Saturday, July 26, 2014

Financial Astrology - July 27, 2014


The first order of business is to correct the Primary cycle count. After an email discussion with one of our readers I believe the Primary cycle count I've been using for the SP500 is incorrect. Mr. L. S. pointed out the Dow probably had Primary cycle low on May 20th. This would put us 10 weeks along in it's Primary cycle. One thing we look for in a Primary cycle (nominal 18 week or 90 td's) is for price to break through the 15 day sma then the 45 day sma. The 45 day being 1/2 of the approx. 90 td cycle. Another thing we look for is the 15 day sma break below the 45 day sma. This did not happen in this case.

Looking at the following  daily chart of the DJIA we see that price broke through the 45 sma very briefly around the May 20th low. This is a weak low but helps explain where we are at the present time, that being 10 weeks along a Primary cycle that started on May 20th. It helps to get differing opinions on these cycles. In this case I say thank you to Mr. L.S. and his input which was very correct.



While we are at it, following is a revised Primary cycle count for the SP500. Price dipped below the 45 sma very briefly on May 15th. This puts us in the 10th week of the Primary cycle. The following daily chart of the SP500 reflects the changes to the cycles.

Note the 15 and 45 sma (simple moving average). They are both plotted normally as you would see on most sites.



When searching for cycles it is very useful to center the moving averages. That is move the 15 and 45 sma's back 7 and 22 days respectively ( it's a daily chart) if your software can do it.

Following is the same chart of the SP500 with the moving averages centered, or moved back 1/2 of the moving average length.




Compare the two charts. Note how the Primary cycle troughs stand out more when the moving averages are centered. For a Primary cycle low ideally we want to see the 15 sma lower than the 45 sma and price lower than both. So this is useful when looking back in time and trying to identify cycle turns. We also get more accurate counts of where we are in the current Primary cycle. In this case 10 weeks along rather than the 24th week which we had on the previous weeks report.

That said we are still looking for a move down in both the above indexes but not as deep as a Primary cycle low because it isn't. They are 10 weeks along.

What should also be noted is the Primary cycle has had, over a long period of time, an average of 18 weeks with a range of 15-23 weeks. As can be seen on the above charts the lengths of the Primary cycle have been short for the last year and one-half coming in at approx. 16 weeks. This needs to be watched.

This is now pointing to mid September time frame for a Primary cycle low.

That said what does the SP500 look like now?



Thursday July 24 was a Doji (often seen at turns) and then down on Friday July 25th. The coming week has Venus translating the Uranus / Pluto square. I expect to see a volatile up and down week. There is an FOMC meeting on Wednesday July 30th.

What is coming up in August looks nasty. I've mentioned July 20 had Saturn turning direct and July 21 Uranus turning retrograde. I've also mentioned in previous posts there is a time window around the dates of retrograde and direct movement. The above mentioned time windows extend to Aug 8 when the Sun trines Uranus and Aug 9th the Sun squares Saturn. That weekend there is another perigee Full Moon on Aug 10th (or Super Moon). Saturn is in a T-Square configuration to this Super Moon. Watched out for major accidents, violent weather and geophysical events.

The above are stressing Saturn which is in the sign of Scorpio. Both Saturn and Pluto transiting Scorpio have a history of epidemics and general health concerns. Currently there is an Ebola outbreak in Africa and a possible bubonic plague occurrence in China. With Saturn in Scorpio and Mars catching up to Saturn with a conjunction on Aug 25th, I would expect these epidemic outbreaks to worsen in the month of August.

Saturn in Scorpio can also represent changes in tax structure and problems with debt. Portugal has had some recent bank debt problems. I expect there will be more.

Aug 25th is also 1,998 cd's from the March 6, 2009 low on the SP500 which was 666. 1998 = 666 * 3. Watch this date.

Gold
Gold is in the 8th week of it's Primary cycle and the first Major cycle (6 week, with a range of 5-7 weeks) of the Primary. We have now had two attempts to break through the 1293.75 area which is 50% retracement of the move up from June 3rd to July 10th.

July 25 had Mars in Quintile to Pluto as it entered the sign of Scorpio. On July 26 the New Moon squares Mars as it entered Scorpio. The current daily chart for Gold follows.

Any move below $1280,on strong volume and I will be out. Subscribers have the dates where I expect we'll see a rise in Gold prices and for how long.



Silver is in the 9th week of it's Primary cycle. Like Gold we got the pullback we were looking for. Nevertheless I bought. We could still get a pullback. I'm looking for Silver to take out previous highs, first, on Feb 24, 2014 then Oct 30, 2013. Like Gold I'll buy any declines from here. Any move below the May 30 low and I will be out. Remember the only metals that has been manipulated more than Gold is Silver. The Central Banks of the world will fight against rising precious metals prices. They want your money in stocks.



Two specific dates for Silver were given to subscribers this week.

Crude
We are in the 13th week of the Primary cycle in crude and it appear to have put in the second Major cycle trough of the Primary cycle. With the problems in the mid-East, production of crude and it's transport may be a large problem forcing the price of crude up.

Seasonally week, yes, but Jupiter is moving into degrees in the Zodiac which have been very important for the price of crude and decisions related to crude and the regions boundaries in the mid-East.

From last weeks post:
"Will borders be changed? Will Israel be receiving more oil from the Kurds? Will the US, Britain or France stick their respective noses into this situation. I'll wait and see. There is big trouble in the making. Watch closely."

Also from last week:
"On another note, Jupiter is the "King's planet". This may signal changes in the head's of state or other organization in any of the mid-Eastern countries. Any country with a stake in crude production in the mid-East. I would add Turkey to the mix. I'm watching Saudi Arabia as well."

What I'm saying here is many people are watching Gold and other PM's. Watch crude as well. Subscribers, have had critical dates for a few weeks.

There are some other issues regarding crude. There has been a dramatic increase in small earthquakes in the states of Kansas and Oklahoma. Some are pointing to waste water pumped into the ground after drilling shale projects as the problem. This situation needs to be monitored closely.





Saturday, July 19, 2014

Financial Astrology - July 20, 2014


Well, we've had dramatic world events, two major typhoons and a couple of earthquakes but the latter were not that strong. All forecast in this blog and market letter over the last three weeks. The exact transits that would cause such events are centered in the July 20 -24th timeframe but sometimes, when a dramatic event occurs it takes the pressure off. Nevertheless be watchful of the news as there could be other events unfold or lies exposed. Let the propaganda wars begin, as if they ever end. When listening to the propaganda machines, ask your self the question cui bono, "Who benefits".

There could be more geophysical events and violent weather around July 20-23 and then July 28-31. I'm hoping there are no other events like the downing of flight MH17 but with the prevailing Astrological transits, there could be. Israel / Gaza or Iraq could resume center stage, however, that would not be surprising. There may be another surprise event. Watch for issues involving debt and banks.

This coming two weeks could see debt problems or banking issues surface once again. The Portuguese bank last week may be the tip of the iceberg. Violence should continue in the hot-spots of the world.

July 20 Saturn turns direct in Scorpio, then on July 21 Uranus turns retrograde (appears to be moving backward). Saturn turning direct could point to issues with debt, banks, stock markets and other peoples money. Uranus signatures usually equate to sudden, surprise events. This is emphasized since it is in Aries as is independence which is what most of the current fighting around the world is all about. That is the people in power want control and the people want independence.

During this period Saturn and Uranus are in a Quincunx aspect (150 degrees). This is generally viewed as a minor aspect but in this case there are two powerful slow moving planets involved. This could bring sudden changes or restrictions to banking or financial service, taxes etc. This aspect is telling us we need to make changes. This seems to be pointing to the things mentioned above, debt, banks, stock markets and other peoples money This aspect is in force for a couple of months around the exact date but could be triggered now due to the direct and retrograde motion of Saturn and Uranus.

On July 15 the leaders of the BRIC (Brazil, Russia, India and China) countries and South Africa met in Brazil to sign an agreement to create their own development bank. The new bank is seen as a strong push by the BRICs against the World Bank and possibly the beginnings of a challenge to the US dollar being the reserve currency of the world.

I didn't see this photograph in the main stream media.



SP500
We have been expecting a pullback in the markets. So far it has been very small. We were looking for a trough in the Primary cycle (nominal 18 week) with a range of 15-23 weeks. Currently we are 24 weeks along the Primary cycle. This is now over due. The following daily chart of the SP500 shows it has been going sideways since July 3rd.
For a Primary cycle trough we ideally would like to see price go below the 45 sma (simple moving average). This is currently around the $1942 area. Beyond the aspects mentioned above there has been a number of planets changing signs which often results in a change in peoples attitude. These planets may affect crude issues. Subscribers have the dates.

There are a number of smaller market cycles hitting this week as well.



To follow a chart we've shown a number of times the following daily chart of the SP500 shows the Pluto price line (blue) and the North Node price line (red). Looking back they have both been resistance, then resistance turned to support. The North Node currently appears to be support. Any break through the 1956 area on good volume could start a pullback. Technically there should be resistance in the 1945 area as well.



We had added the chart of the Russell 2000 (RUT) a couple of weeks ago as it is felt an index of 2000 stocks is less open to manipulation than the major U.S. index's (SP500, Nasdaq 100 and DJIA).

The Russell 2000 appears to have put in a Primary cycle low on May 15th which means it is entering the 9th week of the Primary cycle and may have just put in a Major cycle trough which was a little late. Normally this would be a buy signal, but with other world events, I'm watching for now. Notice it bounced off the 61.8% retracement level of the move up from the low on May 15th to the high on July 1st.

In general the Russell 2000 is behaving the way we are used to seeing in the market and it's cycles. Presumably without the influence of the FED's manipulation.




Gold
We have been waiting for a big move in precious metals. We got the pullback we were looking for in Gold and Silver. In Gold the move down to the 1290 area was almost too perfect. Gold is currently in the 7th week of it's Primary cycle. It made a quick move down this week and may retest the 1290 area this week. The Sun rules Gold and the Sun rules Leo. By Tuesday, July 22nd we will have the Sun and Jupiter (the greater benefic) in Leo. One would think positive for Gold but there is another much bigger Astrological event coming up for precious metals. Again the subscribers have the forecast dates. July 21 - 25th may be quite volatile. I'm buying the dips.

Any move below $1280,on strong volume and I will be out.



Silver is in the 8th week of it's Primary cycle. Like Gold we got the pullback we were looking for. Nevertheless I bought. We could still get a pullback. I'm looking for Silver to take out previous highs, first, on Feb 24, 2014 then Oct 30, 2013. Like Gold I'll buy any declines from here. Any move below the May 30 low and I will be out. Remember the only metals that has been manipulated more than Gold is Silver.



Two specific dates for Silver were given to subscribers this week.

Crude
Seasonally this is a weak period for crude, however, with the disruption of crude production in Iraq, Libya etc. price has shot up and now moved down, at least in the US. (WTIC).

Seasonally week, yes, but Jupiter is moving into degrees in the Zodiac which have been very important for the price of crude and decisions related to crude and the regions boundaries in the mid-East.

From last weeks post:
"Will borders be changed? Will Israel be receiving more oil from the Kurds? Will the US, Britain or France stick their respective noses into this situation. I'll wait and see. There is big trouble in the making. Watch closely."

Big trouble in the making in deed. With the news flow from the Israel / Gaza conflict the Iraq situation is on the back burner. I'm sure it will be on the hot front burner soon. I'm expecting the issue to be the control of crude production and export.

Also from last week:
"On another note, Jupiter is the "King's planet". This may signal changes in the head's of state or other organization in any of the mid-Eastern countries. Any country with a stake in crude production in the mid-East. I would add Turkey to the mix. I'm watching Saudi Arabia as well."

What I'm saying here is many people are watching Gold and other PM's. Watch crude as well. Subscribers, use the dates I supplied two weeks ago.

There are some other issues regarding crude. There has been a dramatic increase in small earthquakes in the states of Kansas and Oklahoma. Some are pointing to waste water pumped into the ground after drilling shale projects as the problem. This situation needs to be monitored closely.



Thursday, July 17, 2014

July 17, 2014 update.

From the July 5th blog post and the Malaysian plane disaster today.

"We have arrived at a time period where we should witness dramatic global events. This should start July 4th through July 22 and could extend a little further."

This has been repeatedly mentioned in the weekly market letters as well.

We are not out the woods yet. There could be other events from now into July 25th, possibly later.




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