El Nino effect

 Issue No. 242 – Sat 01 Aug 2026

El Niño is a climate pattern that causes the surface of the Pacific Ocean to warm up near the equator, leading to weakened trade winds and major shifts in global weather. Key effects include severe droughts, heavy floods, and record global heat.

 

El Nino this Summer has direct impact on the performance of stocks in various countries (S Korea, Japan, and U.S.).

According to planetary patterns, 2026 July is a very bearish month for stocks world-wide, because of de-stabilization of Jupiter Trojans which produces very bearish or negative (cold) influence on stocks.

Cold weather helps stock crash, while warm weather (especially this Summer) modifies the expected steep fall because warm weather off-sets chilliness of Jupiter Trojans. In the summer of 2026 because of extreme heat produced by the super El Nino, the chill of the Jupiter Trojans is completely erased and stock crash is avoided (no crash in US and Europe). Those countries far north and surrounded by sea (S. Korea and Japan) are not affected by the El Nino, so their stocks CRASH.

Europe Summer 2026 Impacts

Western and Southern Europe have experienced intense early-summer heatwaves and severe wildfires, causing many deaths.

Summer U.S. Weather Impacts

This super El Nino creates abnormal temperatures (above 100F) which grip large parts of the Pacific Northwest, the Southeast, and Florida.

Thus, El Nino in July 2026 off-sets planetary negative effects in U.S, and in Europe, but El Nino does not work in S. Korea and Japan.

In July 2026 KOSPI falls 36% which is much greater than NIKKEI’s 12% fall because S. Korea (being further North) is colder than Japan.

The break-even point of our options is -8%. Thus, our speculation in July 2026 of bearish trades in S&P 500 is complete loss of premium paid.

Precious metals (Gold & Silver) fall moderately in July 2026. They will consolidate in the coming 2 weeks before the Autumn Rally.

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Immediate Stock Crash

 Issue No. 241 – Sat 18 July 2026

After moving erratically for 3 weeks, stocks eventually give in, in the last 2 trading days. This is the commencement of Great Stock Crash for 2 full weeks from Mon 20 July 2026.

 

We are in an Enormous Bubble which is starting to burst. Indeed, the first obvious sign of bursting is in the Korean stock market with KOSPI Index collapsing last week.

The Crash is now spreading to Europe and U.S.

The severity of the Crash (in the coming 2 weeks) is similar to the 1987 Stock Massacre:

 

This is a fractal chart. The movement of US Stocks (20 July – 31July) should be similar to the stock prices enclosed in the Red Square, with prices falling 35%.

S&P 500 closes last Friday at 7,457. A down move of 35% means S&P 500 closing at 4,847 on 31 July 2026.

Here’s our updated Portfolio.

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2026 July Stock Crash

Issue No. 240 – Sat 04 July 2026

Stocks edge higher in past 2 weeks.

 

There may be some rises early next week before Stock Crash.

In order not to miss the market, we have initiated a trade to short S&P 500.

The financial instrument is SPX PUT option.

S&P 500 closes on Thu 02 July 2026 at 7,483.

The strike we choose is 6,900 (about 8% below market).

Expiration date is: 31 July 2026.

The premium (our cost to acquire the PUT options) = US$13.00 per share.

We expect S&P 500 to fall sharply below 6,900 by the end of July 2026.

Alternatively, one can buy SPY (which is 1/10 size of SPX) to obtain the same results.

Here is our Portfolio, consisting of 19 contracts in SPX Put Options. Each contract has 100 shares.

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Preparing for monster Stock Crash

 Issue No. 239 – Sat 13 June 2026

Both Stocks and Gold fall significantly in the past 2 weeks, with some rises in the last 2 trading days.

There will be rises in the coming weeks.

 

On the Mars-centered Ephemeris, the bullish Mars aspects are:

  13 June 2026 [Mars Semi-square Neptune]

  27 June 2026 [Mars Semi-square Saturn]

  30 June 2026 [Mars Square N Node]

  04 July 2026 [Uranus Conjunction Mars]/

The AI hype (e.g, SpaceX IPO) will likely last through early July 2026.

Our aim is to take advantage of subsequent monster decline of the stock market. We’ll sit through this positive period, and take bearish actions 3 weeks later. Our next post will therefore be 3 weeks later (in early July).

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