New highs ... and a no-twerk promise

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 18, 2013

Another week and another record run for Wall Street.
 
Of the major world indices, only Germany went close to matching the performance.

The new record highs in the Pollyanna index, the SP500, were achieved with marked negative divergence in the daily Big Bird oscillator.

Miss Polly appears to be totally disconnected from reality. But, as the old saying goes, markets can remain irrational longer than you can remain solvent.
There are two facets of this apparent disconnection. On one hand, we have the Ben & Janet Show, where the prize behind every curtain is another $85 billion per month.

This is the facet that says the economy is still so slow and fragile that the plug is unlikely to be pulled.

Yet, on the other hand, we have commentators claiming stocks are cheap because the forward PE ratio is only about 15, not far above the historical average of 14.

Forward PE ratios are nonsense. The historical PE of 14 is based on trailing earnings, not future pipe dreams.

Depending on whose trailing PE system you use, Miss Polly is currently on a PE of 19.77 ... or as high as 22.

Still, The Idiot remains on a Buy across all three timeframes for the SP500 and the Sun is about to make its annual entry in Sagittarius.

Sadge is the primary home sign of the head honcho of the Old Gods, Jupiter. The Sun's annual journey through the sign is usually the signal for the start of the year-end rally.

Sagittarius is an energy which can dramatically increase optimism ... or fear. Most often it's the former. Even in Bear markets, Sadge can turn things northwards.

We can see its impact on the weekly Pollyanna chart below. The Sun in Sadge has a tendency to be positive for stock prices.

The disconnect between Wall Street and almost the rest of the world is what is making prediction difficult. To illustrate, I'll repeat a couple of the charts I used last weekend.

I indicated volatility would return because of the Venus square to Uranus and conjunction with Pluto, and indicated Miss Polly was heading to either 1791 or 1718.

And the result was, she hit 1791 right on cue with the Venus-Uranus aspect on Thursday.

I also showed a chart of my home index, the ASX 200 and said: "These Venus square Uranus price levels may also prove important on the ASX200 ... 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."

And on Wednesday, Auntie hit the Uranus line at 5308 exactly.

It's driving me nuts. Normally, I'd have called a significant top at 1791 for Polly, simply because it hit an exact planetary price crossing exactly on time.

But, the overnight computers went to work again, forcing Friday's open on the SP500 above the price crossing level. The next significant overhead barriers on Pollyanna are at 1809 and around 1825.

The next significant ones for Auntie are at 5490ish and the mid 5500s.

And I'm going to cut this weekend's edition short.

Regardless of what happens in the coming week, next weekend's Eye WILL update Weekly Planets charts for a range of European and Asian indices.

It may go online a few hours later than usual, but it's now way past time those charts were updated. Like Paris, Kim and Miley, The Vacuous Troll demands far more attention than she's worth. So, I'm declaring ahead of time ... next weekend will be a twerking-free zone!

My sanity demands it!
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