Financial Astrology - February 22, 2016

Subscription

 - Our first half 2016 forecast dates are available
                      - Subscriptions include the forecast dates and a monthly Market letter with                          eMail alerts for imminent trading opportunities
                      - We do not use negative option billing nor do we sell email addresses

Our posts are now reported on the highly regarded FXStreet.com.

SP500

For the SP500, cycle-wise Feb 11 looks like the Primary cycle trough.  ¹ that started on Aug 24th. Feb 11th was a slightly lower low than Jan 20th low. Feb 11th should start a new 18 week cycle and we are entering the 2nd week.

We are already bearish just due to the fact that Feb 11 is lower than the previous 18 week cycle low on Aug 24, 2015. However, double bottoms, and we have one here, are normally bullish so the charts aren't being helpful, giving both bearish and bullish indications.

My outlook is bearish going into the Spring due to the Astrological aspects being formed, namely the Saturn / Neptune square and the Jupiter / Saturn square. There are others. The Saturn / Pluto square is still in orb but will soon be fading. March through June of 2016 looks troublesome and bearish. I'm looking for a lower low in that time frame.

Although I'm bearish the SP500 just put in a nominal 18 week cycle low. Primary cycles are the most bullish in the early part of a cycle and usually get a rally. The length of the rally is what I'm looking for. If bearish this cycle should be left translated, that is the crest should occur in the first 1/2 of the cycle. Also remember our comments that near the start of a new Primary cycle we often get a pullback in the 2nd or 3rd week which gives traders an opportunity to buy what is usually the most bullish part of the cycle. This doesn't do so well when we are in a bear market as the crest may be left translated and right around the corner.

Please note; with the many heavy Astrological transits and events coming up we may have a distorted Primary cycle. I'm expecting a volatile environment in the markets. I'm also expecting geophysical events, possible violent weather and potential terrorist event. Watch the first couple of weeks of March and again in mid-April. Water may be a problem. Too much in some areas, none in others. Let's see if this makes the news.

From last week:

"In our cycle work we use td (trading days) and cd (calendar day) cycles. Feb 5th was

180 td's from the "All Time High" on May 20, 2015 at 2134.72.  This is basic GANN work which we'll use many times. The 180 td cycle from a high often results in a low 180 td's later and vice versa."

I believe we are close to longer term cycle bottoms, both the 6.5 - 7 year cycle and the Kitchin cycle, 3.3 years (or 40 months).

Before we get to that low there may be a financial event around Feb, 26th. This is an Astrological event which marks the start of a time period where there could be major changes to the U.S.'s financial system. This is a long term event, although we could see some effects around Feb 26 this should be +- a few of months and it's long term effect over years. Whatever changes that occur to the financial system will not be undone. Listen to the financial news closely for a few weeks both before and after the end of  Feb. 2016. Decisions made in this time period may have longer term implications.  Is this the reason for the sudden interest in Gold? The video has more information.

See the following VIDEO. From Last Week Possibly Important

https://youtu.be/qoZJUC3-teI

The Astrological geocentric transits are fairly minor this week with the exception of Jupiter opposition to Chiron on Feb 23rd and the Sun conjunct Neptune on Feb 28th. We also have a Full Moon in Virgo, a mutable sign, on Feb 22nd, which has been present at short term market turns both up and down and big range days. The Sun conjunct Neptune is often a confusing time where there maybe a sense that things are getting better or bad and getting worse. In short a poor realization of what is really happening. This transit has a strong correlation to turns in the Primary cycle but it would be difficult to imagine a crest so early in the cycle. There is also the possible event on Feb 26th, see the video. Feb 23 also has a 192 td non-Astrological cycle. Give this the usual +- 2 td's.

In addition there is a heliocentric aspect of Mars opposing Uranus on Feb 26th. This has a history of volatile market moves near this transit. Mentioned last week we have heliocentric Mercury in Sagittarius from Feb 15th to Feb 26th. We often see large price moves when helio Mercury is in Sagittarius in stocks and particularly precious metals.

With the sharp market moves, up and down, we should consider one or more of the longer term cycles are coming down to enter their trough. Note the longer term charts we have shown for many months, specifically the Kitchin cycle (40 months) and the 6.5- 7 year cycle. The longer term cycles typically pull everything down with them. This can be a process that takes a number of months. They can also distort the normal rhythm of the 18 week cycle. I'm looking in the April / May time frame for a more significant low.

With these longer term cycles we use the Astrological aspects and Astro events to determine a more exact time. Longer term geocentric Astrological cycles include:

Uranus waning square Pluto

- passed the exact but still in orb (1 degree). This square will slowly dissipate over this year.

Remember what this square is about.

"This aspect has a historical association between anarchic uprisings and problems   with debt and Banks. The debt issue will have major negative consequences for all financial markets.

Other events associated with this square are protest movements, social unrest and perhaps mob violence. Tax revolts fit in as well. The square is about tearing down the old structures (governments, financial institutions) and building anew.Although Uranus is about sudden change and surprises, Pluto is about long term changes that will not be undone. It is ruthless in it’s force to change the status quo. We are only 1 degree away from the exact Uranus and Pluto square."

Jupiter waning square Saturn

- in the middle of a 3 pass, 2 exact hits to come this year

"The business cycle and direct effect on European history. Major changes will be occurring in Europe as result of the refuge migration. There is a major sign change coming up when Jupiter and Saturn are conjunct in 2020. More on this 240 year conjunction in a future post."

           

Saturn square Neptune

-in the middle of a 3 pass, 2 exact hits to come this year

"This aspect is often present near times when there is a change in trend for interest rates or inflation. It can also be a period of epidemics, pandemics suffering, depression and money valuation problems. This could be a change in the world's reserve currency or issues around it. A large increase in precious metals is also possible as it is a money valuation issue. This 36 year aspect has been associated with political changes, reforms and development of socialism. One wonders in regards to epidemics and sickness, would this be natural illnesses or man-made." If you feel depressed or not at ease this aspect may be the cause. One of these planets may be hitting a planet in your horoscope.

On the following weekly chart of the DJIA, the red squares are Jupiter square Saturn. An ideal spot for a significant low would be between the last 2 red squares at March 23rd to May 26th. Note the green squares also. These are the Saturn / Neptune exact squares and the middle square is very close to the last Jupiter / Saturn square. Saturn is the common planet here. Among other things Saturn is fear.

For 2016 we have Jupiter, Saturn, Neptune and the North Node in mutable signs. In addition both Solar eclipses are in mutable signs. Mutable signs are about flexibility and the ability or need to change. They are also about things that are not in control and extremes.

As mentioned, the month of March will have 2 eclipses, a Solar eclipse on March 8 (really the 9th) and a Lunar eclipse on March 23rd. The details of these important events will be included in the March monthly subscribers letter. Following is the Total Solar Eclipse of March 8-9. Eclipses are strong, important events. They effect the whole world.

Saturn is in Sagittarius which rules the law, religion, philosophy and science. With the square to Neptune is a good signal for a religious message that gets perverted. Time for change to judicial systems? It's a time period where things seem depressing.

Charts we have not shown for awhile. The first 3 charts are daily charts of the SP500, the Russell 2000 and the NYSE. The horizontal blue lines are the average longitude of the planets Jupiter, Saturn, Uranus, Neptune and Pluto on all 3 charts This average is converted to price and displayed on the charts. Notice how well they have acted as support and resistance. The SP500 stopped near the 1923 resistance. Will it make it to 1968 for the crest?

The other chart we haven't shown for a while is this Fan which started on March 6, 2009 at the low. The dark blue line has acted as support most of the way up. It is the 50% line or 45 degrees. The red line we have just touched is 61.8%. It hasn't been touched since Oct. 2011. The black vertical lines are 512 cd's (calendar days) which next falls on March 9, within one day away from a powerful Total Solar Eclipse. March 8, 9 may be powerful days. I'm not discounting a geophysical event during this time period.

Other longer term cycles that may be close to seeing their lows in the next couple of months are the 6.5 - 7 year cycle and the Kitchin cycle (40 months). I'm looking at the period from now through the spring of 2016 as a potential time period for these cycles. They are long term cycles and need a broad orb.

Following is the Kitchin cycle on the SP500 chart. This is a monthly chart. The Kitchin cycle is 1/4 of the synodic Jupiter / Uranus cycle.

Other long term cycle due, including the 6.5 - 7 year.

The following weekly chart shows the 21 and 34 weekly moving averages and the fact price broke through both averages Also the 21 and 34 week moving averages are pointing down.

The question is, do we have a significant low in front of us. At this point I think yes.  I'm thinking potentially deeper in the spring time frame in 2016.

“The future influences the present just as much as the past.”
-- Friedrich Nietzsche

Gold

Gold put in a  nominal 18 week cycle   ¹ trough on Dec 3rd. 2015 which has marked an important low.

This puts us entering the 12th week of the Primary cycle and entering the 6th week of the 2nd nominal 6 week cycle during this coming week. The nominal 6 week cycle has a range of 5 to 7 weeks. We may be near the peak of this cycle.

As we've mentioned before Mars in Scorpio often results in big moves in Gold both up and down. Mars entered Scorpio on Jan 3, 2016 and will leave Scorpio for Sagittarius on March 5, 2016. Due to retrograde motion Mars will be back in Scorpio later in the year, May 27th in fact, 1 day after a Jupiter / Saturn square.

In addition to Mars in Scorpio heliocentric Mercury entered Sagittarius on Feb 15th and will leave Sagittarius on Feb 26th, the date mentioned in the video above under the SP500. We often see large price moves when Mercury is in Sagittarius in stocks and particularly precious metals. Will this time period end the sharp move in Gold?   Watch the fib retracements on the following chart for both support and resistance areas. I'm looking for a high near Feb 25, 26 and then down to the Primary cycle low over the next few weeks. This could be a shortened Primary cycle.

The high so far was Feb 11th the same day the SP500 made it's Primary cycle low.

The following daily chart for Gold shows recent price action with the heliocentric Mercury in Sagittarius (red x's). It also has a 14 cd cycle you can see in the bottom right area of the chart (orange vertical lines). If active it hits Feb 25th. Watch for Gold pullback. All dates are +- 2 td's at a minimum.

I'm expecting a bigger move in Gold later in the year, possibly at the end of this Primary cycle which may also be a 17 month cycle low. The move should be up. Subscribers have the potential dates.

The price lines on the following daily Gold chart take the longitudinal position of the planet and converts it to price. Venus (green) and Jupiter (blue) have provided good support and resistance. Gold was stopped at the Jupiter price line 5 days ago and is sitting between the two price lines.. This is a potential pullback area but I think that's later next week.

Crude

The week of Feb 8th had another lower low and is now marked a Primary cycle trough. It was on Feb 11th (there's that date again) which has us in the 2nd week of a new nominal 18 week cycle. Bear in mind there are geopolitical issues affecting crude which can effect the price quickly and directly. With this in mind we could go lower. I would at least like to see the 15 day sma start to curl up.

I've been looking for Astrological aspects that hit Jupiter or Neptune. Both are co-rulers of crude. There is one on Feb 28th when the Sun conjuncts Neptune. This is particularly powerful as Neptune is in Pisces, the sign that it rules.

Many commodities and financials should be affected by the Saturn / Neptune waning square this year. This is a 3 pass with the last 2 occurring mid-Year and then September 2016. This is a 36 year cycle so looking back 36 years we had severe problems with the lack of crude and interest rates went over 20%. Things are never the same, but often close as we now have an abundance of crude and very low (negative?) interest rates approximately 36 years later. These longer term aspects color a period of history rather than a day, week or month.

Looking at the crude chart we see a Primary cycle low now on Feb 11. The last cycle is an example of a left translated cycle with the crest forming closer to the beginning trough. Left translated cycles are bearish, they simply spend more time going down than moving up. After 7 years of QE in the U.S. and loose monetary policy we haven't seen many left translated cycles for some time.

It appears we are now in the 2nd week of a new nominal 18 week cycle. I've mentioned before when a Primary cycle trough is formed it is usually bullish and we typically get a short dip cycle 2 - 3 weeks after the 18 week cycle trough. This gives traders the opportunity to get in if they missed the original trough. In this market this is a good strategy as the 18 week low could be lower a number of times as we wait for geopolitical events to unfold.

I'm in Canada where there appears to be some good buys but I'm waiting until I see a move above the Jan 28th high before considering even a short term trade.

Subscription

Other items, more specifics on the SP500, Gold and crude also US$, NatGas, Coffee reserved for subscribers. At $99.00 for a 6 month subscription, can you afford not to have it?

The 1st half 2016 dates and subscription to the monthly letter (starting in Jan) are available for purchase.