The DJIA soared to a new all-time high

REVIEW AND PREVIEW

Nonfarm payrolls rose just 134,000, well below estimates of 185,000 and the worst performance since September 2017 when a labor strike weighed on the numbers. The unemployment rate fell two-tenths of a percentage point to 3.7 percent, the lowest since December 1969 and one-tenth of a percentage point below expectations. August's initial count was revised up dramatically, from 201,000 to 270,000, while July's numbers came up as well, from 147,000 to 165,000. -Reuters, “Gold Rises After Weakest Job Report This Year,” www.cnbc.com, October 5, 2018.

China plans to sell $3 billion in U.S. Dollar bonds this month, wooing investors at a time of heightened trade tensions with the U.S. and turbulence in its own stock market. – Manju Dalal, “China to Raise Billions in Dollar Debt,” Wall Street Journal, October 4, 2018.

Venus retrograde and MMA’s three-star critical reversal date (CRD) of October 3 strikes! Last week we concluded that “… It is the nature of Venus retrograde to change its mind… a total turn around.” We were commenting on the confirmation hearings of Supreme Court nominee Brett Kavanaugh, where some Senators did change their mind, but most were not willing to give up the Libra and Venus concepts of “due process by law.” where one is presumed innocent until proven guilty. And despite the very credible testimony rendered by Dr. Ford, without collaboration for her allegations, a majority of senators couldn’t go against that bedrock of American law.

However, the Venus retrograde “change of mind” was very apparent in world stock indices. Most stock indices topped out by the middle of last week and then fell hard, especially the USA NASDAQ index. As mentioned in prior recent columns, Venus retrograde is one of the strongest geocosmic correlations to the completion of primary or greater stock market cycles that we have identified through our published research. It has a 78% correlation to primary or greater cycles within an orb of 12 trading days, and usually much less.

The all-time high in the DJIA that occurred on October 3 was a direct hit with our three-star CRD. Although all USA indices rallied into that date, they were not all able to make a new all-time high as the DJIA did, for a clear case of intermarket bearish divergence. Market timing doesn’t get much better than that. This illustrates exactly why Financial Astrology is a valuable market timing tool, especially when used in combination with cycle studies. When the two studies come together as they did last week, it is a reaffirmation that the cycles of the cosmos do indeed correlate with cycles in human activity. We are connected to the cosmos, even though our ego likes to insist on its own independent dominance as the center of the universe and all that is. The ego is not all there is to the universe. Nor is the stock market, for that matter. But that is a topic of discussion for another day in another venue than this column, whose purpose is to educate the reader on the correlation of geocosmic cycles to the mundane world of financial markets and geopolitics. And last week was an excellent example of how this correlation often works.

The DJIA soared to a new all-time high on October 3 following the announcement of a new and modestly revised trade deal between the USA, Canada, and Mexico, now called USMCA (U.S., Canada, Mexico Agreement). It was cause for celebration and optimism, a little ahead of Jupiter entering Sagittarius (in one month). Jupiter in Sagittarius is the combination inclined to such positive news of agreements regarding world trade. But all those gains for the week were wiped out when traders and investors realized that 1) interest rates are rising, and 2) China is starting to sell its inventory of U.S. Treasuries, a fear that lurks in the back of the minds of everyone as a potential catalyst for trouble ahead, as long as the U.S.-China trade dispute continues. This is also consistent with Pluto turning stationary direct at the beginning of last week, for Pluto rules debt, and treasuries are essentially an IOU, or debt, of one party (USA) to another (China).

In other markets, Silver was very strong last week, but the Euro pulled back sharply from last week’s announcement regarding Italy’s decision to bust its budget. The U.S. Treasuries fell very hard, with 10-year treasury notes soaring above 3.2%, making a new 10-year high. Crude oil, like stocks, made a new yearly high early last week and then started to sell off. Bitcoin continues to flounder in a narrow trading range between 6300 and 6800, coiling in preparation of breakout one way or the other.

 

SHORT-TERM GEOCOSMICS AND LONGER-TERM MUNDANE THOUGHTS

International Monetary Fund Managing Director Christine Lagarde is raising alarm bells about the health of the global economy, saying international growth may have plateaued. – World Watch, “Lagarde: Economic Outlook is Dimming,” Wall Street Journal, October 4, 2018.

The Trump administration aims to step up trade talks with other countries, using its new pact with Canada and Mexico as a template, an approach that has U.S. trade partners preparing for contentious talks…. The underlying principle, as Mr. Trump himself said in unveiling the North American accord this week, is that trade partners should consider it “a privilege for them to do business with us.” – Jacob M. Schlesinger and Josh Zumbrun, “Trump Forges New Model on Trade,” Wall Street Journal, October 5, 2018.

What ever happened to the idea of “fair trade” agreements? Wasn’t that what this trade dispute was supposed to be about? Mr. Trump was upset that many counties, including China, Canada, Mexico, Japan, Europe (well, everyone) had an unfair trading relationship with U.S.A., and he was going to correct that. It was a worthy goal and he has made much progress in that direction. But now it seems that “correction” doesn’t mean “fair and balanced trade agreements” any longer. It is morphing into ones that reverse the situation and puts the U.S.A. at a clear advantage over its trading partners (“it’s a privilege for them to do business with us”).

It’s no longer so much as “balancing” or “correcting” an imbalance, but creating the very type of imbalance in reverse that led the Administration to initate this trade dispute. Something seems fundamentally wrong when the goal of negotiations is not to affect compromises, or a win-win balance, or even a “fair” resolution, as this campaign started out to be, but instead becomes one that ends up as a new “one-upmanship” over others. Does anyone really understand why the U.S.A. can not be satisfied and pleased with a “fair and balanced” trade agreement? Are we aware of the long-term consequences this type of demanding, self-glorifying behavior might have in future dealings with our trading partners? These are the kinds of signatures showing up next when Jupiter will be forming three square aspects with Neptune. If not careful the U.S.A. might win this battle, but lose the “war” to attain a strong world trading climate that benefits everyone on the planet, including the U.S.A.

Shorter-term, we now enter the Venus retrograde period, October 5-November 16. This is a time when people change their minds and central banks often change their monetary (interest rate) policies. Expect some surprises here in the next six weeks, maybe even this week as Venus squares Mars on October 10 and the Sun squares Pluto on October 11. Perhaps more important, heliocentric Mercury will enter Sagittarius, October 10-20. This signature often correlates to heightened volatility in currency and precious metals prices. Don’t be surprised if bitcoin starts to break out of its congestion zone. Whatever new market trends/reversals are starting in association with Venus turning retrograde, they may gather momentum in the next two weeks. The same holds true with dynamics in romantic relationships, so be prepared for reversals in many facets of life. It will make things interesting, and maybe that part of one’s life becomes a little more spicy.