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The World At Large
Week beginning August 3, 2008
by Randall Ashbourne

Astrological conditions affecting stock markets combined with technical analysis

Click here for the full version of this report including technical charts in PDF format

The contradictions continue to build in technical charts as we enter several weeks of high-energy astrological conditions which suggest stock indices should sink to retest the July Lows.

However, there is one indicator which points to an imminent and massive intervention by Wall Street’s Plunge Protection Team to goose the American indices higher.

Weekly charts suggest a bottom arrived in most worldwide stock indices in mid-July and that a multi-week rally is underway.

There has been some shifting in the indicators on monthly charts which suggest the downtrend since last year is losing power and that a huge, multi-month rally could get underway once these contradictions have been resolved.

The Nasdaq is primed for a sharp move – and, unfortunately, some of the best technical analysts I know disagree about which way it’s going to move.

Let’s deal first with the rally which has taken place since mid-July. It has been weak … very, very weak.

Some indices – the DJI, the S&P 500, the Dax – made it back to a price level which was acceptable for a corrective rally … retracing a Fibonacci 38.2%. In fact, in the case of the Dax, it almost clawed back 50% of the freefall which followed the May Highs.

However, the FTSE and the ASX 200 haven’t even come close to retracing 38.2%, stalling out only a little above the 23.8% retracement level.

India and Japan have put in a similar performance to the Dax, with both of them rallying to recover close to 50% of the losses. And, so has the Nasdaq Composite.

So, we have these rather extreme divergences between some world indices – and the contradictions I noted last week between some of the US indices also continue.

On a purely technical level, the stalling out of the rally at the 38.2% level in both the DJI and the 500 leaves the key American indices vulnerable to another drop which retests the July Lows.

And that is a double-ditto for the FTSE and the ASX because their rallies have been even weaker.

At the bottom in mid-July, the S&P 500 and the ASX 200 did not dip quite low enough to reach projected price levels which would have given us a high level of confidence that a solid Low was in place for an intermediate-term rally.

And the rally which has taken place since then has been weak.

S&P 500 Weekly [click to view the charts and download the entire Adobe PDF file]

Looking at the weekly chart of the 500, we can see from the last two candlesticks just how indecisive everyone is about where this index should go next.

The recovery from the July Low was fast – but the index has gone nowhere for the past two weeks, as both Bulls and Bears probe the upside and the downside before ending each week almost exactly where prices started.

Overall, we see positive divergence remaining largely intact on the CCI, with a relatively large degree of agreement from both the MACD histograms and signal lines – suggesting that a multi-week rally did get underway on July 15 and that it has further to go.

And yet, those last two price bars warn us there is still underlying weakness in this rally.

The extreme uncertainty can be explained by the astrological conditions affecting world stock indices.

We have been discussing all year the highly-negative impact of the long-term Saturn/Uranus cycle and have been tracking the effects as faster-moving planets like the Sun, Mercury and Venus “translate” the energy as they contact Saturn and move on to
aspect Uranus.

Just before the bottom in mid-July, Mars added its weight by conjuncting Saturn. As expected, we got some relief from the unrelenting downward pressure as Mars moved off Saturn and began to trine Jupiter.

However, we now enter another period where this Saturn-Uranus energy gets fired up – and it begins this week as Mars opposes Uranus in late Wednesday trading in New York.

By mid-August, Mars will be squaring Pluto and changing signs to Libra.

And this week also begins the passage of the inner planets over the same ground that Mars is now traversing. Venus will be the first to enter Virgo and move to a conjunction with Saturn, repeating this part of the cycle.

It will be followed in fairly quick succession by both Mercury and the Sun. And so, for most of August the astrological emphasis is on the long-term Saturn-Uranus opposition as the fast planets give us a foretaste of the real Bear market which will unfold when this rare, five-set aspect slowly unfolds over the next few years.

And there’s one of the really big contradictions. Many people believe we’re already in the Bear … and that it’s almost two-thirds finished.

However, technical studies suggest the bottom in stock indices is not due until 2010 to 2012 – and that fits with astrological studies which indicate it is not until roughly the midpoint of the Saturn-Uranus opposition that markets find a long-term bottom.
If these are correct, it is not impossible that we have not yet seen the final High in world stock indices … that a huge, multi-month rally will get underway in the next few months.

It is possible that what we are currently in, is an A-B-C correction before stocks launch on the final Bull leg which precipitates a massive, long-lasting crash. If that is the case, the A downleg finished in March, the B upleg topped out in May and the C wave downleg is still not finished, which might explain the weakness of the rally out of mid-July and the extreme contradictions which have opened up between various indices over the past three weeks.

The danger is that the PPT will attempt to manipulate an immediate rally.

Nevertheless, the astrological aspects suggest the downtrend is in danger of resuming quite suddenly. The midpoint of the astrological cluster is mid-August, which coincides with two technical dates – the 14th and the 20th – which will be either a top, or a bottom.

If it is a bottom, and that seems to be the higher probability, it will be the start of a large, multi-month movement.

At the very minimum, that will be a slow, grinding consolidation which, nevertheless, takes most Western stock indices back to a large retracement of the entire Bear campaign so far.

That means, for example, the S&P 500 will recover to at least 1350 and perhaps as high as 1390.

The other alternative is that it goes even higher – a last-gasp High for the Bull market which then collapses into a multi-year Bear market.

The only other scenario is total doomsday. It means we’re already in the Bear – and we ain’t seen nuttin’ yet.
Looking at the charts, we would now still be in a developing Wave 3 downleg – with another, very sharp downwave still to unfold.

The only problem with that scenario is that, if it occurs, it will not be the end of the Bear – merely the start. The downwaves which unfold from last year’s Highs will not be the end of the Bear, just the first wave down in a devastating, multi-year Bear of fierce

That scenario is possible. What is not very likely is that this is just a little, itty-bitty Bear who’ll crawl back into his cave by the end of the year.

The astrology – and the technical timing of various cycles – suggests the real bottom of the Bear is still at least a couple of years away. And that does still leave open the possibility that we’re actually in an A-B-C correction within the last legs of a very long-running Bull campaign.

In either case – last defiant bellow of the dying Bull, or first deep bite of the Bear – we are probably approaching an intermediate-term turnaround.

Let’s put the astrology and the technical picture to one side and look purely at the politics.

George Bush is at war with two Moslem nations and making hairy-chested noises about a third – while he has Condi Rice on constant shuttles to try for a “Middle East peace plan” in a bid to leave office with some degree of dignity.

His Republican colleagues know the Democrats are a serious, serious threat – and will try desperately to salvage the US economy between now and November in a bid to avoid a total wipeout in the elections.

Astrologically, technically, politically … all the “forces” indicate a strong attempt to try to refloat the stock markets higher in the coming months.

But before that can happen, these contradictions need to be resolved – and we need to be certain that the downleg from the May Highs is actually finished.....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.


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