Astrological weather for May

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 May 6, 2013

Wall Street gapped up into the Open on Friday, bringing the SP500 into the planetary price zone we anticipated it was aiming for.

There is a higher, long-range planetary target at 1666 which could be the next major target.

But that requires Chicken Little to stay in the wings during what is, historically, the seasonal weakness lasting from May until September.

I indicated early last month that April is, on average, Miss Pollyanna's strongest-performing month of the year. However, there has also been a distinct tendency over the past 60 years for markets generally to start weakening in May.

It's the basis of the old saying "Sell in May". In fact, the origin is English, not Wall Street, and the full version is: Sell in May and go away; come back on St Leger's Day ... the last of England's classic horse races each year.

As always with lies, damned lies and statistics, one can adjust the data to reach almost any conclusion. However, the really simple version is that over the past 60 years, on average, stock markets made virtually no gain over the coming five months.

This weekend, we'll take a look at the technical state of the SP500 and discuss the astrological weather patterns for the month ahead.

And we will begin by having another look at a chart we've discussed a couple of times in the past few weeks - that Pollyanna was embarked on a run between two different sets of Uranus/Pluto horizontal planetary levels.

I indicated that since the SP500 make a spike bottom into a Uranus/Pluto price zone in mid-November, sparking the Santa Claus rally, that its target was probably another Uranus/Pluto zone priced around 1608.

Friday's Open gapped up into the target zone.

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Going on past performance, it would not now be unusual to see the index stall and correct. That's what happened during the past two price contacts with Uranus/Pluto price clusters within this run. Look first at the yellow oval near the bottom of the chart and follow the prices into the next higher level of yellow/purple lines.

Pollyanna stalled and then dropped back to pick up support from a light blue Saturn line to launch a new rally phase. Then the same thing happened at the next Uranus/Pluto level ... a stall, a false break above, and a drop down into Saturn again. Will it be "different this time"? Perhaps. But probably not.

Negative divergence has been building in the American indices for some time. It's obvious below in the declining MACD histogram peaks as prices have climbed up inside the top layer of the Bi-BBs ... and the MACD signal lines are showing the potential to roll over.

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However, the divergence is not yet looking even close to terminal on Pollyanna's monthly chart. Below is the chart I first started using in 2012 when I began discussing what I called "the elephant in the room" ... a distinct and obvious LACK of negative divergence on the long-range chart which I thought might have the Bulls pooping all over my Bear rug.

In short, the astrological expectation of the normal Jupiter-in-Taurus Bull market high failed ... because of the technical conditions.

I pointed out that the negative divergence in the long-range Canary obvious at the topping process in 2007, was not present in the charts during 2012 (the relevant oscillator readings are marked with yellow ovals). We had also discussed the possibility that Polly was contained within a potentially negative Ending Diagonal pattern.

In the end, she broke out of the pattern, rather than breaking down. The technical conditions were correct. The astrological expectation was wrong.

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Now, however, we are starting to see the first signs of technical weakness develop in the monthly chart. Notice that the fast Canary, the green line, has rolled over and slipped below the mid-range (red) and long-range (blue) birds ... and that the red bird has now slipped below the blue one.

This is similar to the oscillator performance as the index climbed into its 2007 top. It suggests that THE Top has not yet been recorded, but could still be some months away.

Nevertheless, we are now inside the timeframe for a multi-month lull, at best; or a final corrective decline before the final Bull high ... and the astrological weather for May suggests erratic conditions.

We are heading into a Solar Eclipse New Moon and a second Lunar Eclipse, and we get the third exact square of Uranus and Pluto. We'll take a look firstly at the Solar Eclipse, which is perhaps more likely to affect Asian area markets.

The map below shows the path of the eclipse - and it's Australia and southern Asia in the direct path.

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Next, let's look at the impact past Solar and Lunar Eclipses have had on Miss Polly's prices. The solar ones are marked with red bars and the lunar ones with green. The last 3 solar events tended to mark the low point of temporary declines within a strong rally phase. Two of the 5 before that, staked out temporary highs. So, of the past 8 solar eclipses, 5 were associated with tops or bottoms.

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Apart from the eclipses, the other major astro event for May is the third exact square between Uranus and Pluto. I've discussed the broad social ramifications of this aspect in Forecast 2012, Forecast 2013 and at length in the Eye of Ra over the past couple of years.

It appears throughout history at times of wide-reaching and radical social reform and political/economic earthquakes. It is not just a one-off "event", but a whole series of them which define an "era" of sociological and geopolitical change.

The chart below shows the first of the exact hits and we're coming up on the third in a series of 7 which lasts into 2015. Because of transits of faster-moving planets "translating" the energy, the orb of influence comes into effect a few years before the first hit and will also last for a few years beyond the last hit.

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However, putting the orb of influence aside, we can probably expect the most extreme manifestation of the symbolism to occur in the middle of the series, which is what we're now getting into.

A 7-hit series is unusual. In personal astrology, we normally only have to deal with 3-hit series of major aspects. They tend to manifest this way ... the first Direct hit tends to cause an event which makes us aware of a problem that needs to be dealt with; the second, Retrograde hit gives us the opportunity to DO something about fixing the problem.

And, as I once said to a private client, if you try to ignore it all and don't actually DO something to fix it, then on the final, Direct hit it "comes back and bites you on the arse Big Time". I ran into that client again a couple of years later and asked how things had worked out.

The answer: "It came back and bit me on the arse big time!"

So, the interpretation would be that this coming middle period of the whole saga is where things have to be done to avert disaster. All that has happened so far is that we have been made "aware" of a problem. Now, we enter the phase where real solutions must be found ... and the solutions must not be more of the same-old, same-old. The symbolism is that there must be wide-ranging and radical overhaul.

Pluto has to do the Phoenix rebirth routine. Or else the Arien Uranus goes into armed revolution mode.

Safe trading - RA

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2013, 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 The Idiot and The Moon, Forecast 2013 , 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 - 2011-2013

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