Tag Archives: sell-off

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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Astrological Resistance Still Holding Firm for Today’s Stock Market Trading in the S&P

The S&P 500 had a nice pop up today, a welcome sight for the bulls who were left uneasy by yesterday’s sell-off.

The closely-watched index gained 9.55 points during the session, to close at a healthy 1959.53.

That closing price was, of course, well below our astrological resistance zone at 1964 that has shaped the stock market trading environment for much of the past week.

Even more important was the fact that the S&P 500 didn’t even come close to the 1964 during the course of the trading day today; its highest point was  1960.83.

While we’re expecting an additional push toward bullishness during the two remaining days of the trading week, we’ll have a void-of-course Moon in play throughout the trading day tomorrow, which means that whatever we observe that looks like a trend (or a trend reversal) in stock market trading  needds to be considered very cautiously.

If that resistance level continues to hold at 1964, however, it’s an increasingly strong indication that we’re dealing with a significant trading top as we close out the month.

Like A Dump Truck Full of Gravel…

We were still in the final hour of trading when I was on the air with Michael Yorba earlier today on his Traders Network radio show.

At the time, the sell-off in U.S. equities had already gotten underway, but we still didn’t have an indication of just how big the losses for the day would be at the closing bell, with the Dow Industrials off by 1.41% and the S&P 500 down 1.17% on the session.

That selling action wasn’t on the radar for most traders when the opening bell rang this morning, but as I noted in my blog post this morning, the Uranus/Poseidon waxing quincunx had the power to pull the rug out from anything that looked too much like a rally. By the end of the trading day a Sun/Saturn waxing trine was also looming large, adding to the bearish pressure.

As I told Michael Yorba during our interview, it was a lot like what we would be experiencing if we had gotten in our car and had begun driving behind a dump truck full of gravel, with the flying debris of cosmic alignments smacking the market’s windshield as we hurtle down the highway.

There’s a lot more debris headed our way as we move along the Stock Market Collision Course during the coming weeks. It’s a time for cool heads and solid astro-trading strategies.

That’s what Michael and I talked about today– you can hear the entire 10-minute interview here:


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Not Much Of A Surprise

Patty and I were out and about this afternoon, and since we’d missed lunch we stopped into a restaurant to get something to eat at about 3:45.

The waiter was very apologetic that he couldn’t offer us Happy Hour prices since it wasn’t quite 4:00 p.m. yet, but that didn’t bother me very much. What really caught my attention was the TV behind the bar that was tuned to a business channel.

The talking heads were discussing the market close, with the Dow Industrials finishing up the day down more than 215 points and the other indices following suit. A commentator was protesting that the Dow had started the day on a bullish note, and had been “just 86 points away from a new all-time record high” before selling off sharply and taking a big loss for the session.

What was curious to me was not just the fact that this pundit was trying to turn the day’s nose-dive into optimistic news, but also the obvious degree of surprise he was expressing that equities prices had retreated at all. In fact, the headline on the screen announced a “Surprise Sell-Off in Stocks After Strong Start”.

It all just provided evidence for what should have been obvious all along– these TV commentators hadn’t been looking at the market through astrological eyes!

From an astro-trading perspective, it had been clear in advance that we could expect a market downturn today. I had specifically forecast it in this week’s FinancialCyclesWeekly newsletter, and had warned our Gold-Plus Elite members about the likelihood of a bearish start to the trading week during our conference call last night.

That’s what the astro-trading is all about– not just knowing ahead of time what to expect, so you can be on the right side of the market at the right time, but also having market insights that set you apart from the media madness and the blind impulses of the herd.