Saturday, October 27, 2012

Ghouls, Santa, eclipse, elections ...

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com The following is this weekend's Eye of RA report: Week beginning October 29, 2012

We have an interesting couple of weeks ahead ... where the ghoulies, ghosties and goblins of Halloween may turn out to be the least scary item on the agenda.

For some time now, quite famed astrologers have been speculating on the potential for war to erupt ... or, at least, police to be sent into the streets to crush open rebellion.

Not in Libya or Syria, by the way ... but down on Main Street, USA.

Astrologically, it's going to be a busy period ... kicking off with a Taurean Full Moon, a Venus T-square to the ongoing Uranus/Pluto aspect, Mercury going Retrograde on America's election day, and then a Solar Eclipse New Moon in Scorpio.

It's the Mercury Rx signature on election day, along with Neptune going Direct, that prompts some of the most dire of the predictions.

The two suggest, at a minimum, confusion surrounding the official vote count; and, at the worst, a protracted delay while the courts rule on claim and counter-claim regarding allegations of widespread voting fraud.

And a lot of astrologers get unduly worried when the sign of Scorpio rises to prominence, as it will with the Solar Eclipse New Moon.

I received a missive during the week from a very famed financial astrologer, whose October newsletter contains the following warning:

NOV 6 = Mercury once more goes into Retrograde motion 6-26 = If markets have not crashed by now, they will here!

NOV 13-14 = The Solar Eclipse is semi-square Pluto = Coercion, use of force, possible War.

Oh, dear! Does this mean Santa isn't coming to Wall Street this year?

Let's begin. The week kicks off with a Full Moon, statistically a near-term low point in public mood and the stock markets. Later in the week, Venus will oppose Uranus and square Pluto, which suggests the "value" of things ... the money supply ... is at odds with both the stock market itself and the whole issue of debt and taxes.

Then we have Mercury going backwards (a geocentric illusion) on election day. We have discussed a number of times the overall signature of Merc Rx ... there is a general tendency for markets to start moving in one direction before reversing course halfway through the Rx period. It doesn't work every time, but it is a statistical tendency.

And then we have the Solar Eclipse New Moon. I've tried to deal before with the assertion from some astrologers than an eclipse WILL move markets. It ain't necessarily so!!

The chart below is a weekly for the SP500 with the red bars showing the weeks in which a Solar Eclipse occurred. Sometimes, they occur near tops, sometimes they occur near bottoms ... and a lot of times, they don't do jack!

Now, it is true that if there is some problem with the American election counting and result, the impact on Wall Street could be quite dramatic. And there is potential for that problem to be compounded by "the fiscal cliff" ... the tax changes due to come into effect next year unless the legislature can organise a quick fix.

The problem is that any quick fix generated during a Mercury Rx period usually requires a re-fix later.

November is also the time when "seasonality" tends to come into play. The downturns of October reverse direction as the annual Santa Claus rally kicks in and carries markets higher into late December or early January.

In today's wired world, you should probably know "there's an app for that". Rudy Dumas, who wrote the Introduction to Elliott Waves (available under Guest Articles on theidiotandthemoon.com web site, sent me a screenshot of his latest iPad app during the week.

I mentioned a couple of editions ago, the overall tendency of American markets to rise during the 4th Quarter of American Presidential election years. The Odds Trader Seasonal app gives details of how the annual Santa rally has performed in recent times.

In the past 20 years, October and November have been down months 7 times - less than half the time. December has been a down month only 4 times - less than a quarter of the time.

So, the statistical odds do tend to favour the start of a Santa rally; let's have a look at the current state of the technical conditions.

We begin by looking at Pollyanna, the SP500, and its recovery rally following last year's August-October collapse. I only want you to "eyeball" the chart above. The index has been rising, relatively routinely, within a rising pitchfork. The September price peak made an attempt to regain the top half of the fork, but failed and has now dropped to a calculated Fibonacci band within the lower portion of the fork. Note the performance of those red Fibonacci levels during the previous corrections within the rally.

Now, let's take a closer look at the same chart.

Price is trying to hold the highest of the three red levels. If that Support level fails, the middle level seems to be stronger, judging from its previous performance. Most of you will be aware from previous editions that 1410-ish is an important long-range planetary price level for this index ... and it's still holding.

If it fails, we can expect the Bulls to put up a fight around 1390 ... and again around 1370.

As we've discussed over the past couple of weekends, the weakest major index at the moment is the Nasdaq 100, the NDX. It, too, has now reached an important support level ... in terms of its Weekly Planets chart.


And we can see why it's important for the NDX to try to hold here ... because there's a damn big hole for the index to fall into if it loses the support of that orange Uranus line.

Apart from the seasonality factor (and the potential to put in a near-term low around the Full Moon), there is a potential rally signal in London's FTSE index.

You might remember that we used one of these FTSE charts a few months ago to get early notice of a probable rally. I pointed out the index had a habit of attaching itself to rising Sun lines ... and there's a chance it'll happen again this week. Last Monday, the FTSE fell off the influence of a rising Mercury (pink) and stayed attached to a falling Mars line (red, dashed).

There's a strong band of horizontal support from Saturn, Neptune and Node lines just below Friday's low ... as well as the potential pick-up from the rising green Sun line.

I want to look next at the ASX200 which, until last week, was in a spurt. We had a look at these charts recently, expecting she'd make a run for some Fibonacci Rx levels. And she did.

Below is a closer view of that same chart, so you can more easily see the price levels which are important ... and, frankly, just bloody obvious.


I published Weekly Planets charts last weekend for a range of indices and the prices marked on those will still be valid within a few points, so you can do an eyeball of where current prices for your favorite index stand within those charts.

What is probably more important at the moment is to try to find some sense of balance. Yes, the danger is certainly increasing. It's not all that often that astrologers jot down notes like "war" and "crash here" on their to-do lists.

But, what is possible is not usually what is probable. Some fairly severe technical damage has been done to the oscillators on charts of the main American indices and lower prices in the week ahead wouldn't surprise me. But we do need to be aware of what is "normal" for this time of year.

I've attempted, with the charts above, to show what we might call "line in the sand" values which could bring about reversals ... and there are long-range and weekly planets charts in the recent Archives.

Just remember that markets will be volatile over the next couple of weeks ... and regardless of which direction you're trading, it'll be more important than ever to have a fairly rigid stop loss strategy in place.
Safe trading - RA

Randall Ashbourne
Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, writes a free weekly column titled, The Eye of Ra on his web site in  which he explains the potential impact of astrological aspects and the current state of technical conditions. Ashbourne's charts are revealing illustrations of exactly what has occurred in the market and the probability of what to expect.
Important reading:  Randall Ashbourne's article, Jupiter's cycle and its effects on Wall Street and a posting of the weekly Eye of Ra report in this blog, titled A look at the Venus Retrograde effect
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2012

Saturday, October 20, 2012

A heightened sense of danger

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com The following is this weekend's Eye of RA report: Week beginning October 22, 2012

While key DNA markers normally obvious at The Top are still missing in some Western stock indices, I'm getting the sense those markets have suddenly become dangerous.

For the past 6 weeks, the broad-based Wall Street index, the SP500, has been stuck below the 1468 level marked as a key barrier on my long-range Old Gods chart.

We've remained open to the possibility of a breakout to new highs at 1522, or even a blow-off to around the 1560 level.

And the reason we've constantly looked at that possibility is the lack of a negative divergence signal from the long-range Canary on Pollyanna's monthly charts.

A few editions ago, I pointed out that key divergence signal had started to become very obvious in the Nasdaq 100, the NDX. It may now also be starting to show in the Dow Jones Industrials.

In both of those indices, the heavy-lifting over the past couple of years has been carried on the shoulders of very few stocks ... like Caterpillar and Apple.

We will take a close look this weekend at the alarm bells going off in the NDX and the general state of some other major indices.

Normally, I refuse to be jerked around by one day's movement in any index. But, I'm getting a sense that something fundamental has changed following Friday's performance on Wall Street.

It's true the drop happened with the Moon in Sagittarius and I said last weekend: "Mars is now in Sagittarius and it'll be joined by the Moon later in the week. Sagittarius has a tendency to exaggerate either the optimism ... or the fear. And wide-range days are the norm when the Moon is in Sadge."

So, even though we did get a wide-range fear day down, I still can't shake the sense there has been a change at a deeper level. The week began for Miss Pollyanna pretty much in accordance with my expectations. I outlined two important scenarios for Miss Polly on Monday, or Tuesday, which would prompt a price bounceback.

I said: "And the key to direction will be how price performs on both Monday and Tuesday. On the chart to the right, note the intersection of the falling red Mars line with the thick yellow Uranus line.

It's at 1434. Pollyanna must close decisively above this level on Monday to re-enter rally mode. She gets a second chance at an astro energy boost on Tuesday, if she fails the 1434 Monday test.

In the chart above, the Venus square Jupiter price crossing point (rising green intersection with horizontal blue) is 1426.

So there are two things to watch for ... a Monday close above 1434, or a Tuesday low at 1426, from which price bounces
."

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We can see what happened in the chart above - and there was no need to wait for Tuesday.

Because, on Monday, Miss Polly did make a decisive close above the 1434 level and re-entered rally mode for most of the week.

But with the Moon in a Sagittarian-exaggerated fear mode, Friday's freefall wiped out almost all of the gains.

Now, maybe it's just a one-off, one-day comeback for Chicken Little.

But, what if it's not?

Firstly, let's remind ourselves of where the Pollyanna index is in terms of its long-range planetary price markers.

click for larger image

There is nothing out of the ordinary in the chart above. Well, apart from the fact the support and resistance lines happen to be determined by the position of a few rocks and giant gas balls Out There.

But, from a technical viewpoint, it still all looks hunky dory. Here we are two-thirds of the way through October and price is still largely within the spike part of September's range.

But, if you look at it on a weekly, it has been 6 weeks below the peak of that spike. That suggests it's either accumulation ... or distribution. In other words, the Big Boys have been slowly stocking up for another rally ... or they've been unloading hand-over-fist to anyone who believed Goldman's "buy, buy, buy" memo.

In the meantime, the NDX has been screaming "danger, danger, danger".

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We've discussed the importance of 50% Fibonacci Retracement levels in the past and noted the danger it posed on the NDX. We now have quite severe negative divergence between the long-range Canary peak in March and the much lower peak it posted last month when price briefly broke above the 50% FiboRx level.

But the divergence is more dangerous when we look at the peak the Canary made in 2007 and its performance since the 2009 bottom.

As y'know, in terms of astrological predictions, I expected markets to top out in March and go into freefall until at least October. So, these days I don't go out much because that much egg on your face isn't a good look in public.

In spite of that, the apparent failure of the long-range Jupiter-in-Taurus top is beginning to look more like a regional variation on the theme, rather than a broken signal.

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Here's another look at the NDX monthly, with the dark green bars showing the periods of Jupiter in the sign of Taurus. On the left of the chart, we can see the Nasdaq's blow-off, all-time high. As Jupiter entered Taurus, the market launched into the heavens.

We then got a secondary peak with Jupiter in early Gemini ... 3 monthly bars past the last green Jupiter bar.

And now ...

Yes, it's starting to look disturbingly familiar ... a marginal new peak 3 bars past the last of the Taurean Jupiter bars.

And London's FTSE index lends support to the NDX signals. There, the post-June rally has still not taken out the Taurean Jupiter high of March, nor the 2011 rally peaks.
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So, we seem to have arrived at an interesting place ... and the question is whether the American Presidential cycle, whose 4Q performance I touched on last weekend, has actually displaced the Jupiter-in-Taurus signature, or has merely temporarily delayed its onset. It's a vitally important question because if it's the latter scenario, we may already have seen The Top. There's no surefire confirmation yet; Bernanke and Draghi may yet drop more make-believe moneybags into the path of the tsunami. So, here's an update of the Weekly Planets charts for various indices to help guide your decisions.  

FTSE:
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DAX:
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ASX 200
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India's Nifty
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Singapore:

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Safe trading - RA

Randall Ashbourne
Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, writes a free weekly column titled, The Eye of Ra on his web site in  which he explains the potential impact of astrological aspects and the current state of technical conditions. Ashbourne's charts are revealing illustrations of exactly what has occurred in the market and the probability of what to expect.
Important reading:  Randall Ashbourne's article, Jupiter's cycle and its effects on Wall Street and a posting of the weekly Eye of Ra report in this blog, titled A look at the Venus Retrograde effect
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2012










Friday, October 19, 2012

November 2012 Astrological Calendar - Transits for NY NY, The NYSE

Astrology calendar showing the day and times of planetary aspects for the NYSE, for the month of November 2012.
Astrological Calendar with Transits for NY NY, The NYSE November 2012













Click image to view full size calendar.

November 2012 Astrological Calendar - Transits for London, England, The FTSE

Astrological Calendar showing the day and times of planetary aspects for the FTSE, for the month of November, 2012.
November 2012 Astrological Calendar - Transits for London, England, The FTSE













Click image to view full size calendar.

November 2012 Astrological Calendar - Transits for Sydney, Australia, The ASX

Astrology calendar showing the day and times of planetary aspects for the ASX, for the month of November 2012
Astrological Calendar for planetary aspects for the ASX, November 2012













Click image to view full size calendar

Sunday, October 14, 2012

The New Moon in Libra, October 15, 2012

Astrological Investing New Moon forecasts show general trends and financial outlook for the month. The New Moon in Libra, October 15 - Chart from the point of view of Wall Street and the NYSE.
As Above, So Below - Fall is in the air! As we enjoy the changing crisp cool weather and colorful leaves, take notice, too, that the energy Above has changed. Saturn has moved into Scorpio, Mars is now in Sagittarius, Mercury will station retrograde on November 6, and Neptune changes direction on November 11. But still ...the unpredictable and disruptive energy of the Uranus - Pluto square has people highly charged.

Libra's place in the zodiac is found between the signs of the Perfectionist Virgo and the Transformational Scorpio. Libra wants beauty, tranquility, peace and harmony; does not tolerate discord and desires justice. Yet, often charts of Librans have much planetary influence from the signs it sits between - and both signs lean on Libra's scales. Libra struggles for balance...

An Astrological Trip Around the New Moon in Libra Chart 

A reminder that in Mundane Astrology the first, fourth, seventh and tenth houses are most important. The first house represents the minds of the people. Changes and developments take place in the house where the New Moon is found.
The New Moon is found in the twelfth house -
"Only when the tide goes out do you discover who's been swimming naked." Warren Buffett  
Events governed by the 12th house come to the forefront this lunar month. The 12th house has much to do with what is hidden and what is behind the scenes. Some astrologers have noticed that the internet has an important role to play in 12th house affairs.

The New Moon will bring a certain amount of hidden troubles of Wall Street and the USA to the forefront. We may learn more about problems in the Middle East and "secret enemies".

When well aspected, public institutions, hospitals, prisons, and charitable organizations may benefit. However, since the New Moon is technically unaspected in the 12th, (no applying ptolemaic aspect within 3 degrees) it is hard to predict what hidden things will be stumbled upon in the darkness of this New Moon! 

Saturn is on the Ascendant in the twelfth house, trining Neptune in the fourth. This position gives Saturn prominence in the chart, and can be read as Saturn in the first house. However, even if read as being in the 12th, Saturn here trine Neptune is positive for trade, revenue and investments. Public institutions, hospitals, prisons, and charitable organizations may benefit due to improved regulations or administration.

Neptune in the fourth strengthens idealized democratic/political causes. Also, the fourth house has much to due with weather conditions. Because of the trine with Saturn, Neptune here suggests colder weather.

Mercury in the first house - During a time when the US candidates have debated, Mercury is found in the first house! A lot of political talk is going on. The textbook interpretation of Mercury in the first is, " there is plenty of speechmaking".

Mercury is sextile Venus in the eleventh house - Trade will be active and educational affairs will be prominent. Venus sextile Mercury and square Jupiter will support stocks in the sector ruled by Gemini. Gemini sectors include Advertising, Media (including social media), Telecommunication, Transportation (airline, railroad, truck & auto), Education, Leisure, Travel, Retail-Internet, Technology and Information Services.

Mars in Sagittarius in the second house - Mars in Sagittarius acts optimistically with great confidence - The aggressive monetary policy of Ben Bernanke will continue to be a positive force in the market as the increase in money supply benefits business. It is very possible there will be an increase in military spending with Mars in the 2nd.

Mars makes an opposition to Jupiter later in the month, a day before the Full Moon - Typically Full Moon periods see a temporary downturn in the market. With Jupiter in Gemini and Mars in Sagittarius (Jupiter's sign!), these two planets opposing each other could cause an overreaction of panic in the market due to discontent over extravagance in government spending and the monetary policy. Be alert in the market!

Pluto in the third house - With Pluto there is intensity. In the third, stocks ruled by Gemini continue to outperform the market. Gemini sectors include Advertising, Media (including social media), Telecommunication, Transportation (airline, railroad, truck & auto), Education, Leisure, Travel, Retail-Internet, Technology and Information Services.

Pluto is squared by Uranus in the fifth - Education is a hot topic among the politicians, particularly the hiring of teachers and the cost of their benefits. Clashing ideas and questions regarding the interests of children, particularly schools and education, will be a cause for argument. There is criticism of the administration's and government's spending too much money and leisure time.

Economically, the Uranus and Pluto aspect has been push pulling the markets.

Jupiter in the eighth house square Venus in the eleventh - More money is made available by government sources. Banking and financial institutions benefit.
***

The New Moon chart interpretation I send monthly offers a broad picture of the astrological landscape for the lunar month. But I caution all of you to pay close attention to planetary cycles and what the technical charts tell us. This is your best bet for successful trading - seeing the whole picture!

In his weekly Eye of Ra Report, Randall Ashbourne illustrates exactly what has occurred in global markets and leaves us with a picture of what to expect - Read about what he calls "the spooky stuff" (planetary cycles)and print the technical charts from his web site. His report is also posted on the astrological investing blog .
Click to read this article in full on the astrologicalinvesting.com web site.  Read the Moon phases section and get the "Head's Up" - upcoming astrological events list.

Trines,
Marley

Saturday, October 13, 2012

Price points for a Pollyanna bounceback

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com The following is this weekend's Eye of RA report: Week beginning October 15, 2012
Goldman Sachs has issued a "buy, buy, buy" alert and Citigroup's chief stock strategist is tipping "a raging Bull" market into 2013 with an SP500 target of 1615.

And Gloom Boom & Doom guy, Marc Faber, spent last week reiterating his prediction of a 20% plunge in the same index.

For the moment, either scenario is possible - but there doesn't yet seem to be sufficient evidence to determine which one is probable.

In predicting a strong rally, Goldmans is relying on the statistical norm of what tends to happen in US Presidential election years ... 87% of the time Wall Street spurts during the 4th Quarter, with an average gain of 3.5%.

Last weekend, we went through both weekly and long-range charts for a number of world indices in an effort to set probable upside and downside targets for the current month. We looked at a couple of planetary charts for the SP500 which indicated prices were likely to decline - and a couple for the Shanghai index, indicating it was likely to recover.

Monday brings a New Moon ... which tends to be a statistical high ... as well as a Mars trine from Sagittarius to Uranus in Aries; and on Tuesday Venus will square Jupiter. We'll have a look in a little while at exactly what Miss Pollyanna needs to do to get a boost from either of those astrological aspects

But before we do that, lets have another look at the Shanghai composite index. I indicated last weekend the main Chinese index may be bottoming at a primary Saturn line which played an important role as both Resistance and Support in the past. Those charts can be reviewed in the Archives (available from www.theidiotandthemoon.com ).
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As we anticipated, Shanghai is attempting to recover above the primary Saturn boundary, shown on the chart above with the thick cyan line ... and there is technical support for continued higher prices from the relatively mild positive divergence in the oscillator.

However, our main focus this weekend will be the state of Pollyanna, the SP500. Once again, my apologies to Canadian readers. Yahoo Finance stopped providing historical data for a number of indices back in June, including the TSX and DJI, and I'm having trouble finding a replacement data source.

I showed two charts last weekend which indicated the likely immediate path for Pollyanna was downwards ... because the index had topped out the previous week backing away from an exact price crossing point involving Mercury and Saturn.

I said at the time: "What normally happens with these points is that if price breaks through and Closes above the exact level, it sets the stage for a rally boost.

On the other hand, if price rises into the exact level and then backs away, the odds increase that an important target peak has been hit - and the immediate path ahead is downwards.


Friday's price action suggests this is what has happened ... and the negativity is strengthened because the block shows up in both directions."


Well, "what normally happens" did happen, in spite of the generally positive mood which prevails from 3Q to New Moon.

Statistically, markets tend to peak around the New Moon. But, there is the potential for either Mars trine Uranus, or Venus square Jupiter, to provide a boost.

click to view larger image
And the key to direction will be how price performs on both Monday and Tuesday. On the chart to the right, note the intersection of the falling red Mars line with the thick yellow Uranus line.

It's at 1434. Pollyanna must close decisively above this level on Monday to re-enter rally mode. She gets a second chance at an astro energy boost on Tuesday, if she fails the 1434 Monday test.

In the chart above, the Venus square Jupiter price crossing point (rising green intersection with horizontal blue) is 1426.

So there are two things to watch for ... a Monday close above 1434, or a Tuesday low at 1426, from which price bounces.

click to view larger image
Mars is now in Sagittarius and it'll be joined by the Moon later in the week. Sagittarius has a tendency to exaggerate either the optimism ... or the fear. And wide-range days are the norm when the Moon is in Sadge.

The first hint to which outcome is more likely will be provided by price performance on Monday and Tuesday and how the index reacts at the 1434, or 1426, price crossing points.

In terms of the big picture, the index is still riding the central tyne of a Bullish pitchfork anchored at key long-range highs and lows. The rally angles within the pitchfork are extremely sharp - a result of all the money borrowed by central governments to boost the banks.
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We still have no croaking of the long-range Canary which would lend support to Marc Faber's view of an imminent plunge - though Faber has set a timeline of up to 6 months and we could get an instance of negative divergence by then.

Sticking with the big picture, let's review the weekly charts for the 500.
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The last two peaks on the long-range Canary have come in lower than its peaks during the first stages of the recovery rally. That's a warning sign ... but, it's an early warning sign. There's another one from Pollyanna's apparent inability to rise above the highest level of the channel lines.

I published the long-range planetary chart and its prices last weekend, so you can check that if you need to. The chart above concentrates purely on three levels of technical horizontal support/resistance. We'll zoom-in now and have a closer look at that chart.
click to view larger image

So, if Miss Polly fails the astro energy boost price crossings on Monday/Tuesday, the weekly chart above shows key levels of horizontal and diagonal Support likely to stall the fall.

And, really, there's not much else to look at. The charts in last weekend's edition remain valid for setting the likely range for the month in individual indices - and most of those indices will be influenced over the course of the next week by how the SP500 reacts. If that index can climb above the price crossing points, the Sagittarian effect is likely to exagerrate the optimistic outlook. If it fails the two tests, we're more likely to see fear rising and markets continue to fall.
Safe trading - RA

Randall Ashbourne
Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, writes a free weekly column titled, The Eye of Ra on his web site in  which he explains the potential impact of astrological aspects and the current state of technical conditions. Ashbourne's charts are revealing illustrations of exactly what has occurred in the market and the probability of what to expect.
Important reading:  Randall Ashbourne's article, Jupiter's cycle and its effects on Wall Street and a posting of the weekly Eye of Ra report in this blog, titled A look at the Venus Retrograde effect
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2012

Saturday, October 6, 2012

What's stopping Pollyanna from rising

Randall Ashbourne, an associate of Astrological Investing, posts a weekly market report on his web site, theidiotandthemoon.com The following is this weekend's Eye of RA report: Week beginning October 8, 2012
 Gloom Boom & Doom guy, Marc Faber, says he has moved to cash in anticipation of a looming 20% plunge in Wall Street stocks.

When? Sometime in the next 6 months. That's a long time to spend nursing an ulcer and gnawing on fingernails.

So, we'll spend a little time in the first part of this weekend's edition having a close look at the planetary price barriers blocking Miss Pollyanna's efforts to break above the 1460s.

We're in the lunar phase period now between the 3rd Quarter Moon and the New Moon and early in the coming week the Sun will trine Jupiter and Venus will trine Pluto; all together, three astrological signatures with the potential positive energy to allow an upside breakout.

But first, the broad-based SP500 has to overcome strong Neptune resistance at the 1468 level. We'll have a look in a moment at why Miss Polly has been having trouble at that level ... and some hints from Friday's price action that she could continue to have trouble, in spite of the positive astro energy.

Faber believes the American markets - and many individual stocks within those markets - have peaked. He may be right and I confess I expected markets to top out much earlier in the year.

However, markets continue to defy Bearish expectations - which is why we continue to take it step-by-step, considering the upside potential, as well as the downside; and, most importantly, watching closely for any warning signs from croaking Canaries.

Now that we have some October price action to display, let's begin with another look at my long-range Old Gods chart for the SP500.
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We've anticipated that the dotted Neptune line at 1468 would provide strong resistance to further gains in Miss Pollyanna, because of the role it played, along with the Pluto line now priced at 1522, in the topping process of the 2007 Bull peak.

But, we've also been discussing the lack of negative divergence in certain technical oscillators, expecting that a breakout above 1468 could well be a "probable", rather than merely a "possible".

So, let's take a closer look at what's happening with the 500 in relation to the planetary portents.

It's obvious from the long-range Old Gods chart above that the index is having another go at challenging Neptune's power. And since that chart is a monthly, it gives us a pretty good idea of the likely price range for October - whether it's breakout or breakdown.

We all know from the Weekly Planets charts for various indices that meetings with the cyan Saturn lines are always a reliable stopper and frequently turn out to be a weekly High or Low.

On Friday, Mercury had a meeting with Saturn, forming a "price crossing point". What normally happens with these points is that if price breaks through and Closes above the exact level, it sets the stage for a rally boost.

On the other hand, if price rises into the exact level and then backs away, the odds increase that an important target peak has been hit - and the immediate path ahead is downwards.

Friday's price action suggests this is what has happened ... and the negativity is strengthened because the block shows up in both directions.

click to view larger image
The Chart above shows the index running into trouble and back off from a rising Mercury/Saturn price Crossing.

The chart below shows that the price crossing point is doubly significant because it also shows up as a falling Mercury/Saturn level.

And, we can see that the grey Neptune barrier marked on the long-range Old Gods chart is integrated into the configuration.

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So, it's going to take a big boost very early in the coming week to break that triple barrier. Otherwise, Miss Polly may have to vacate the stage for one of Chicken Little's appearances.

In normal circumstances, the omens from these three charts would convince me to Short the 500 big time ... for at least a short time.

Central Bank interference, the generally positive lunar phase, and the fact the Americans are on election countdown might throw a spanner in the works and distort what is normal.

However, there is a fairly obvious Stop Loss level.

The FTSE Weekly Planets chart is below and even though it's a weekly, shows what will probably turn out to be the Highs and Lows for October.

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And the chart below is the DAX Weekly Planets.
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Okay, I think there's enough information in those charts for Americans and Europeans to make a decision about what they do for October, so we'll change hemispheres.

Last weekend, I republished a very simple chart for Auntie, the ASX200, and said:

"I display this chart once again as an example of just how simple - and informative - a chart can be without having to rely on expensive software. It actually flies in the face of the omens from the NDX. The downtrend angle has been broken and the long-range Canary is suggesting further upside ..."

Well, it did fly in the face of the alarm bells going off in the NDX chart and not only met its target, but exceeded it.
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And the bad news for the Bears is ... the long-range Canary loves it, loves it, loves it! Despite the low level of last week's High, the oscillator is putting in its best performance since the 2009 Bear bottom. Of course, it might not actually end October looking that way!

The 4758 target seems both difficult and unlikely, in spite of the oscillator ... so let's look at some less-daunting targets.

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There is an obvious double-Fibonacci barrier not far north of the current price action. While the oscillator is not quite as gleeful on the weekly as it currently displays on the monthly, it's certainly strong enough to suggest those Fibonacci levels are likely to be challenged.

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And the Fibonacci targets are endorsed, too, by Auntie's Weekly Planets chart. I mentioned earlier the importance of the cyan Saturns on the Weekly Planets charts for various indices - and we can see they were in play last week on the ASX200. The more important key to Auntie's likely range for the month is the two Uranus levels, currently at 4560 and 4437.

Now, I really want to take a look at Shanghai, even though China has been on holiday, because there's a chance the main index there may be bottoming - and that might explain the optimism evident in the ASX200.
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We've already discussed the importance of Saturn lines. In astrological mythology and symbolism, Saturn sets boundaries. What is significant, well potentially significant, on the chart of the Shanghai index is the thick Saturn line. Over on the far left, we can see this capped prices until it was broken and the index launched into a massive blow-off.

Then, it became important again - acting as the bottom stop on the plunge which followed the blow-off. Now, it's reacting again to that same primary Saturn boundary.

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The chart above is a weekly, zooming-in on the price action from the Bear plunge to now. The main Old Gods players for Shanghai are Saturn, Uranus and Neptune. We have some mild positive divergence in the current state of the oscillator, suggesting the main Chinese index is going to make a solid attempt at regaining the territory above the primary Saturn line.

If it can do it, it opens the potential for a fast and significant rally. The current blockage is priced between 2092 and 2106. Breaking through the restriction, opens a probable target of 2406 before further major consolidation.

The Hang Seng is in a similar position.
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The MACD is not displaying a lot of internal oomph; but if price can get on top of the Saturn/Neptune barriers it does open up 24,000 as a likely target.

Singapore, the Straits Times Index, is below ... and it appears to have already started the move; though it's MACD signals are also giving signs of wanting to croak.
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Our final chart for this weekend is India's Nifty. The index spent a couple of weeks gathering strength at the 5690s level, listed as a target in the Eye a few weeks ago ... and now has a potential target of 6000 in sight, given the apparent strength of its MACD signal.
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My apologies for not returning to the Canadian indices this week; I'll try next week.

Okay, we've been through a fair bit of territory this weekend. We have a number of indices perking up and finally starting to put on a spurt - with some charts suggesting Wall Street won't be one of them without some form of Benzedrine boost to get Pollyanna above 1468.

However, I've tried to include as many charts as I can indicating the probable range that will be traded in various indices over the remainder of the month.

Safe trading - RA


Randall Ashbourne
Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, writes a free weekly column titled, The Eye of Ra on his web site in  which he explains the potential impact of astrological aspects and the current state of technical conditions. Ashbourne's charts are revealing illustrations of exactly what has occurred in the market and the probability of what to expect.
Important reading:  Randall Ashbourne's article, Jupiter's cycle and its effects on Wall Street and a posting of the weekly Eye of Ra report in this blog, titled A look at the Venus Retrograde effect
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2012