The Dow drop ... a major top may be in

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 July 28,  2014 

Several major stock indices in North America and Asia hit new highs last week.

But it wasn't universal, especially in Europe, and there is a danger that the grand daddy of stock indices, the Dow Jones Industrials, began a significant, intermediate downtrend from its all-time closing high on July 16, right on the July 14-16 major Bradley turn date I discussed in the July 7 edition.

It is possible the Pollyanna index, the SP500, peaked on Thursday with the Sun's conjunction to Jupiter in the early degrees of Leo.

There could be an attempt at new highs on Monday when Venus opposes Pluto. Monday will be one of two major action days in the coming week.

The second will come on Friday when Venus trines Saturn and squares Uranus and Mars makes a square aspect with Jupiter.

And, of course, we're now moving past the statistical bouyancy of the New Moon.

This weekend's report will be relatively brief because there's really only one stock chart that's important ... the DJI itself. On Friday, it closed decisively below the rising trendline which has supported the entire rally after the sudden January drop.

For the past few weeks, the rally has climbed the trendline while Big Bird, the 50CCI, went in the other direction, a fairly clear and obvious example of building negative divergence warning of danger.

Pollyanna is still trading within the 1950s to 2003 range I discussed last weekend, but if the Dow is breaking down, the rest of Wall Street will be quick to follow.

And so will everybody else, including the Canadians. The German DAX looks as if it peaked a few weeks ago at the 10,000 level I'd warned was likely to prove a major barrier.

Toronto's strong run has taken it well inside the "zone" I indicated could turn out to be "it" for this Bull run. That zone runs from the early to high 15,000s. It's a Pluto-Node price zone, a higher level of a similar zone which put a stop to the last big Bear drop.

The ASX 200 finally broke through the $5533 Saturn barrier on its weekly planets chart and finished the past week above the $5565 Saturn-Uranus price lines. It's a breakout, giving the index its highest weekly Close since the bottom of the last Bear.

This week and next should tell us whether it's a "false break" or the real thing. If it's a fake-out, there'll be a fast drop immediately ahead. If it's real, the negative period between New Moon and Full Moon should not cause major damage. You can check the major price levels on last weekend's chart in the Archives.

Now, if stocks are going down, gold should head north again. Again, check last weekend's edition for the overall picture if you missed it. There are two fairly clear signs that the gold Bear went back into hibernation with the double-bottom during 2013.

There was another attempt to drive gold lower last week, but it seems to have run out of steam with a false break of a rising Sun line.

If the optimistic scenario for gold is now in play, the take-off from here should be fast and it should blow past previous highs with very little hesitation until it hits the mid 1400s.

It's too early to say whether it's now certain we're entering correction mode for stock indices, or how deep the correction will be. But the Dow has fired a warning shot and the DAX looks as if it's in dive mode, so there is "clear and present danger".

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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 2014  

  Purchase Forecast 2014 and receive a special report on GOLD  

Storm warnings in space

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 July 21,  2014 

The astrological weather patterns are about to make a dramatic change.

We have planets changing signs, changing directions, and making a series of intense, high-energy aspects with each other.

And since a lot of that energy is unleashed over the next week or so, it could be enough to generate a super storm.

Jupiter has now moved into Leo and is about to be joined by the Sun; Venus has moved into Cancer; Mercury is about to oppose Pluto and square Uranus; Saturn is changing to Direct motion while Uranus goes into Retrograde mode.

And the killer change is Mars finishing an unusually long journey through the diplomatic sign of Libra, shifting into Scorpio and heading for a conjunction with Saturn ... when the "drive" energy smashes into a brick wall.

Mars is the traditional ruler of Scorpio. Mars in his primary sign, Aries, is an all-action hero; more Ego than IQ. The Scorpio version is much, much deadlier ... a deep-thinking, deep-scheming, vengeful, poisonous piece of work who fights to the death.

I've discussed with you many times before how Pollyanna, the SP500, rises and falls within Martian channels between long-range Node price levels.

Other indices tend to do the same, though Uranus, Neptune or Pluto tend to be more reliable as horizontal price stoppers.

Anyway, let's have a look at where Polly is within her long-range Mars channels. In the chart below, I'm showing only the rising channels. We can see that the last Bear bottom was recorded with a small break of what I've labelled as the primary channel bottom.

Price rebounded from there to the next higher primary Mars line, which I've labelled as the channel top. We've had only one major breach outside of that primary channel ... the countertrend down marked with a yellow oval.

Okay, now let's move in for a close-up. The horizontal orange lines marked with 2003 and 1955 are primary Node prices. As I said, the SP500 tends to move in Martian channels between Node price levels.

So the $1955 to $2003 range is a major, long-range danger zone. The declining, dotted red lines are the Martian downtrend channels. In brief, a weekly close below the $1950s could well signal the start of a major correction in this index ... possibly even the start of a new Bear trend.

The ASX 200 has stalled yet again at the $5533 Saturn barrier on its Weekly Planets chart, after a failed attempt to breakout higher, falling a tad short of hitting the Uranus price line at $5565. We've had only a single weekly Close above this line since Auntie started playing with it 22 weeks ago. Breakout or breakdown, you old bat!

Now let's have a quick look at gold. At 2am New York time last Monday, the mysterious "somebody" suddenly dumped over a billion dollars worth of gold contracts onto the market. It was followed a few hours later by a multi-billion-dollar dump.

Obviously, it was yet another calculated move with only one aim ... to end the rally in gold prices. Nobody dumps a billion dollars worth of anything onto a thinly-traded 2am market expecting it will cause a price jump. It's designed solely to cause a selling panic when the markets open for real.

One suspects it was a co-ordinated move by big central banks. It's not the first time we've seen these out-of-hours, mega-billion dumps and it probably won't be the last.

However, it was not enough to totally trash the distinct possibility that a long-range bottom in the gold price was cemented with the double-bottom in June and December of 2013.

I raised the possibility some time ago that the trend had changed when gold moved out of its Sun downtrend channel. On the above chart, I add a blue technical downtrend line. It put a stop to the last rally, but it, too, has now been broken.

In fact, last week's plunge seems to be a retest of that line ... from the top side. If it holds, it is potentially very, very Bullish. We can't be too optimistic until price can break above the first Fibonacci Retracement barrier around $1350. If it can manage that, it will be doing so with quite extreme positive divergence readings in the Fast and Medium range Canaries on gold's monthly chart, indicating that the gold Bear is back in hibernation and a multi-year rally is underway.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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 2014  

  Purchase Forecast 2014 and receive a special report on GOLD   

Jupiter in Leo ... the affected sectors

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 July 14,  2014 

The head honcho of the Old Gods ... Gee,Zeus, Jupiter, the Fatboy ... goes into the Fire sign, Leo, this week.

He'll be heading to the salon for a new "do" and shopping for a set of the emperor's new clothes.

I probably shouldn't be making fun of the guy who throws thunderbolts around when he's off his Adderall, but have you ever tried swapping jokes with Saturn?! Ugh.

Anyway, I received a note during the week from a reader wanting some further explanation of how Jupiter affects sector rotation ... the regular shift of money away from the popular to the unpopular.

I've touched on this a few times and you might want to take another look at the January 20 Eye of Ra in the Archives.

Basically, though, Jupiter increases either the demand, or the supply. The biggest impacts tend to be in the sectors ruled by the sign Jupiter is entering - Leo; the sign he's opposing - Aquarius; and the signs he's squaring - Taurus and Scorpio.

In January, I urged you all to look at gold and gold mining stocks for a possible long-range shift in the trend. So far, so good ... and that trend shift is giving fairly strong indications of being underway.

The other sectors ruled by Leo are: Amusement parks, gambling and casinos, games and toys, jewelry, recreational vehicles and stock brokers.

Aquarius rules: Aerospace and aircraft, computers and technology, radio and TV broadcasting, electrical equipment, satellites and stock market profits.

Taurus and Scorpio rule: Banks and insurance, debt and taxes, copper, bonds, financial institutions, cattle, candy and corn.

So, the idea is that we look at stocks in those sectors to see which ones appear to have been putting in a solid, long-range bottom OR are showing distinct signs of topping out.

Okay, a reminder that this week brings a Bradley major trend change date.

Let's see where we are ... starting with the Pollyanna index, Wall Street's SP500. She dropped to the Node line at 1952 last week, but bounced back into the Node range now priced from 1955 to a whisker above 2000.

The DJIA is riding a technical channel, unable to climb back inside the upper tier ... and with no new peak in the Big Bird canary since March 2013.

On the northern side of the lakes, Toronto is stalling at a long-range planetary price level. The index made a Bear bottom at a Pluto/Node zone and is now testing a higher level zone priced from the 15,100s to 15,900s.

On the other side of The Pond, London's FTSE continues in its range-bound torpor. It makes Midsommer Murders looks like a Michael Bay action movie.

 

Germany still can't keep its head above the long-range Pluto barrier in the early 10,000s.

Paris is swooning, though may have reached a bounce level.

And dear old Auntie, the ASX 200, hit 5532 again ... and reached for the smelling salts. Again.

I indicated recently I could see no instance on the gold charts where a rally stalled before hitting an upside Sun or Pluto line. And there still isn't one, since the price of gold made contact with both of them last week.

Safe trading - RA

 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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 2014


  Purchase Forecast 2014 and receive a special report on GOLD 

Heading into a major Bradley date

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 July 7,  2014 

The USA is having a Happy Birthday weekend ... with Wall Street the happiest of all.

But the celebration fireworks might spill over into the stock market in the next week or two.

We're now heading into one of the three major Bradley Model turn dates scheduled for this year.

In the next few days, the Sun will square Uranus and trine Saturn. The Moon will spend a couple of days in Sagittarius, which can spark wide-range days full of either fear or unbridled optimism, before heading into the Full Moon next weekend.

That Full Moon will be conjunct Pluto and square to Uranus, in a repetition of the main astrological theme being played out in the skies.

But, it'll also be a major part of what happens in north America over the next year. Astrologers often construct what's called a Solar Return chart on someone's birthday. The themes suggested in that chart tend to last for the next year.

It means the USA will spend the next year trying to deal with the social, economic and geopolitical unrest indicated by the long-range Uranus/Pluto square.

That's because, on its birthday, the USA's Sun was locked into the configuration. And so was the Moon, which was transiting through Libra. In brief, the public "mood" over the next year will want to see some fairness and balance. And that will be at odds with the other three players.

Meanwhile, the SP500 and a few other indices soared to new highs last week. Pollyanna's price has jumped above the first of the two Mars price lines within an important Node zone priced from around 1950 to just above 2000.

And it is rising into those levels as the Bradley Model heads into one of the potentially most important dates of the year. I've cautioned before that it is the dates of the Bradley which are most important ... not the direction of the oscillator, marked with a black line on the chart below.

December 31 marked a high, for example, rather than a low. It was a high which remained untested for two months as the index plunged into a February 5 low. February 3 was a minor blip on the Bradley oscillator.

As I mentioned last weekend, the mid-July Bradley date coincides with Jupiter's sign shift into Leo, which will accelerate a change in the popularity of stock sectors.

In the years when it works, the Bradley Model can be uncannily accurate ... in terms of the dates, not necessarily the implied direction.

And since it was only one day off marking December 30 as a trend change date, which led to a sharp decline, we should all probably keep a close eye on another big shift happening very soon.

The Australian market also responded positively last week, bouncing back for another touch of an upside Weekly Planets barrier.

The next resistance level is around 5570 ... with Neptune at 5625 above that, if the ASX200 can manage a breakout.

Safe trading - RA
 (Disclaimer: This article is not advice or a recommendation to trade stocks; it is merely educational material.)
Copyright: Randall Ashbourne - 2011-2014

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, and The Idiot and the Moon, Forecast 2014, 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 2014


  Purchase Forecast 2014 and receive a special report on GOLD