A heightened sense of danger

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 October 22, 2012

While key DNA markers normally obvious at The Top are still missing in some Western stock indices, I'm getting the sense those markets have suddenly become dangerous.

For the past 6 weeks, the broad-based Wall Street index, the SP500, has been stuck below the 1468 level marked as a key barrier on my long-range Old Gods chart.

We've remained open to the possibility of a breakout to new highs at 1522, or even a blow-off to around the 1560 level.

And the reason we've constantly looked at that possibility is the lack of a negative divergence signal from the long-range Canary on Pollyanna's monthly charts.

A few editions ago, I pointed out that key divergence signal had started to become very obvious in the Nasdaq 100, the NDX. It may now also be starting to show in the Dow Jones Industrials.

In both of those indices, the heavy-lifting over the past couple of years has been carried on the shoulders of very few stocks ... like Caterpillar and Apple.

We will take a close look this weekend at the alarm bells going off in the NDX and the general state of some other major indices.

Normally, I refuse to be jerked around by one day's movement in any index. But, I'm getting a sense that something fundamental has changed following Friday's performance on Wall Street.

It's true the drop happened with the Moon in Sagittarius and I said last weekend: "Mars is now in Sagittarius and it'll be joined by the Moon later in the week. Sagittarius has a tendency to exaggerate either the optimism ... or the fear. And wide-range days are the norm when the Moon is in Sadge."

So, even though we did get a wide-range fear day down, I still can't shake the sense there has been a change at a deeper level. The week began for Miss Pollyanna pretty much in accordance with my expectations. I outlined two important scenarios for Miss Polly on Monday, or Tuesday, which would prompt a price bounceback.

I said: "And the key to direction will be how price performs on both Monday and Tuesday. On the chart to the right, note the intersection of the falling red Mars line with the thick yellow Uranus line.

It's at 1434. Pollyanna must close decisively above this level on Monday to re-enter rally mode. She gets a second chance at an astro energy boost on Tuesday, if she fails the 1434 Monday test.

In the chart above, the Venus square Jupiter price crossing point (rising green intersection with horizontal blue) is 1426.

So there are two things to watch for ... a Monday close above 1434, or a Tuesday low at 1426, from which price bounces."

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We can see what happened in the chart above - and there was no need to wait for Tuesday.

Because, on Monday, Miss Polly did make a decisive close above the 1434 level and re-entered rally mode for most of the week.

But with the Moon in a Sagittarian-exaggerated fear mode, Friday's freefall wiped out almost all of the gains.

Now, maybe it's just a one-off, one-day comeback for Chicken Little.

But, what if it's not?

Firstly, let's remind ourselves of where the Pollyanna index is in terms of its long-range planetary price markers.

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There is nothing out of the ordinary in the chart above. Well, apart from the fact the support and resistance lines happen to be determined by the position of a few rocks and giant gas balls Out There.

But, from a technical viewpoint, it still all looks hunky dory. Here we are two-thirds of the way through October and price is still largely within the spike part of September's range.

But, if you look at it on a weekly, it has been 6 weeks below the peak of that spike. That suggests it's either accumulation ... or distribution. In other words, the Big Boys have been slowly stocking up for another rally ... or they've been unloading hand-over-fist to anyone who believed Goldman's "buy, buy, buy" memo.

In the meantime, the NDX has been screaming "danger, danger, danger".

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We've discussed the importance of 50% Fibonacci Retracement levels in the past and noted the danger it posed on the NDX. We now have quite severe negative divergence between the long-range Canary peak in March and the much lower peak it posted last month when price briefly broke above the 50% FiboRx level.

But the divergence is more dangerous when we look at the peak the Canary made in 2007 and its performance since the 2009 bottom.

As y'know, in terms of astrological predictions, I expected markets to top out in March and go into freefall until at least October. So, these days I don't go out much because that much egg on your face isn't a good look in public.

In spite of that, the apparent failure of the long-range Jupiter-in-Taurus top is beginning to look more like a regional variation on the theme, rather than a broken signal.

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Here's another look at the NDX monthly, with the dark green bars showing the periods of Jupiter in the sign of Taurus. On the left of the chart, we can see the Nasdaq's blow-off, all-time high. As Jupiter entered Taurus, the market launched into the heavens.

We then got a secondary peak with Jupiter in early Gemini ... 3 monthly bars past the last green Jupiter bar.

And now ...

Yes, it's starting to look disturbingly familiar ... a marginal new peak 3 bars past the last of the Taurean Jupiter bars.

And London's FTSE index lends support to the NDX signals. There, the post-June rally has still not taken out the Taurean Jupiter high of March, nor the 2011 rally peaks.

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So, we seem to have arrived at an interesting place ... and the question is whether the American Presidential cycle, whose 4Q performance I touched on last weekend, has actually displaced the Jupiter-in-Taurus signature, or has merely temporarily delayed its onset. It's a vitally important question because if it's the latter scenario, we may already have seen The Top. There's no surefire confirmation yet; Bernanke and Draghi may yet drop more make-believe moneybags into the path of the tsunami. So, here's an update of the Weekly Planets charts for various indices to help guide your decisions.  

FTSE:

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DAX:

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ASX 200

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India's Nifty

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Singapore:

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Safe trading - RA

Astrological Investing's associate, Randall Ashbourne, author of the eBook, The Idiot and The Moon, 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 article, 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 - 2011-2012

Easy Predictions with Solar Returns

Easy Predictions with Solar Returns.

The chart pictured above is the Solar Return for the Dow Index's birthday May 27. It will be 115 years old. For its 2010 Solar Return the planets were scattered in every house of its chart making every aspect possible. The Dow had a low of 9600 and a recent high of almost 13,000. Wild and crazy all over Wall Street. With a stellium in the 12th trine Saturn it looks like they will be cleaning up a lot of garbage and muddle through all the challenges to their authority. See if you can make a prediction. OK ? Then share your thoughts.

If the horoscope has an accurate time of birth then calculating and reading a solar return is an excellent way to find some interesting information about your year ahead. Four planets in the fifth house suggests I will have lots of fun in 2011. Who knows maybe I will sell some stocks and buy new ones. That would be fun. As a matter of fact I've already made a 10% profit selling one stock and buying another. After all my birthday was six weeks ago.

Corporate Solar Returns
OK the idea works with my chart and it definitely works with friends and family charts, but what about the charts of companies. One problem we have with very old companies is an accurate time of day when they were incorporated. Without a good time then the Solar Return is not very useful. However, companies incorporated in Delaware are given a time stamp and Mike Munkasey has recorded these times in his Company Data Base. Let's take a look at a few Dow stocks and quickly back test their Solar Return.

Boeing
Boeing had Jupiter Uranus conjunct in the second house of it 2010 solar return. They had a record amount of orders and tested their Dreamliner 787. In 2011 they are set to build a new facility in South Carolina and Saturn is in the 4th house of the 2011 return suggesting that this will be a difficult situation throughout the year ahead.

Caterpillar

Caterpillar had Saturn in the 4th house of its 2011 return and they are steeped in controversy with the high taxes in their home state Illinois even threatening to move. 2011 promises to be an exciting year at Caterpillar with 5 planets in the 10th and Venus in the 8th promising pending orders will be completed and money paid. During 2010 Caterpillar had a first house stellium in its solar return and the company became well known in the marketplace with its ability to sell earthmoving equiptment. Pluto in the 11th said the stockholders were very happy as the price of the stock went up 50% and their dividends increased.

Dell

Dell has spent most of its 2010 Solar return working at home getting its house in order with Saturn, Sun Mercury and Venus in the 4th. Advertising has been good with Jupiter and Uranus in the 9th but Moon in the 10th shows leadership at all levels constantly changing. 2011 looks a lot better with planets in each of the money houses. Their sales will improve and finally they will take new product risks.

The Textbook for Financial Astrology Book 3 has all of the Dow charts included. Dell, Boeing and Caterpillar are Dow stocks. You may even purchase just the charts for the Dow in a separate book.

Easy Predictions with Solar Returns is written for the charts of humans not companies, but if you read the suggestions for each planet in a house thinking how would a company use this energy it will help you see the year ahead for some of the Blue Chips you may own or maybe the company where you work.

Guess my 5th house Solar Return stellium is working overtime. This was a fun blog to write. If you are an old timer at Financial Astrology and the numbers are bluring before your eyes, take a minute and give the Inc. chart for your companies a Solar Return.