Financial Astrology June 23, 2013

"In a time of universal deceit, telling the truth becomes a revolutionary act."

-- George Orwell

SP500

We are entering a very important 2 weeks for the markets. As if every week isn’t important. But the next 2 possible 3 weeks should give us some direction in the months ahead.

Assuming the May 22 high on the SP500 was the 4 year top, and this is still an assumption, but it’s getting stronger with each passing week, the overall trend should be down. Shorter term I’m looking for a bounce in the SP500. One reason is the 225 cd (calendar day) cycle I have been following, see the following daily chart of the SP500. The vertical blue lines are the 225 cd cycle. This cycle has seen alternate lows then highs since the March 2009 low. It would now be due for a high on June 28 +- 3 tds. Note it could invert and be a low.

I’m looking for the SP500 to try and get back to the trend line. I’m also expecting this to fail. As discussed I’m looking for big trouble in August and potentially problems in the first week of July and toward the middle of July with Uranus turning retrograde. Following is a daily chart showing the trend channel for the SP500, the lower trend line being the area it may try and challenge but fail. On the downside I’m looking for the mid-April lows to hold around or above 1540. Without getting into a long discussion this chart also shows the Uranus and Pluto 45 degree price lines. One can easily see how they have acted as support and resistance. We are in the 10^th week of the primary cycle. If May 22^nd was the high for this primary it would be very left translated and therefore very bearish.

To summarise I think the top is in. This assumes the FED doesn’t have a policy flip flop which they do not tend to do. Short term I’m looking for the markets to try and challenge the trend line but fail. August looks bad from an Astrological perspective and July may have problems as well. There is an intermediate term cycle hitting late this week or early July which looks like a high but could invert.

In the short term geocentric Mercury is about to go retrograde from June 26 to July 20. A good description of this period is from Raymond Merriman who says "Takes profits too soon" during Mercury retrograde periods. Things tend to act a little strange over this time frame.

Gold and Silver

Both gold and silver charts look quite frightening; however, there are a number of astrological signatures that point to a reversal in silver and I would expect gold to follow.

At a minimum silver is near an 18 month cycle low. This may also be close to a 4.25 year low. Astrologically Jupiter is going into Cancer on June 25th. Cancer is ruled by the Moon and the Moon rules silver. Heliocentric Mercury moves into Sagittarius on June 22 through July 3rd This signature often results in big moves in precious metals and currencies. The Sun is in opposition to Pluto which is often found near big moves in precious metals.

For the Astro types out there Jupiter in Cancer is exalted meaning it operates with it's greatest strength. The fact that is in Cancer means it is subject to the ruler of the house in this case the Moon which is very changeable. What's good one day maybe not so good the next.
With Mercury going retrograde on June 26, precious metals often rise after a short pull back around this date.

The above would appear positive for precious metals with the exception that the Sun while opposing Pluto is going to activating the Uranus / Pluto square. This could result is some more drastic change than anticipated. Nevertheless we are long precious metals. A small position, but enough to make us nervous of course.

In addition the US$ looks like it is starting to rise which will not help a rise in precious metals. If the US$ rises wait on the PM's.

As an aside Jupiter in Cancer may help the home building industries.

Crude

Although crude took a beating with everything else it's not as bad and I would expect crude to rebound.

The U.S. President Barack "Pants on Fire" Obama will lay out his administration's strategy focused on tackling climate change in a speech that could have major consequences for the energy industry. Any non-paid off scientist know you measure climate change in centuries not weeks months or years. The real master of climate change can be found at noon time anywhwere in the world by just looking straight up.

No political party can find a way to make money off this so the charade continues. Carbon tax anyone. The governments love those taxes. Let the lies continue.

Other Thoughts
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