The following is a guest posts by Karen Starich, who uses astrology to forecast events in the markets. Her unique insights will provide an alternative view to the markets with a focus on the precious metals sector.
In my article from June 19th China Restrictions Coming for Rare Earth I predicted the dates July 11th – 13th for news regarding potential further restrictions for export of rare earth elements out of China. My prediction is unfolding as Reuters reported on July 9th that on Tuesday the WTO ruled China broke international law when it curbed rare earth exports. Although the report suggests China may reform it’s exports based in part on WTO rules, EU Trade Commissioner Karel De Gucht will none the less be visiting Beijing the week of July 11th to further address the issue. In the past De Gucht has commented “We certainly have to look at other sources of rare earths” which is most likely the reality check of any negotiations with China.
In the natal chart for China there is a Mars conjoin Pluto aspect in Leo. Mars conjoin Pluto is a powerful aspect. It is ruthless power, an over the top desire to be King. In China’s chart it is square their Venus which for Mr. De Gucht is even worse because it means they can be ruthless cunning negotiators as well. The Mars/Pluto aspect for China means they want not only the best military, the most advanced space program, the best economy, the most luxurious cities, they also want over the top decadence and luxury beyond what has been achieved anywhere in the world. And as we witnessed with Tiananmen Square they are ruthless in their efforts to maintain power.
With that in mind the following is what Mr. De Gucht will potentially experience in his negotiations next week with China. Transiting Mercury (rules negotiations) will exactly conjoin the Mars/Pluto aspect in China’s chart next week during De Gucht’s visit. This suggests China will be on top of their game in sharp strategic mental intellectual strategy. China has already raised environmental concerns which could be a smack to the WTO and any lawsuits regarding rare earth exports. China is holding the cards in this poker game and I believe in the fall the tension will escalate with potentially more export restrictions and controversy.
In my original rare earth article form June 12th Jeff highlighted several rare earth stocks which have all rebounded since then. I believe now is the time to consider adding some rare earth positions. I would consider putting Lynas Corp on the watch list as well as MCP AVL REMX REE.
Karen says: Keep a close watch on news coming out next week regarding the rare earth exports from China. Watch for explosive movements in these stocks July 19th–25th and specifically July 22nd. Another explosive move August 11th and continually strong though Sept. 18th.
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