Financial Astrology - February 29, 2016

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SP500

This post will be a little shorter than normal as I'm working on the subscribers March report.

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 nominal 18 week cycle and we are entering the 3rd week.

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 two lows from now into June with one of the lows coinciding with the current nominal 18 week cycle.  

Currently the 18 week cycle trough would be the week of June 13 +- 3 weeks so the range is the week of May 23rd to the week of July 4th.

The nominal 18 week cycle is only 3 weeks along and under normal circumstances would be bullish, at least the most bullish part of the cycle. Primary cycles are the most bullish in the early part of a cycle and usually get a rally.

The rise off the Feb 11 low is just what we would expect Price is now above the 15 day sma and 45 day sma and the 15 day sma is curling up. The 45 day average is the 1/2 cycle to the 90 day or 18 week and the 15 day average is the 1/2 cycle to the 30 day or 6 week.

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. Feb 24th could have been that pullback and it was brief.

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. Mars leaves Scorpio, where it has given Gold a huge thrust and enters Sagittarius on March 5. This results in both Mars and Saturn in Sagittarius , a signature for a religious war or the amplification of one. Water may be a problem,too much in some areas, none in others.  Let's see if this makes the news.

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) if it didn't occur on Feb 11th.

I'll be watching the U.S.A financial system closely in follow up to the video from last week. This should be a long process. Note in the video the last similar occurrence took almost one year to see an effect.

See the following VIDEO. From Last Week

https://youtu.be/qoZJUC3-teI

From last weeks blog:

"We also have a Full Moon in Virgo, a mutable sign, on Feb 22nd, which has been present at short term market turns and big range days."

The Sun conjunct Neptune on Feb 28th 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.

Sun conjunct Neptune also has a history of crests in Gold +- 2 tds and a move down thereafter.

Heliocentric Mercury leaves Sagittarius on Feb 26th. We saw large price swings in the US indices and Gold.

The month of March has two eclipses, a Total Solar Eclipse on March 8th and a Lunar Eclipse on March 23rd. These are powerful events. Details are reserved for subscribers.

Following is the Total Solar Eclipse.

With the longer term market 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 and the green squares are Saturn square Neptune. The two lows mentioned above should be completed by the last green square.

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.

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. With Mars joining Saturn in Sagittarius on March 5th watch for a pickup in current hostilities.

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 may hit resistance close to 1968. The next level is 2013.

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 in the markets. I'm not discounting a geophysical or severe weather  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). Kitchin may have hit it's trough on Feb 11th. 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.

"What everyone is looking for, is what is looking."
-- St. Francis of Assisi

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 13th week of the Primary cycle and entering the 7th 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.

From last weeks blog:

"We may be near the peak of this cycle."

Feb 11 looks like it was the peak of the cycle. I'm now looking for Gold to trend down into the nominal 18 week cycle trough which should be late March or early April.

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 move down into the Primary cycle low over the next few weeks. This could be a shortened Primary cycle.

Following is a daily chart for Gold/ The blue x's show Mars in Scorpio. The red x's show heliocentric Mercury in Sagittarius.

In addition the following is a daily Gold chart showing price is still above the 15 day sma. I'm looking for Gold to break below the 15 day sma quite possibly by late next week. Note the two indicators, Momentum is pointed down and MACD is rolling over.

From last weeks blog post:

"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 peaked above the blue Jupiter price line and now moved down through the green Venus price line. I expect Gold to move below the Venus price line next week and possibly through the next blue Jupiter price line.

Crude

Feb 11 had another lower low and is now marked a Primary cycle trough which has us staring the 3rd 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 the comments above under the SP500 Mars will be entering Sagittarius and joining Saturn there on March 5th. This is a war like configuration and being Sagittarius it would not be surprising if religion was involved. This could also be pointing to a terrorist event.

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 3rd 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.

Any type of armed conflict which affects ships, docks or blocking shipping lanes could quickly move crude prices.

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