Of all the tools one might use to predict a stock market crash in 2013, planetary alignments and solar particles are not, for most people, the first options that spring to mind.
But market analyst Arch Crawford has applied his arcane "astro indicators" for 35 years with surprising success.
You see, Crawford has forecast market crashes before. His astro indicators helped him predict the stock market crash of 1987, as well as the crash following the 9/11 attacks and the crash of 2008.
Now Crawford is speaking up as something just hit his radar again.
One of Crawford’s most reliable indicators crossed a threshold on July 18. That means he sees another major stock market crash hitting at some point between now and March 2013.
"Between 18th of July and the end of February , I believe the markets worldwide will crash," Crawford told GoldSeek Radio last week. "And that’s because that if any one of them falls, it’s going to take a bunch of others into a black hole."
The Weird Science of Arch Crawford
It’s easy to write off Crawford and his unusual methodology, but he doesn’t use his astro indicators exclusively; he’s also an accomplished technical analyst.
He worked as a technical analyst early in his career at Merrill Lynch, which is when he noticed a correlation between some astrological models he’d been studying and his technical charts.
Eventually Crawford evolved a method for predicting market behavior based on both technical analysis and astro indicators. The more they agree, the more confident he is in his predictions.
Hulbert Financial Digest ranked his Crawford Perspectives the best stock market timer for the period between Oct. 1, 2007 and Oct. 31, 2009. Timer Digest has placed him first in 1987, 1994 and 2008, and second in 2002.
Today, as Crawford looks at his array of indicators, many point to a 2013 stock market crash, although it could happen before then.
Just looking at the stock charts, Crawford said he sees "long-term cycles beginning to kick in to the down side."
Crawford’s Stock Market Crash Indicators
There are a couple astro indicators that tell Crawford we’re headed for market trouble.
"The Mars-Uranus crash portion of the Mars-Uranus cycle has just become active on July 18, and that means that – well, for the last hundred years every crash that has taken place in the market has taken place in the same 40% of that cycle," Crawford said.
Another of his key indicators, the number of solar electrons (particles generated by sunspots), has been warning of trouble for most of 2012.
"There have been very rare occasions when they’ve been over 10-to-the-third [1,000] per cubic centimeter for any period of time," Crawford said. "Well, they’ve been over 10-to-the-third for most of this year and have been as high as 10-to-the-fifth, which is 100 times stronger."
One of the only other times Crawford saw such major spikes in the solar electrons was in the days before the 1987 stock market crash. A gradual decline in the Dow Jones over several days turned ugly on Oct. 19, when the index lost 508 points – a drop of 22.61%.
"The highest number of electrons for the longest period of time that I’ve ever seen on record prior to this year was the week of the crash of 1987," Crawford said. He added that the number of electrons "went over 10-to-the-third per cubic centimeter about a week before the crash, and the market was dropping every day."
More Talk of a 2013 Stock Market Crash
Crawford may have an unusual methodology, but he’s not along in his predictions. Other market visionaries also anticipate a 2013 stock market crash.
"We’ve got a much bigger collapse coming, and not just of the markets but of the economy," CEO and Chief Global Strategist of Euro Pacific Capital Peter Schiff recently told Breakout. "It’s like what you’re seeing in Europe right now, only worse."
New York University Stern School economist Nouriel Roubini, who also warned of economic disaster in 2008, agrees.
"Next year is the time when the can becomes too big to kick it down (the road)…then we have a global perfect storm," Roubini told Reuters.
New research backs up those opinions.
Thijs Markwat, a Dutch quantitative researcher at Robeco Asset Management, published a paper in June that showed the chances of a stock market crash have increased 15-fold since 1992.
That implies a global stock market crash once every two years.
And a new research report from Money Map Press, the parent of Money Morning, contains still more evidence of market woes ahead. A team of researchers has uncovered a disturbing pattern in the world’s financial, energy, and environmental systems (our food and water.)
The report details what this pattern means and its implications for the markets.
"I think the stock market could suffer a historic crash when we hit the tough times," said research team member and Money Morning Chief Investment Strategist Keith Fitz-Gerald. "But even if that comes to pass, there will be enormous opportunities in a few select pockets of Wall Street."
That’s why Fitz-Gerald, along with Money Morning Global Energy Strategist Dr. Kent Moors and other experts, put together some astounding information to help our readers prepare for the possibility of a stock market crash in 2013. Check it out by clicking here.
Reprinted with permission from Money Morning.