Saturday, November 1, 2014

Financial Astrology - November 2, 2014


Summary
From last weeks blog:
"My trading plan includes a pull back early in the week and then assess the market status after the FED announcement on Oct. 29th. Although I'm leaning to a bearish position, major markets could move up into early November. I'm specifically looking at the week of Nov 10th for a possible high."

From last weeks letter:
" My current plan is to look for a move down on Monday or Tuesday to the 1950-1954 area.  I will also stand aside during the FED announcement at 2:00pm on Oct 29th and then assess where the markets are headed. Although I'm leaning to a bearish position, major markets could move up into early November. We are in a period where bad news is positive for the markets because participants expect more government monetary intervention when bad news comes out. I'm specifically looking at the week of Nov 10th for a possible high."

Also from last weeks letter:
"October 27 Unusual grand trine between Venus, Neptune and Hades (a Uranian point). Diseases and money are involved? Neptune is particularly strong right now as it is in the sign that it rules, Pisces. All planets in the grand trine are in water signs. Water signs are emotional, not the best influence when dealing with market volatility. Is this forecasting panic or a melt up?"

I wasn't expecting such a strong move up but a "melt up" we got. The US got a strong move in the US$ as well after the Japan announcement.

China's economic indicators are not doing well. They join Europe and Japan in a global period of economic slowdown. The only country with apparent economic strength is the USA. I'm just not sure we can believe the numbers or the estimates. With a strong dollar against other trading nations how will the US exports do?

All this does not auger well for the immediate future. I'm expecting bigger market problems in 2015 and the 1st half of 2016. It could get very ugly before we are out of this.

This coming week we have a number of Astrological aspects pointing to short term turns in the market. The following week of Nov 10th has much stronger aspects which could be pointing to a move down. Hard to believe with the current strength in the US markets. There are 3 critical time periods over the next 2 months that could indicate a change in trend or a high. Subscribers have the dates.

In the USA the mid-term elections on November 4 coincide with record stock market values and very low gasoline prices. It must just be a coincidence. By listening to the mainstream media one would think Ebola is gone. Hard to find a mention of it. Perhaps after the elections {^_^}.

SP500
This week's post will be a little shorter than usual as I'm working on the 1st half 2015 forecast dates.

We are entering the 13th week of the nominal 18 week cycle  1 (nominal 18 week) which started on Aug 7th.

We saw the start of a 1/2 Primary  1 on Oct 15th. This no longer looks like a left translated bearish cycle.

Following is the SP500 and shows the area for the potential low for this 18 week cycle.
Red squares heliocentric Venus square Jupiter and red double arrow shows heliocentric Mars opposing Jupiter. Both are short term change in trend indicators +- 3 tds



Historically we are entering the strong period of the year for the markets. We also have the reaction to the mid-term elections in the US. It was pointed out to me this is typically very positive when there is a democratic president. This is based on averages but we should be aware of market tendencies to move in one direction or the other.

So we are at a very important point. Do we go up into the traditional positive time of the year or has 5 years of FED easy money so distorted valuations that the market can only go down. This week we saw the effects of a strong market and the positive push in the US from Japan's monetary easing. I'm still looking for a pull back in the major US indices but a dramatic increase in inflation would change this outlook.

Although Ebola has disappeared from the news, we may be hearing more about Ebola over the next few weeks. Watch for news on Ebola around Nov 16th and Nov 27th. I can't find anything tying this signature to the USA. It's a world problem.

The Uranus and Pluto waxing square will be coming back into focus over the coming weeks.  It will be exact on Dec 15. This will be the 6th exact square in this series of 7 exact squares. The last square in this series is March 16, 2015. The period around both these dates, Dec 15, 2014 and March 16, 2015 could be troublesome on the world stage and the financial markets in particular. Following is a weekly chart.



Gold
Gold is in the 5th week or 22nd of it's Primary cycle   1  (nominal 18 week). If looking at this as the 5th week of a new Primary 1 then this would be the first nominal 6 week cycle of the Primary and we are headed down into the trough of that cycle. This would be bearish.

If this is the 22nd week of an older Primary then it is due to reverse and reverse quickly. There are a number of reasons for looking at the week of Nov 10th as a possible turn in precious metals. Longer term, without a dramatic event, precious metals look negative.

Subscribers got a more detailed review of the longer term Gold aspects detailing an 8.5 year, 4.25 year and 17 month cycles.



The following weekly chart shows the heliocentric Jupiter price line. It has acted as support for Gold in the past as seen on the following chart and has just broken through.





Silver is also in the 5th week of it's Primary cycle cycle  1 . Like Gold, Silver appears to be pulling back, only worse.

This brings into question Oct 3rd being Primary cycle bottom. Like Gold, if we are now seeing a trough for the first nominal 6 week this would be very bearish. There are potential turn aspects during the week of Nov 10th. Watch that week closely.

The following chart shows the Venus (green) and Jupiter(blue) price lines on a daily chart for Silver. The trend often changes when these two price lines cross. Silver is currently running up the Jupiter price line. If it is a new Primary cycle I would expect Silver to rise away from the price line.



Crude
We are in the 3rd week of a new Primary 1 cycle. The last cycle was left translated which is bearish. If this is a new cycle forming watch for it to be left translated as well. There is a lot of deflationary pressure on many commodities, precious metals included.

There are many reason, US and Saudi intentionally over producing to drive out high cost producers and hurt Russia, ISIS and Iran. This plan seems to be working but there are always unforeseen repercussions. Western governments collect a lot of tax revenue from the price at the pump. If it is down the government revenues are down. Crude may be reflecting the real world economy. When crude does turn up it will probably be to lower highs. This is also causing problems between mid-East governments.

For crude I'm watching the 23.6% retracement level on the following daily chart. Crude seems to have entered a consolidation area. Perhaps this is the agreed price between the US and Saudi Arabia.

I'm looking for a trigger for crude. Aspects to Jupiter or Neptune, the rulers of crude would be good candidates. Possible candidates are:

Nov 11 Grand trine between Mercury / Neptune and Hades.

Nov 17 Neptune stationary direct on Sunday Nov 16



On a longer term basis there is a 38-39 month cycle in crude, many commodities and the US$. The longer term cycles need a wider orb. This cycle could trough out from now to early November. It could also be this week. The following weekly chart shows the 38/39 month cycle in crude.



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?




5 comments:

  1. You wrote that the S&P 500 will begin the 13th week (Nov 3rd to Nov 7th) of its primary cycle. I hope that is true but I received an email from Raymond Merriman the other day and it's his belief that the lows on Oct 15th were not a half-primary cycle low but instead a distorted 10 week primary cycle low.

    If Oct15th is the beginning of a new primary cycle then that means the week of Nov 3rd to Nov 10th is only the 3rd week of a newer primary cycle for U.S. equities and there's a lot more time for the S&P 500 to move higher. I really don't know how Raymond Merriman can be certain that Oct 15th was the start of a new primary cycle high and not just a half-primary cycle low but I admit the S&P 500 eliminated 18 trading days of a sell off from Sept 19th to Oct 15th in just 12 trading days (Oct 16th to Oct 31st) which is bullish.

    I should add that if Oct 15th was a 10 week primary cycle low then that ties for the shortest primary cycle ever in the last 80 years, according to Merriman.

    Despite where we are in the primary cycle Merriman further stated that there is the possibility of a top forming in U.S. equities and a substantial sell off in the next two weeks because of geocosmics.

    Ken

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  2. What you are saying is that Ray had Oct 15th as a Primary cycle low and at the same time (last paragraph) US equities are going to have a substantial sell-off? New Primaries are usually bullish. I've never seen a distorted 10 week cycle.
    Ray may be right but I'm sticking to the Aug 7th low and from here we could certainly get a substantial sell-off either with the string of small turn signals starting this week or the Nov 10-12 time frame as defined in the post.

    Thanks,
    tradingdaze

    ReplyDelete
  3. You are correct. It doesn't make much sense to have a sell off to lower lows in the next two weeks if a new primary cycle started on Oct 15th. This week (Nov 3rd to Nov 7th) would only be the 3rd week of the primary cycle if it started on Oct 15th. Counting the primary cycle from Aug 7th and assuming Oct 15th is a half-primary cycle (the 10th week from Aug 7th) would make much more sense.

    But Ray did write in an email and I quote "the cycles are so skewed via geocosmics that a top could be forming in the next two weeks already and the next decline could be even lower". When he says lower, of course, I'm assuming lower than the Oct 15th lows. But at the same time he does believe Oct 15th was a contracted 10 week primary cycle. Strange.

    He also believes there is a possibility of a 4 year cycle low between now and Dec 2014.

    According to Merriman, the 4 year cycle tends to bottom 16 to 25 months after a USA presidential election which would equate to March to December 2014. We haven’t had a 4 year cycle low yet so time is just about up unless the 4 year cycle bottoms in November or December this year.

    In addition, the last 4 year cycle low was in October 2011. Typically the 4 year cycle from low to low has a range of 36 to 56 months which equates to October 2014 to June 2016.

    In other words, the overlap period of these two cycles is October to December 2014.


    Ken

    ReplyDelete
  4. The 4 year low has been elusive of late. I'm looking at a 6 year cycle and I have a potential low identified.

    ReplyDelete
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