Mark Your Calendar for What May Occur After September 13/14, 2015

We are currently in the Shemitah (sabbatical) year that ends at sunset on September 13, which is a mere 36 days from now.  Is there an economic/financial consequence to not observing a sabbatical year?

First, what is a “Shemitah Year?” The Shemitah (sabbatical) is the seventh year of the seven-year agricultural cycle. During Shemitah, the land is left unused, including plowing, planting, pruning and harvesting. Other cultivation techniques (such as watering, fertilizing, weeding, spraying, trimming and, mowing) may be performed as a preventative measure only, not to improve the growth of trees or other plants. Additionally, any fruits that grow of their own accord are deemed ownerless and may be picked by anyone. All debts, except those of foreigners, were to be forgiven.

Second, every seventh year, the Shemitah, on the 29^th day of the Hebrew month of Elul, occurs.  Elul is the twelfth month of the Jewish civil year, or the sixth month of the ecclesiastical year in the Jewish calendar, August and September.  The current Shemitah year ends on September 13, 2015.  Also, on that date, we have Yom Teruah (Feast of the Trumpets) and ten days later we have Yom Kaphar.  (I will let you do the research on those two Hebrew festivals and their significance along with the meaning of Shemitah.)  By the way, I don’t consider it a coincidence that the greatest stock market “point crash” occurred on the 29^th day of the month of Elul (September 2008).  And, let us not forget the stock crash caused by the events of “9/11.”  

When did that stock market crash occur?  On the 29^th day of the month of Elul, which was the exact day of the ending of the Shemitah year.

In conjunction with ending of the Shemitah year on September 13, 2015, we have an unusual astronomical phenomenon; a blood, red moon is expected on the evening of Elul 29, 2015 (September 13).  A blood, red moon is usually associated with “pending world chaos.”  Well, we already have a whole lot of chaos throughout the world. How much worse can it possible get? Maybe a whole lot worse.  If it appears to be scary now, just wait until it comes knocking at your door, especially if you don’t have the knowledge you are currently receiving by reading this blog.

Will we have another stock market crash following the ending of the current Shemitah year on September 13, 2015? The end of Shemitah occurs at sunset on September 13, which is a Sunday. However, a Jewish day goes from sunset to sunset. Therefore, Monday, September 14, would be part of September 13; and on that Monday, the stock markets will be open.  

Of course, when it comes to the stock market, I rely on my exponential moving average strategy (EMA).  That states, when the 15-week EMA > 40-week EMA, the market trend is “up.” Investment strategy is to invest in stocks. When the 15-week EMA < 40-week EMA, the market trend is “down.” The appropriate investment strategy would be to sell stocks and move to cash.  Currently, the EMA strategy continues to indicate a rising market trend. However, the spread between the 15-week EMA and 40-week EMA is closing rapidly. So, with 36 days remaining until the end of the Shemitah year, the EMA strategy could very easily turn negative (15-week EMA < 40-week EMA).  (I will update the weekly EMA strategy over the weekend. And continue to update it every Friday through the end of the current Shemitah year.)