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A Preview of 2012 Year of the Dragon


The year of the Rabbit will end at 18:40 on 4 February 2012 with the Chinese Lunar New Year on 23 January 2012.

2012 is Ren Chen 壬辰 year.

The major hexagram is Shi師卦. The yearly hexagram is Kan 坎卦.

The conventional yearly hexagram is Fu 復卦.

This year’s annual flying star chart has “6” in the centre. Also of note this year, 5 will be in southeast coupled with Li Shi 力士.

San Sha 三煞 will be in the south this year.

Every November I will prepare a preview for the upcoming year. This preview will then be posted on my website before the New Year starts.

In my 2010 preview I expressed my doubts about the US and European economies. In my 2011 preview I warned everyone that the 2011 stock market will be bearish and a global depression may be coming if the stock markets dip below its 2010 yearly low.

I have spent over seven years doing research on the global stock market patterns and created my own stock market system based on W. D. Gann’s theory, Chaos theory’s symmetrical triangle of 60 degrees and Yi Jing’s Huang Zhi Qing Shi. From my research, all European countries are in a bear market. Their yearly highs and lows are above the 20% threshold of a bear market and correction. Besides the PIGS countries that are already in trouble, other countries are not in much better shape.

Below is a breakdown as of 18 November 2011 : FTSE 21.53%, DAX 34.66%, CAC 35.41%, ATX 41.22%, BFX 29.54%, AEX 31.48%, OSEAX 28.39%, OMXSPI 30.49%, SSMI 30.33%, SMSI 31.18%.

Markets that broke their 2010 yearly low include: DAX, CAC, ATX, BFX, AEX, SSMI and SMSI with FTSE just a single point from tying it. The European economic mess is too big to fix. The downgrade of the French credit rating may happen in the coming two to three months.

The North American markets are not any better: TSX 24.25%, Dow 19.84%, NASDAQ 20.39%, S&P500 21.58%. The Dow is also on the verge of the bear market. The TSX’s 2011 yearly low dip below it’s 2010 yearly low.

In Asian and Oceanic markets there are only 2 countries above the water; they are Malaysia 17.94% and New Zealand 14.77%. The other countries are as follows: Australia 24.46%, Shanghai (China) 27.60%, ShenZhen (China) 30.73%, Hong Kong(HSI) 35.60%, Hong Kong (HSCEI) 43.01%, India 25.40%, Indonesia 23.30%, Japan 24.46%, Singapore 23.89%, Korea 26.32% and Taiwan 25.41%. Countries that did not break the 2010 yearly low are Indonesia, Malaysia, New Zealand and Korea, therefore their economies are the strongest in the world.

History looks to be repeating itself. When looking at the yearly lows of the Great Depression (1937-1942) the pattern was two downs, one up and two downs. From 2007 to 2012, we have had two downs, one up and one down so far. I believe 2012 will be another down year. The immediate future does not look too promising to me.

Last year I told my students to look into precious metal, high tech stocks, agricultural commodities, jewellery stocks and casino stocks. All of these sectors rose in 2011. Gold reached 1900 USD per ounce in 2011. It may reach 2100-2200 USD per ounce in the near future. Apple, under Steve Jobs, reached a historical high of USD 426.70. It retreated to 369.01 USD and it may fall to 320.00 USD in the near future.

We may also see the Dow drop below 9000 in 2012 and the S&P500 below 800 or 600. Hong Kong’s HSI may drop below 14,000 in the near future or even below 10,000 which could be very scary.

Mathematical Theory and Stock Market Crashes” is an article I found on the Wikipedia. Scientists are using mathematics to solve this mystery; however I feel it is more metaphysical than mathematical. By using Huang Zhi Qing Shi and the hexagrams it is quite simple to figure out which years we will see trouble. It is quite simple to figure out the “support” and “resistance” points. Using the Gann’s square paired with my own Tai Chi square it is quite easy to figure out any stock’s or stock market’s movement based on its major high or major low.

From my Tai Chi Square, 2012’s hexagram Kan坎卦 indicates trouble; we may see a major low this year like in 2009. What happened in 2009 may repeat in 2012. The first two quarters may be extremely volatile and dangerous for ordinary investors based on the Yao changes of the hexagrams.

360 is a circle or cycle. The US and Europe have enjoyed 180 years of prosperity and dominance in the world while the Asian countries suffered for the past 180 years under colonialism. The tide has turned since 2003; therefore the next 180 years will belong to the East. The Western countries will face difficulties in the future. They are no longer the dominant players of this world. It may take another 30 years for China and the emerging markets to completely overtake the current superpowers.

W. D. Gann once wrote:

“No one or no group of people, or no government can change the law of nature”.

This years’ hexagrams Shi師卦, Kan坎卦 and Fu復卦 make me worry about world peace.

Shi師卦 is a hexagram of troop movement, a hexagram of war. There is a possibility of war. There are different types of war: military, economic or currency. The Western countries have superior military capability. China has the money and diplomacy. China can simply sell part of their foreign reserve to disrupt the global economy.

Kan坎卦 is a hexagram that indicates extreme danger and difficulty. It is also a water element. Together with the Shi hexagram it indicates the possibility of war in the water in 2012. The most likely location would be the southern and south-eastern part of any continent since the San Sha三煞 will be in the south and the annual 5 yellow will be in southeast (Zhen辰) together with Li Shi力士.

China is involved in arguments with Japan, Vietnam and the Philippines. The US wants to get involved in this fight with increased military presence in Australia, Japan, the Philippines and Vietnam. Such a move may backfire and damage the American-Chinese relationship and hurt the global economy.

Fu復卦 is a hexagram of new life. It is the very first hexagram in Huang Zhi Qing Shi皇極經世. We can therefore expect slow growth in 2012. However if we look deeper into the Fu復卦 gua, it is earth on top and thunder underneath. We can expect there will be more underground nuclear testing in Iran and North Korea. This can put more pressure on global peace. In the UN Security Council China can simply veto any move suggested by the US, England or France.

To prevent any war, we have to look into the reverse of Shi 師卦, that is Tong Ren 同人卦. Everyone must solve problems together using diplomacy and treat others equally to achieve globalization, free trade, fair trade, fairness, justice and respect. One must not threaten others with force.

What are the indications from the different related hexagrams for the stock market? Shi 師卦indicates the market will have wide fluctuations and be very volatile. Shi started in 2007 and wil continue until 2013.

Kan 坎卦indicates the market will slide until the stocks are below its market value. Then there may be a moderate rally before it drops again to create a triple bottom for the new bull market in 2013 and 2014. Fu復卦indicates the market will gradually move upward. Timing entry and exits will be vital for all investors in 2012.

Sectors to look into for 2012 will include property, cement, water related industries and land.

In 2012 (Ren Chen 壬辰) flooding may be a possibility since Ren is water and Chen is earth, that is water over earth, with Chen being the reservoir of water.

For those born in Pig year money luck will be good with a chance to buy property this year. The same can be said for those born under the Rat, Monkey and Dragon years. For the Dogs and Rabbits it can be a tough year financially. Perhaps they need to move houses or pay more attention to their parents.

For those born in Pig and Ren hour it should be a good year for career. The same can be said for those born under the Rat, Monkey and Dragon hours.

For those born under the Dog and Rabbit hours, it can be a tough year career wise or there can be a change in career. There may also be travelling this year.

If you are planning to do renovation or construction this year the good areas will be the east, west and south, but you need to use Xuan Kong Da Gua to pick a good date and time to start.

This year the dangerous areas are the south, due to the San Sha, and the southeast, due to the 5 yellow combined with the Li Shi. Make sure there is no disturbance in the southeast this year or someone maybe in danger, females especially. You need to know how to deal with the San Sha and the Li Shi.

Here is 2012’s annual flying star chart.

The cures for each sector is as follows:

  • To minimize the annual 2 black to avoid illness, simply place a metal calabash in the north of the house.
  • Put a plant in the northeast to bring about events for celebration.
  • Put a glass of water in the east for the possibility of career advancement, improved academic studies or heightened romance.
  • To combat the 5 yellow place the salt-water and coins cure in the southeast.
  • To deal with the Li Shi place a pair of ki luns, a container of water and a live plant in the southeast.
  • To minimize the effect of the San Sha place 3 ki luns, a small bucket of water and a live plant in the south.
  • Put 4 stalks of Chinese lucky bamboo in the south which can enhance the possibility of career advancement, improved academic studies or heightened romance.
  • To minimize the annual 3 jade-green to avoid arguments and being overly emotional, put something red in the southwest.
  • The west will be the best sector in 2012 with the annual 8 white. Simply put a citron crystal there for a better year financially.
  • Place something blue in the northwest to lessen the effect of the annual 7.

All the best in 2012!

Peter Leung
© 2012 Feng Shui SOS Ltd. All Rights Reserved

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2004 - Year of the Monkey
2005 - Year of the Rooster
2006 - Year of the Dog
2007 - Year of the Pig
2008 - Year of the Rat
2009 - Year of the Ox
2010 - Year of the Tiger
2011 - Year of the Rabbit
2013 - Year of the Snake
2014 - Year of the Horse
2015 - Year of the Sheep
2016 - Year of the Monkey
2017 - Year of the Rooster
2018 - Year of the Dog


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