Financial Astrology April 22, 2013

We are now coming into the spring eclipse season. The increase in geophysical activity is not surprising. To repeat the dates from a previous post.

April 25            Partial Lunar     Sun 5TA45  Moon 5SC45

May 9              Solar Annular Eclipse  19TA31

May 25            Appulse Lunar  Sun 4GE08  Moon 4SG08

I also include two charts, shown in a previous post, of the SP500 and some recent eclipses. Red circles are Solar eclipses and blue circles Lunar eclipses. As you can see the market usually moves near an eclipse. If not on the exact date, give them a range of +- 3 trading days and you’ll see many sharp reversals.

The Lunar eclipse on April 25 looks particularly nasty. It’s in two financial signs with the Sun in Taurus and the Moon in Scorpio. This eclipse is also quite close to the forming Mars / Saturn opposition which is exact on May 1. Mars in opposition to Saturn is a signature of tension where more violence can break out. This aspect can also result in a suppression of energy so no damage is done. Remember from a previous post there are a number of Saturn oppositions during this period.

This weekend, April 20-21, we have had Mercury translating the Uranus / Pluto square, another negative for the financial market and Venus passing over the Lunar eclipse point.

On Monday April 22nd Venus will be opposing Saturn. This signature, many times, coincides with troughs of some significance (+- 3 tds). This week will probably see more volatility with another low around the April 25 Lunar eclipse. This could be the trough of the Primary cycle (nominal 18 week in the SP500) which is now 23 weeks along and very overdue. Give it a few days +-around the eclipse date. If this is the trough of the Primary cycle, and I think it could be, we should be going up after that but may get a pullback near the May 9 Solar eclipse. We could see a small rebound early in the week but it should not take out the April 11 high in the SP500. I’ll be looking to play the open that way particularly if is down.

  

On the Solar eclipse there is an approximate 19 year cycle (Metonic cycle) where the eclipse returns to almost the exact zodiac location. If we look back 19 years to May 9, 1994 we see the SP500 is 2 days off a low. Not a major low but a low.

On Gold I’m expecting the two cycles (see previous posts) I had been following that were pointing to a high are going to invert and therefore pointing to a low. After such a move down, Gold may get a dead cat bounce then some sideways action. I view it as unstable with the possibility of further sharp moves closer to the two eclipse date noted above.

Watch the larger Gold miners. We may lose some of the smaller players. Goldcorp and Yamana both have good production profiles going forward. I worked in the mining industry for a number of years. This is definitely not the time to be high grading.

Gold is also known to have an 8.5 year cycle with 1/2 cycles of 4.25 years. This weekly chart of Gold has been posted before but now updated. We are in the time frame for the 4.25 cycle trough.

On some late breaking news Bernanke will miss the annual Jackson Hole monetary policy symposium in late August. One wonders what could be more important. I’ve been looking at the mid-August to mid-September as a critical time for the markets. It could be narrowed down to mid to late August.