The following is by Karen Starich, who uses astrology to forecast events in the Stock Market. Check out her premium service Astrology Traders for specific dates and in-depth analysis of future events in the various markets she covers.
Business wire reported yesterday that Molycorp CEO will testify to Congress next week regarding rare earth supply concerns igniting more controversy regarding China’s monopoly on rare earth. Read more…
This is a continuation from the July efforts of the WTO lawsuit claiming China broke international law when it curbed its rare earth exports. I wrote about the outcome for those events (read article here) that China would not relent in a move that would lead to further price increases. Jupiter is moving retrograde to the same point October 6th as it was in July, where the WTO filed the lawsuit, and inconjunct China’s Sun. The transit suggests an obligation and a shift of plans on China’s part and they will most likely make some adjustments that are beneficial to the U.S. However Mars will conjoin China’s Mars/Pluto beginning October 12th which will most likely be an aggressive move to force China to change their policies. October 1st – 4th and again October 10th watch for potential increases in rare earth stocks but a word of caution, there is a lot of stress on this sector. The conflict with China continues into February 2012 where there could be another lawsuit. Watch for the dates February 24-25 for news regarding an international move against China’s rare earth export restrictions.
What does this mean for rare earth stocks? Rare earth minerals are vital for advanced space technology. We are on the cusp of new innovations in advanced space travel that will continue to drive the demand for these minerals. Molycorp is the leader in this sector and will continue to receive government support in their efforts to expand their mining operation.