said that the writer could not see higher prices neither, unless the study of Astrology, the special laws that govern Wheat movements would help him to issue a forecast. A forecast can only be made when the repeating cycles are known as to their duration and the relative advance or decline can be determined.
As prices move higher, fluctuations necessarily become larger and the margin that was ample when we bought Wheat around 84 cents as we did last June is much too small at this time and would lead to ruin if an unexpected influence would appear out of the blue sky and cause a temporary sharp decline of 10 cents or so, turn around and move upward another 20 cents. Therefore our position must be secure against such events by having enough margin. And plenty of margin causes no sleepless nights.
Had I known the movement of wheat as it should develop according to astrological rules during December, 1936, I would not have gone into all the details above. The analysis according to the previous cycle shows very clearly an uninterrupted upward movement in Wheat nearly the entire month of December. The only periods of hesitation or stagnation should occur between the 9th and 12th of the month and again after the 21st.
The suggestions therefore to traders would be to buy Wheat at the beginning of the month and sell it on Christmas eve. This seems to be the easiest month to analyze we had for a long while.
Of course, there may be traders who will say how about the small movement? There surely must be reactions in that upward move!
At the last convention of astrologers at Chicago I met several traders of that type. When I asked them the question: "Did you make any money in the 30-cent upmove from June 6 to August 6?” they said, "That market was too difficult for us, because it went straight up and did not give us a chance to cover our short positions…?'
During this upward move in December for Wheat, I am quite certain that those two traders will not make any money again, because they are not accustomed to sit for a while with their Wheat and just look at it going in one direction. As it moves a point or so they quickly sell it short to “chisel a point," taking two points loss instead. After the move is over they are in a big hole and no wiser than before.
There are periods in the market, in any market as far as that goes when planetary forces are about equalized, the good and the bad. This brings a trading market, a so called "chiseler’s market.” At other times we get movements in one direction and Stocks or Wheat must be held and only sold when this movement is over or competed. To distinguish between them is difficult for the average trader and impossible for those who .watch the markets at-board rooms.
Thus, Stocks should have a movement that is favorable for chiselers while Wheat should have a movement favorable for those that hold it till Christmas and stay out till the end of the month.