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The World At Large
Week beginning July 19, 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

How long will it last and how far will it go … they’re the two key questions for the rally which appeared to get underway last week, following the dramatic decline in worldwide stock indices over the past two months.

Let’s deal with the bad news first. As is so typical, Wall Street swapped Chicken Little for Pollyanna and put on too much, too fast – going from extreme oversold to short-term overbought in only three days as the venerable Dow Jones Industrial index shot up
nearly five per cent.

The good news is that a day or three of pullback might help with a cheaper entry point for anyone who didn’t trust last week’s rapid turnaround.

One index displaying a distinct lack of trust was the ASX 200 – and that always worries me.

The ASX reverted to short-term rally mode ahead of Wall Street, once again proving its value as a leading indicator. However, on Friday it slipped back again. And so did the Nasdaq, having found its bottom a day earlier.

Regular readers know I regard the combined behaviour of these two as a very reliable guide to what is likely to follow on the other major stock indices.

In short, the lack of upside follow-through from the Nasdaq and the ASX suggests a bit of price softness immediately ahead.

But that doesn’t necessarily mean the end of the rally; just a need to be a little cautious before getting sucked into Wall Street’s reversion to Pollyanna mode.

We won’t bother with the news events of last week … the big sticks pulled out to whack the shorts over the head, the implied threat the US Federal Reserve will do whatever it takes to rescue a bankrupt financial system.

Kaye Shinker, who has done an enormous amount of research on the Dow Jones Industrials, uses a May 26, 1896, chart for the DJI.

What is interesting about that chart is that early last week, Saturn finished a three-hit square of its natal Sun. Even more nteresting is that in the same week, Solar Arc Saturn completed a square to its Moon.

In astrological terms, both of those are biggies. Coming together, they represent a massive negative hit.

And now they’re over. As Kaye is at pains to point out in her Textbook For Financial Astrology, when an aspect is over, it’s over!
That gives us some hope that the rally which started last week may develop real legs, regardless of what’s happening with mundane astrology.

It would also help to explain why the DJI, in particular, fared so badly during the slump from the May Highs.

As the Saturn square Sun aspect became exact in the DJI’s chart last week, still in the hangover period from the mundane aspect of Mars conjuncting Saturn, the number of new Lows recorded on the NYSE hit a record above 1300.

These new Lows spikes have, in the past, coincided with significant turning points in the markets, opening the way for a multi-week, or even multi-month, rally to get underway.

We may be in the process of seeing that now. And I say “in the process” because several other cogs need to drop into place before we can confirm that is what’s happening.

The danger comes from the fact the mood of Mars may be lightening only temporarily as it moves to a trine with Jupiter early next week. In early August, Mars will oppose Uranus, and as I explained last week, that could set off another dive.

This week, the Sun moves out of Cancer and into Leo and Mercury will trine Uranus, so even if there’s a day or two of backtracking or consolidation of last week’s price jumps, we should not see an imminent repeat of the Chicken Little “sky is falling” pessimism, just a bit of biffo to stop Pollyanna being totally besotted with her million rainbow prisms.

There’s another highly-charged astrological event happening before mundane Mars opposes Uranus and it’s one that could have a significant impact on the DJI – and, therefore, the other major Western stock indices.

The Leo New Moon is a total solar eclipse. Eclipse events tend to be stronger along the path – and that’s happening in China and Russia. Most of Asia and Europe are on the outer edges of the path.

However, the eclipse will occur very close to the DJI’s Jupiter and Ascendant. Jupiter is a benign planet in the DJI chart. It enjoys a sextile with the chart’s natal Sun and is configured in a close-orb Grand Trine with Mars (very strong in Aries) and the chart’s
Sagittarian Moon.

Since the eclipse takes place inside the 12th House, rather than within the 1st, its impact may be less overtly obvious.
However, we should remember our basic lessons … Jupiter in the 12th is “guardian angel" symbolism and it, and its Grand Trine which links public perception (Moon) and drive (Mars), are about to be activated.

This is happening in roughly the time period mundane Mars and Jupiter are active. I should also mention that in Kaye’s DJI chart, Saturn is the only unaspected planet.

It is linked to both the Asc. and the Midheaven, but makes no aspects to any of the other planets. An unaspected planet can act like a rogue elephant simply because it acts out in rather pure stereotype, unconstrained by the influence of other astrological symbolism.

In other words, Saturn squaring the DJI Sun and Solar Arc Saturn squaring the DJI Moon in the same week was a profoundly negative hit on the DJI’s Lights.

But, we need confirmation of the turnaround before we can be certain that we’re not seeing a short-term head fake which collapses into another price dive down into the Mars opposed Uranus aspect.

Technically, it’s a niggling worry that neither the ASX, nor the S&P 500, hit price points which might have boosted our confidence in the sustainability of the rally.

I mentioned last week both were very close to a full, 50% retracement of the entire Bull run. Neither of them hit it; they went close, but no cigar!

The DJI, however, did hit it, at least on a closing price basis. Which leaves us with the question … should we interpret the failure of the ASX and the 500 to hit a key Fibonacci support level as part of the intermarket Bullish divergence –
and, therefore, very positive?

Or do we exercise extreme caution and wait for all the ducks to line up to protect our capital?

And to get our answers, we need to turn our attention to the technical charts.

UNITED STATES
Dow Jones Industrials Daily [click to view the charts and download the entire Adobe PDF file]

The Dow launched itself in catapult mode on Wednesday, finally starting the rally we’d been anticipating.....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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