Saturday, March 5, 2016

Financial Astrology - March 7, 2016

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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. Feb 11th should start a new nominal 18 week cycle and we are entering the 4th 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. These 3 planets will be forming a powerful T-Square. 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. There will of course be times when the market is moving up.

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 low when Saturn is parallel Pluto once again.

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 4 weeks along and under normal circumstances would be bullish, at least the most bullish part of the cycle and usually gets 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 has just passed the 45 day sma. 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. There are a number of turn dates looking forward that will be going out to subscribers as an ALERT this weekend.

I can say, for next week, we should have a high on March 7, 8 and then down. This is based on a number of factors, one being the Sun opposition to Jupiter. By itself this aspect has a 70% chance of an isolated high in a 3-bar. There is also over a 50% chance of a move down. But the Sun opposition Jupiter is not by itself since there will be a powerful Total Solar Eclipse on March 8th with Saturn as the focal point of a T-Square.

A high here would fit well with this being the high for at least the nominal 6 week cycle.
If it is a high for the nominal 18 week, this would be very left translated and bearish.

Mercury will start it's translation of this Saturn / Jupiter / Neptune T-Square from
March 11 -15. On the last date, March 15, Mercury will pass over the point of the March 8th Solar Eclipse adding to the volatile environment. This may be an important day.

Later in the month we will have Jupiter trine Pluto, Jupiter square Saturn and Saturn turning retrograde. To get through this whole time period from March through June, we will need patience.

The Sun / Jupiter opposition is part of a powerful Total Solar Eclipse on the evening of March 8th, New York time. We have already seen some activity from this eclipse. The Moon was in almost exact square to the point where the eclipse will be on March 8th when the 7.8 earthquake hit off Java on March 2nd. This is a perigee Solar Eclipse, meaning the Moon is near it's closest path to the Earth for this orbit. The degrees of this Eclipse are close to two recent disasters; the Fukushima earthquake and tsunami and the disappearance of the Malaysian Airlines Flight 370. Although the shadow of the Eclipse is near the far east, Solar Eclipses can effect any part of the world. Syria may be highlighted.

Solar eclipses can bring on geophysical upsets and also geopolitical problems, violent weather and in this day and age, terrorist attacks. With this many planets in mutable signs I'm expecting a very volatile environment in the markets and other areas of life.



Mars leaves Scorpio, where it has given Gold a huge thrust up 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.



Mid-March there is a configuration on a cycle chart pointing to either a possible religious battle or trade war. Astrological forecasting is a process of identifying periods of time where the Astrological energy points to possible events in the future. There is similar energy in mid-April.

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). The Kitchin cycle probably hit on Feb 11th. Many markets made lows that day.

I'll be watching the U.S.A financial system / currency 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.

From last weeks blog:
"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."

The Sun square Saturn on March 6th completes the Sun's translation of the forming Saturn / Neptune square, a confusing time.

With the longer term market cycles we use the Astrological aspects and Astrological 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 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. 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 the 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.

Charts we have not shown for awhile. 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 may hit resistance close to 2013. It blew through 1968.




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 is a 512 cd's (calendar days) cycle which next falls on March 9, within one day from a powerful Total Solar Eclipse. March 7 - 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.



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 be in Aquarius an Air element. I expect dramatic technological developments leading into this time which should be, like the internet, life-changing developments.

And, in light of the US Elections.

“If they will stop telling lies about me, I’ll will stop telling the truth about them.”
-- Adlai Stevenson

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 14th week of the Primary cycle and entering the 8th 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 seeing the formation of a 1/2 Primary 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. This should be an important period for Gold.

Following is a daily chart for Gold. The blue x's show Mars in Scorpio. Heliocentric Mercury in Sagittarius has passed.




I've been trying to figure what has caused the strength in this move. Yes, we had Mars in Scorpio and Gold often rises when this occurs. It may just be the fact Gold prices were held down so long they exploded up. Another possibility is Jupiter has been conjunct the North node for most of this period. It has been a rare event that may help explain the powerful move. Perhaps investors are getting somewhat nervous with fiat currencies. "The emperor has no clothes".
With Mars leaving Scorpio I have a small short. See what happens early this coming week of
March 7th.

In addition the following is a daily Gold chart showing price is still above the 15 day sma. Note the two indicators, Momentum is rolling over and MACD is flat and could rollover as well. MACD on this chart is using short term parameters. You may want to try them out.


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 in early April. 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 and Venus price lines on March 4th. Gold needs to break down through the blue Jupiter Price Line to show any sign it is weakening.




Crude
Feb 11 had another lower low and is now marked a Primary cycle trough which has us staring the 4th 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 are a few on March 8th when the Sun opposes Jupiter, March 16th when Jupiter trines Pluto and March 23 when Jupiter squares Saturn. Watch these dates for 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.

It appears we are entering the 4th 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 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. Feb 24th may have been that dip. We should now be looking for the crest of the first nominal 6 week cycle in the new 18 week cycle.




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?


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2 comments:

  1. Thanks for your new post, as always very interesting.
    Could you please explain what you mean with a '3-bar' in the following sentence:

    By itself this aspect has a 70% chance of an isolated high in a 3-bar.

    Thanks in advance.

    ReplyDelete
  2. An isolated high 3-bar has the middle bar higher then the bar on the left and the bar on the right.

    ReplyDelete