Gold and Silver performed in similar fashion

REVIEW AND PREVIEW

“Mr. Draghi said the ECB was ready to take fresh action if needed, and that all policy tools were on the table – including deeper interest rate cuts, which he had all but ruled out last month.” – Tom Fairless, “ECB Reopens Door to Further Cuts,” Wall Street Journal, April 22, 2016.

In the continuing Saturn square Neptune saga of “You cannot believe what you read, hear, or see,” the ECB (European Central Bank) now joins the FRB (Federal Reserve Board) for yet another reversal from their so-called “policy statements” made just a few weeks earlier. It is also a symptom of the ongoing Mutable T-square of Jupiter-Saturn-Neptune, where everything changes quickly, and nothing said or agreed upon today matters if a better opportunity for more personal leverage or gains arises shortly afterwards. Today’s trends and “accepted conventional wisdom” typically last 1-3 weeks under such mutable influences, and then the opposite investor psychology starts to emerge.

It also supports the premise outlined in our series of YouTube videos that we started in mid-March. In particular, Part 2 of this series provided the geocosmic basis as to why the central banks of the world (especially in the USA and Europe) will do everything within their power to make sure the economies of their regions will get stoked as we head into the November 2016 USA Presidential Election. They want the wealth of their citizens to explode (via rising stock markets), so that there is no advantage for opposition candidates to allege economic weakness.

Last week was also noteworthy because 1) Mars and Pluto turned retrograde on April 17-18, and 2) Venus made a translation to the Uranus/Pluto square. The latter is a strong geocosmic reversal signature, and as if set by an alarm clock, many financial markets did exactly that last week, on time, in rather spectacular fashion. Venus and Pluto specifically have a strong historical correlation to Currencies and Soybeans. When the mutable (changeable) Mario Draghi changed his mind about the future of ECB interest rate policies on Thursday, April 21, the U.S. Dollar reversed its recent decline and shot up sharply against all major currencies. Against the Japanese Yen, for instance, the Dollar was trading below 108 as last week began (April 18), its lowest level since October 2014. By Friday, it surged sharply up to 111.81, which is a big move in that market. As the Euro dropped, commodities like Soybeans fell, because their prices are based on the value of the U.S. Dollar. As the Dollar gets stronger, commodities based in Dollars get weaker, generally speaking. Just before Virgo Draghi gave his mutable dilemma pronouncement, old crop and new crop (May and November contracts) Soybeans were trading above $10.20/bu, their highest level since November 2014, and consistent with our Forecast 2016 Book, which forecasted Soybeans would again reach double digits in 2016. Within 24 hours, May Soybeans were more than 50 cents lower, which is a large decline for this market.

Gold and Silver performed in similar fashion. Before the “change of mind” by the ECB chief on Thursday, April 21 (right in the middle of the Venus translation of April 19-22), Silver was trading as high as $17.72/oz, its highest mark in nearly a year, and up 30% from its multi-year low of 13.62 in December 2015, just four months ago. By the end of the day, Silver had dropped nearly $1.00 from that high.

Several stock markets of the world also turned down from new cycle highs made on Wednesday-Thursday of last week, in the midst of the Venus translation. However, their declines were not as dramatic as occurred with commodities, which are more dollar dependent than equities. One exception was the Japanese Nikkei, which continued to soar to new multi-week highs right into the close of trading Friday. It is now up over 2500 points (over 18%) since its primary cycle low of February 12.

It is a wild time for financial markets. It is a wild time in the cosmos as well. This is part of “The Incredible Spring Lineup of Geocosmic Signatures,” in force March-June, 2016. Hold on. It is not over yet.

SHORT-TERM GEOCOMICS & LONGER-TERM THOUGHTS

“It is not correct that a candidate, who enters the convention with a plurality of delegates although short of the majority, must receive the nomination… In 1976, Ronald Reagan got a million more votes than President (Gerald) Ford in the primaries. But Reagan did not win a majority of the delegates. President Ford did, and so he received the nomination. Reagan understood the rules. Without complaint, he supported the winner. That is how it works.” – “Let’s Get This Straight About the Convention,” Wall Street Journal, “Opinion” by several former national chairmen of the Republican National Convention, April 21, 2016.

“Bill Clinton left office with the highest approval rating of any president since World War II. Mrs. Clinton has spent the past six months in essence saying that everything he did was weak, phony, or wrong…And Hillary’s switcheroos have also come at a price to the Clinton brand. The Sanders purists see her lurches left as false, and another reason not to trust her. Especially when they are combined with Mr. Sander’s relentless criticism of her money-grubbing and Wall Street ties.”- Kimberley A. Strassel, “Berning the Clinton Establishment,” Wall Street Journal, April 22, 2016.

Last week it was Mars and Pluto turning retrograde within our “Incredible Spring Lineup of Geocosmic Signatures.” This week it will be Mercury turning retrograde. Mars and Pluto are relentless, and tend to boomerang against anyone who behaves over-aggressively. The aggressor usually loses here, and this dynamic remains in force through June 29. It is going to be a very hostile environment as candidates of both parties try to nail down the required number of delegates going into their conventions.

This lack of clarity and presence of divisiveness with whining, is apt to be ratcheted up this week when Mercury joins Mars and Pluto (and Saturn and Jupiter) when it too turns retrograde, on April 28. It will remain in retrograde through May 22. Furthermore, this will be no ordinary Mercury retrograde, as discussed in our newest YouTube video, Part 4, just released on Wednesday. This Mercury retrograde will contain a rare “Mercury eclipse of the Sun” on May 9, visible as a little black speck moving across the surface of the Sun for about 6-7 hours to much of the world (with proper safety glasses). With Mars also retrograde along with Pluto, which can rule accidents and injuries, you have to wonder how many people will go blind trying to look at the Sun trying to see this cosmic spectacle that happens about every 7 years.

Mercury will be in Taurus during its entire retrograde motion. Taurus rules banks and money. It is not surprising that central banks are announcing new policies even now - policies that negate their earlier pronouncements. It is the mutable T-square too, where nothing said can be counted on to be maintained for long. Everything changes, and again, you cannot believe anything you read, see, or hear. Truth is probably the most valuable commodity of all currently because it is – and will be - in short supply.

How will this affect financial markets? Well, mutable means no trend lasts very long. Bullish sentiment turns to bearish sentiment in a short span of time, like every 1-3 weeks. Mercury retrograde has a similar dynamic, but only with a shorter life span. That is, sentiment can change every 1-4 days as markets whipsaw back and forth amidst unexpected events and contradictory announcements by political and banking leaders. In addition, this tends to be a period of ‘fake outs,” via technical and charting studies, where a bullish signal is quickly followed by a bearish signal and vice-versa. Resistance and support price levels can be broken, fostering the illusion that a trend is in force. That’s one reason why Mercury is often referred to as “The Trickster.” What you see is not what you get. However, within 1-4 days, the price can suddenly reverse and negate that buy or sell signal. This might be a fantastic environment for very short-term traders. However, position traders have to be careful not to be whipsawed in and out of positions for losses.

Since Mercury rules communications, it is a good idea to make sure you enter your orders correctly. Make sure you mean to buy or sell, and not enter the opposite order to what you really meant. You may have to be careful of problems with computers and cell phones too (means of communication). Yet in Taurus, Mercury retrograde may coincide with counting errors in your bank balances. Watch your accounts (bank and credit cards) closely for such errors.

We will keep a close eye on the recent breakouts of some stock markets, like the DJIA. Can it hold above that breakout area of 17,600-17,700? If so, it supports the idea that the central banks are indeed in control and engineering a strong stock market and net wealth gain. If not, there will be alarms set into motion that maybe the central banks have run out of ammunition to manage the economy and financial markets. With Mars turning retrograde now, will the Dollar resume its bull market, causing commodities to take a serious dive, and giving rise to the idea that their recent bullish moves were fake outs? All of this, and more surprises and changes, are possible.

It is almost too much to assimilate. Thus, the best advice is still the advice given before: sit back, enjoy the show, and allow yourself to be entertained. Try not to be too caught up with seriousness in this real life comedy and/or tragedy. It may be emotionally hard when great artists like the creator of “Purple Rain” pass from our planet during these powerful planetary dynamics. When it happens, just try to reflect upon all the greatness he – and others who move onto other dimensions now - brought forth during his/their lifetime. We are all blessed to have experienced such creativity in our lifetime.