Gold and Silver also exhibited a rather remarkable week

REVIEW AND PREVIEW

It was a strange week for equity markets around the world, as several made new multi-month highs, while others fell a little short, and still others were even down. However, “strange” is a description often associated with Uranus. “Divergence” is yet another. Last week ended with Uranus turning retrograde. It was strange, and filled with market divergences. In the USA, for instance, the S&P futures made a new all-time high to start the week and ended the week near to those highs. On Friday, July 29, the NASDAQ Composite soared to its highest level since early December 2015. This is not so unusual because the NASDAQ is ruled by Uranus. But the DJIA kept falling all week even as the other indices were rising. The DJIA was testing its lowest level in two weeks on Friday.

In Europe, all stock indices were strong, with each of those we track making multi-month highs during the week. Several Asian and Pacific Rim markets did the same, but not so in China or Japan.

Thus, we have cases of intermarket bearish divergence in various stock indices of the world as Uranus turns retrograde. We are also headed to a new moon in Leo on Tuesday, the same day that Mars enters Sagittarius. In other words, markets could reverse any day now, especially the NASDAQ and other highly exposed tech indices.

Gold and Silver also exhibited a rather remarkable week, which was what we expected. That is, major cycle lows formed July 21-25, and then, as we are near the end of Mars in Scorpio, a sharp rally unfolded. Crude Oil, however, continued its multi-week decline, with prices now testing $40/barrel, its lowest level in over three months.

The big story in financial markets last week, however, had to do with currencies. Consistent with our call that the Fed would not raise interest rates before the election, and instead would do everything possible to be accommodative –making sure the economy and stock markets exhibit signs of strength going into the election – the FOMC announcement last week reflected exactly that thought. There would be no change, no increase, in short-term interest rates for the present. On that news, the Dollar fell hard against most major currencies, especially the Japanese Yen, Euro, and Swiss Franc. As stated in last week’s column, “Why is this important? Because if the Dollar makes a new yearly high (back to or above the 100.51 high of December 2, 2015), it fits a 16-year cycle pattern whereby the Republicans win the White House. Do I think this will happen? No. I think the Federal Reserve is doing everything in its power to prevent that. They are orchestrating a scenario where the stock market continues to soar and people will feel a “wealth effect” from new stock market highs, thereby diminishing the Republican (and Donald Trump’s) argument that the economy is lousy. The Fed is getting everything it wants in this regard, and will continue to do so. The only problem is that the Dollar is not cooperating and falling from these policies, thereby supporting the bottom line of USA multi-national corporations.” But last week, that changed. It makes you wonder when Republican presidential candidate Donald Trump proclaims, “… the system is rigged.” Nevertheless, rigged or not, you cannot win if you don’t play the game.

SHORT-TERM GEOCOSMICS

We are in a crazy cosmic time band now that will last through mid-September, where strange things can happen, where almost anything can happen. Not only is Uranus turning retrograde right now on July 29, but on Tuesday, August 2, there will be a new moon in Leo as Mars leaves Scorpio and enters Sagittarius. As stated last week, “… on August 2, Mars will begin an 8-week sojourn through Sagittarius, which acts a lot like Uranus. This implies there will be more records broken, in sports and financial markets. In most cases observed in the past (but not in all cases), Mars in Sagittarius is favorable for stocks, but not so favorable for precious metals, at least not while in the early degrees.” In terms of mundane matters, this combination continues to warn about dangerous conditions in the world, via terrorism or acts of nature. It doesn’t get any less combustible when heliocentric Mercury enters Sagittarius on August 9, which often corresponds to powerful moves in precious metals. But will those sharp moves be up or down this time? With Mars in Sagittarius, it can first go one way and then the other.

Equally important will be the period around August 13 when Saturn turns direct, and Venus squares Saturn on the same day, and then squares Neptune the day after. Venus rules love and money. Neptune rules love. Saturn rules “loss” or “lack of.” It is the same old story: no money, no love. In terms of market psychology, this could correlate with a broken agreement that was expected to yield a huge profit. No agreement, no money. It is so “heartbreak hotel.”

LONG-TERM THOUGHTS AND MUNDANE ASTROLOGY

Near-zero interest rates aren't good for the economy in the long run, bond guru Bill Gross said Wednesday. That's because low rates hinder the ability of savers to earn a return on their money, and that impedes investment, he said. "Capitalism can't really thrive," the manager of the Janus Global Unconstrained Bond Fund said in an interview on CNBC. "Ultimately in terms of real economic growth, an economy needs certainly a positive interest rate and maybe even a close to positive real interest rate in order to function normally," he said. -Michael Fox, CNBC, July 27.

These near-zero interest rates are a by-product of the 36-year Saturn/Neptune waning square, as described in our Forecast 2016 Book. The last of three passages of this aspect will be completed on September 10, the day after Jupiter leaves Virgo and enters Libra for the next 13 months.

However, getting to the middle of September will be a rocky road from here. On the political front, Hillary Clinton became the first female to be nominated to the USA presidency by a major political party last week. That too is a characteristic of Uranus being highlighted (first time ever type of events). However, this was not a surprise. It had been expected for several months. But what will be very interesting is the choice of American voters on November 8. Will they choose a party whose candidates have their natal Sun making a grand trine to the nation’s Venus/Jupiter conjunction in early Cancer (Clinton and Kaine)? Or will they choose a party whose candidates have natal their Sun conjunct the USA Mars, square Neptune (Trump and Pence)? We will be discussing this in our next YouTube video, possibly to be conducted this week. Either one could win, with the polls showing a wide range of disparity already. The LA Times/USC poll shows Trump now ahead by 7%. The Economist/YouGov poll shows Clinton ahead by 5%. The average of all polls, shown by Real Clear Politics, has Trump ahead 45.6% to 44.7% as of July 27. Already, the polls, like the markets, are showing signs of great divergence.

Everything is so Uranian as we end July. But I don’t know if we should celebrate, for August will be so Saturnian. Be prepared to see a lot of the past brought up, for that is what Saturn does. It makes you accountable for decisions and actions made in the past. At least Uranus (July) made us think about the future – historic, but strange.