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The World At Large
Week beginning June 22, 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

Stock indices worldwide are diverging from each other, with notable divergences opening up between different American markets.

While In a relatively rare event, the Dow Jones Industrials did not end the Mercury Retrograde period back within a per cent of where prices were when the astrological phenomenon started in late May.

I should point out that Kaye Shinker’s research on the Mercury Rx effect applies only to the DJI itself and not other stock indices.
However, because the Dow usually acts as a benchmark index, in terms of price levels and trend direction, it’s not unreasonable to extrapolate the effect to other indices.

Most of the time.

But this has been a very unusual time because the effect of other astrological aspects has made the markets extraordinarily difficult to predict with a high degree of accuracy.

The DJI, for example, closed out last week within 0.9% of its March Low. However, the S&P 500 is 3.5% above its Low and the Nasdaq Composite is still almost 11% off its Low.

Even more oddly, the Midcap index and the Russell 2000 have displayed unusual resilience – with the latter index sitting 12.7% above its March Low.

I say oddly because in a true Bear market, the strength usually lies with the very big Blue Chips which have the resources to ride out an economic downturn. Investors normally desert midcap and smallcap stocks.

Strength in the smallcaps against relative weakness in the Blue Chips is something we normally expect to see during Bull runs.
The FTSE, the ASX 200 and the DAX have all held well above their March Lows, while Tokyo’s Nikkei index has managed to hold the line at a very high level.

However, the Indian stock market and the two main Chinese indices, Shanghai and the Hang Seng, display considerable weakness.

Mercury has now resumed Direct motion, from a geocentric perspective, but our worldwide picture remains contradictory as we approach a week in which we experience another major astrological aspect – Uranus turning Retrograde, a condition with a very
high probability of coinciding closely with a major market turn.

The Uranus Rx station is taking place in the middle of a series of high-energy astrological impacts stretching out over several weeks.

There are no major aspects involving the planet of restriction, Saturn, over the next couple of weeks – but, Mars will change signs to Virgo on July 2 and will move to an exact conjunction with Saturn on July 11.

The problem in trying to determine how all of this is likely to play out in the stock markets is whether the cosmic cluster breaks down into a series of different effects which whipsaw the markets up and down … or if the energy patterns coalesce to provide
significant and reliable turning points at roughly the midpoint of the patterns.

The decline in the DJI – which is not being reflected in some of the other Wall Street indices – confounds accurate analysis even further.

For one thing, we now have another confirmed Hindenberg Omen on the clock, pointing to a significantly-increased possibility of a stock market crash within the next four months.

Against that signal, we have some technical indicators for the DJI now at their lowest levels since the bottom of the Bear in the early 2000s – and, on top of that, price action from various indices indicating a high probability of a confirmed, four-year-cycle bottom now in place.

In short, we are in probably the most difficult trading conditions since the late 1980s or 90s.

In the coming week, we should see the start of a bounce higher from fairly deeply oversold conditions in key stock indices. The question is whether it is simply a bounce, or whether it signals the start of a directional movement.

We also need to try to make some sense of the continuing non-confirmation from the Dow Jones Transports, which are firmly holding to an uptrend line in spite of the difficult economic conditions outlined last week by one of the key component companies, FedEx.

The performance of the Transports flies in the face of what, on the surface, seems to be commonsense. Tight credit, soaring oil prices and continuing speculation of possible military conflict with Iran, ought to have caused the Transports to tumble severely –
especially when popular opinion is so gloomy about the overall health of the American economy.

One of the indices … the Industrials or the Transports … is wrong. The reappearance of a confirmed Hindenberg Omen suggests it is the Transports.

And yet, it is difficult to believe investors could be holding the Transports, the Midcaps and the Russell 2000 at such high levels if everything is on the verge of going to Hell in a handbasket.

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

Given the warnings from FedEx, the behaviour of the Transports last week was really quite remarkable.....(read more...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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