Tag Archives: Mercury ingress

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.

 

Planetary Line-Up for a Market Inflection Point at the End of January

S&P 500 with Planetary Price Lines

This is a trading chart that I’ll be sharing with Michael Yorba’s listeners later today when I’m interviewed on his Traders Network show.

The interview is scheduled to get started at 2:15 p.m. Central Standard Time (3:15 p.m. Eastern) – you can connect with it online at http://www.yorba.tv/radio.

The planetary price lines for Uranus, Venus, Pluto, and Jupiter shown on this chart of daily price bars for the S&P 500 can help us visualize the way that the power of cosmic forces will be combining to create a potential inflection point for the markets on January 30-31, 2014.

The important thing to note about Venus is that it has been in retrograde motion (with the green line representing this planet moving downward through the chart) since December 21; it will resume direct motion on January 31. Note that as Venus changes direction it activates the midpoint of the Uranus and Pluto price lines– the Uranus/Pluto waxing square has been in play since 2012, and it will continue to be a dominant influence on social behavior and market action through the middle of 2015. With this activation by Venus at its Direct Station, we can expect the tension-provoking energy of the Uranus/Pluto square to come to the forefront.

The crossing point of the lines for Jupiter and Pluto is also noteworthy; it signifies a Jupiter/Pluto opposition, also on January 31. This activates a Jupiter/Uranus/Pluto T-Square configuration that signals a sudden shift in circumstances, creating a major opportunity for savvy astro-traders.

While these factors by themselves would be enough to get our attention, they get a lot of extra help from other planetary action, including an activation of the November Solar Eclipse on January 29, the New Moon syzygy on January 30, and the ingress of Mercury into Pisces on January 31.

In short, the January 30-31 period will be a key time for us to watch for significant trend reversals in all markets. With this much action going on, the potential for outstanding trading profits from appropriate short-term positions is definitely worth paying attention to!

If you’d like more information on astro-trading market insights, be sure to check our latest free online videos at http://bit.ly/ATIdvd