Financial Astrology - April 27, 2014

A message from a great American. The message would apply to both sides.

"Statesmen will invent cheap lies, putting blame upon the nation that is attacked, and every man will be glad of those conscience-soothing falsities, and will diligently study them, and refuse to examine any refutations of them; and thus he will by and by convince himself that the war is just, and will thank God for the better sleep he enjoys after this process of grotesque self-deception."
-- Mark Twain

Mars is still in orb for this Grand Square although I must admit I was expecting something more dramatic last week for the markets. The Ukraine situation didn't disappoint nor did the increase in significant earthquake activity; however, market moves were not really significant. I'll add "so far".

As mentioned in the last post there are more upcoming trouble spots, first with the Solar eclipse which is negative and in a money sign in Taurus, this week. Then Venus will be  translating the Grand Square in mid-May, Venus rules money and resources amongst other things. Subs have the dates.

After these planets separate, there is still a T-square. Mars has been retrograde (moving backwards as seen from earth) it turns direct in May and forms a T-square with Uranus and Pluto in June. The last T-square had Uranus as the focal planet. This T-Square has powerful Pluto in Capricorn as the focal planet signifying changes that can't be undone. Pluto in Capricorn is all about power and money or said another way about the powerful and moneyed. Changes to the powerful can involve gaining more power but could equally mean a removal or end of power. Leaders beware. Pluto in Capricorn can manifest as disclosure of some type of cover-up as Pluto is all about deep, dark secrets. It moves so slowly it can be some time before the secret comes out.

This week is the 12th week of the Primary cycle in the SP500. I'm expecting some volatility with the FED working behind the scenes to prop the markets up. We should see initial support around 1850-1856. If this area is broken on strong volume a trip to the 1833 area is quite possible. I'm looking for a spike low and then up. This week should be very volatile particularly the Nasdaq.

The following chart shows prices falling away from the 50% Fan line which has acted as resistance since mid - 2011. The Fan started on March 6, 2009, the bottom of the 2008-2009 slide.

The Pluto price line (blue line at the top of the chart) has continued to offer resistance.

I guess I would question who is buying at this point.

Based on Bloomberg's Smart Money Flow indicator

Gold

Gold is in either the 17th week or 1st week of the Primary cycle. If it is the 1st week, and I believe it is, it should be generally bullish for 4-7 weeks. Of course we have a potential conflict going on. This must be taken into consideration.

Gold often goes down after the Pluto retrograde (April 14) and then a short term up move into the Sun trine Pluto (May 3).

Crude

Crude is in the 16th week of it's Primary cycle and appears headed down to a trough.

Keep in mind that war rumors continue which can quickly effect commodities and crude in particular. Also keep in mind we are in the historical seasonal strength period as inventories are built for the summer driving period.

That said I'm looking for a trough around May 14 (Jupiter trine Chiron) or around May 24 (Jupiter trine Saturn). Those dates would be the potential Primary cycle trough dates. Look for support around 100 then 98.20.

Natural Gas also appears to be headed down. This would be the weaker time of the year for NatGas.

US$

We are also coming up to a 18 month cycle low in the US$ around mid-May 2014 as seen on the following weekly chart.. This could be a few weeks either side.