Crude Oil is one market that stands out

REVIEW AND PREVIEW ONLY THIS WEEK

Falling bond yields are signaling a growth slowdown and the yield curve is inverted in what nearly always predicts a recession if it continues for three months. Mr. Trump seems to believe the Federal Reserve can make everything great again by cutting interest rates…. U.S. tariffs have a negative impact on growth around the world, which in turn hurts U.S. exports. … Mr. Trump and his Republican fellow-travelers say the doomsayers were wrong about the initial round of China tariffs, (but the) initial tariffs were dwarfed by the growth effects of tax reform and deregulation… (and) the damage from tariffs will rise if they increase in severity and are imposed impulsively. Sooner or later bad policies always exact a high economic and political cost.  Wall Street Journal Editors, “Washington’s Anti-Growth Turn,” June 6, 2019.

Two new analyses show that the tariffs Mr. Trump is using to punish China, Mexico, Europe, and other governments would more than wipe out any gains from his $1.5 trillion tax cut for low- and middle-income earners. – Jim Tankersley, “Trump’s Tariffs Could Wipe Out Many Gains From His Tax Cut,” The New York Times International, June 5, 2019.

“And a lot of people, senators included, have no idea what they’re talking about when it comes to tariffs. They have no – absolutely no idea.” Donald Trump, from “Trump: Senators ‘Have No Idea What They Are Talking About’ On Tariffs,” by Brett Samuels, The Hill, June 6, 2019.

Greetings from Beijing, where I am on the ground floor of the trade dispute between the world’s two largest economies. It is surreal. On CNN, I watched the D-Day ceremonies taking place between the USA, the United Kingdom, and France, in which the U.S. President looks downright presidential as he promised a great trade deal between the U.S. and Great Britain, the world’s fifth largest economy. Then I switch to another station, where an impressive ceremony was taking place between China’s President Xi Jinping and Russian President Vladimir Putin, as they agreed to a huge historic trade deal. Great trade deals are happening all over the world, as they should be with Jupiter in Sagittarius. Except in America, where they are promised over and over again, but have yet to be delivered, which is also typical of Jupiter in Sagittarius forming a waning square with Neptune in Pisces. The waning square is arguably the most difficult of all aspects to integrate successfully, but it can be done if there is trust between all parties involved. Yet when trust is violated or absent, all bets are off, and the more common result is name calling and finger pointing to justify the failure to deliver on the promise.

Be that as it may, the U.S. and world equity markets rebounded strongly from their month-long decline that ended on Monday, June 3. After falling over 2,000 points in the month of May, the Dow Jones Industrial Average exploded Tuesday-Thursday (as this is being written), recovering over half of that month-long decline in just three days. Gold and Silver also shot up, with Gold testing its high of this year (near $1,350) on Wednesday. Just one week ago Gold was testing its low, and Silver was making its low. What changed? The Federal Reserve Board Chair Jerome Powell stated last Tuesday that he may be open to an interest rate cut. That did it. An old cycle ended and a new cycle began, right on the new Moon – which is symbolic of a cycle ending and a new cycle beginning.

But how long will this new venture into the next bout of Jupiter/Neptune’s “irrational exuberance” last? We will soon find out, as the second of three passages of this “great illusion” unfolds on June 16. But the craziness, the bizarreness, and even hypocrisy inherent in this aspect are already starting. As stated many times before in this column, you won’t believe (and should not accept without proof) what you are about to see, hear, and read. I cannot think of an aspect more unreliable, more out of touch with reality and truth, than the planetary combinations in effect now, and especially during the period of June 9-24. Here we are. Fasten your seat belts and be prepared to be entertained at best, disillusioned and perhaps even disappointed at worst, as leaders of the world are likely to demonstrate whether they are inspired, or just flat out peculiar and living in fantasyland.

Who will be most challenged to have a reality check? Those who have planets between say 17-21 degrees of mutable signs (Gemini, Virgo, Sagittarius, and Pisces). That would involve individuals born June 8-13 and every 90 days afterwards, for the Sun would be in those degree sectors. It may be a very favorable time to engage in celebrations and festivities of great pomp and glamorous ceremony. However, it is not the most favorable time to exaggerate facts, to make promises that cannot be kept, or to violate promises already made, unless you wish to incur the ire of others who see you as untrustworthy and unreliable.

How will this affect financial markets, and which ones are most prone to reversals? Certainly, Crude Oil is one market that stands out, as both Jupiter and Neptune, and their ruling signs of Sagittarius and Pisces, are involved, and all pertain to Crude Oil. If you trade Crude Oil, this may be an important time to consider Nitin Bhandari’s “Time for Crude Oil” report, offered by MMA. In fact, any market that is rising or falling sharply into this period is a candidate for a major reversal. It is, after all, one of the strongest geocosmic-populated time bands of the year.

Have fun! But make no promises and try to avoid making a fool of yourself. With Jupiter square Neptune, it is like a party, but with the potential for embarrassment over whatever you did to excess, and the hangover that follows. The same goes for speculation. Make a huge profit, but remember to take the profits before they evaporate due to inattention and complacency. Your intuition may be spot on, but if discipline is missing, it will surely show up in your final trading results.

And one more thing to remember as traders: sell the rumor, and buy the fact. Or is it the other way around? With Jupiter square Neptune, who knows?  But one thing we do know from the study of these planetary factors in effect the next two weeks is this: there will most likely be plenty of rumors and very few facts.