Weekly Column: DJIA started May down 622 points

Review and short-term geocosmics

“As businesses begin to open, you’re going to see the demand side of the economy rebound,” Mr. Mnuchin said. That resembles the forecast issued by the Congressional Budget Office, which expects a sharp contraction in this quarter and then growth at an annual rate of 17% in the second half of this year. The rebound depends on many unknowns… _Richard Rubin and Sarah Graney, “Mnuchin Expresses Confidence in Rebound,” Wall Street Journal, April 27, 2020.

Mr. Powell and Treasury Secretary Steven Mnuchin may underestimate how much this shutdown is hollowing out the heart of the U.S. economy. “The Fed’s Main Street Mistake,” Wall Street Journal, “Review and Outlook,” April 10, 2020.

“Sell in May and go away.” Old stock market mantra.

After posting its best month of gains in 33 years in April, the Dow Jones Industrial Average started the month of May on Friday down 622 points. The reason for the decline? No one really knows. It just tends to happen in May, although comments by White House economic advisor Larry Kudlow that China will be held accountable for the coronavirus didn’t help, nor did President Trump’s inference that new tariffs may be leveled on China.

This just isn’t a good time to restart another round of trade wars and tariffs, not with Jupiter in Capricorn about to turn retrograde (along with Venus and Saturn) in a few days. Yet it certainly fits with the dynamics of Financial Astrology. Jupiter rules trade, Saturn rules restrictions, and Venus rules love and money. No love, no money. No money, no love. And the president has a natal Venus/Saturn conjunction in Cancer (currently being opposed by transiting Pluto), which pertains to this same dance with would-be partners that end up stepping (intentionally or not) on each other’s toes. It’s not graceful or elegant, as Venus would wish, and often ends up in hurt for both parties. It could be avoided with boundaries and agreements that were mutually respected, and the result could be success for both parties. But with Pluto involved, now is probably not the time we will see that happen. Pluto is often more focused on the hurt than the love.

But let’s get back to the equity markets, which have risen nicely since late March in anything but a graceful dance. This is the rally that Wall Street traders hate because the news on the economy and jobs is just plain ugly – the worst in generations – due to the engineered recession by governments everywhere in an effort to delay the coronavirus pandemic.

The good news is the curve of reported infection rates is indeed flattening and economics are beginning to reopen as governments had hoped after all of these lockdowns and social distancing guidelines. People complied. They came together and it worked. But what will this reopening look like once Venus, Jupiter, and Saturn turn retrograde May 10-14? The bad news is that without a treatment or vaccine, the cases of COVID-19 have only been delayed, not eliminated. And the idea that a vaccine will make everything safe and OK may be wishful thinking. It may bring its own problems to public health, and with Neptune still in Pisces (wishful thinking), that could lead to yet another cover-up and a host of new conspiracy theories, especially after Mars turns retrograde in September. All of these retrogrades this year!. All of these unexpected and unintended consequences that are likely to be experienced, due to all of these pre-mature decisions and actions that were enacted based on conjecture and a lack of reliable information and data. It’s a good time to evaluate your degree of faith in… everything and everybody. It is a better time to adopt a higher standard and respect for the value of critical evaluation.

But back to the markets (speaking of retrogrades and how my thought processes are working these days…). Most of the equity markets of the world had a good week and a good month – until the month ended on Thursday. Many attained their highest levels yet since the crash of 2020 ended (temporarily) with the conjunctions of Mars to Jupiter, Pluto and Saturn, March 20-31. And now we are about to enter the next big cosmic deal of 2020 in the next two weeks.

In other markets, Crude Oil rallied nicely to its highest level since its crash bottomed (so far) on April 21. The U.S. Dollar fell to its lowest level since March 30. Bitcoin soared to its highest level since February 26. Gold and Silver exhibited rather large price swings, but no new cycle highs or lows yet. That’s coming soon, I think.

Short-term geocosmics and longer-term thoughts

After years of silence, the 2020 presidential hopeful released his federal tax returns earlier this year. (Joe) Biden’s recent available tax returns show his family income jumped from $400,000 in 2016 to $11 million in 2017 as a result of his book deal. His total income in 2018 was about $4.6 million. During a speech in New York in June, Biden suggested that being rich doesn’t mean you love the U.S. any less. “What I’ve found is rich people are just as patriotic as poor people,” he said, as reported by numerous media outlets. “Not a joke. I mean, we may not want to demonize anybody who has made money.” – Ann Schmidt, “What is Joe Biden’s Net Worth?”  www.foxbusiness.com, May 1, 2020.

“It’s not over until it’s over.” – Yogi Berra

Let’s review this next big cosmic deal coming up. On May 10, Saturn will turn retrograde in 1° of Aquarius. It will head back into Capricorn July 1- December 17. We’ve got unfinished business to deal with then – perhaps unintended consequences – related to the circumstances present (and the decisions made by our fearless government and scientific leaders and experts) just before Saturn entered Aquarius, which was basically late January until March 23. On May 13, Venus will turn retrograde at 21° Gemini, square Neptune in Pisces. There will likely be a lot of blame tossed around as no one wants to accept responsibility for what happened, and scapegoats will be in high demand. Jupiter will then turn retrograde on May 14 at 27° Capricorn, still conjunct Pluto, heading for their second of three passages on June 30, shortly after Venus turns retrograde (and Mercury and Neptune turn retrograde then too). It’s not over until the retrogrades are over. And even then it’s not over because in September, Mars will turn retrograde. Chiropractors will be in great demand (along with scapegoats) from all this whip-lashing.

But let’s return to the markets (speaking of retrogrades and how my mind thinks these days… it seems to be repeating itself in preparation for the next episode of Groundhog Day in the cosmos)…. Historically, multiple planetary stations (retrograde and direct) unfolding in the same week have a remarkably high correlation to major reversals in many financial markets. Venus and Saturn retrograde are two of the strongest correlates to trend reversals in stock indices, given an orb of 12 trading days. Leading up to this period is the transit of Mars, in conjunction to natal Mercury and Sun, square Pluto, in the chart of the New York Stock Exchange, formed on May 17, 1792. This transit is taking place now, May 1-8, and often coincides with a sudden and sharp decline in U.S. stocks, as we witnessed the last two days of last week.

This is a good time to be a trader, if you are nimble and understand financial astrology. If not, just remember the mantra of Venus: ”No money, no love. No love, no money.” Dang! There I go repeating myself again. Those retrogrades are starting to take over my mind. It must be May 2020.