Weekly Column: A big week coming up

Review and Preview

Stocks of fast large growing companies had their worst month since the pandemic-fueled selloff of March 2020, and Treasury yields are around their highest since June. Strategists who had predicted another strong quarter of economic growth are cutting estimates because of supply chain bottlenecks  and the highly contagious Delta variant of Covid-19. – Akane Otani, “Stocks End Quarter in Turmoil, Worst Month Since March ’20,” Wall Street Journal, October 1, 2021.

“What I have made clear to the President and Democratic leaders,” Mr. Manchin said in a statement, “is that spending trillions more on new and expanded government programs, when we can’t even pay for the essential social programs, like Social Security and Medicare, is the definition of fiscal insanity.” Opinion Page, “The Manchin Intervention,” Wall Street Journal, October 1, 2021. 

World equity markets started out strong last week, rising nicely off their lows of September 20. But then Mercury the Trickster turned retrograde on Monday, September 27, and the decline that had started from all-time and multi-year highs in August and early September resumed until late this past week.

In Asia and the Pacific Rim, it was a mixed performance. China and Japan fell hard into late last week, with both the Shanghai Composite and Nikkei indices down 5.5 and 6.9% respectively, from their multi-year highs of September 14, an MMA two-star geocosmic critical reversal date (CRD). The Australian ASX index also declined last week to its lowest level since June 2. But India’s Nifty stayed near its all-time high of September 24 made the prior week.

In Europe, the Netherlands AEX fell 5.3% from its all-time high of September 17, while the DAX dropped 6.47% from its all-time high of August 13. The Zurich SMI was the biggest decliner last week, falling almost 9% off of its all-time high made on August 18 during MMA’s last three-star geocosmic CRD. The London FTSE  remained near its recent lows of September 20.

All three major U.S. indices were underwater most of last week until Friday’s big rally. But the NASDAQ suffered the most, falling 7% off its all-time high made on September 7. Each of the three indices tested their lows of last June and July in what was a rather tense week of trading related to the stalemate in Congress over Biden’s massive spending bill, plus the persistence of the Delta variant to COVID-19, combined with the threat of a government shutdown. They managed to avert the shutdown for two more months, but they couldn’t agree to raise the debt ceiling, so the U.S. credit status is still vulnerable to a downgrade if something isn’t done soon. With Mercury retrograde until October 18, there is reason to doubt anything sustainable will be done “soon.”

Precious metals markets were noteworthy last week as Silver plunged to a low of 21.41 on Wednesday, September 29, a loss of over 14% since September 3 when it was testing 25.00. That was a new 3-month low. Gold held above the low that started its primary cycle in August for a case of intermarket bullish divergence as both rallied smartly on Thursday, September 30. October is expected to be a turning point for Gold, as discussed in our recent webinar on September 3.

One of the reasons metals (and T-Notes) fell so hard is because the Dollar rose so strongly on the increasing concern that the Fed will soon start to taper. As stated before, we do not see that happening until after Jupiter re-enters Pisces and separates from its positive aspects to the Fed’s Sun/Pluto opposition. That won’t be before mid-January.

Interestingly enough, even as the Dollar rallied, so did Bitcoin and Ethereum. After dropping to their major cycle lows on September 22, both cryptos soared over 20% into Friday’s high. Our crypto clients are quite happy as our awesome streak in Bitcoin and Ethereum continues this year.

Short-term geocosmics and longer-term thoughts

This is a big week coming up via our market timing studies. It may also present several excellent trading opportunities, although Mercury the Trickster, in retrograde September 27 through October 18, may have something defiant to say about that. I do not expect this Mercury retrograde cycle in Libra to be easy to navigate, but the only geocosmic cycles unfolding now can still correlate with a meaningful reversal in several financial markets.

Let’s start with the 25-month Sun/Mars synodic cycle, which takes place on October 8 in mid-Libra. Our studies have shown that this conjunction has a fairly strong correlation to large reversals within 8°. These reversals can begin or end in this time band. The current Sun/Mars conjunction period began with market highs around September 13 (some started from highs in mid-August) and ends on November 1. Historically, many stock indices have plunged 8-20% when a high forms slightly before or during this time frame. Most world indices have declined 5-7% so far, except the Zurich SMI, which has already met this minimum price decline target, having fallen close to 9% from its recent high on August 18. This is why we think stock indices might still have further to fall this month.

The Sun and Mars in Libra is not a strong placement astrologically. Mars is in its detriment in Libra. However, one day before the Sun/Mars conjunction, Venus will enter Sagittarius for one month (starting October 8). Venus in Sagittarius has a positive correlation to stock prices, so it would not be surprising if stock indices find a low nearby. Adding to the possibility of a reversal this week is Pluto changing directions on October 6, the same day as the new moon, with the midpoint of Mercury retrograde on October 7-8. These are all important market timing indicators.

Just as strong as the geocosmic indicators of a reversal mentioned above is Saturn turning stationary direct on October 11. This is a powerful Level 1 geocosmic signature that has a 70% correlation to primary or greater cycles within 9 trading days. The psychological theme of a highlighted Saturn is caution and defensiveness. A sense of worry and anxiety about the future often prevails within a few days of this cosmic event.

So, how do we handle this as traders and individuals trying to get by in life during the era of a pandemic and political disunity? We wake up every day and commit ourselves to do the best we can. The message of Saturn is to exhibit discipline and stay with a well-thought-out longer-term plan. That is not always easy to do with Mercury retrograde, for the Trickster thrives in a climate of distraction and chaos, especially when at the same time Saturn (discipline) is still in its waning square aspect to Uranus (more chaos, disruption, and divisiveness).

Mercury retrograde has gained some notoriety with traders as a result of its propensity for many false breakouts and technical buy/sell signals. It also corresponds to a greater than usual amount of miscommunications, misunderstandings, and technical mishaps (“why do my Word and Gmail/email and YouTube programs suddenly not work right?”). However, it can be favorable for reviewing and correcting past errors and current situations that are hampering progress. Plans need to be adjusted, and individuals (and traders) who are open-minded and flexible can thrive in this time frame.

This is also a note to fearless leaders in government and society who are trying to make moderates (the majority of U.S. citizens) into villains and traitors of their nation. They have it backwards. But then again, we are starting a new month with six planets (seven if you count Chiron) in retrograde, where the cosmos appears to be moving backwards too.

All those retrogrades. It is time to review, revise, and start over again.