Thursday, March 31, 2016

Financial Astrology - April 4, 2016

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This weeks blog post  will be a little shorter than usual as I am writing the subscribers monthly report for April. April is shaping up to be quite an unusual  month.

This blog post covers the markets up to the end of March 31. The subscriber letter will be out on the weekend and will cover up to the end of April 1st. There is an interesting aspect tomorrow and if it effects the market or world events, I would want to include it in the subscribers April report.

A general note. I'm expecting volatility and possibly a big move in the markets in the April to end of June timeframe. There are also some violent aspects which could be pointing to war-like activity or terrorist event. These are mainly mid-month as are geophysical events and violent weather.

SP500
For the SP500, cycle-wise Feb 11 was the Primary cycle trough.  1 that started on Aug 24th. Feb 11th was a slightly lower low than Jan 20th low. Jan 20th was the low for a number of other indices. Feb 11th starts a new nominal 18 week cycle in the SP500 and we are entering the 8th week. We most often see a nominal 6 week cycle to start a new nominal 18 week cycle and this time was no exception. The crest is MT and the trough is MB on the following chart. The nominal 6 week cycles has a range of 5 to 7 weeks so we are in the time frame for a crest for the new 6 week cycle.

Normally we would expect the SP500 to continue up in the 2nd nominal 6 week cycle in the primary cycle. In the current case we have a number of difficult transits and Astrological events that may directly effect the markets or a world event that indirectly effects the market. One that stands out is the Jupiter / Uranus parallel which is in aspect most of the month of April. On the surface this would be interpreted as being very positive and potentially very sudden good fortune. Jupiter however is in Virgo which is Jupiter's detriment. The sign it works with the least power. A parallel is an aspect of declination.



Price is above the 15 day sma (red moving average) and the 15 day sma is above the 45 day sma as expected in a bullish environment. A turn down here could be a slightly left translated cycle which would be bearish.

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. These 3 planets will be forming a powerful T-Square in mutable signs.

I mentioned an unusual / possibly explosive environment in April and the dates and potential events will be included in the April monthly subscribers report. For purposes here watch out early in the month and near the 3rd week of April.

As the first date is at the end of this week I will mention April 1st as the first potential date. Most of April we are under unusual energy and there are unusual Astrological formations occurring. On April 1 there is a forming conjunction between Uranus and Eris. Uranus is sudden, surprising events and Eris is strife and discord. On April 1 Mercury will transit this forming conjunction and could set it off. This could be viewed as another terrorist attack or act of war. Something sudden and unexpected. This is only the first of a number of potential problem dates that will be included in the subscribers report.

Keep in mind when we forecast dates and events we are looking at the energies generated and try and interpret what will manifest in physical reality and it's not just a difficult feeling or problem.

The Uranus / Pluto square is still in orb but will soon be fading. March through June of 2016 looks troublesome and very volatile. I'm looking for two and possibly 3 lows from now into June with one of the lows coinciding with the current nominal 18 week cycle. The new nominal 18 week cycle which started on Feb 11 is therefore forecast to end as a trough approx. 18 weeks hence. That puts us in the week of June 13 with a range from  May 30 to July 4th  

The week of June 13th, just discussed is the week for the next Saturn / Neptune waning square with Neptune going retrograde earlier in the week. This is a potential time for a more significant low. It could also be a time that epidemics break out or lingering disease. This could also involve water.

Last week we had the Jupiter square to Saturn on March 23 which is 2 days before Saturn turns retrograde and we got the turn down in many markets we were expecting.

There was also a Saturn parallel Pluto aspect on Feb 9, 2 days away from the important Feb 11 date. Watch the days around April 28 for a possible low or start of a move down when Saturn is parallel Pluto once again.

The rise off the Feb 11 low has been more bullish than normally expected but this may be due to the planets in changeable mutable signs.  Price came down and touched the 15 day sma but did not break through it.

Mars leaves Scorpio, where it has given Gold a huge thrust up and entered Sagittarius on March 5. This results in both Mars and Saturn in Sagittarius , a signature for a religious conflict or the amplification of one. Water may be a problem, too much in some areas, none in others.

I'll be watching the U.S.A financial system / currency in follow up to the video from the February 29 post. This should be a long process. Note in the video the last similar occurrence took almost one year to see an effect.

With the longer term market cycles we use the Astrological aspects and Astrological events to determine a more exact time. Note: I have taken off the brief description of the Uranus / Pluto waning square. Longer term geocentric Astrological cycles that are coming up include:

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
Saturn is about social order, structure and regulations. Neptune can be politically unrealistic and a desire to avoid confrontation. It can be devious, underhanded and use subversive tactics.
"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.



For 2016 we have Jupiter, Saturn, Neptune and the North Node in mutable signs. In addition both 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. We are in for a wild ride for the next couple of months in the markets and other areas of life.

With all these planets in mutable signs one might expect a fast changing, exciting, fun environment. Let's not forget that Saturn is the focal point of a T-Square, with a square to Neptune. Amongst other things Saturn is fear. This could be pointing to life threatening epidemics and with Neptune this could mean water borne diseases. Natural or
man-made?

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. With Mars joining Saturn in Sagittarius on March 5th watch for a pickup in current hostilities. Mars will be turning retrograde in April. This is often found at highs or lows in equities. Mars and Pluto will be turning retrograde within a day of each other. This will probably be the most important Astrological event for the month.

The first 2 charts are daily charts of the SP500, and the Russell 2000. 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 is sitting on one of the averages (2058) which is based on planetary longitude. We'll see over the next couple of days whether this is support or resistance. I'm thinking resistance.



The second chart is the Russell 2000. This index is subject to far less manipulation than the SP500. Notice how well it respects the Astrological average price lines. It's too bad we have to bring up manipulation but the reality is, it happens.



The other chart we have been showing 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 red vertical lines is a 512 cd's (calendar days) cycle which fell on March 9, within one day from a powerful Total Solar Eclipse. 512 cd's, calendar days is a fairly long period so we should allow +- 5 td's. Unless the SP500 moves down much further this cycle has failed. I'll watch it this week and if we haven't had a strong move down I will put this in the cycles graveyard.



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. 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. Assuming the 2009 low was an 18 year cycle low, we may be looking at a 9 year cycle low late 2017 - 2018.



I was asked for my long term view and here it is. I'm looking for the world wide economy to be basically down until 2020. This coincides with a long term Astrological phenomenon known as Tigonalis which involves the Jupiter / Saturn conjunctions. Every 240 years the conjunction of these planets changes elements. In 2020 the Jupiter/ Saturn conjunction will occur in Aquarius, a fixed, air sign. I expect dramatic technological developments leading into this time which should be, like the internet, life-changing developments.

The following daily chart of the SP500 shows the 45 cd (calendar day) cycle. Red vertical lines. This March 30. I'm giving this +- 3 tds. Look at the recent activity. It has been at lows and at the beginning of dramatic moves down. Watch this closely for the nexty few days.



"Prediction is very difficult, especially about the future."
-- Neils Bohr

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 18th week of the Primary cycle and entering the 12th week of a 1/2 Primary cycle during this coming week.

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 left 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. This should be an important period for Gold.

Following is a daily chart for Gold. The orange vertical lines are a 14 cd (calendar day) cycle which has been at highs and lows and hit on March 24. This was also a hammer doji which is a reversal signal. It reversed for 3- 4 days but at this point Gold should be looking for a trough for the current nominal 18 week cycle. Note that price is below the 15 day sma and that average is curling over.

I'm looking for Gold to hit it's trough during the 1st or 3rd weeks of April.



Perhaps investors are getting somewhat nervous with fiat currencies.
"The emperor has no clothes". Negative interest rates certainly helps.

The FED wants to get inflation rising. Inflation is NOT caused by rising prices for goods. It is caused by the weakening of the dollar which requites more money to buy the same goods. Rate hikes would not help with their stated goal of increasing inflation.

I'm expecting a bigger move in Gold later in the year

The price lines on the following daily Gold chart take the longitudinal position of the heliocentric planet and converts it to price. Venus (green) and Jupiter (blue) have provided good support and resistance.

Gold moved down sharply on March 23 but stopped on the Venus price line (green). It seems to be following the Venus line up. March 28 is a possible low but I'm thinking of April as mentioned above.



Crude
Feb 11 had another lower low and is now marked a Primary cycle trough which has us starting the 8th 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.

For crude, nothing has changed with the demand, supply situation or the over flowing storage capacity or the flotilla of ships carrying crude with no place to unload. There has been no agreement to limit production quotas. What we do have is many banks around the world holding a great deal of debt for energy companies. Last week I said "I think I'll just watch for awhile"  Still watching.

It appears crude put in a nominal 6 week crest (MT) on March 18 and is moving down to the trough. Notice it touched the 50% retracement of the move down from Oct 9, 2015 to the low on Feb 11, 2016. The 50% retracement was just below the 15 day sma and it is still there. We now have a spinning top, a point of indecision.



April has a number of war-like / terrorist aspects. Most of them are to the middle of the month. Subscribers have the dates.

I've been looking for Astrological aspects that hit Jupiter or Neptune. Both are co-rulers of crude. There are a few, April 8,  13, 24. Watch these dates for possible moves in crude,.

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.

A chart we haven't shown for some time follows. This is a daily chart of crude with Jupiter (blue) and Neptune (grey) price lines on it. They work the same as we have shown for Gold. Notice crude stopped right on the Neptune (grey) price line on March 24th.

The technical indicators on the chart have all turned down.





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.


3 comments:

  1. record highs by tax time. wst will pump appl,gs,ibm leverage index

    ReplyDelete
  2. Hi Gord, Another excellent update. SPX and Nasdaq have been grinding higher, Nasdaq even more with some huge gains since Yellen's speech last week. Do you still see substantial downside in April and any targets? Thanks in advance.

    ReplyDelete
  3. I'm still looking for a turn down. This month has a number of Astro events that could be pointing to some type of surprise event. It may not be a good surprise.There are a number of charts in the April report showing support and resistance areas.

    ReplyDelete