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REVIEW AND PREVIEW
Several factors have conspired to knock markets down this month — some earnings disappointment, fear of rising interest rates, a brewing conflict between Italy and the European Union over budget spending, criticism of oil power Saudi Arabia after the killing of a dissident journalist and finally, worries that world growth is losing steam.- Fred Imbert, “Dow Dives Nearly 300 Points, S&P Dips Into Correction Levels in Another Wild Day on Wall Street,” www.cnbc.com, October 26, 2018.
Bashing Jay Powell (Federal Reserve Board chair) makes it harder to keep interest rates low… No doubt the President is also deflecting blame from the White House for any economic slowdown, Mr. Trump needs a foil more than even most politicians… The bigger economic risk is slower growth abroad, which Mr. Trump should care about though he professes not to. Faster U.S. growth and rising interest rates are drawing capital from other markets. Mr. Trump’s tariffs are also hurting trade flows. Border taxes are never a free lunch. - “Trump Flunks Fed Politics,” Wall Journal Opinion page, October 25, 2018.
Global equity markets continued their plunge following our last three-star geocosmic Critical Reversal Date (CRD) of October 3, which involved the very important Venus retrograde of October 5. In fact, many stock indices made multi-month lows at the end of last week, on Friday, October 26, which is the exact midpoint of Venus retrograde (October 5-November 16). Our rule is that any market that did not make a major or primary cycle reversal near to the date of Venus turning retrograde, is very likely a candidate to do so within 2 trading days of their retrograde midpoint. That rule doesn’t apply to stock indices in this case, because they did reverse Venus turned retrograde. There is no compelling reason yet to think that they will end that decline and reverse up right now. However, there are some financial markets that do qualify for this rule, such as the Euro currency and U.S. Dollar. For those that don’t qualify (like stocks), there is still a possibility they could reverse, but the historical rate of frequency for such reversals is not as reliable as in the case of those markets that did not reverse at the time of the retrograde.
We saw Uranus in full action last week. On October 23, the Sun made an opposition to Uranus. The next day, the full Moon was conjunct Uranus. On Wednesday, October 31, Venus will be in opposition to Uranus. When multiple Uranus signatures are present nearby to one another, financial markets (like stocks) will often exhibit very sharp price swings, falling below well-defined support or rising above well-defined resistance during the 4-day period surrounding each. However, it is the midpoint of these two Uranus aspects which is especially prone to a potential reversal, +/- a couple of trading days. That midpoint is this Saturday, October 27.
In other markets, Gold continued to rally to its highest price now since our special reports of mid-August calling for a long-term cycle low. That low of 1167 on August 16 has not been violated, and on Friday, Gold climbed to 1248 intraday. The bigger story, however, was in the Euro currency, where the cash index fell to 1.1332 on Friday, October 26, in the double bottom range of its 1.1297 yearly low on August 15. What is most interesting is that Gold is making a multi-month high as the Euro is testing its yearly low and the Dollar is testing its yearly high. Gold is supposed to be depressed when the Dollar is rising, and not rise with it. But then again, this is Venus retrograde time, and Venus rules currencies and values, so the rules are upside down for now, and maybe into November 16 when Venus will turn direct —but then, Mercury will turn retrograde. We get no relief from all of these retrograde planets that have been operative since late June 2018. It’s been one retrograde planet after another, which makes you wonder what “true north” is any more. The problem for traders is that under so many retrogrades lasting so long, normally reliable technical studies become unreliable, and some traders (especially inexperienced traders) become discouraged. Experienced traders have seen this before, and they know that “this too shall pass.”
SHORT-TERM GEOCOSMICS AND LONGER-TERM MUNDANE THOUGHTS
US President Trump has suggested the Fed is the greatest threat to the US economy. An economist would suggest recessions arise from overheating (caused by deficit financed tax cuts, perhaps), or policy error (disrupting supply chains on which an economy depends, perhaps). Zero real rates with full employment are probably not a (restrictive) policy error. – Paul Donovan, “To redo, or redo,” www.ubs.com/pauldonovan, October 24, 2019.
(Mr. Trump) has had significant achievements — unemployment down, economy up, the courts, an imperfect tax bill that nonetheless got passed and was slightly better than what it replaced. No one seems to mention it, but America right now is enjoying prosperity and peace — or, if you prefer, growth and no new wars. It is a continuing amazement that with this, the president can’t get himself to 50% approval, or his party in a better position. – Peggy Noonan, “A Long Way From the Arsenal of Democracy,” Wall Street Journal, October 20-21, 2018.
On Sept 18, simultaneous with the nation’s daily dose of Ford versus Kavanaugh, Mr. Trump’s approval began to climb (from 40.6%). It now sits at a 44.1% average. It just hit 47% in the Wall Street Journal/NBC News poll.” – Daniel Henninger, “The October Surprise Arrives,” Wall Street Journal, October 25, 2018.
The greater question to traders and investors right now is whether a bear market has actually begun in U.S. and other nations’ stock indices. From the cosmic perspective, there is reason to think it has — and there is reason to think this is just a temporary pullback before another astounding rally to new all-time highs.
First, the bearish perspective. The all-time high on October 3 was just a few weeks after the fourth and final trine aspect between Saturn and Uranus that took place when this 45-year planetary cycle came within just 13’ of one degree of an exact trine in the last ten days of August. Historically, the U.S. stock market has always made a long-term cycle crest within 2 months of this aspect’s time band (in this case, it was in effect November 2016-August 2018). The last time this aspect unfolded coincided with the all-time high of January 1973, after which the Watergate fiasco began and stocks has their largest decline since the Great Depression into December 1974. The DJIA lost 46% of its value between the all-time high of January 1973 and that 36-year cycle bottom in December 1974. Supporting this idea that a new bear market has begun as of October 3 is the deteriorating technical damage that is now occurring. It acts like a bear market as daily and weekly support levels break down, and so do various longer-term chart formations. This is how bear markets behave when they are underway. One support after another breaks down, and all rallies are short-lived.
Yet, the cosmos also allows for a bullish outlook. On November 8, Jupiter will enter Sagittarius for the next 13 months, a historical placement that has a strong correlation of coinciding with a long-term cycle crest during that reign. Supporting this view is the election on November 6, 2018. Markets lately have made lows nearby to important national elections in the USA. Plus, any resolution of the trade dispute with China would likely result in a powerful rally, and Jupiter in Sagittarius is favorable for reaching a resolution involving world trade spats. Also supporting this possibility is that Venus retrograde will end on November 16 (and Mercury retrograde will begin). The market topped out when Venus turned retrograde. Any market that makes a primary or greater cycle crest when Venus or Mars turns retrograde is a strong candidate to make its low (counter-trend movement) when Venus turns direct. The next three weeks, therefore, are important from the cosmic perspective.
When Venus turns retrograde, people (investors) change their minds, and so do politicians and bankers, who just happen to be people too. When Venus turns direct, they change their minds, their stories and excuses, back to where they were before they changed them in the first place (think Saudi Arabia). It’s like, what goes around, comes around. Or, it’s like, what was good for you once before comes back again, and you like it again (think of a past lover). But then you realize why you let it go in the first place, so you let it go again.
By the way, is anyone watching Live Cattle prices, since Uranus ingressed into Taurus in mid-May? It is going to cost you to be a meat eater these next few years.