Stock Market Turmoil Ahead – 2012
Below is a Blackbox transit forecast for 2012 – 2014 based on the rectified horoscope of the New York Stock Exchange, that traces its origins to May 17th of 1792, when 24 New York City stockbrokers and merchants signed the Buttonwood Agreement outside of 68 Wall Street in New York under a buttonwood tree on Wall Street. Ron Howland in his Chronology of American Charts gives the same date at 10:00 AM. Using Howland’s date and time as a starting point, I employed over 667 major Big Up and Big Down market moves since 1926. The rectification method was to employ transits and solar arcs movements. Although the evidence from the event data appears to be compelling, the rectified time is still speculative.
The Blackbox forecast along with fundamental scenario of surging oil prices, rising inflation, a sharp fall in economic activity rising unemployment and a continued collapse in housing activity all have a strong resonance that combined with the technicals could easily produce a 20+ percent decline in the stock market. The catalyst for a sustained downtrend will most likely be due to the regulatory implications from the JPMorgan trading loss, the political chaos in 8 countries are now in a severe recession, and troubled banks in Europe and the U.S. that will eventually lead to another massive bailout to save the Western financial system.
The bottom line is we can expect more market volatility between now and the end of the year. As risk aversion by investors increases we expect any source of bad news to trigger a massive sell-off. However, because its an election year, the Federal Reserve will likely invoke QE3 quickly to stimulate the economy via monetary easing measures — asset purchases from banks that flood the economy with liquidity — should the Stock Market take a downturn and the economy head south — that in turn will prop up the system but in turn devalue the already weak U.S. dollar and cause the destruction of the credit worthiness of America.