Tag Archives: market correction

Market Correction Conversation

It’s time for a market correction.

That’s what we began to understand a few days ago.

We were looking at the potential impact of the Zeus retrograde station.

It clearly suggested that we were about to see a definitive trading top.

And as a top became more clearly expressed in the trading action this week, we began to see the bigger picture.

A market correction is on the way.

Defining A Market Correction

So what’s a market correction?

In a general sense, it’s a major price pull-back from a market that’s been in an extended rally.

Prices head lower.

But the question is, how much lower?

Loosely speaking a market correction is a move to the downside that’s big enough to get your attention.

It’s big enough to make you feel pretty uncomfortable, especially if you’re holding long positions in the market, and are hoping that higher prices are ahead instead.

But according to some respected market technicians, a market correction should be much more precisely defined.

To qualify, a sell-off in the market has to bring a move to the downside of at least 10 percent, measuring from its most recent peak.

10 PERCENT MARKET CORRECTION

Under the current circumstances, that “most recent peak” was the all-time record high for the S&P 500, at 3337.77, which was set intraday on Wednesday, January 22.

That means that a real market correction now would be a drop of 333.78, for an ultimate price target of 3003.99.

Is A Correction On The Way?

A drop of 333.78 points is a pretty big move, whether or not a Zeus retrograde station is involved.

But even so, it’s entirely possible.

In fact, during the trading action on Friday the S&P 500 gave up 44 points during the course of the trading day, and then closed at 3295.47, off more than 30 points for the session.

That big plunge took place just after I had joined Larry Pesavento for conversation about the potential for a correction in equities.

We got together on his Trade What You See program on TFNN.

Astro-Cycles 2020 January-March
Transneptunian factors mark key turning points in the projections for astro-cycles in the first quarter of 2020.

During our chat we discussed this astro-cycle chart that I had featured on page 1 of a recent Financial Cycles Weekly newsletter.

It highlights the potential power of transneptunian stations in setting up a potential correction between now and the middle of February, with a likely rebound after that.

And as is usually the case, Larry seemed particularly intrigued by the influence of the transneptunians. He shared a great story about encountering them with Bill Meridian and Alphee Lavoie in Singapore.

Our conversation was brief; you can hear it all in this video from Larry’s show:

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Taking Our Stock Market Trading Money Off The Table

It’s always fun to get into a good conversation about stock market trading, especially when there’s a lot going on in the market environment, and even more especially when there are big trading profits along the way.

This week has been no exception. When I joined Michael Yorba for an astro-trading discussion yesterday on his Traders Network TV program, we talked about the treacherous situation in the markets now.

I explained that here at FinancialCyclesWeekly.com our Gold-Plus Elite members have been taking some money off the table and closing out some profitable long positions in their stock market trading in recent weeks, in anticipation of a major correction.

It gave us a good opportunity to illustrate just how profitable the astro-trading advantage can really be!

You watch the entire interview, including some sample trading charts of our successful trades, right here:

Seeing a Market Decline Ahead of Time

It’s always gratifying to see our market forecasts play out accurately in the markets.

When a forecast turns out to be accurate, it opens up bigger opportunities for profitable trading.

Even more importantly, though, it increases our confidence in the astro-trading tools and techniques we use to decipher the hidden factors that work relentlessly behind the scenes to drive the market action. As our confidence grows, we are more likely to trust our ability to take advantage of the next trading opportunities that arise, and the net long-term results can be worth it.

But even so, I’m particularly impressed whenever a market forecast is made weeks or even months ahead of time, and then still turn out to be accurate as the market trends unfold.

That proved to be the case with the forecast presented in late August during our monthly webinar for our Gold-Plus Elite members at FinancialCyclesWeekly.com. We specifically discussed the high probability of a market pull-back getting underway after the September 19 Full Moon, and correctly predicted a negative short-term trend for equities during the September 23-17 trading week.

Of course it wasn’t just the Full Moon that pulled the markets down. It had help from other factors as well, including the Pluto Direct Station and the Fall Equinox. Here’s a 5-minute video that digs into the details:

By the way, what I neglected to mention in the video was the fact that our next webinar will be on Monday evening, September 30. There’s a tuition charge for this event, but if you’re one of our Gold-Plus Elite members you can attend for free– it’s a pretty good reason to sign up for a trial membership in our Gold-Plus Elite program, especially since you’ll also get a free astro-trading DVD when you do.

You’ll find the details at bit.ly/ATmonthly

Market Tops & Tipping Points

With a variety of astrological factors working in tandem this week to drive stock prices higher through midweek, I was expecting to see a sell-off in equities get underway yesterday.

That didn’t happen.

Instead of pulling back, stock prices drove higher, with the S&P 5000 closing above the psychologically-important 1700 mark for the first time ever. The mainstream media is crowing this morning about the record rally that’s underway, instead of issuing warnings about a market correction waiting in the wings.

So we’ll see what happens today as trading gets underway.

One of the challenges in fine-tuning our market timing with astrology is that the astrological patterns that help drive the markets don’t always coincide with the exact hours that the markets themselves are open. The big Jupiter/Kronos alignment this week, for example, came hours after the closing bell in New York, rather than conveniently falling within the confines of the formal trading session.

When we’re doing our back-testing, of course, we’re primarily using daily historical data, so the calculations that go into our market forecasts don’t always match the exact dates of the upcoming market action. The net result is that we could be a day late or a day early in seeing the market phenomena suggested by the astrological factors at work.

So I’m looking for lower prices in equities today, since a pull-back wasn’t in evidence yesterday. Whether it’s attributed to profit-taking or genuine corrective impulses, a lower close in the S&P would be consistent with what we’ve seen astrologically.

But of course, the markets will always do whatever the markets choose to do, regardless of the precision of our back-testing, the carefulness of our forecasts, or the intensity of our hopes and wishes.

Remember that the basic rule in profitable astro-trading is to pay more attention to making money in the markets than to being 100% right in forecasting. That’s why we’ve currently got both long and short positions in the the Financial Cycles Model Portfolio– even if the market behavior doesn’t match our forecast, we’re confident that our trading strategies will continue to give us profitable results!

Is Planetary Impatience Shaking Up The Market?

One of the old adages in mundane astrology is that “Mars acts early”.

Always speedy, aggressive and impatient, Mars doesn’t wait around for events to unfold; it initiates action and makes things happen.

That’s why we sometimes feel the effect of a Mars transit a day or two before the exact time of the actual transit itself!

More often than not, however, this particular Martian feature catches me by surprise. I find myself looking ahead to an upcoming Mars effect, wondering exactly how it will play out in the markets and the geopolitical arena, and the results of the Mars transit come crashing into the news stories of the day.

And this week, true to form, Mars is wasting no time in shaking things up as it translates the Uranus/Pluto waxing square. I was expecting this Mars action to bring equities prices down a  little later in the week, but we got a pull-back yesterday and stocks are lower at this point in the day today as well.

Although this Mars translation may not seem like much of a big deal, it’s actually a major activation of the kind of astrological forces that can dominate our attitudes as investors and our decisions as astro-traders– you can find out more about this Mars translation at:

http://www.financialcyclesweekly.com/public/A-Challenge-for-the-Markets-Mars-Translating-The-UranusPluto-Square.cfm

And be sure you’re up to speed on the series of Uranus/Pluto squares as well! You can get an instant download of the definitive monograph on these alignments at:

https://www.harmonicresearchassociates.com/shop/shopexd.asp?id=112

(check this one out right away if you don’t already have a copy– you can get it for half price through July 31st)

Scary Optimism in the Markets

We’re seeing lots of attention in the news media, with plenty of front-page stories and lead features on broadcasts raving about the the record rally in the stock market.

This good news is bad news.

As any good market contrarian will tell you, the louder the praise gets for the new highs in the market, the more likely it is that a big crash is just around the corner.

So even though we’ve just finished up another winning month in the stock market, it’s time to get serious about the possibility of a plunge.

So what do you do when that happens?

One approach, of course, is just to pull all your money out of the market altogether, doing it right away while the getting’s good. Then you stick it under your mattress and wait for another bull market to come along some day.

The problem with that strategy is that your money isn’t making any money, and you don’t know how long you’ll have to sit on the sidelines. It definitely leaves something to be desired.

That’s why we’ve just finished up a new report, exploring an alternative strategy to dealing with the possibility of a big market decline.

It’s called Protecting Yourself in an Irrational Market. Its pretty concise (you can read the whole thing in about 15 or 20 minutes), but it’s packed with a practical strategy that can actually make you more money when the market heads south.

It’s available right now as an instant download – you’ll find details at http://bit.ly/protect13