GLD Weekly Declination & Retrograde

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The main asteroid belt is located between the orbits of Jupiter and Mars. Here there are nearly 400,000 designated asteroids. For a reason unknown to me, the most viewed asteroids include Ceres, Juno, Vesta, and the one I will use today- Pallas. Pallas was discovered March 28th, 1802 and is 522 km in its average diameter.

There are 3 main aspects to this chart. First, I have used planetary fans which track the rate at which Pallas rotates around the Sun (heliocentric). These fans are the upward sloping orange lines. I have used the Gann Levels of 4x1 for all of the fans. There is only one difference among the three fans in this chart. The fan in the middle of the chart has a multiplier of 0.15 while the remaining 2 fans have a multiplier of 0.1

The use of planetary fans in this chart demonstrates the ability for the price of Gold to follow an asteroids rate of orbit around the Sun. Remember that this rate of orbit is expressed in degrees of longitude and not km/hr. I used each major "swing low" as an ephemeris to begin the calculations. Notice how the price of GLD reaches each price target (green horizontal lines) on the exact date that Pallas's orbit also does. In other words, the upward sloping orange lines represent the graphical summary of the conversion of price into a planet. Since these orbital paths are known hundreds of years in advance, it is possible to know where "price" will be if "price" follows the orbit of a planet or asteroid.

The second aspect of this chart I would like to draw your attention to are the red vertical columns. These columns which stretch from the top to the bottom of the chart display the retrograde of Pallas. Retrograde is a period of time when it appears as though the planet (asteroid) is moving backwards relative to its normal orbital motions. The periods of Pallas retrograde point to significant moments in the price of Gold. Its interesting to know that the first period of retrograde labeled "A" occurs several weeks after this Gold ETF had it's IPO. From this period we see a steady advance in the price of Gold until the next Pallas retrograde labeled "B" occurs. At the beginning of the "B" retrograde the price of Gold peaks, has a sharp sell-off then moves into a sideways trend until the next period of retrograde occurs. The retrograde period of "C" marks the end of the sideways trend while the price of Gold rallies to new all time highs. The retrograde period labeled "D" marks the end to the downward correction and price begins a new upward trend. The label "E" marks the next period of retrograde.

The third aspect of this chart to view is the blue horizontal curving line at the bottom. This blue line represents the geocentric declination of Mars. In other words, it measures the movement of Mars relative to the Earths latitude. When Mars is at its maximum northern declination degree the blue line will peak and begin moving down as Mars reverses course and begins moving south. As Mars reaches its maximum southern declination degree the blue line will bottom and begin moving higher as Mars again, reverses its course. The horizontal blue line in the middle of the bottom indicator represents the earths equator. Immediately you should now notice how the price of gold peaks and falls with the movement of Mars as it reaches its maximum latitudes relative to the Earths northern and southern hemispheres.

The label "2" shows the area where Mars reaches its maximum northern declination. Co-incidentally, it occurs as Pallas enters into a period of retrograde. The price of Gold peaks and begins to enter a corrective phase. From here we can see Mars reach its maximum southern declination then the GLD begins to gain in price as Mars begins to move north. At the label "3" a period of retrograde occurs again while mars continues on its path towards maximum northern declination. Price begins to advance suddenly during this period. As Mars reaches its maximum northern declination (labeled "4") the price of Gold peaks and begins to drop sharply. The sell-off in Gold continues until Mars reaches its maximum southern declination labeled "5". At this point retrograde occurs again and price begins moving higher as Mars begins to orbit north. The label "6" marks the next time when Mars is expected to reach its maximum northern declination.

In conclusion, from this chart it is possible to forecast a significant decline in the price of Gold beginning March 9-16, 2010. This bearish trend in Gold should last until atleast November 2010. The beginning of November 2010 will usher in a new bull market in Gold.

March 16, 2010 marks the beginning of the next period of Pallas retrograde and the simultaneous peak of Mars at its maximum northern declination. It is during November 2010 that Mars approaches its maximum southern declination and begins to move north.