Bounceback potential in stocks and gold

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 June 24, 2013

World stock indices and the price of gold are hitting, or are very close to hitting, prices which have the potential to produce a bounceback.

However, the situation overall remains dangerous and complex as both technical conditions and the astrological weather deteriorate.

We have a lot to consider this weekend; most especially whether we are now in the early stages of a developing Bear market in stocks.

But we will begin by reviewing where we are in terms of the correction which started, for most indices, late in May. I indicated then that: "There's a strong chance stock markets have gone into correction mode likely to last for several weeks."

For the past few weekends, as we tracked the decline in European and Asian indices, I've also indicated: "At a glance, the correction on Wall Street still seems to be too shallow, in terms of both Price and Time, to be realistic - especially considering the rapid, steep declines in most other major indices."

And I said last weekend: "Jupiter energy takes centre stage this week, when the fires of optimism will be stoked again ... or the fear will be."

We got the fear mode, which finally produced a Wall Street decline which is much more realistic in terms of an intermediate correction.

It now may be nearing bounceback levels. I would prefer to see a low form in the SP500 in the price range from 1570 to 1540, since the decline still seems a little short of the mark.

However, some of the other world indices are starting to display positive divergence sufficient enough to produce at least a bounce.

But the astrological weather ahead in the next few weeks is full of turmoil ... and we have reached a major Bradley Model turn date. I will leave discussion of The Spooky Stuff until later in this edition.

Since it's the easiest to deal with, we'll begin with a quick look at gold. Long-range, it has hit an important Fibonacci Retracement level.

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Purely from a technical perspective, this is a normal retracement which, if it holds, keeps the long-term uptrend in a strong position. And it should hold, at least for a relatively strong bounce. The danger is that the long-range oscillator continues its deep dive.

From a planetary perspective, gold has lost the primary Pluto line at 1360 and a primary Sun line - with last week's drop taking price down to a secondary Pluto level. The potential good news is that not only has it now hit a long-range FiboRx price, but it has dipped into Pluto prices with a third instance of positive divergence in the oscillator, though it is mild divergence rather than strident.

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There is one other factor which could help to produce a bounce ... Heliocentric Mercury goes into Sagittarius this weekend for a brief visit into early July. It's a position which frequently causes a gold rally. It's not a certainty, but as we can see from the weekly gold price chart below, it does tend to have an impact.

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Now let's turn our attention to Pollyanna, the SP500. Well, Polly actually ran screaming from the stage last week for a Chicken Little revival. As usual, Wall Street was more than a day late and a lot more than a dollar short in doing what everyone else was sure of weeks ago.

There is a reason I call the SP500 Pollyanna ... or The Vacuous Troll. However, reality finally dawned that Benign Ben isn't going to drop money from helicopters in QE4ever.

The index finally dropped out of the uptrend channel which has defined the rally since it launched late last year. The drop has taken it down into a potential Full Moon low, which is a statistical tendency. The only thing that concerns me is I'd have preferred to see it hit price levels from 1570 to 1540.

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Now let's look at the index in terms of the wider rally channel in play since the bottom of the Bear crash in 2009. While it has lost the intermediate-term rally angle, it came to rest at the end of the week with a little bounce from one of the long-term channel markers.

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The bad news is that the long-range Canary, the Big Bird, has dipped below the upper red line in the oscillator panel, which is a clear warning the inner technical strength of the Bull run is starting to fade again.

Now I have been indicating since late May that I thought this was going to be an intermediate-length correction, lasting probably 5 to 8 weeks. There is a chance it is something much worse. However, there are no major warning signs on the monthly charts, so I'm still leaning towards the optimistic outcome ... which is that this is the last major correction before the final, the last, rally of this Bull run.

But ... two things. Firstly, the combined impact of Neptune going Retrograde and last week's Sun-Jupiter conjunction. They're marked on Pollyanna's long-range monthly chart below with blue bars for Sun-Jupiter conjunctions and red bars for Neptune Rx.

And they have a nasty habit of showing up at important turning points!

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And we also have the Bradley Model suggesting a major trend change. I dealt with the Bradley Model at some length in the June 3 Eye of Ra (click here), or you can access via the Archives button on my web site. (http://www.theidiotandthemoon.com/index.html)

I repeat the warning: It is the dates which are important, not the direction nor the amplititude of the swing.

The next trend change dates for this year don't occur until early September and early October.

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Okay, now let's discuss The Spooky Stuff - because the astrological weather is full of change in the next few weeks.

Jupiter changes signs into Cancer this week ... Venus goes into Leo, where she throws off the dowdy house frock, gets a new "do" and piles on the bling ... and Mercury the brat mischief maker goes Retrograde.

We have discussed Mercury Rx many, many times. And here we go again. DOUBLE-check EVERYTHING you do for the next few weeks to make sure you are actually doing what you intended to do!

Before you hit the Buy or Sell button, pause ... consciously think ... double-check that you WANT to Buy or Sell. You have a stronger than usual chance of hitting the wrong button. But ... ONLY if you're being inattentive! This is not the world out to "get" you. It's you!

Now, it is true that data feeds go awry for a couple of days around the Rx and Direct dates; it is true that emails go missing; it is true that computers do the damndest things.

And it is also true ... more often than not ... that markets will start a trend around the Rx date which reverses course halfway through the Rx phase ... and then arrive at the Direct date a few weeks later with prices pretty much within a per cent or so of where the whole silly phase started.

So, Mercury is Rx from June 26 to July 20. Just pay attention!

Jupiter's shift into Cancer should accelerate sector rotation ... that is, money will flow out of stock sectors which have been popular over the past year or so and into different sectors. I discussed this in the May 13 edition.

It also puts the planet of expansion on track to make a Grand Trine, which is the most benevolent of all astrological aspects, with Neptune in Pisces and Saturn in Scorpio. Neptune rules Pisces, so is in a good mood; Jupiter is exalted in Cancer, so he is reasonably benign; and Saturn in Scorpio is associated historically with strong stock market rallies.

The aspect becomes exact in mid-July. We will need to watch the performance of stock indices very closely then, because a Grand Trine is a very powerful aspect likely to produce an important high or low.

Okay then ... let's recap. Most of the world stock indices behaved themselves ... launching into a strong, intermediate correction in late May. The Vacuous Troll kept dancing to the old Benny and the Feds soundtrack, but also finally faced reality. Apart from Polly, most indices have already hit - and in some cases re-tested - potential bounce levels.

We have a Murky Wrecks period fast approaching, which have a tendency to start a short-term trend change which reverses course halfway through. Helio Merc is going into Sadge and Geo Venus is going into Leo, both of which have a reasonably strong tendency to be good for a gold rally ... as the metal hits a long-range Fibo Rx level, with some intermediate-term positive divergence.


So, I think we have the potential for a good bounce in both gold and stocks getting underway this week. It's probably not going to be long-lasting for either of them ... and over the longer-term, warning sirens are starting to wind-up for stock markets.

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

The Idiot and the Moon, Forecast 2013

• Major trend change dates for the full year, plus a month-by-month breakdown of high-energy trading dates and critical reversal dates.

• An index-by-index analysis of Moon Trading across major American, European, Asian and Australian stock indices-

• Identifies the major indices where following the phases of the Moon can dramatically cut profits, or even result in large losses.

• Old Gods & Gold ... a Eureka! discovery about exactly what drives gold prices during rallies and corrections and charts showing highly-reliable target levels to both the upside and downside.

These price charts are individually-tailored to each index and cover Wall Street, Australia, Canada, Hong Kong, Singapore, Shanghai, India, England, Germany and France.

You will not see these charts anywhere else on the Internet!

And much more...

It is NEVER too late in the year to have this monthly information!

The bounce in stocks ... and Asian indices

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 June17, 2013

 Jupiter energy takes centre stage this week, when the fires of optimism will be stoked again ... or the fear will be.

Last weekend, we reviewed where we were within the correction and I indicated Venus was making two aspects we needed to watch closely.

I said: "So, the Friday bounce could be short-lived. We need to pay close attention to price reaction on Tuesday and Wednesday when Venus opposes Pluto and squares Uranus."

That was the timing for Europe and America. The aspects were in play on Wednesday/Thursday in Asia - and most Asian indices, including Australia, produced a classic turnaround bar on Thursday and bounced strongly into the week's end.

Whether the bounce produces anything more than a blip will depend on the reaction to this week's conjunction between the Sun and Jupiter. This is a once-a-year event. Symbolically, it represents a peaking of growth energy and packs enough oomph to cause an intermediate change in trend.

It's also the week when a major Bradley Model trend turn date is due and the Sun will leave volatile Gemini for the security of Cancer. As one of the Cardinal signs, Cancer is an "action" sign ... and it is where the action is geared almost solely towards protection of all those things which make us feel secure, safe and comfortable.

We'll review the status of the correction this weekend and the Weekly Planets charts for Asian indices.

At a glance, the correction on Wall Street still seems to be too shallow, in terms of both Price and Time, to be realistic - especially considering the rapid, steep declines in most other major indices.

Yet, technically, the SP500 remains in its uptrend channel. The Venus aspects to Uranus and Pluto produced another drop to again retest the validity of the lower channel trendline. We'll be in the lunar phase between the 1Q Moon and Full Moon, which tends to be statistically negative.

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At this stage, however, Pollyanna is not only holding the rally channel in play since last November, but remains within the upper level of a long-term channel based at the 2009 Bear bottom. In other words, it's still Bullish.

The index is still rising in a sharp angle within that broader channel and the long-range Canary in the oscillator panel has not lost the upper red level which would indicate a major correction is underway.

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This has not been the case with many other stock indices, most of which entered a major correction more than a month ago. Last weekend, I indicated those indices had reached potential bounce levels. The drops continued into the Venus aspects, but the delayed bounce was exceptionally strong.

We'll use the ASX200 Weekly Planets chart I've featured a couple of times in past weeks to review the bounceback. Despite the drop into the Venus aspects, Auntie finished the week in a stronger positon than the previous week. The Big Bird has turned higher without dropping as far as the Zero line.

Experienced traders I've talked to seem wary of the bounce. Yet, the index certainly seems to have met its targets for a major correction, which is what we thought this one was shaping up to be. It overbalanced the Price drop of the similar-level correction in early 2012, but not the Time - at least not so far.

We do need to continue to be cautious and not just because of this week's Bradley data and the Sun/Jupiter conjunction. We had several weeks of sideways shuffling at the end of the last correction of this magnitude.

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However, we also need to at least weigh the prospect of what is "normal" after a drop this deep and this fast. And normal would tend to indicate a more sustained bounce to "balance" the drop.

Many of the other Asian area indices display charts very similar to that of the ASX200.

India's Nifty began its decline after failing to close above the 6175 Uranus level on its WP chart ... and with very clear divergence between the Big Bird and Price peaks when the high was made.

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Singapore failed to even reach its Uranus barrier before turning down, with a negative divergence signal in the height of the fast MACD histogram peaks.

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While Hong Kong turned south after being unable to climb above a Saturn barrier.

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The build-up in the negative divergence levels on the oscillator for Jakarta was obvious and growing strident as that index struggled to overcome a Neptune price level in the mid-5100s ... but recovered the 4745 Neptune level with last week's strong bounceback.

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While Shanghai may be in the process of finding its bounce level after recontact with a primary Saturn price line at 2150.

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Now, each weekend we go through this exercise of trawling through planetary charts while I waffle on endlessly about astrological aspects and technical conditions. And that's just here. I got involved in a lively discussion with a couple of pals at the end of the week.

Both of them are not only intelligent, experienced, regular traders, but also have some enviable technical skills. We chat online virtually every trading day, swap tips and opinions, and tell jokes. These are conversations I wouldn't want to miss and if I had to trust someone else to invest for me, I'd trust these guys to make a profit more than any professional broker I've ever met.

Late on Friday, one of them was lamenting the fact his trading account was a little deeper in red ink than the previous week and I was reminded of why I wrote The Idiot & The Moon in the first place. And it's this ... a high-level IQ and an extraordinary degree of technical competence isn't a guarantee of making regular, reliable, safe profits from trading stocks. And nor is it even vaguely uncommon for regular traders to suffer varying degrees of despondency and anguish over trading decisions that continue to fail - no matter how much time, skill and effort they put into the job.

All of that is exactly why I came up with The Idiot. The Idiot is an Ego-destroyer without peer!

The Idiot reads nothing (except price bars), watches nothing, talks about nothing.

And yet ...

Well, here's the weekly Idiot applied to Miss Pollyanna. One of us made a lot of money trading this index. And it wasn't me. Even worse is the realisation it could, and should, have been me!

I do hope you all are smarter than I am!

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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

The Idiot and the Moon, Forecast 2013

• Major trend change dates for the full year, plus a month-by-month breakdown of high-energy trading dates and critical reversal dates.

• An index-by-index analysis of Moon Trading across major American, European, Asian and Australian stock indices-

• Identifies the major indices where following the phases of the Moon can dramatically cut profits, or even result in large losses.

• Old Gods & Gold ... a Eureka! discovery about exactly what drives gold prices during rallies and corrections and charts showing highly-reliable target levels to both the upside and downside.

These price charts are individually-tailored to each index and cover Wall Street, Australia, Canada, Hong Kong, Singapore, Shanghai, India, England, Germany and France.

You will not see these charts anywhere else on the Internet!

And much more...

It is NEVER too late in the year to have this monthly information!

Gold, SP500, TSX, Europe and the ASX200

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 20, 2013

So far, the only real "sell in May" action we're seeing is in gold and mining stocks.

This week kicks off with another exact hit of the long-running Uranus square to Pluto and will end with another Full Moon Lunar Eclipse.

The Sun leaves stable and money-conscious Taurus and moves into Gemini. Volatility will increase - and in both directions. Mercury and Venus will also be in Gemini and will be joined by Mars at the end of the month.

It puts all the inner planets on course for a conjunction get-together with Jupiter. We'll take a close look at the potential implications of that next weekend; but the past two years have seen intermediate tops locked-in as the Sun and Venus conjuncted Jupiter.

Wall Street, England and Germany have now reached long-range targets published in Forecast 2013.

We'll spend this weekend looking at those targets and the technical state of the charts to see if "that's it", or whether the rally still has legs to run.

I'll update Australian readers on the state of the ASX200 and we'll take a look at the latest rundown in gold prices.

And it's gold we'll look at first.

While the topic is not raised in The Idiot & The Moon, I have on occasion discussed a technical condition called trading against a spike. The last significant one of these we saw was in stock indices in August-October, 2011. Gold now appears to be in a similar state.

Basically, what happens is this ... price produces a large-range spike; there is a strong bounceback from the low; and then the spike is retested. It is the nature of how the spike is tested which gives us an indication of whether a larger bounceback is coming, or whether the freefall continues.

The planetary charts for gold, and their explanation, were introduced in Forecast 2013 and, so far, gold continues to play to them with almost uncanny accuracy.

In the chart below, we see the sudden April plunge ... the strong bounceback ... and now the retest is underway.

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For a stronger bounceback to occur, or even a complete trend change, gold needs to make either a higher low, or only a marginal new low. The higher low would come from around 1337 and a marginal new low should not go significantly below the rising, primary Sun line currently priced at 1320.

The reality is that for gold to recover, stock indices probably need to drop ... and that's what we'll spend this weekend looking at.

At various times recently, I've published this chart for Pollyanna, the SP500, indicating the index may have been on a run between Uranus/Pluto planetary barriers. The target price was around 1610, though I did warn there was a higher target in the 1660s.

And ...

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It's interesting to see how Polly has dealt with these Uranus/Pluto price zones since bouncing off one late in 2012 to launch into very strong rally mode - the resistance has been overcome by forced jumps over the hurdles. The next Uranus/Pluto zone is the 1700s.

However, let's look at where the index is in relation to the long-range planetary targets I published in January, in Forecast 2013. The index is now hitting against strong resistance from a Node barrier. The next highest target is Pluto at 1719.

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We are, however, entering the statistically negative period between the 1Q and Full Moons ... and with Polly having breached the topside of the Bi-BBs. As explained in The Technical Section of the book, a breach of the upper or lower outer bands tends to cause either a sideways shuffle, or a countertrend.

Last week's price action breached the weekly upper band for only the second time in years. The previous one prompted a 9-week decline after some initial sideways shuffling. One other thing to note is that all the declines so far have travelled the full width of the bands ... so, IF one starts in the next week or two, the history suggests Chicken Little is going to want to slash 200 points from Polly.

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The other warning sign on the chart above relates to the condition of the fast MACD histogram peaks. The signal lines are fine. But the histogram peaks have been in constant decline throughout the rally from October, 2011.

Okay. The two other Western indices as brightly optimistic as Polly are the FTSE and the DAX. We'll deal first with Germany, which has had a breakout above the major price target published in the Forecast.

Ten-thousand plus seems like a fairytale target. But, that's the next major planetary barrier for the DAX.

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The planetary lines in the chart above are set at their maximum width. However, I used them because the German index has a strong track record of actually reaching them and they cannot be dismissed lightly. But we can use a Fibonacci Extension tool as a guide to potential targets within the 2000 points of "empty" space above.

Even so, the nearest higher target is several hundred more points away. AND all 3 Canaries - short, medium and long-range - are not at all unhappy.

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The FTSE's long-range planetary price chart is below and I discussed in Forecast 2013 how the 6300s would be a difficult area, given the index's history of stalling at Uranus/Pluto zones. London has had a strong breakout after the months-long stall in that zone ... and also broken above the Neptune barrier which stopped the 2007 Bull run.

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And in the chart below, the long-range Canary is singing quite happily. Note the divergence which slowly built in the indicator (the blue line in the lower oscillator panel) as price rose into the 2007 Bull peaks ... and note especially that there is absolutely no sign of divergence in its current readings.

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Paris is next and I again use the chart from Forecast 2013. The CAC40 finally managed to break free of the 3800 price zone.

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Since the CAC is not breaking out to new Bull market highs, we need to pay attention to the Fibonacci Retracement levels. There is very strong positive divergence evident in the FiboRx chart below. None of these oscillators has been this happy since the post-2009 recovery began and the higher FiboRx levels correspond with the potential planetary targets.

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Returning now to North America for a look at the Canadian market. The TSX is in a similar state to the CAC40 ... ie: well below its earlier recovery high.

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Now to my home market, Australia. Again, probably the most important thing on the chart is the state of the long-range Canary. While the short-term and medium range Birds are declining, the long-range line has hit new peaks. No negative divergence building, as it did during the push into the 2007 highs.

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Auntie's Weekly Planets chart is below. After being blocked by a Neptune level in March and April, the index is now testing support on top of the line - and the price targets, if it succeeds, are obvious.

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However, there is a warning sign flashing. The long-range Canary is holding above the +100 level, but appears to be increasingly unhappy. Remember this is a weekly chart - and the negative divergence is not present in the monthly chart.

Which suggests that any short to medium range price weakness in the index will be overcome and that higher prices are not merely possible, but are probable, over the course of the year.

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

The Idiot and the Moon, Forecast 2013

• Major trend change dates for the full year, plus a month-by-month breakdown of high-energy trading dates and critical reversal dates.

• An index-by-index analysis of Moon Trading across major American, European, Asian and Australian stock indices-

• Identifies the major indices where following the phases of the Moon can dramatically cut profits, or even result in large losses.

• Old Gods & Gold ... a Eureka! discovery about exactly what drives gold prices during rallies and corrections and charts showing highly-reliable target levels to both the upside and downside.

These price charts are individually-tailored to each index and cover Wall Street, Australia, Canada, Hong Kong, Singapore, Shanghai, India, England, Germany and France.

You will not see these charts anywhere else on the Internet!

And much more...

It is NEVER too late in the year to have this monthly information!

The Jupiter squares ... how to make money

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 13, 2013

This weekend I'm going to depart from the normal format to discuss Jupiter's travels through the zodiac ... and how that causes bumps and slumps in groups of stocks.

In tech-speak, we call it "sector rotation". We've all seen it in action; investors seem to fall in love with stocks in particular groupings and they fly into the sky like Icacrus ... before their popularity fades and they tumble back down to earth.

Well, we can forecast this by watching Jupiter.

I first learned this from my old friend, the late Kaye Shinker, one of the real pioneers of research into financial astrology at a practical level.

I will explain it as simply as possible. The principle behind Jupiter symbolism is to "expand" whatever it touches. The down-to-earth meaning is that Jupiter will increase either the demand for OR the supply of a particular product as he travels through the zodiac, spending about a year in each sign before moving onto the next one.

Products ruled by Jupiter's current sign position will tend to suffer a glut. VERY bad for stock prices in that area. Products covered by the signs Jupiter is squaring will tend to be in short supply AND high demand. Very GOOD for stock prices.

We'll see how this works in action by looking at some charts.

Now what Kaye discovered is that The Jupiter Effect takes place while the FatBoy travels from the middle-range of one sign to the middle-range of the next.

Jupiter is now at 19 degrees of Gemini heading onto Cancer - and that means we are now starting the early stages of what should turn out to be a massive sector rotation over the coming year.

To be frank, Jupiter in a particular sign does not necessarily produce a glut. It is one of the reasons I am so constantly nagging you that astrological expectations do NOT over-ride technical conditions.

But, let me show you. Jupiter in Gemini should have had a dramatic impact on: telecommunications, media, travel, broadcasting. I am using Incredible Charts monthly data for all the charts in this weekend's edition - and we begin with the telecoms index of the ASX.

As we can see from the chart, Jupiter in Gemini prompted a very strong rally in telecom share prices over the past year.

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Now, if we had known ahead of time that there would be some sort of big move in communications, we could have fine-tuned our stock buys for the year ahead ... looking at, say, two of the Dow's biggest companies, Verizon and AT&T.

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Now, these two Dow components did not enjoy quite the same strength as the ASX telecoms index. And it wasn't a particularly good year in terms of phone wars for some electronics companies.

But, what happened to stocks from those sectors that Jupiter was squaring? Well, from Gemini, the squares were to Pisces, which rules shipping, oil, alcohol, drugs and "dreams" and to Virgo, which has rulership of health and hygiene.

Here's Chevron ... which is now making all-time highs!

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And here's what happened with perhaps the ultimate dream/fantasy/celluoid stock, Disney ...

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And here's what happened with healthcare stocks over the past year, seen through the lens of the ASX healthcare index ...

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We get some idea from these charts exactly HOW The Jupiter Effect works. Some of the Gemini-type stocks, like the phone makers, had an awful year, while there was a glut of that Gemini trait "talk", increasing the demand for telecom service providers.

But, some of the biggest winners from the past year were from the "square" areas - Pisces and Virgo. Now, a word of warning! You'll notice that the tech signals in those stocks are starting to roll over.

And that's because from where he is now, in mid-Gemini, Jupiter's travels will cause a major shift in investor thinking.

Cancer, his next sign, and taking into account Capricorn (the sign opposite Cancer), will impact: food, restaurants, farms, hotels, restaurants, building supplies, household appliances and dwellings of all kinds.

The two signs that will be "squared" are Aries and Libra. Aries is military gear, heavy machinery, iron, steel, engineering. Libra is luxury goods, copper, jewels.

So, while it might not seem like it at the moment, it is highly likely that mines and miners and heavy industrials are about to make a big comeback.

That's the astrological expectation! But, do the technical conditions support the theory?

Well, here's the ASX materials index ...

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The index may now be starting that turn. On weekly charts, firms like BHP and Rio Tinto appear to be forming a long-term bottom. The effect may also impact on firms like Caterpillar, which had a very strong rise while Jupiter was actually in Aries.

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As well as strong miners, and heavy machinery makers like Caterpillar, we should also be trawling through our lists of engineering and building companies. The ASX engineering index chart, below, is showing signs of a potential turn northwards

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However, with the Cancer symbolism starting to come into play, we also need to watch for changes in the popularity of building supply companies - like Home Depot, for example.

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 And since Cancer specifically rules things like food we need to be aware there will be either a food glut OR food shortages.

Cancer rules consumer staples. But Libra is coming into "square" and Libra rules consumer discretionary items. Here is the ASX consumer staples index ...

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And below is the ASX consumer discretionary index ...

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Please note the vastly different status of the long-range Canary on these charts ... consumer staples are showing signs of topping-out and consumer discretionary is showing marked positive divergence.

Cancer/Capricorn also rules real estate and office accommodation. Below is the ASX property trust index ...

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And below is the chart of the ASX industrials index ...

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Okay. By now you should have some grasp of what stocks you need to start considering with caution ... and which ones have the potential to rise strongly over the course of the next year.

I stress that I have only scratched the surface here! Individual stocks having strong Jupiter transits can resist the Icarus dive for a while; and "square" stocks suffering strong Saturn aspects to their first trade chart might NOT rise as strongly as some others within the sector rotation.

Again. You MUST use a technical oscillator to help determine the direction of your trades! The purpose of this weekend's edition is to get you to start thinking about the impact of a large-scale shift in investor thinking and emphasis, now starting to get underway and which will gather momentum over the next year.

You need to remember the very first rule of trading successfully - Buy Low, Sell High! It's time to go through your portfolio stocks and look to exit those sectors starting to roll over from highs ... and start identifying those which appear to have spent some time trying to lock in a solid base from which to launch an Icarus flight.

The individual stocks will vary from market to market, but the overall principle of The Jupiter Effect knows no international boundaries.

The Jupiter squares to Aries and Libra should cause price increases for things like iron ore, steel, copper, heavy machinery and military gear, as well as luxury goods and consumer discretionary items.

It MAY cause an increase in demand for real estate and/or office accommodation, rather than a glut of supply. But, exactly which of these actually manifests will depend on local conditions.

If you're using The Idiot system properly across the three timeframes AND using one of the recommended oscillators to look for either positive or negative divergence, you should have no trouble identifying the stocks you need to be selling now ... and those showing the potential to run hard and run fast over the next year.

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

The Idiot and the Moon, Forecast 2013

• Major trend change dates for the full year, plus a month-by-month breakdown of high-energy trading dates and critical reversal dates.

• An index-by-index analysis of Moon Trading across major American, European, Asian and Australian stock indices-

• Identifies the major indices where following the phases of the Moon can dramatically cut profits, or even result in large losses.

• Old Gods & Gold ... a Eureka! discovery about exactly what drives gold prices during rallies and corrections and charts showing highly-reliable target levels to both the upside and downside.

These price charts are individually-tailored to each index and cover Wall Street, Australia, Canada, Hong Kong, Singapore, Shanghai, India, England, Germany and France.

You will not see these charts anywhere else on the Internet!

And much more...

It is NEVER too late in the year to have this monthly information!