Arch_Crawford.jpgAstrologer and market trader Arch Crawford (who once advised burying a stockpile of canned goods and an M-16 in the back yard) is once again warning of financial trauma. Not only is the current market in a “corrective” phase, he believes that it will crash a la 1987 somewhere near or on the fall equinox eclipse of 22 September 2006 and that we will be entering a “historic period” of “German-style” hyper-inflation which will last throughout 2007.

Arch Crawford’s Dim View Of Stocks
John Dobosz, 05.30.06, 12:15 PM ET

New York – It’s not a far-fetched notion that recurring patterns can be found in just about every earthly and human process. No doubt the oceans’ tides and the change of seasons move in predictable cycles. Human beings, bipolar or not, also experience mood changes that tend to run in cycles.

As Carl Jung would explain, human beings also seem to exhibit collective mood swings. And certainly, the oscillation between extremes of fear and greed are rather pronounced in the financial markets.

In the 1940s, Donald Bradley, the father of “financial astrologers,” came up with a model of movements in stock market levels that he attempted to correlate to astronomical movements. Over more than a half century since Bradley came up with his model, it has helped spawn a cottage industry in financial astrology.

One of today’s most prominent advocates is Arch Crawford, editor of Crawford Perspectives. Crawford uses the Bradley model to come up with his financial forecasts, which have at times been stunningly accurate. Crawford will tell you that the Bradley model is good at uncovering turning points but is ambiguous on whether the turning point is a high or a low. That’s where he uses his background as a former market technician at Merrill Lynch in the 1960s; he employs technical analysis to confirm what the Bradley model is telling him.

Crawford also applies technical analysis and financial astrology to other markets, including bonds, gold and commodities. According to Timer Digest, Crawford was the top gold timer for the 12-months ending in March of this year.

We recently spoke with Crawford about his outlook for gold and commodities, as well as what his work is telling him about the direction of the stock market. While he thinks it’s a smart move to buy on the dips in the commodities markets, you should be selling the spikes in stocks. Click here for the video with Arch Crawford.

In addition to investing in commodities, Crawford thinks that it might not be a bad idea to stash as much cash as possible. Somewhere.

UPDATE: Forbes writer John Dobosz is on a bit of a astrology (or astronomy, as he calls it) roll. Here is a link to an article and video of an interview with financial astrologer Bill Sarubbi, who managed the financial portfolios of wealthy Arabs in Abu Dhabi for 14 years. He is more widely known, in astrology circles, as Bill Meridian. Like Crawford, he is also saying “commodities.”

UDATE II: Another recent story on an astrologer-trader.