Gold fell to $1234 on Friday

REVIEW AND PREVIEW

U.S. consumer prices barely rose in June, but the underlying trend continued to point to a steady buildup of inflation pressures that could keep the Federal Reserve on a path of gradual interest rate increases. The Labor Department said on Thursday its Consumer Price Index edged up 0.1 percent as gasoline price increases moderated and apparel prices fell. The CPI rose 0.2 percent in May. In the 12 months through June, the CPI increased 2.9 percent, the biggest gain since February 2012, after advancing 2.8 percent in May. – Reuters, July 12, 2018.

The costs of US President Trump's earlier taxes on US consumers are starting to come through. Yesterday's consumer price data showed a surge in US washing machine prices. Prices were falling 7.6% y/y in February, and were reported up 13.1% yesterday. – Paul Donovan, “U.S. Consumers Are Paying the Price of Trade Taxes,” July 13, 2018, www.ubs.com/pauldonovan.

Last week witnessed a solar eclipse in opposition to Pluto (July 12-13), and the end of two consecutive grand trines stretching from July 5-14. These two geocosmic events are very contrary to one another. To some, it may seem like we are living in two parallel universes, and not sure which one is real.

The solar eclipse/Pluto may seem like a very dark reality where our lives are completely manipulated by powers or events outside of our control. The grand trines, especially the one activating the Jupiter/Neptune trine in water signs, may seem like a love fest between those who are working towards the same ideal of something like a heaven on earth.

On Thursday, the eclipse/Pluto theme was in full view as news stories reported great discord in a meeting between members of NATO nations, reacting angrily to President Trump’s confrontational style exhorting them to pony up more monies for their nation’s defense, and not to rely so much on the USA any longer. In the process, and via other newspaper interviews in the U.K., his comments were portrayed as insulting to both German Chancellor Angela Merkel and his hostess, British Prime Minister Teresa May. By the next day, Friday, the other universe took over, as Trump proclaimed the NATO meetings were a tremendous success, everyone was on the same page, and that his words were quoted inaccurately about Merkel and May, who he praised as outstanding leaders that he gets along with very well. He then returned to his familiar theme of the “fake news” press, which is another increasingly great concern as transiting Pluto heads towards the opposition of the USA natal Mercury in a couple of years. Mercury represents a nation’s media outlets, the source for news on current events and analysis. Transiting Pluto can represent an effort to shut it down, if not careful. But that is a story for another column.

Nevertheless (or maybe because of these events), many equity markets of the world fared well under these geocosmic signatures, including the U.S. Nasdaq Composite, which soared to another new all-time high. The first of these grand trines involved the Sun to Jupiter and Neptune, July 5-8, followed by Jupiter turning direct on July 10. When Jupiter transits are highlighted, it is often very favorable for equity markets, and it was this time too. Some indices, such as in China and Japan, ended their recent declines right on July 5 as the first trine began. Almost all indices continued their impressive rallies right into the end of last week.

Not surprisingly, however, the Jupiter influence was not as positive for precious metals. Gold fell to $1234 on Friday, its lowest level since July 2017, and below its 11-month cycle low of December 2017. Silver also fell to its lowest level of 2018, but stayed above its low of December 2017, which is the first step to exhibiting a case of intermarket bullish divergence. Now we wait to see how it performs as heliocentric Mercury renters Sagittarius these next 12 days. In more cases than not, this is a bullish time for Gold. But in about 20% of historical cases, it is very bearish instead. Bitcoin appears to have ended it’s nearly 20% rally over the past two weeks, and ended the week back to the low 6000’s.

 

SHORT-TERM GEOCOSMICS

The solar eclipse (new moon) and the two grand trines now end as of July 14. Now what?

As discussed in last week’s column, “…the cosmic dynamics begin to change. The Sun will head towards a T-square with Mars and Uranus, July 25-August 1, followed by Uranus changing directions on August 7. All this is taking place during the next Mercury retrograde cycle too (July 25-August 19).” The disparity between the parallel universes of reality of some world leaders and others will likely be even more apparent as we transition from a new moon solar eclipse to an even more potent full moon lunar eclipse on July 27. That lunar eclipse will conjunct Mars retrograde in Aquarius and form a fixed T-square with Uranus, which rules Aquarius. It also occurs one day after Mercury turns retrograde in Leo. Where to begin to try to understand this?

Let’s start with Mars retrograde, June 26-August 27. Mars likes to start things. However, when it is retrograde, and especially as it is about to leave one sign (Aquarius) for another (Capricorn), it is not often afforded the luxury of pursuing the path it started. Things change. People change their minds. With Mars, this may pertain to the recent efforts to denuclearize North Korea, which said at first it agreed with everything Trump asked for (or so the president implied), and then last week changed its course.

What makes this period of late July and early August potentially more dangerous is that Mars retrograde is square Uranus. These are two volatile and possibly violent planets that are being ignited by the lunar eclipse on July 27, and only a few days before Uranus turns retrograde. As discussed before, Uranus is the element of surprise, of sudden reversals, both in terms of political (and maybe economic) policies, as well as reversals in financial markets. It is anything but stable and comforting. If you are looking for understanding and reassurance, this is not the time to expect emotional support. It is a time to refrain from the temptation to engage in sharp criticism of others, for you may get your head handed back to you. But the real danger lies in the actions of those who are mentally and emotionally unhinged. The slightest provocation, or perceived provocation, can lead to an unexpectedly volatile (even violent) reaction. This would be a time (August 1 +/- 1 week) to practice counting or ten or mediating and slowly breathing in and out to the count of… however high you can count on each breath. Those who can’t or won’t breathe deeply may instead encounter the opposite of peace: a racing heart that could lead to physical or mental pressures on the verge of exploding.

OK. So that is the danger being warned by the cosmic setup. How can this energy be channeled constructively? Think outside the box. Look at the problems, the issues before you, and think of actions and reactions to solve these issues that you have not tried before. Break the pattern, the responses of habit that aren’t working, and think of something new. It can be a time of invention and original thought.

Yes, I know, this is a market report and here I am giving psychological advice. Here is some advice for market traders. Expect wild price swings as unexpected events and sudden changes of mind and policies are announced. Understand that no support or resistance level is safe from being taken out (that may pertain to other mundane matters as well). Many markets may fall far harder, or rally far more spectacularly, than you imagined, July 25-August 9. And then they may reverse. Don’t buy support, but rather wait to buy beneath support. Don’t sell resistance but wait for exhaustion (and there will likely be plenty of exhaustion). Pay very close attention to strong movements and reversals in tech stocks and wheat prices. Weather and sudden events in nature or the electrical grid may cause havoc. There may be much electricity in the air, and tremendous chemistry (attraction) between people, but it may not all be safe or familiar. Go for safe and familiar if you are not sure.

Most of all, don’t start unnecessary arguments (is there is such a thing?), don’t go crazy, and don’t hang out with those who are crazy, for surely “crazy” will rule the day if you allow it. Shoot for brilliance and new discoveries through your own intellectual explorations. This can be a time of an awakening or a reckoning. Take your choice. After all, the eclipse of last week, in opposition to Pluto, fell on the same degrees in Capricorn as the Uranus/Neptune conjunction in 1993. It takes on the energy of that time and that conjunction as well. You may remember: that was when the internet revolutionized the way we communicate with one another, the way we do business.