The fireball of astrological
energy building up over the past two weeks finally exploded to the
upside late last week, propelling the breakout in major world stock
markets above key resistance levels.
The odds now favour the launch of a
new Bull market. I know, dear reader, your patience has been tested
beyond frustration as we waited for the fables to unfold according
to the interpretations of your correspondent.
Which is why I hesitate to here insert
the word “but”.
But, “but” I must! And
the reason is simple … at some stage within the coming days,
or weeks, the breakout will be tested for its strength and resilience.
Markets are constantly “testing”
key levels.
Earlier this year, I warned that stock
indices would retest, and probably marginally break below, the level
of January’s plunge spike. That was “testing”
for a real Low.
Four times since that plunge, most
Western indices have retested horizontal resistance to the upside
– usually at precisely the level of last August’s closing
Low.
Now that markets have broken free
of the narrow range which has constrained all price movements since
January, it will want to retest that level again – this time
from above – just to be sure we have not been caught in a
Bull trap of diabolical degree.
However, I repeat … the odds
now favour the launch of a new Bull market; the astrological energy
patterns ahead suggest more support for improving conditions in
equity markets.
I will discuss the planetary activity
ahead shortly, but first I’d like to go back to this paragraph
from last week’s report:
Mercury square Saturn we would
normally characterise as “bad news” – but in this
case, Mercury will make the aspect from its home sign of Gemini
to Saturn in Virgo, which Mercury also rules. Therefore, Mercury
is King in this circumstance, with the home
ground advantage of Gemini and effective rulership over Saturn.
As that aspect unfolded late last week,
there were two key pieces of economic news – America’s
GDP numbers and the jobless rate.
The first showed very low growth and
the second a slowdown in the number of job losses.
While neither set of numbers could
be construed as “good” news, they were both much, much
better than had been predicted.
Mercury in its home sign of Gemini, with rulership over Saturn in
Virgo, turned out to be the “King” … not Saturn.
The GDP numbers showed slow growth
of 0.6% for the second quarter running. That’s a low number,
but it’s not a negative number. It’s now official. It’s
time for the doomsday cult to get over their recession obsession.
The fact is America’s export
industries are holding up quite nicely. Exports are where it’s
at for the future. Any nation which continues navel-gazing at its
domestic consumer consumption is dead meat in the 21st Century.
Japan did not become the surprise powerhouse of the 20th Century
by selling Toyotas to geisha girls. Germany did not become the world’s
biggest export economy by worrying about how many Mercedes, BMWs,
Audis, Porsches and Volkswagens it was selling along the Rhine valley.
China is not the new big cheese on the block because of how many
noodle packs it sells in Ningbao.
Globalisation is not just a buzz word
– it’s here as economic reality. In truth, it always
has been – from the time the Romans got the gold to pay their
troops from Spanish mines, or made the bread for the circuses in
the Colosseum with Egyptian wheat.
The United States is at a pivotal
turning point in its economy – the point Japan reached a couple
of decades ago when the grounds of the Emperor’s palace in
Tokyo were reportedly worth more than the entire state of California.
It was, of course, an insufferable
nonsense – as the implosion of the Japanese economy soon showed.
America now faces not dissimilar problems – and over-priced
real estate was just the beginning. As with Japan, the population
is ageing – and has to be rejuvenated. If it is not, the domestic
US economy will continue to shrink. Europe has the benefit of a
huge population from the old Soviet bloc countries not yet anywhere
near the consuming level of “old Europe”.
We’ve discussed the huge shift
taking place in China and India – and Asia’s “little
tiger” economies. South America still has capacity to grow
richer … and most of Africa remains untouched in economic
terms.
In the coming decades – sooner,
rather than later – the United States will have to come to
terms with the fact the Baby Boomers are approaching their “use
by” dates and there are only three realistic options for replacing
their consumer power … a redistribution of income to the under-consuming
classes who do not buy new houses, new cars, new furniture; sustained
levels of immigration; or a refocus of many industries towards export
growth which dramatically increases the base level of potential
consumers.
However, that is a long-term economic
problem for the Americans to sort out and we are more concerned
with how the current situation is likely to impact upon stock markets
in the next few weeks.
Astrologically
Saturn has now turned from Retrograde
motion to Direct. It is the last significant Saturn energy until
July 11, after Mars enters Virgo and forms a conjunction.
The next few weeks belong to Jupiter,
the planet we use to symbolise growth and optimism.
On May 9, Jupiter goes Retrograde while
in close sextile with Uranus, an aspect which becomes exact again
on May 22.
On May 12 and 13, the Sun will ignite
that energy by forming its own sextile to Uranus and a trine to
Jupiter.
On May 18 and 19, Venus, from her home
ground of Taurus, will repeat the signature – sextiling Uranus
and trining Jupiter.
The only other significant, market-moving
astrological event within this time frame is Mars changing signs
from Cancer to Leo – on May 10, just after Jupiter goes Retrograde.
Overall, these energy patterns suggest
the rally which began in mid-March and which was struggling to breakout
until last week, should continue.
Kaye Shinker has pointed out in her
latest New Moon article that Mercury will go Retrograde late in
May – and that the Dow Jones Industrials often end the Mercury
Retrograde period with prices within about one per cent of where
they were when the
cycle started.
In the days before Mercury turns Retrograde,
the Sun will square Saturn, and Venus will change signs to Gemini.
All of this suggests at least a short-term change in market direction.
There is a very significant cluster
of astrological energy happening on June 5, 7 & 8 in the chart
of the DJI … Saturn square Pluto, Jupiter square Venus, and
Saturn square Sun.
Perhaps coincidentally, it is this
precise time period where the Bradley Model points to a major turning
point in market direction for the year.
In cycle studies, June 2 is also the
approximate bottom for the 10, 20 and 40 week
cycles.
Let’s not get hung up on the
details of all this. Simply … technical and astrological studies
agree there should be a market turn of some significance occurring
around May 23, give or take a few days, and there should be a major
market turn in early June.
Let’s go to the technical charts
to see where we’re at following last week’s price action...click
to view the charts and download the entire Adobe PDF file
CLICK
HERE to download
the full version of this report with all technical charts and further
comments. (PDF format)
The World At Large is delivered in advance to Astrological
Investing Premium Member subscribers. Randall Ashbourne
is a former journalist and political strategist residing in Australia.
*QHT Technical Charts created using Quick
Harmonic Trader Software, by P.A.S. Astro-Soft, Inc. makers
of Galactic Investor Astrology software.
***
Please
help support our site by using our bookshop for all your Amazon.com
shopping needs!
All of the written material
and graphics are copyrighted by AstrologicalInvesting.com and Randall
Ashbourne. Unless otherwise noted, written material and graphics
may not be reproduced without written permission. This includes
but is not limited to any current articles or archives on Astrological
Investing's web site on financial astrology, how to start an investment
club, technical analysis, business astrology, or stock market investing
©2007, 2008 |
