The Market’s Year Of The Pig Likes Corn

At the beginning of the Chinese New Year 2019, I wrote a lot about the Year of the Brown Earth Pig, whose element is water.

With the recent selloff, I’d like to remind you of what my favorite astrologer wrote about the symbolism of the pig, water and what that could mean for the market.

To review:

“Pig is the stage when fire is “Terminated” and the fearful water element is going to take over. As water symbolizes fear, there is lacking of optimism in the Pig year and it will bring decline in economic growth and activities leading to longer term setback of the stock market and more economic crisis will come up. As there will not be return of fire year until 2025, we expect a long-lasting bearish market ahead”.- Raymond Lo

This wooden pig is eating corn.

Interestingly, the agricultural commodity corn has popped substantially off an all-time low it made on 5/13.

Since that day, CORN has risen about 6%.

There are several reasons CORN has rallied off the lows.

From a prediction standpoint, Lo also said that “The industries that will perform well in the year of the Pig will be industries related to Wood element and Earth element. Wood industries are environment, fashion, media, books, education, plants, and flowers. Earth industries are property, insurance, mining, high tech.”

Plants and flowers, given the recent tariffs, seemed like they would be the impossible sectors to rally.

Not only CORN, but also soybeans, wheat, cotton, sugar, and coffee have been beaten up.

Although the trade war and a slowing of Chinese demand for U.S. grains hit the U.S. grains markets, we now have more concerns about flooding and other weather events that have delayed U.S. plantings.

Incidentally, another part of Lo’s commentary: Besides predictions of “earthquakes, landslides, collapses of buildings and avalanches”, he sees “flooding and heavy rainstorms.”

Does this prove my point I’ve made over and over that commodities can rally for a multitude of reasons, not the least of which is the psychological swtch from a global slowdown and deflation, to a stagflation mindset or “we need to eat!”

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