Weekly Column: Inflation sets off alarms world-wide

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The Dow got a boost Thursday as investors rotated out of tech stocks and into blue-chips. Despite the blips in the tech sector, overall earnings season has been terrific so far, boosting the broader market back to an all-time high following a two-month lull.– Tanaya Macheel and Hannah Miao, “Dow Closes at a Record,” www.cnbc.com, October 22, 2021.

The end of Mercury retrograde last Monday, October 18, didn’t end the global stock market rally that started from lows nearby to when Mercury turned retrograde on September 27 or its midpoint of October 7-8. It didn’t end with the three powerful Jupiter transits October 15-19 either. However, several of the world stock indices did pause their rallies on October 20-21, while a few others just kept rising right until the end of the week. Overall, the market behavior last week was very Jupiterian. That is, stock markets were bullish, with some even reaching new all-time highs. The behavior of stock indices was not even across the globe, or within any of the major regions either.

In Asia and the Pacific Rim, the Indian NIFTY index soared to yet another new all-time on Tuesday, October 19. The Australian ASX, Japanese Nikkei, Hong Kong’s Hang Seng, and China’s SSE indices had corrective rallies but topped out well below their highs of mid-September.

In Europe, the Netherlands AEX exploded to a new all-time high on Friday, October 22. The German DAX, and Zurich SMI indices also rallied, but so far, their rallies were only a correction of their recent decline. The London FTSE made its post-pandemic crash high a week earlier, on October 15.

In the U.S., both the DJIA and S&P recorded new all-time highs on Friday, October 22. However, the NASDAQ rallied as well into Thursday, October 21, but is still well off its all-time highs.

Other markets again had noteworthy weeks. Bitcoin roared to a new all-time high on Wednesday’s full Moon (October 20), but Ethereum fell a little short, for a case of intermarket bearish divergence. By Friday, Bitcoin had fallen below 60,000, a loss of over 10% in two days. Crude oil soared to another multiyear high, hitting 8422 on Friday. Silver was a star, testing 25.00 again on Friday, which represents an appreciation of over 16% since September 29. Gold also had a good week, reaching 1815.50 on Friday, its highest mark since September 7. Our call for Gold made in our early September webinar is still on track as we head into the critical November-December period and the Mars effect outlined for then.

Short-Term Geocosmics and Longer-Term Thoughts

Rising inflation is triggering anxiety around the world as a surge in demand following the easing of COVID-19 lockdowns has been confronted by supply bottlenecks and rising prices of energy and raw materials.– Paul Hannon, Ryan Dube, and Stella Yifan, “Inflation Sets Off Alarms World-Wide,” Wall Street Journal, October 16-17.

Treasury wants to snoop on banks accounts to trigger more audits. This week Senate Democrats backed by the Biden Treasury released a revised proposal that raises the threshold for financial institutions to report to the IRS on individual accounts to $10,000 from the previously mooted $600. – “The $10,000 IRS Tax Dragnet,” Opinion page, Wall Street Journal, October 22, 2021.

You would think that new all-time highs in stock indexes would signal that the economic future of the world looks great, that the outlook for companies and individuals is very rosy. However, with the Sun leaving the diplomatic and willing-to-compromise sign of Libra for the less diplomatic and more probing and demanding-of-action sign, Scorpio, there is still a fair amount of worry afloat. There may also be a resurrection of investigations into wrongdoings in the past by political leaders of the world, efforts by governments to have their tax collecting agencies intrude into personal bank accounts, as well as another round of urgency regarding debt, deficits, and new tax proposals. These behaviors all fall under the sign of Scorpio and its ruler, Pluto. It just so happens that the U.S. is entering its 248-year Pluto return too, so this nation is very likely to experience new attention on these issues this next month.

As investors, traders, and market analysts, why do we care about this? It is simple, if you are also a student of history and its correlation to geocosmic cycles. For one, we know that the final passage of the 45-year Saturn/Uranus exact waning square is approaching on December 24, just one week after Venus turns retrograde while in conjunction with Pluto. The history of this (and all) Saturn/Uranus quarter cycles illustrates a high frequency of economic and market downturns 1-3 years afterwards when both have been rising going into the aspect. In fact, every other instance (90 years apart) of the Saturn/Uranus waning square has coincided with the two worst depressions in U.S. history: (1930-31 and 1840). 2021-2022 is next in this 90-year cosmic phenomenon.

Secondly, as I write this year’s annual Forecast book, I discovered a correlation of severe market and economic declines occurring within the first two years of the 20-year Jupiter/Saturn cycle, which commenced December 21, 2020. It is not that these types of shocks have to happen, for after all, they are caused by either natural events outside of our control to which we were not prepared, or by the implantation of extreme policies and poor judgement (the downside of Jupiter) that did not work out well. Think September 11, 2001, and the dot com speculative bubble bust in the last instance, or the record-high inflation and interest rates the time before that, or the Bay of Pigs Cuban crisis before that, or World War II the time before that.

In addition, Jupiter will re-enter Pisces, December 29, 2021, through May 10, 2022. This is a combination that has historical correspondence to sharp and sudden reversals in a variety of financial markets, including Crude Oil and Silver. On a positive note, Jupiter will conjoin Neptune on April 12, 2022, in Pisces. This is a very charitable, compassionate combination which may bring people and leaders together in a large summit or conference, during which great visions may be shared, creating much excitement about the future. It’s not all bad news or depressing news, but it is apt to bring forth big ideas that will then have the challenge of “making dreams come true.” It will be a good time to believe in miracles and leave grievances behind, for at least one week. No one will want to hear negative warnings or depressing projections. It’s more of a time for a love fest. It is interesting that it happens nearby to Easter. Young people especially appear to be in a party mood this spring season. Watch out Florida and seaside destinations. With this aspect of group bliss also comes the potential for carelessness, but I promised not to bring up warnings, so forget what I just wrote (unless you care about your health).

Shorter-term, the Sun in Scorpio will activate the Saturn/Uranus square October 30-November 5, followed by Mars doing the same November 10-17. These are not aspects of smooth sailing for financial markets or socio-political matters, as the Jupiter/Neptune conjunction is apt to be in April. However, they may energize markets that rally strongly under the wish for a safe harbor in moments of turbulence. If you are prepared you may be able to capitalize on these sudden changes and sharp market moves.