Tag Archives: Fed

Best Week Of The Year

We’ve just finished up the best week of the year so far for the stock market.

In fact, it was a roaring rally.

The Standard & Poor’s 500 Index gained 4.41% for the week.

The Russell 2000 was up 1.95%.

The NASDAQ Composite added 3.88% compared to the week before.

And the Dow Jones Industrial Average gained 4.71% to guarantee a prime spot in the financial headlines.

What Was Behind The Best Week?

The trading action provided a remarkable contrast to the downturn in May.

But exactly what was behind the best week of the year?

According to the mainstream financial media, a lot of the credit goes to the Federal Reserve.

Acting As Appropriate

Speaking in Chicago on Tuesday, Fed Chairman Jerome Powell discussed “recent developments involving trade negotiations and other matters.”

“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.

We know that Transneptunians are powerful market movers.

Mars Kronos Best Week
The Mars/Kronos conjunction was a precursor to the best week of the year so far.

But when we made that forecast last Saturday, a rally certainly wasn’t a sure thing.

After all, when we did our special webinar last weekend on Transneptunian timing factors in the markets, the markets had just completed a month of surprising losses.

Nobody was looking for the best week of the year.

Confidence in a big price move was definitely lagging.

The Mars/Kronos Effect

But during that in-depth advanced training session we did a deep-dive into all the potential effects of the current Mars/Kronos conjunction.

That’s a relatively rare planetary alignment that often signals extreme events in politics, in social or public affairs, in international relations, and in business and the financial markets.

Last Saturday’s webinar was an extraordinarily powerful session.

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:

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.

You can get it at:

https://cleostbc.samcart.com/products/trouble-at-the-top—marskronos-trransneptunian-trading-training-video

Janet Yellen or Uranus/Pluto?

Janet Yellen is getting the credit.

Wall Street is celebrating tonight.

It was a great day for the equities markets.

The Dow Jones Industrial Average was up an astonishing 421.28 points, climbing by 2.53 percent to close at 17.778.15

The NASDAQ Composite zoomed up by 2.24 percent, adding 104.08 points to finish the trading session at 4,748.40.

And even the normally sedate S&P 500 went wild during the day’s market action, chalking up an additional 48.34 points to wind up at 2.061.23, with a net gain for the session of 2.40 percent.

Did Janet Yellen Do It?

Janet Yellen
Janet Yellen – Chairwoman of the Federal Reserve Bank

The financial news pundits, sage and smug as always, were quick to explain the extraordinary bullishness on Wall Street.

Janet Yellen did it.

No sooner had the market closed than the media was buzzing with the news.

Janet Yellen did it.

Or more precisely, Janet Yellen didn’t do it.

Janet Yellen held back, After a two-day Fed session she announced that the central bank will eventually raise interest rates, but not just yet.

If we can take Janet Yellen at her word, the rate will stay near zero for at least the first quarter of 2015.

And so, with two consecutive days of gigantic market gains, the bulls are in charge. The only way from here is up, to infinitely higher highs.

Is This A Market Top?

Unless you live in the real world, of course.

I’m not so sure that Janet Yellen and her amazing technicolor patience in refusing to push interest rates higher is really the cause of the market action.

Remember, we’re dealing with the impact of the current Uranus/Pluto waxing square. And as we documented in a recent blog post, that’s an event with a significant correlation to market volatility.

So the rally wasn’t a surprise, with or without Janet Yellen.

And a downturn is highly likely, since there seems to be little real change to support higher highs.

And while you’re at it, take a look at Janet Yellen’s horoscope:

Janet Yellen Uranus/Pluto December 2014
Janet Yellow saw her natal horoscope strongly activated by the December 2014 Uranus/Pluto waxing square, with multiple midpoint structures in play.

In this presentation of the Janet Yellen natal chart on the 90-degree dial, the dial’s red pointer aligns with the Uranus/Pluto waxing square. Look at the midpoints it triggers in her chart:

Mars/Jupiter – a surprise beginning of a fortunate activity.

Chiron/Poseidon – the inconvenience of clarifying ideas.

Mercury/Uranus – an unexpected announcement.

Neptune/Admetos – a sudden deadly poisoning through hidden actions.

Hades/Aries Point – Negligent actions that increase widespread misery and poverty.

It all adds up to an interesting picture, to say the least. While these configurations may not connect with conscious motivations for Janet Yellen, we should pay attention.

There may ultimately be negative consequences when Janet Yellen gets the credit.

Even if Janet Yellen didn’t do it.

 

Mercury & Pluto at the Fed Announcement: Big Action for Stocks, the VIX, and the Dollar, Too!

In spite of the fact that one of our readers has dubbed the comments posted here on the Fed’s announcement today “the worst call out there”, it’s still interesting to see exactly what the markets actually did in the final hours of trading today– and to anticipate what the action in equities will look like tomorrow.

Throughout most of the trading day prior to the 2:00 p.m. announcement, stock prices were churning in a somewhat apprehensive market with a decidedly bearish bias.

But when the Fed announcement was released, it immediately became apparent that Mercury’s conjunction with the Fed Pluto was having exactly the kind of dramatic impact we had anticipated. The major market indices all rallied, breaking into positive territory and pushing to new heights by the end of the trading session.

Fed Indices Response
The S&P 500, the Dow Jones Industrial Average, and the NASDAQ Composite all rose after the Federal Reserve’s Open Market Committee made its announcement on June 18, 2014.

The S&P not only rallied, it also managed to hit yet another all-time record high by the time the closing bell on Wall Street rang. Note as well that both Gold and the Euro showed significant strength for the day.

It was also worth watching the VIX during the trading session. This measure of market volatility took a sharp plunge right after the Fed’s announcement, confirming the old “buy the rumor, sell the fact” adage– once the facts were known about the Fed’s intentions, a lot of the uncertainty that had roiled the market action earlier in the day began to fade away.

Fed Announcement VIX Response
The VIX reaction to the Fed’s announcement was quite dramatic.

In looking at the VIX chart, it’s worth observing that the index had already risen to the higher levels we had forecast last week as a potential response to Mercury’s retrograde passage over the cardinal axis. We’re still looking for more action in this Fear Index during the coming weeks, with a return to higher levels of volatility as we approach the July 4 Independence Day holiday.

This dramatic action in the VIX was further confirmation of the power of the Mercury/Pluto combination that made the timing for this event so noteworthy.

But even though the Mercury/Pluto action bore out the forecast, I had also looked at the Mars transit to the Fed chart and had assumed that the market’s reaction to the announcement would be “less than enthusiastic,” based largely on the activation of the Moon/Saturn midpoint in the Fed horoscope.

Things didn’t turn out that way.

We certainly didn’t see a negative reaction in equities during the remainder of the trading day. But Mars moves more slowly than Mercury, so the impact of its transit is likely to carry on a little longer. That’s one of the reasons why we’re still anticipating a pull-back in stock prices before the end of the week– and why our Gold-Plus Elite members at FinancialCyclesWeekly.com are planning to add to the short positions in our Model Portfolio before the market closes on Friday..

Remember, too, that the influence of the Federal Reserve goes far beyond just the price of stocks. The Fed’s announcements have a big impact on currencies, of course, which is why it was particularly interesting to see what happened to the dollar this afternoon:

Dollar Reacts to Fed
The U.S. Dollar Index had been trending lower before the Fed’s announcement on Wednesday afternoon, but as soon as the official word was released the Greenback started going through wild swings. Volatility remained high for the rest of the day, with the dollar pushing sharply lower.