AstroEcon 
Financial Astrology 
and Technical Analysis
On line continuously since January of 1996

Subscriber update 
Written By Robert Hitt 
Posted 4/29/2008.. 10:00 AM

These are thinking persons updates. No Bradley or mechanical methods used here

A beginners lesson plan.

OK If I am going to go educate readers on how astrology works and why knowing about it will enhance a readers understanding of how this knowledge can help investing in intermediate term swing trade moves we have to start somewhere. A new lesson will be added every post. 

First basic concept for a beginner to get a handle on..  what astrology actually is. 

Astrology is observing the location of the planets relative to each other from our perspective on earth within in the solar system seeing the movement as a mirror for what is going on in the world of human awareness. We homo sapien humans are located currently in 3 spatial dimensions plus adding in TIME as the 4th dimension. Yes the vast majority of humans live only in a 4 dimensional world.  A very small but growing percentage live in awareness of an extra 5th dimension also.

The axioms "as above so below".. OR "on earth as it is in heaven" are long standing concepts 1000s of years old pointing out the mirror effect of the the solar system. See how easy astrology is?? 

Put another way.. All of us live INSIDE of a vast entity called the solar system. We cannot be separated from this entity because we are living our lives out INSIDE OF IT. Thus astrological energies are NOT  effecting us humans as an outside force ...we are participating part of it and all we see "out there" is a mirror.  This simple concept is what the entire LOGIC of astrology is based on. It has nothing to do with gravity.. Nor some unknown rays of influence coming from the start ands planets. Science will figure this out soon enough. 

NEXT lesson is "the planets are the "organs" of this vast entity we live in". 

Situational awareness regarding gold psychology.
By Robert Hitt 4/27/2008

There has been a big change in the gold market especially over the last few months. Gold and equity have become antagonists after both trended together going all the way back to 2000. . From the looks of the trading pattern this antagonism now works all the way down into intraday patterns so frequently as equity goes up it seems fueled by selling off gold. This antagonistic tendency started to show up in fall 2007 almost exactly at the time of the major shift in the equity market back into full blown bear mode which is now well into a second leg down of the bear that started in 2000. 

The equity market is now in the second leg down of a 12 year bear market. The 1937 to 1942 leg in stocks is replaying in 2007 to 2012. I proposed many years ago that the second leg down in the USA market after a 2007 retrace high was the time period when the ACTUAL CONSEQUENCES would fall on the American population and we see that in spades all around us now. Fact is you have not even seen the completion of the first lesser degree move in this major bear yet. The longer term lows in stocks may be skewed by valuation of the USD which when all is said and done should produce an eventual lows from the 2007 highs of 80% by the time it is over. 

If gold and equity are now antagonists that tells us the final gold bull market highs could be years away. I think it would be presumptuous to actually think past the next leg up in gold to call a long term top. The big pic rally mode on a long term basis could very well place the last leg up in 2009 but who cares now that may be it.. Beyond 2009 a leg up in an even bigger bull run lasting into 2012 is not beyond comprehension and this has Weimar type connotations. Beyond 2009 is MOOT at this time because opportunity is at hand in the nearer term. 

Making this high probability call that the gold market is still at least one major degree rally from the top of it's bull market brings up the question of timing. My long term timing using everything I have in my tool kit indicates that the first half of 2009 is the place to look for the next leg up highs. A leg up that could very well do a dance to the same tune as the Nasdaq August to March impulse doubling during that infamous final leg up in 1999-2000.

There is rhyming with past movement going on all the time because it has to do with cyclical changes in psychology.. In the case of gold it has the same speculative energy that Nasdaq had in the late 1990s. That is a buy on dips mentality and don't think too much. In fact the less brain power employed the better you do in these bull major moves IF YOU ARE NOT LEVERAGED TOO MUCH. The easiest way to be wrong back in the 1990s on the Naz was to have the audacity to think you are smart enough to pick a top tick. LOLOL I saw a LOT of Naz bears get roasted and skinned back in that late 1999 rally. Turns out those naz bears were right about a crash coming but the crash did not occur until they were almost universally knocked out of being able to benefit from it.

This next leg leg up in gold has NOT started yet with the April low in my opinion. Gold and metals in general are in corrective mode at present and may very well continue to be stuck in range bound trading pressing closer and closer to corrective lows than snap back to the 1000 level all the way into mid summer. . Hey I could be wrong. I do have holdings already at below 400 so I am relaxed about this current correction. 

I don't want to be presuming to be smart enough to call the bull top in gold yet because that is a formula for being wrong.  BUT I DO WANT DECENT ENTRY on a major dips until there is absolute confirmation the bull market in gold has expired.. In my opin the long term gold bull would only confirm an end by dropping below 400 from recent highs.  And THAT IS NOT GOING TO HAPPEN. Not with the geopolitical stress the world is under at present. The widespread distrust factor of our capitalistic financial system now bordering on criminal fraud as another factor. In many ways there is simply no where left for smart money to go to preserve wealth but to gold. 

So .... . I am looking at May 08 and seeing equity should come back down a bit and at least threaten to get corrective threatening to go back to the March lows. If so gold should rally on equity weakness but probably only muster a retracement in a range.    Gold has to digest a lot of rally from the past few years so June / July 08 looks interesting as earliest time the lowest low probably in the low 800s .. Even in a worst case scenario for long term holders of gold there is extremely strong support in the low 700s. WHEN IT DROPS TO THE LOW 800s I strongly suggest you forget your analytical mind and get long using the same sort of mindless greed factor that caused Nasdaq to double in late 99. As with naz in 1999 the low was not a great dip so I don't expect one in gold this year to be either.. Naz was NOT a bargain in august of 1999 so don't expect gold to stand up and scream BUY ME NOW either in the case of a corrective low this year. A double from 800 would be 1600. This is and has been Jim Sinclair's upside target for some time. Hats off to Jim. I see it too. 

A coincidence with 99 and 2008?? Maybe. 
The Nasdaq rally doubled to termination began exactly to the day from of the so called Nostradamus eclipse in August of 1999. Hummm. We have a solar eclipse ahead on August 1st 2008. It is VERY possible that gold does a double bottom low in the 800s as an August retest low presenting the final opportunity to participate in what could well turn out to be a clean double in a very short time period.. That would be breathtaking to participate in. 

This scenario in gold fits in with the big bear picture in equity as the next leg down in stocks is due to begin from a retrace high of some sort in mid Summer 08. 

 What we do know is that we have a GREAT CHANCE of early - mid 2009 as a time location of an all out blitz of liquidity generation. The best man for pulling off THAT task is Obama so if I had to pick the next prez based on the necessity of implementing THE NEXT NEW DEAL in 2009 Obama would be the fit best. He would get the cooperation out of the public during the very nasty set of circumstances ahead that neither Clinton or McCain could garner. We also have a planetary cyclical connection with Obama and Carter. 

The February 2008 eclipse path

http://eclipse.gsfc.nasa.gov/SEplot/SEplot2001/SE2008Feb07A.GIF
This eclipse path goes over Antarctica. 

The August solar eclipse

Note this path will go over CHINA. This is during the Olympics.. HUMM.. 
http://eclipse.gsfc.nasa.gov/SEplot/SEplot2001/SE2008Aug01T.GIF

http://eclipse.gsfc.nasa.gov/SEpath/SEpath.html

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From the net.. relevant articles on gold and macro economics

Gold Oil and the USD

The real price of most things is becoming very difficult to measure. What do we use to measure VALUE.
Here is a great lead in article by Adam Hamilton to illustrate that point

http://www.321energy.com/editorials/hamilton/hamilton042708.html
Oil priced in gold reached its peak in late August 2005, at 0.162 ounces per barrel. Provocatively this is far higher than gold oil today! So relative to gold, oil has been getting less valuable since then. This sure paints a different picture of this oil bull than viewing it in fiat currencies does! That 2005 price spike was an anomaly, as it was driven by hurricane Katrina ripping through US oilfields. Nevertheless, today gold oil is still not extreme relative to recent history.
Oil priced in gold, of course, is the inverse of the classic gold/oil ratio. While long-term GOR analysis is very interesting, there is a major criticism against it. Why should the ratio between gold, almost all of which that has ever been mined in world history still exists, and oil, which is burned immediately upon production and forever lost, remain in a constant range? This is a great question that plagues multi-decade GOR studies.
But over the short term, this question is a lot less relevant. There isn’t much more gold around now, in terms of world supply percentage growth, than there was 5 years ago. So the gold oil price trend is far more likely to be relevant over years than decades. Since gold oil has largely remained in its current uptrend for over 6 years now, odds are this trend remains in force today.
Obviously this has big implications for traders. Today gold oil is at its lower-resistance line, the point at which oil has usually retreated in gold terms. The only way gold oil can retreat today is if dollar oil falls, dollar gold rises, or some combination of these two transpires. Since oil is widely loved by speculators and overbought today while gold is increasingly despised and oversold, I suspect it will indeed be a combination.

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Another hard asset class.
REAL-ESTATE
My current abode.

Investment property for sale. Motivated seller. ME!!!!
3 plus acres.. 
Outstanding resort area 5 mins drive from Summersville lake in Central West Virginia.   http://www.summersvillelake.net/  
2000 foot elevation above sea level. 
Please tell Barton Biggs types that this property is exactly what he is talking about. Located inside one tank of gasoline from most major east coast cities.  A spring fed brook clean enough to drink is on the property. 

View from the living room picture window of the rock garden and fire pit.

Interested parties ... this is also available as a long term rental or various other type deals including partnership in it as a weekly resort rental. Making some sort of deal in the near term would certainly make my life easier. This place is worth every penny and has very little downside risk. I really don't want to sell it off but don't see much alternative at this time.. Maybe if I get some traction with this level new one update I will take it off the market.. 
In the near future properties such as this will be in great demand from Biggs escapees from cities. 
Real estate investment is always based on LOCATION LOCATION LOCATION. 
In this case ... The area here DID NOT experience a real-estate bubble which means there is not much correction to the downside possible as a consequence... AND when that day comes in a post crisis environment when the real estate market begins to recover again???  The UPSIDE percentage move here in this location will be orders of magnitude greater than in those previously overheated markets. There will be very few sellers here who will want to cash out in a recovery rally for peanuts.. 
Asking 175K. 

This property is in one of the regional real-estate markets where there are still bargains. I also suspect that small towns well outside of regular commuting distance from large population centers will behave similarly. The forces that kept prices in these places from overheating have a lot to do with a lack of  technological infrastructure such as high speed internet. This is changing rapidly and will not be an issue in the near future.