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| The God Jupiter |
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:.
The head honcho of the heavens changes signs in the coming week, shifting the emphasis of money flows into the markets over the coming year.
According to ancient symbolism, Jupiter is weakened in Gemini. The Old God we associate with expansion … he whom I call the FatBoy … goes on a diet and expansion loses some weight.
It’s part of the rationale behind
The Jupiter Cycle (see Articles); markets have an historical tendency to peak with Jupiter in Taurus and decline until Jupie enters Leo, a Fire sign which sparks him up again.
It also means the money flow starts to move more rapidly into different sectors. The late
Kaye Shinker, from
www.astrologicalinvesting.com and the author of several
textbooks on financial astrology, researched this effect at some length.
With Jupiter in Taurus, for example, the emphasis has been on banking and debt – the Taurus/Scorpio axis; and also on technology and gold, the Aquarius/Leo axis. I think most of you will agree that banks, brokers, Apple and gold have been the topics du jour for all the time the FatBoy has been in Taurus.
Slowly, you’ll see a change; transportation, travel, health, labour and oil will begin to fill the news pages. It does not mean the bank problems are about to disappear. All of that will continue because of the longer-term Uranus square to Pluto … the Aries/Capricorn confrontation of aggressive rebellions against “the powers that be”.
There are a few other, more minor, astrological events also coming this week … the 3Q Moon, Mercury squaring Uranus and opposing Pluto (GeeZeus! Yet more bank blabber.) And the Sun will trine Saturn mid-week.
Still, it’s Jupie’s sign change that’s the big event and I needed to give you the heads-up on that so you can trawl through your sector charts and consider adjusting where you have your boodle invested.
Now let’s have a wander through some charts. Last weekend, I indicated markets had to “bottom now” or they were likely to continue crashing badly … and I showed a couple of FTSE charts to highlight the potential for the optimistic outcome, even though Lunar Eclipse Full Moons didn’t have a particularly reliable record of bringing in a bottom.
I confess I’d completely forgotten the English cousins were going to shut down for a bit of pomp. Not that it made any difference; the signals were there … and, as it happened, played out.
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We began last week with a chart showing the FTSE’s normal reaction to rising Sun lines and I said: ”The index has had a distinct tendency to attach itself to one of these rising Sun lines during almost all of its uptrends, even the ones which have been relatively short-lived.”
So, the cousins bounced back. Rather strongly. In fact, probably too much so. Pay special attention to the state of the red Canary in the oscillator panel. We’ve had a few of these strong spikes since last November’s Low … and in each case, they’ve caused Price to stop the rally temporarily and go into a sideways shuffle.
Often, the shuffle continued until Price again made contact with the rising Sun lines.
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We can see the strength of the two-day move more clearly by just how
far it travelled on the FTSE’s Weekly Planets chart, above.
The
planetary Price resistance around last week’s High is obvious on both
of the above charts … as are the targets for either a confirmed breakout
or breakdown.
Okay, so the potential for a return to
optimism was heralded by the FTSE’s “normal” reaction to rising Sun
lines … but the real question is whether the rally can be sustained for
any length of time.
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Let’s revisit the Lunar Eclipse Full Moon chart …
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Last week was the 8th Lunar Eclipse Full Moon since the Bear bottom in 2009. The 1st and the 6th of them coincided with downtrend Lows … and now, maybe, another one.
But, to be a reliable Low, Miss Pollyanna – the SP500 – needs to make a solid weekly break above primary Node resistance around 1325.
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If you consult last weekend’s edition, you’ll see the first harmonic Node line is a real long-term barrier for Miss Polly.
And the long-term uptrend is now under threat.
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The chart to the right is The Jupiter Cycle chart … markets peak with
Jupiter in Taurus (dark green), drop into Jupiter in Leo (red) and rise
again into Jupiter in Sagittarius (blue).
If the cycle
plays out its usual tune, we could get a lower, secondary High with
Jupiter in early Gemini … but it’s usually all downhill from there.
It’s why I’m more Bearish than Bullish. You’ll note the Canary has given
two examples of negative divergence now … a lower peak at the most
recent Price High and a deeper trough during the August/October spikes
down.
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The Fibonacci Rx levels marked on The Jupiter Cycle chart show the downside Price targets if we are now in the early stages of a renewed Bear market.
The 50% level is a particularly interesting one. Bill McLaren, an American/Australian market forecaster of long experience, has noted over the years that major consolidations during an uptrend, tend to become the halfway marker for the total rally. McLaren uses that consolidation to predict what he thinks will be “the final top” for a Bull run.
As you can see from that chart, the first long consolidation after completion of the first major wave up, marked out territory likely to become just as important on the way down.
We’ve discussed at various times over the past few months, how the ASX200 has responded to 50% markers.
So, with Pollyanna’s daily chart above, we would expect strong resistance to this bounceback rally to start showing up in the 1344-1360s region … IF she can break through the Node/Fibonacci barrier around 1325.
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Now, let’s take a look at the ASX200 … and the omens continue to be
just awful. Last week was a bounce from “obvious” Support … and very,
very low support at that.
In the coming weeks, we’ll take a look at just how far down the
Aussie market is likely to go if the Bear is back on the prowl. Believe
me, it’s far, far too depressing to discuss this week!
I’ll leave you instead with an update of Auntie’s Weekly Planets chart.
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Safe Trading - RA
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
Tomorrow is a full Moon Lunar Eclipse. Be prepared for much more
downside in the market. The eclipse is in a T-square to Mars, Neptune
changes directions, stationing Rx a day before the Venus transit.
