Challenge Find the Bubble

The Tulip Bubble and the South Sea Bubble have one common astrological signature. Jupiter and Uranus are in Aries.

2011 from March until June, Jupiter and Uranus will transit Aries.

This is the challenge: Find the Bubble.

Somewhere in the market place a bubble is forming. Could it be one of the 12,000 stocks listed on the New York exchanges? Could it be a whole sector? Could it be a commodity, a currency, an index, or an entire exchange?

History tells us that when Jupiter and Uranus get together in Aries a bubble forms and bursts toward the end of Jupiter’s transit of Aries, Historians love to site the Tulip Bubble and the South Sea Bubble as examples of foolish investors caught up in the euphoria of making fortunes buying a selling worthless investments. Simultaneously the Mississippi Bubble burst.

From January through June 1928 Jupiter was in Aries and Uranus transited Aries from zero to 8 degrees. No popping bubbles however the markets were soaring and ordinary folks were learning all about margin calls. Eighteen months later the markets collapsed. Since this transit is similar, it could be that nothing will happen and markets will soar while bears keep telling investors keep your stops firmly in place.

Jupiter has transited Aries a few times since 1928. Notable is Oct 19, 1987 when he made an exact trine to Uranus in Sagittarius. The Dow fell 23% and the S&P fell 20%. Jupiter transited Aries again from Feb 15, 1999 to Feb 15 2000. The peak for the Dow Jan 14,200 was 11,733 and the NASDAQ high of 5048 March 10,2000 signaled the bursting of the Dot.Com bubble.

Eyes Wide Open

Jupiter in Aries says open your eyes, snap out of it. Uranus in Aries takes the lid off the box and forces you to stop look and listen to your instincts. Suddenly every investor sees the same bubble and they scramble to the exit losing fortunes as they rush to the sell button on their computer. Will it be a flash crash?

Thousands of rules and regulations have been written to assure investors that bubbles will be discovered before they burst. However in the age of instant communications they could appear one afternoon and burst before daylight. One will be clever enough to make spectacular headlines.

Sector Please?

Maybe we could find some clues from the recent conjunction of Jupiter and Uranus in Aries on June 8, 2010. Summer 2010 and both planets made a two month foray into Aries. Uranus hovered at zero degrees while Jupiter moved all the way to 3 degrees before it turned retrograde and returned to Pisces September 10, 2010.

Summer of 2010 the Dow Jones Index average cruised below 10,500 .and remained there until Sept 13. June 10, 2010 Jupiter and Uranus made a conjunction at zero Aries.The Dow Jones Industrial Average dipped to 9816. Uranus continued to move forward through the zero degree mark and then turned retrograde July 5 and the Dow dipped to 9743.. Everyone expected the Dow to dip further. However Uranus moving retrograde kept the Dow steady hovering around the 10,000 mark until it finally returned to Pisces August 13, 2010.

I suspect that during the summer a bubble began to form either in one sector of the market or among several stocks. During the next month you will see that a number of stocks have increased more than 50% to date. Financial News headlines last summer did not suggest any bubbles were starting to form. Look for a migrating high that does not make sense.

If you have a good idea as to where to look for a bubble, add it to the comments space. Our prize for the best guess is cookies. We e mail the recipe.

Clues check The Textbook for Financial Astrology.