I accidently posted it on the main forum too..
with some highlights. I'll probably get some voodoo comments now..
TM
Please note that there will be no weekly column issued in two weeks, for the week of May 28, due to the UAC conference taking place May 24-29 in New Orleans, LA. We hope to see many of you there. For information please go to www.uacastrology.com.
Review and Preview
It is always bleakest just before the bottom. After all, prices are falling and investors are worried that that their profits are evaporating or their losses are increasing. But it is precisely that type of psychology that is prevalent at cycle troughs. In their fear, traders and investors tend to give up and sell their positions. Interestingly enough, this happens at regular intervals of time in the market, known as cycles, and especially when certain geocosmic signatures are also in effect – like Venus turning retrograde, which is happening this week (May 15), but whose orb of influence was well in effect last week.
This was the situation on Tuesday night, May 8. Once again a special report on precious metals was sent to all subscribers on Wednesday morning, several hours before the USA markets opened. On Tuesday, Gold had dropped below its 1613 low of April 4, and Silver fell to its lowest level in four months. I suggested the price of Gold could “… drop to 1579 +/- 12 and 1585.20 +/- 9.80. But we cannot rule out a severe washout, quickly taking prices even down as low as 1499 +/- 35.” That day Gold drop hard, down to 1578.50. The next day it was back above 1600. But that was not enough to confirm the primary bottom was in, which is still expected within 12 trading days of Venus turning retrograde. But in most cases of the past, that low unfolded within even 4 trading days (i.e. about 1 week). On Friday, Gold dipped even lower, down to 1572 intraday.
Although the special report was on Gold, it applies equally well to both stock indices and currency markets. As Gold fell, so did the Euro currency as French President Sarkozy went down in defeat to Francois Hollande, who was opposed to the austerity measures supported by Sarkozy, Merkel, and Draghi (and probably Sweden’s leadership as well, who like Germany, have seen their economies grow very nicely by applying austerity measures to their economy). So the Euro futures market began the week by opening below the neckline of a head and shoulders pattern (i.e. a term known to chartists and market technicians for its bearish implications). The Euro currency fell to its lowest level also since January. On Friday, May 11, the June futures contract was down to 1.2906, which is exactly into a price target for such a low at this point in the cycle, 1.2906 +/- .0069, via a calculation formula provided in Volume 5 of the Stock Market Timing series. It remains to see if that will hold as the low for the Venus retrograde reversal signature, or if it will yet fall lower – maybe even to 1.2500 – as the powerful geocosmic reversal signature says could still happen too, as long as this orb of influence remains in effect. The Euro needs two closes back above that neckline, which is around 1.3090, to look positive again.
Equity markets around the world behaved most interestingly as well last week as we head into this magnet-like effect of the Venus Retrograde, May 15. So far, the magnet is pulling stock prices down. But if Venus retrograde is indeed to be a valid reversal signature this time as it has been so often in the past, it implies a bottom is close at hand and a rally is to begin.
Short-Term Geocosmics
It is mostly about Venus turning retrograde on Tuesday, May 15. That’s the powerful Level One signature now in effect, according to the studies published in Volume 3 of “The Ultimate Book on Stock Market Timing” series. But the Sun will also form a conjunction to the largest planet in our solar system – Jupiter – on Sunday, May 13. The former has a very high correlation to reversals for primary cycle crests or troughs – or their secondary lows or highs – within 12 trading days. Since the market is coming down to test its lows of April 10 at 12,710 in the DJIA, we can assume it will be either a half-primary cycle trough, or a double bottom that remains slightly above the primary low of April 10, if it indeed correlates with a reversal at all (probabilities are about 80% +/- 3% that it will). As a market timer who enjoys the challenge of picking lows, this set up is enough for me to get excited about. On Wednesday, May 9, the DJIA fell to 12,748, which is already in the price range for a double bottom to the 12,710 low of April 10. On Friday, it was back down to 12,779. It’s still holding those lows, while the NASDAQ futures have broken well below it multi-month lows. Interestingly enough, the NASDAQ Composite cash index hit 2900 this week, the same level where it rested on the low of March 6.
The next important period looming on the horizon is the new moon solar eclipse on May 20. Both the Moon and Sun enter the sign of Gemini that day. The eclipse of the Sun occurs at 7:46 PM in the Eastern Daylight Time Zone, so you will be able to see it from the USA. Neptune will then form a waxing square to the Sun (and this eclipse point) on Wednesday, May 23. That might hold provide a temporary reversal zone for stocks.
However, it will be more interesting (from my perspective) to then see what happens when the Venus occultation (eclipse) to the Sun takes place on June 6, nestled in between the Sun-Venus conjunction in square aspect to Mars, June 4 and June 7. Jupiter also ends its transit of Taurus and moves into Gemini on June 11. It will stay in Gemini for one year. Remember: Jupiter in Gemini can be a blow-off high when Uranus and Pluto are nearby to a hard aspect. And they are, June 24, 2012 through March 15, 2015. Any new yearly highs now can start a big rally, even to new all-time highs. Failure to make a new high, however, means the long-term cycle high occurred when Jupiter was in Taurus after all, and between 23 Aries and 7 Taurus for the German DAX, whose high of May and July 2011 has not been exceeded yet. Our analysis a year ago that the stock markets of the world would not exceed new highs after March 7, 2012 has proved correct so far everywhere in the world but the USA. The USA stock indices have made new highs in late March through May 1, 2012, well after Jupiter left 7 degrees of Taurus, implying they could go yet higher to peak while Jupiter is in Gemini. It will be interesting to see which of these Jupiter factors work. Or will they both work, with Jupiter in Taurus correlating with the high in most of the world’s indices, and Jupiter in Gemini correlating with a higher high in the USA stock indices? That type of bizarre pattern is the very stuff that Uranus square Pluto can bring to the table. That is, if anyone can still afford a table, given that it also correlates with the next step of the exploding world debt crisis.
Longer-Term Thoughts
There will be no longer-term thoughts for this week. It will resume next week.
