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REVIEW AND PREVIEW
The Labor Department said the U.S. economy added 312,000 positions in December and the unemployment rate rose to 3.9 percent. The jobless rate rose as 419,000 new workers entered the workforce and the labor force participation rate increase to 63.1 percent. Wages jumped 3.2 percent from a year ago, gaining 11 cents between November and December, an increase of 0.4 percent. That gain was larger than the 0.3 percent increase Wall Street economists expected.
The end of 2018 was a very eventful holiday period. On Christmas Eve, December 24, the Dow Jones Industrial Average suffered its greatest decline ever for that day, losing 653 points. The next trading day, December 26, the DJIA dropped even further, but then reversed and closed up 1086 points, its greatest one-day gain ever. We are seeing a similar pattern unfold in the first three trading days of the new year.
But let’s review the end of last year first, because some things happened then that may be very important now.
To experience such a wild ride on the days before and after Christmas was nearly unthinkable before, because these are times in which markets are almost always quiet. But not in 2018. Not with Uranus in late Aries, near a conjunction to Saturn in the founding chart of the New York Stock Exchange (May 17, 1792), and in opposition to the NYSE Jupiter/Neptune conjunction in Libra. Uranus was also in late Aries in February-April 2018 when the DJIA had its two record-breaking 1000+ down days and eventually made its bottom on April 2. When no other major aspects in the heavens are present, we look to transiting aspects to the NYSE chart, and that revealed the correspondence that we associate with moves like this.
Uranus ingressed into Taurus May 15, 2018, which corresponded to a more orderly market. Then, after it turned retrograde and moved back into late Aries on November 6, 2018 , the selling thrust returned. It became relentless after Venus made its third and final opposition to Uranus on November 30. The last rally attempt ended the next trading day, December 3, with the DJIA making a secondary top at 25,980. From there, it was a waterfall down to the low of 21,712 on the morning of December 26, a loss of 19.43% from its all-time high of October 3, an exact MMA three-star critical reversal date (CRD), just two trading days before Venus turned retrograde. In the next two trading days following Christmas Eve, the DJIA rallied 1669 points to a high of 23,381 on Friday, December 28.
For the month of December, the DJIA was down 2,211 points, it’s worst December performance since 1931 and worst year since the Great Recession a decade ago. In fact, the 19.43% decline since October 3, puts the DJIA into both the time and price target range for the 4-year cycle trough.
According to our studies published in the revised edition of The Ultimate Book on Stock Market Timing, Volume 1: Cycles and Patterns in the Indexes, “The price decline from crest to trough in the 4-year cycle has a normal range of 16.2-57.1% (about 90% frequency). The decline is usually at least 19.2% (81.25% rate of frequency).” It is also interesting to note that 4-year cycles usually last 36-56 months, and in 25% of historical cases, the decline from crest to trough lasted only 1-3 months. The low of December 26 was in the 40th month since the last 4-year cycle started in August 2015, and the declines from the high of October 3, 2018 was in the second month afterwards. In other words, our criteria for a 4-year cycle low via time and price targets are being met. Of course, there is still time and room for prices to fall lower, and Uranus will not leave Aries until March 6. But with Jupiter also now in Sagittarius, investors who recognize the value of MMA research-based market timing studies are encouraged to be very vigilant now for the possible start of a new bull market.
As we started the New Year last week, world stock markets embarked upon another wild ride. The DJIA, for instance, was down 660 points on Thursday, January 3, on negative news of Apple’s future revenue warnings. But, all those losses in the DJIA were regained on Friday as the DJIA gained 746 points following the release of the monster employment report numbers, along with news of talks resuming regarding trade matters between China and the USA. That resolution is going to be the game-changer that puts the bullish thrust of Jupiter-in-Sagittarius into motion. Jupiter and Sagittarius both rule world trade.
The disturbing news of Apple’s revenue projection that sent the stock market into a tailspin on Thursday corresponds to the planet Uranus. The planet of chaos, volatility, and excitement also rules technology, and turns direct in motion (ends its retrograde motion) this weekend, on January 6, one day after a solar eclipse conjunct Saturn (stressful news for technology companies). But it doesn’t end there. Jupiter will form a 135° sesquiquadrate to Uranus on January 9, an aspect appropriately described by the late German Astrologer Thomas Ring as the equivalent of a “rip” in current matters. It feels like a “rip” is occurring.
All of this precedes the first of three passages of the Jupiter/Neptune square on January 13, the dominant major aspect involving the outer planets in force in 2019. As described in greater detail in the Forecast 2019 Book, this aspect is the “setup” for the powerful “Capricorn Stellium” that will unfold December 2019 through December 2020. It pertains to irrational exuberance, complacency, and/or hysteria and panic. I would say we are collectively experiencing a combination back and forth between complacency and hysteria right now as we head into the first encounter, and the markets are reflecting this.
LONG-TERM THOUGHTS AND GEOCOSMICS
Trump celebrated a consistent rise for stocks during his first year in office. But markets have faltered this year amid a trade war with China, concerns about the Fed's four interest rate hikes and fears about slowing global growth. Trump has tried to blame market carnage on the Fed. Before the plunge Monday (December 24), the president tweeted that "the only problem our economy has is the Fed"… The sources said the investor advised the official to tell the president to end his criticism of (Fed chair Jerome) Powell on Twitter, stop administration turnover and reach a trade deal with China in order to help markets. – Scott Wapner, “Trump Administration Asks Top Investor for Advice on Markets Amid Wild Ride,” December 28, 2018, https://www.cnbc.com
I would say that advisor nailed it in the quote above. The only problem our economy has is not the Fed. The Fed had telegraphed its intent to raise rates well in advance, and even with the rate hike of September 2018, the market continued to rally to new all-time highs afterwards - until the president started publicly criticizing the Fed’s plan, and then failed to make any progress on the trade dispute with China. To be to the point, the stock market’s performance has been and continues to be the ownership of President Trump, like it or not. And he clearly doesn’t like it when it falls so hard so often lately because of his actions and tweets. Neither does the rest of the world. But perhaps he will take that advice to heart (or not) and normalcy will return.
My understanding of geocosmic correlations to current and future activities in the world suggest this current climate of uncertainty and market instability is not going to suddenly change this month. Now, you must understand that I could be wrong. It’s happened before. After all, astrology is never wrong, but the astrologer often is in his/her interpretation of what might happen, related to what is happening in the cosmos. We can always see the correlation in retrospect. It’s always there. It’s the same thing with any type of market analysis or market timing method of analysis, whether fundamental analysis (historians can always see the causes after the event, but seldom before), technical analysis, or chart pattern analysis. The correlations are always very evident after the fact. But we work with future probabilities based on historical rates of frequency of 80% or more in our studies. Unfortunately, there are not many instances of 100%. And when there are, it inevitably fails to perform the same as before the next time those same sets of factors come around, as most correspondences of use end up settling around the 80% mark.
Which brings us to the geocosmic factors in play this month, January 2019. Between January 2 and January 25, there are an abundance of geocosmic signature unfolding (at least ten) that have a tradeable correlation to short-term cycle highs and lows in stock indices, and probably other financial markets as well. At last 4 of these have a very high correlation to sharp price swings. It’s likely to be roller coaster ride for traders, and if the recent months are any indications, a roller coaster ride for President Trump as well. Fasten your seat belts. The ride is not over yet. Watch the week of January 21-25 especially.