“We do not know how or when these issues will be resolved,” he said.
“We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective.”
That promise to “act as appropriate” created an instant market reaction.
An Accurate Forecast
But here’s the interesting thing about the best week of the year, the one that we’ve just completed.
We knew it was coming ahead of time.
And it really had nothing to do with Jerome Powell’s speech on Tuesday.
Although we didn’t specifically say it would be the best week of the year so far, we definitely saw this week’s stock market rally coming.
It was because we saw a Mars/Kronos conjunction just ahead.
One of the key take-aways was that even after the exact Mars/Kronos alignment, we can still expect to see its effects continuing to play out in geopolitics and market action for a number of weeks to come.
That’s exactly what’s been going on now.
But that wasn’t all we talked about in the webinar.
In-Depth Webinar Transneptunian Training
We also took a look at:
The incredible power of a rare planetary combination
Back-tested tactics for powerful market timing
When to deploy a nuclear bomb
What led to the breakup of a major corporation
The upcoming planetary configurations that can move the markets
The stress points that can impact precious metals, oil, currencies and economic issues
A winning strategy you can use for your trading during the coming weeks and months
A fateful decision that split a nation in half
Why a key government agency is currently under attack
Transneptunian trading cycles
5 Fateful Mars/Kronos alignments
A closed-door meeting at a prominent Baptist church
Why an impeachment failed to remove a President
Remarkable calculations in the trenches
Key locations to watch for regime change
How a surveyor and a navigator discovered hidden forces
What’s coming up next for bitcoin and the euro
And much, much more!
To find out more about the continuing impact of this powerful event, and about what we can expect in the coming weeks, be sure to check out the webinar recording.
With a Vulcanus direct station on April 13, that’s worth looking at.
Its direct stations tend to be slightly bearish for the S&P 500. They bring lower prices about 46% of the time, and fall within 3 daily bars of an isolated high 59% of the time.
That’s also characteristic of the direct stations and the Hang Seng Index in Hong Kong. They bring lower prices about 47% of the time, and fall within 3 daily bars of an isolated high 60% of the time.
For the Dow Jones Industrial Average, however, the direct stations tend to be fairly bullish. They signal price reversals to the upside about 41% of the time, and fall within 3 daily bars of an isolated low 70% of the time.
But no matter what market we’re trading, we need to watch this Vulcanus direct station.
After all, i’s making us an offer we can’t refuse.
As I’ve been reminding my students and our members here at FinancialCyclesWeekly.com, W. D. Gann identified the equinox as a particularly sensitive time for the markets.
We talked about it at length during our March 1 webinar for our Gold-Plus Elite members – they’re the group of astro-traders who get regular guidance about current trading strategies.
We meet for regular forecast webinars, and share a weekly conference call to discuss the specific stock picks and market timing for optimum trading results.
Staying Tuned In To Gann
I’ve been making sure that this group has been tuned in to the important Gann date.
We also ran a cover story in the FinancialCyclesWeekly newsletter on March 12. It focuses specifically on W. D. Gann and the importance of the upcoming equinox.
“Keep your powder dry!” we advised our readers.
“Our back-testing of the past 34 years of market history shows this equinox typically triggering a short-term pull-back or consolidation in the S&P, followed by an aggressive rally,” we noted. “This year, however, we may see a sharper decline in stock prices just after the equinox.”
The Equinox Results
The equinox was yesterday, on March 20.
And, just as we expected, the selling pressure in the market started then – right on schedule.
The sell-off accelerated today, just in case there was any question about the validity of Gann’s approach.
How much did it sell off?
The Dow Jones Industrial Average plunged 237.85 points, off 1.14% for the day.
The Standard & Poor’s 500 Index lost 29.45, for a decline today of 1.24%.
It was clearly a big enough drop to command attention. It also called the Trump Rally into question.
And with a Kronos station coming up later this week, there may be even more selling ahead.
Once again, we’re all reminded of just how important Gann and his innovative insights are for us in our astro-trading today!
The post argues that the simultaneous record highs set by the Dow Jones Industrial Average, the S&P 500 Index, and the NASDAQ Composite Index is a strong indicator that a major top is in.
And if a top is in, of course, a big stock market crash is on the way!
Palisade Research illustrated the blog post with this dramatic chart. It not only shows the price lines for the Dow, the S&P, and the NASDAQ. It also shows the HUI Index, which is the NYSE Arca Gold BUGS Index. (Palisade Research has an unabashed bullish bias on precious metals.)
According to Palisade Research, “The last time the S&P 500, Dow Jones Industrial Average (DJIA), and NASDAQ closed simultaneously at record highs, each index tumbled for the next 2.5 years: -40.33%, 25.04%, and -75.04%, respectively.”
If History Really Repeats Itself, Just How Bad Will The Stock Market Crash Be?
The classic warning in the markets, of course, is that “past performance is no guarantee of future results.”
That’s true when we want to make optimistic assumptions about our trading prospects. It’s true when we seek to justify big positions on the basis of our back-testing and the big successes we may have experienced in the past.
But it’s also true of doom and gloom predictions, too!
Even so, Palisade Research doesn’t hesitate to extrapolate the likelihood of a major plunge based on what happened after the most recent stock market crash and its predecessor 14 years ago:
“In fact,” the blog post notes, “if the market were to correct in a similar way as we saw in 2002 and 2009, we can expect the S&P 500, DJIA, and NASDAQ to drop -64.65%, -60.72%, -75.80%, respectively.”
So will get a giant stock market crash in the weeks ahead?
Time will tell. It’s been almost 2 years since we mentioned a possible stock market crash.
But our analysis definitely shows the potential for consolidation, if not an outright correction.
And with the current eclipse cycle getting underway, this is definitely a time for stock market bulls to be extremely cautious!
As the closing bell rang on Thursday, December 31, a challenging year in the markets came to an end.
It left many traders more than ready for a long holiday weekend, with a good excuse for applying generous doses of intoxicants to the New Year’s Eve task of putting the turmoil of he past twelve months behind them.
Buy-and-Hold Strategy Fails Again
After all, 2015 was certainly not a good year for buy-and-hold investors.
The Blue Chips in the Dow Jones Industrial Average traded flat for much of the year before beginning a sharp sell-off at the Venus/Uranus trine in mid-August.
The Dow followed that up by rebounding nicely in October, and then treading water for the remainder of the year.
The index finished the year with a loss of 2.23%.
A Do-Nothing Year For The S&P
The S&P 500 followed a similar pattern.
It finished up the year with a surge of almost 4 percent immediately after the Winter Solstice. Then some uncertainty and profit-taking in the last two trading sessions in December brought it back down to a net loss of 0.73% for the year.
The Biggest Yearly Losses Since 2008
It was by far the worst annual performance for the equities market as a whole since the big bull market got underway in March, 2009.
While the 2015 spikes in market volatility in August and December opened up some good opportunities for short-term trading profits, it was nevertheless an extremely challenging years for most traders.
Applauding The Astro-Trading Track Record
The notable exceptions, of course, were the savvy traders who profited from the astro-trading advantage.
Although we suffered a couple of plateaus in the growth of our equity line for the Financial Cycles Model Portfolio, the year as a whole was quite rewarding as a demonstration of the power of market astrology.
Our Gold-Plus Elite members who traded along with our week-to-week program of stock selection, market analysis, and astrologically-based trading strategies saw a net return for the year of 34.20%.
A Strong Astro-Trading Track Record For 14 Years
The astro-trading track record that we compiled in 2015 may certainly seem remarkable compared to the mediocre performance of the market as a whole.
But this year’s astro-trading track record was right in line with what we have come to expect after more than a decade of applying the principles of financial astrology to active trading in the stock market.
For the past 14 years our average annual ROI with this program has been 35.13%, compared to average annual gains of 5.32% for the Dow and 7.13% for the S&P 500.
While our past performance certainly can’t guarantee future results, it’s clear that this kind of consistent market out-performance is worth paying attention to.
In fact, if anybody makes negative comments about astrology in the markets, or questions the effectiveness of this approach as a trading methodology, just show them this review of the real astro-trading track record that we’ve put together, year after year after year!
October surprises in the stock market usually mean bad news for the bulls.
At least that’s the popular notion about the month.
After all, October has a solid reputation for being associated with stock market disasters.
History In The Making
There was the October surprise of the historic stock market crash in 1929, of course.
And the back-to-back October massacres of 1978 and 1979, as well as the major crash in 1987.
They all took place in different Octobers, just like the market plunge on Friday the 13th in 1989, the staggering 554-point drop on October 24, 1997, and the acceleration of the last big market crash in 2008.
October Surprises That Aren’t Bad News
But not all Octobers wind up bringing bad news for the stock market.
In fact, some Octobers during the past 60 years have been extremely positive, at least as far as triggering positive trend reversals have been concerned. There have been a dozen times when stock prices were in a bearish sell-off, and the downtrend came to an end during the month of October.
A Trading High and a Solar Eclipse
The first example comes from 1946.
In that year, the Dow Industrial Average hit a trading high on May 29, which was the eve of a powerful solar eclipse. The decline that followed that eclipse pulled stock prices lower by more than 24% over the coming months, until the market found a bottom on October 10.
Three Months with the Bears in Charge
In 1957, Mercury was just entering the sign of Leo at the Full Moon in July when the market top took place. A decline of more than 19% followed, with the sell-off lasting until October 22.
A 14% Market Loss Ends in October
Three years later, a market top at the Full Moon on June 9, 1960 led into a decline of almost 14% before a trend reversal on October 25 defined a trading bottom, with Mercury stationary and about to go retrograde.
Ending the Plunge of 1962
Trading had just gotten underway for the year on January 3, 1962 when Saturn entered Aquarius and the market began a fierce decline. It plunged by more than 26% before a reversal at the Venus retrograde station on October 23 defined a double bottom in the market trend.
Trying in Vain to Break 1000
In January, 1966 the Dow Jones Industrial Average managed to trade above the magic 1000 mark on an intra-day basis for two consecutive days, but failed to close at that level both times. Then on February 9 and 10, the Dow again traded above 1000, but also failed to maintain that price level at the close. Instead, the stock market went into an extended decline after its failed excursion – the index lost nearly 26% by the time it found a trading bottom on October 7.
October Ends a 21-Month Bear Market
Venus was just entering Capricorn on January 11, 1973 when the Dow topped off a 13-month rally and closed at 1051.70. That high was followed by a fierce bear market, with the index dropping by more than 44% over the next 21 months.
The bloodbath finally came to an end on October 4, 1974, when the Dow hit an intra-day low of 573.22 and prices began to move back upward. That October low was tested successfully in early December, and by January 1975 a clear rebound was underway.
The Harmonic Convergence Market Top
At the stock market’s opening bell on August 24, 1987, the much-publicized “Harmonic Convergence” was underway, with a cluster of the Sun, Mars, Venus, the Moon and Mercury all within an incredibly tight orb of less than four-and-a-half degrees. This alignment was forming a loose Grand Trine pattern with Jupiter and Neptune, creating an extraordinary planetary signature of peak speculation.
Sure enough, on the following day the Dow surged up to close at the then-incredible level of 2722.42. But the celebration didn’t last long. The stock market began to lose ground, and in spite of trying to define a trading bottom in September, soon broke through support in early October. The culmination came on Monday, October 19, when the Dow gapped down at the open, went into free-fall, and lost 508 points by the closing bell.
This two-month bear market brought the Dow down by more than 36%, but once again October helped define the bottom and end the sell-off (even though it had also brought the historic crash). On October 20 the Dow closed up by more than 100 points, and a slow but steady recovery got underway.
Market Resistance at 3000
There was a Jupiter/Saturn opposition in play on Monday and Tuesday, July 16 and 17, 1990 as the Dow Jones Industrial Average tried valiantly to close above the 3000-point psychological barrier.
It closed both days at 2999.75.
That failed attempt at the peak of a tug-of-war between the planetary forces of expansion and contraction triggered a sell-off which lasted for just three months, but which brought the index down by almost 22%. A Mars/Jupiter sextile on October 11 added some positive energy to help trigger a trend reversal to the upside.
A Trading Top at a Jupiter Station
The market rallied strongly during the first half of 1998, but when Jupiter went retrograde on July 17 the action topped out with the Dow closing at 9337.97. That prompted a slid of more than 17% before the the market hit a bottom on October 8 and began its recovery.
Uranus, Terrorists and a Moving Average
After a pull-back into the Spring Equinox in 2001, the Dow had rebounded robustly into mid-May. On May 30, however, with a Uranus retrograde station in play, the index dropped below its 25-day moving average, triggering an extended price decline that brought the Dow down more than 16% by early September.
Then, with the September 11 destruction of the World Trade Center, the markets plunged even further, bringing the net loss to almost 29% since the high in May. It took some time for confidence to resume, but by October 10 the Dow was trading above its 25-day moving average once again, paving the way for an advance that was to last through the end of the year.
Another Top at the Spring Equinox
In 2002 the Dow Jones Industrial Average once again hit a high at the Spring Equinox, but trended lower after that. As I noted at the time in the FinancialCyclesWeekly newsletter, “The market rally that had been in play for the past month came to a screeching halt last week, with the Dow Industrials and the S&P 500 virtually unchanged for the week as they barely managed to stay in positive territory and with the NASDAQ dropping by more than 3% for the week.”
The Doiw had dropped by nearly 33% when that year’s October Surprise kicked in to bring an end to the bear market on October 10, as Venus and Saturn made back-to-back retrograde stations.
A Mars/Jupiter Square in October
In 2011 an intense rally during the opening months of the year took the Dow to a new high of 12876.00 on May 2, on the eve of the New Moon. Five months later, the Dow was down more than 19% to hit a low of 10404.49 at the Hades station and Mars/Jupiter square on October 4. By early February, 2012, the Dow was trading well above the high it had set the previous May.
October Surprises – Good and Bad
The bottom line here is that October has often been a pivotal month. The October surprises come from the big market shifts that can occur, but those shifts can be either bullish or bearish.
As astro-traders, we can look for big opportunities in October. As we’ve often seen in studying the markets, big trend changes can sometimes accompany major planetary alignments. When those alignments take place in October, we need to pay very close attention!
I ran across some interesting historical information over the weekend.
I was researching the potential impact of the upcoming Mercury retrograde period on stock market activity.
Along the way, as is so often the case, I uncovered some other stuff as well.
Finding Stuff I Didn’t Expect
That’s one of the great pleasures of doing research. The cool stuff I find when I’m looking for something else.
At any rate, here’s the fact that I uncovered yesterday:
On February 13, 1936, the U.S. Government starting mailing out the first-ever Social Security checks to benefit recipients in the new federal program. (At least it was part of a “New Deal” back in 1936!)