Financial Astrology February 18 2013

Continuing to look for any Astros which could signal a market reversal. The following daily chart of the SP500 shows the Primary cycle (nominal 18 week cycle). This cycle has an average range of from 15-23 weeks. As can be seen markets have shot up since mid-November. Let's not forget the FED is producing new money at approx. 80 billion per month. Also remember the market is a reflection of what investors think the future will be. Is everyone confident the unemployment rate will improve by the third quarter? What about GDP, CPI or any government calculated indicator? I don't. I also had the interesting experience of spending some time in Brazil in the mid 1980's when inflation was 15% per month. The price of everything goes up, but everyone gets poorer.

Next week has Saturn turning retrograde on Feb 18 and the Sun conjunct Neptune on Feb 21.

Saturn retrograde often correlates to crests in the US stock market. The Sun conjunct Neptune also correlates to crests in the US stock market.

There are also some longer term cycles hitting over the next couple of weeks. They are pointing to a top as well.

The Primary cycle is 14 weeks along and due for a crest. Following is a daily chart of the SP500.

Gold and Silver have turned down. The question is, is this the 11.33 month, 17 month or 4.25 year cycle trough forming. At this point I suspect it is the 17 month but more price action is required to make a judgement.

Saturn retro and Gold - In many cases, the retrograde date correlates with an end of a short, sharp price direction., often being the end of a trough in which short, sharp rises follows

Sun conjunct Neptune and Gold - Prominent cycles in gold prices tend to occur within 2 days of the Sun conjunct Neptune

Crude's daily trend is still up but signs of a turn and weakness are starting to show up.

Gold, Silver and Crude were first mentioned on our Jan 1st 2013 post.

“The ultimate test of all formulae must lie in prediction”

-- Dr. D Justin Schove