A week of high-impact astro aspects

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 November 11, 2013

 Heliocentric- The Sun's viewpoint

Volatility is likely to return to the markets this week with a series of inner planet aspects to Uranus and Pluto.

I'll show a couple of potentially important price levels when we get into the body of this weekend's edition.

And a reminder that we're now in the lunar phase heading into the statistical negativity of a Full Moon.

On Tuesday, the Sun trines Jupiter; on Wednesday, Neptune goes Direct; Venus squares Uranus on Thursday and conjuncts Pluto on Friday.

These are the important geocentric aspects for the week. Geocentric means from the point of view of the Earth.

However, there's a whole slew of heliocentric aspects which tend to reinforce the potential for volatility. From the Sun's viewpoint, Mercury squares Uranus and opposes Pluto; Jupiter does the same trick; and Mars squares Saturn.

We had a taste of what's likely on Thursday when Wall Street flopped, only to flip northwards again on Friday.

On Thursday, good economic news was interpreted as bad news because of the fear the Fed would turn off the Soylent Green tap; on Friday the good news on jobs growth was interpreted as good news.

It's frustrating.

Anyway, let's begin by taking a look at the SP500's performance during the lunar phases around the same time last year. The table below is from Forecast 2013.

click to view larger image

Since some of you will be unfamiliar with this table, I'll explain how it works.

The red New Moon-Full Moon phase on the left assumes you will be in cash, or Short.

The green Full Moon-New Moon phase on the right assumes you will be Long.

The red shading below the phase line shows a loss from the assumed trades; the green shading shows a profit.

The table begins at the start of the year, so the last few months of the year are at the bottom.

In the coming week, we will be in the 1Q-FM phase ... with the assumption of being Short.

As we can see, last year those Short trades were quite profitable at this time of year ... with the exception of December (Santa Claus rally).

There was a brief rally immediately after the Full Moon (due next weekend), and then another slump between 3Q and New Moon.

Now, there's no guarantee these patterns will mirror each other from one year to the next.

However, it is a statistical tendency which can be very profitable to follow over time.

Now let's take a look at the Pollyanna price levels which could be triggered by this week's astrological aspects. We know from some of the charts published last weekend that the 500 has a significant barrier at 1775. It had a second attempt at breaking out last week and couldn't do it.

There is a double price crossing at 1791. It is not only where the Sun trines Jupiter, but where Venus will square Uranus later in the week.

It is another potential topping zone. If, however, the market tanks, the key price level to watch for a potential bounce is 1718.

 These Venus square Uranus price levels may also prove important on the ASX200. Auntie has been trending up with a rising Venus line for several weeks ... a rally which stalled only as it ran into the resistance of the falling (dashed) Venus line. It has been doing a little dance around these Venus lines for the past week.

Because of Pollyanna's Friday bounceback, Auntie's futures have the index opening at 5450ish on Monday - a tad higher than the peak a couple of weeks ago.

Anyway, as with the 500, there are two alternatives ... the index seems likely to be at 5489 on Wednesday/Thursday. Or it will be down at 5300.

Turning now to gold, which slumped with Pollyanna on Thursday ... and slumped even further on Friday. It hasn't yet invalidated the potential Long trade I outlined last weekend. That chart is in the Archives and I won't repeat it here.

I'd been hoping gold would continue to find support at the Sun lines and even as late as Thursday, they were holding. But not on Friday.

The potential for a strong bounce I outlined last weekend still remains a chance - so long as the October low isn't broken. I spent some time last weekend explaining ABC corrections and abc patterns within those larger waves.

The 1269 Pluto price level also comes out as a possible turning point if the current decline is still part of a minor downwards correction within a larger bounce.

So, we would need to monitor the 1269 level closely this week. I stress this is a speculative play. As I said last week, if the October low is taken out, the June low probably will be, as well.

For the moment, gold's downtrend remains a downtrend ... which is obvious from the briefest of glances at its weekly.

The oscillators on the weekly haven't deteriorated so badly that I would rule out a "surprise" turn northwards. However, The Idiot is on a Sell signal across all three timeframes, so a Long trade here carries more than the usual amount of risk.

I'll wrap it up for this weekend. In terms of the aspects, the lunar phases and just the period of the month, I can see no valid reason why stocks should fly north. Quite the contrary. I'd have thought that if the Big Boyz want to bring on a Santa Claus rally, they should let prices drop while it has no impact on their books or bonuses.

Hopefully, a few more Weekly Planets charts for various indices next weekend. Until then ...

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
(Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2013