October 11, 2013 – Prepare for the Worst Part III: It appeared that the GOP and president had agreed to meet and solve the U.S. Government shutdown and debt default issues. This is not the case. Do not be fooled by politics as usual.
The level of U.S. government debt and how to spend trillions of dollars are side issues to the current concerns over the government shutdown and debt default.
Republicans met with President Obama and nothing was decided. We got the usual “talks were productive” and a way forward has been proposed. In fact, nothing was resolved, only put off to next week. Politicians are very good at putting things off. It’s another can-kicking episode.
Stocks rose strongly on the news. This creates a perfect buying opportunity. The S&P 500 Stock Index options are cheaper now, with the SPX up 36.16 to 1,692.56. December COMEX Gold dropped to $1,285.50 an ounce.
Yesterday we had a transiting Venus square Neptune. Venus rules women. The first GOP speaker discussing the meeting with President Obama was a woman. Neptune brought more confusion about the issues. The appearance of a possible settlement of the crisis was spread throughout Washington. However, instead of settling the main problems today (Friday); everything was put off to next week as staffers on both sides hammer out a plan to implement the joint talks.
The President or Republicans have not changed their minds. I am buying more stock index put options and gold calls. The latest market moves only create better price levels to buy.
Tomorrow we have a transiting Jupiter square Sun, which will create an “all problems solved” air in D.C. Do not be fooled by this. Nothing has been resolved. The only thing they agreed to was to talk about it more. Meanwhile the clock ticks down. The day the government runs out of money is approaching quickly. Experts differ on exactly when this is; however, almost all agree that enormous payments are due on November 1st. Therefore, somewhere between October 17th and the 31st is drop-dead day.
We are entering uncharted waters on what will happen to world economies, when the U.S. turns into a dead beat. The Chinese and Japanese own trillions of dollars in U.S. Debt Securities (T-Bills, T-Notes and T-Bonds). What will the Chinese do? Many agree that the U.S. will be in a deep recession in a matter of months, if not weeks.
The main line of thinking on Wall Street is that it is political suicide for law makers not to settle this. Some polls show that voters want to clean house completely and not reelect a single congressional member in both the house and senate. You would thing that would be impetus enough to settle these problems.
What they do not understand is the cloud of confusion, conflict and tension that continues to hang over these proceedings in the form of the aspects and eclipses I have outlined. Mars opposite Neptune (Oct. 19th), the Lunar Eclipse in Aries (Oct. 18th), Uranus square Pluto (Nov. 1st) and the Solar Eclipse in Scorpio (Nov. 3rd); combine to create a steel web of conflict, mistrust, confusion and stubbornness. At this critical time in Washington, this is a recipe for disaster.
Make sure that you profit from the follies occurring in Washington. Some might disagree with me on profiting from these problems. However, I am a businessman and capitalists. This is a business transaction that traders like me make. So, join with me and take the trade of the decade.
(Credits – Getty Images, Jim Maynard’s Pocket Astrologer, The Wall Street Journal and The New York Times. No guarantees are possible with investment capital – the risk of investment in stock index put options and gold futures is entirely yours).
The Master of Disaster