February 8, 2015 – War in Ukraine and ISIS in Iraq: The war in the Ukraine, between Russia and Ukraine, is fast approaching a major crisis point. The U.S. will supply the Eastern Ukrainian Rebels with weapons to stem the tide of Russian victories in the east. The west has made it clear that they want the Russians to withdraw heavy weapons (tanks and armored personnel carriers) and troops from the region. Mr. Putin will not do this as he is facing a major economic catastrophe at home. Also, the Russians will never give up the major seaport at Sevastopol. Therefore, we have a protracted disarray on our hands that will end ugly.
ISIS is being attacked sternly in Iraq and Syria and currently running for cover. This will not last. ISIS will never be defeated from the air. Boots on the ground are necessary. Additionally, unless western policy changes in the region, the insurgent movement will continue and at a lethal rate.
Both these international events are a backdrop to low crude oil prices ($52.34/bl), high stock prices (ES 2,055) and gold around $1,235/oz. This is set to change drastically this year. Expect a major drop in stocks and sky rocking oil prices. Gold will be volatile, along with most futures, but strongly up some time during 2015/2016. Because of the volatile nature of futures (commodities) I would suggest options on futures as a way to play all of these trends.
The transiting aspects between the slow moving planets are pointing to a very rough 2016, with 2015 not far behind. Cycle’s analysis supports this study.
The chart above reflects the transits (positions) of the slow moving planets (Jupiter to the North Node of the Moon) from January 2014 to December 2017. The first series of yellow highlights shows the major aspects that caused a significant increase in world earthquakes and other items.
The current year has the Uranus square Pluto on March 16, 2015. This is the final aspect in a series of seven, when both planets are going direct. This means this aspect will be stronger. The Jupiter square Saturn on august 3, 2015 will manifest in a much lower stock market; all of which are now at record highs. Long term options in the ES (S&P 500 Stock Index Futures) are appropriate. Additional hard aspects (square or opposition) for 2015 are noted and will affect stocks, crude oil and the U.S. Dollar (down, up and down respectively).
The year 2016 is terrible for stocks, bonds and the dollar and good for crude oil and gold. The year starts out with double Jupiter square Saturn aspects, which will significantly affect stocks, gold, crude oil and wheat.
All in all, get set for a very wild ride. The next few years will be devastating in terms of world peace and stock and bond prices. (As always there are no guarantee’s with investment capital – take all suggested trade at you own risk).
The Master of Disaster