Weekly column: Markets react to inflation and geocosmic shifts

Review

Investors homed in on the core prices, sending stocks and bonds higher. But the data aren’t significant enough to change Fed officials’ plan to hold interest rates steady while they await the tariffs, tax cuts and immigration crackdown that Trump has promised to deliver. The Fed meets in two weeks and has widely telegraphed that it is taking a break from rate cuts.

—Paul Kiernan, “Inflation Ticks Up to 2.9%, but Underlying Price Gains Are Muted,” Wall Street Journal, January 15, 2025.

Last week, we had several powerful Level 1 signatures, which corresponded to trading reversals within 4 trading days. We started the week with the Sun trine Uranus, which usually corresponds to breakouts of support or resistance zones. This was most evident in the US and Chinese equity markets as prices broke below support zones. With Uranus corresponding to the tech-heavy NASDAQ and Cryptocurrencies, we saw a trough of significance forming, followed by a disruptive and sharp reversal in a matter of hours.

This was followed by the Venus-Jupiter waning square on January 14. Venus tends to correspond to currency, bond markets, and grains, whilst Jupiter is a co-ruler of Crude Oil and Gold. We saw the US Dollar DXY index forming a crest at 110.18, levels not seen since November 2022, and signs of a crest of significance having formed. It is worth remembering that the US Dollar does not generally fare well under a Republican presidency. We also saw the bond market form a potential primary trough on Tuesday. Soybeans also reached a crest on Tuesday.

Wednesday’s CPI Report sent all the markets rallying as it eased concerns that inflation may be re-accelerating. This eased fears that rates may not come down and, therefore, boosted higher-risk assets, precious metals, and Crude Oil. The CPI results were announced at the Sun-Mars opposition, which is a Level 1.5 Signature. It’s worth noting that the effect of all three signatures is still active and will be present at the January 24-27 critical reversal date.

 Equity markets globally closed the week up. In the US the equity markets had a good bounce off the CPI data on Wednesday. However, this week, excluding DJIA, the SP500 and NASDAQ failed to break out of the bearish price channel. In Europe, the Euro Stoxx 50, Germany’s DAX, and the UK’s FTSE had a stellar week, rallying to new all-time highs (ATH). However, there is a case of bearish intermarket divergence with the Swiss SMI, which has still not taken out its high of Aug 2024. The Nikkei bucked the trend in Asia, trading down all week as the Bank of Japan indicated a potential rate rise at its next meeting (Jan 23-24). China’s SSE, Hang Seng, and Hong Kong indices all appear to have found a multi-month low on Monday, closing the week with a small gain following the release of 2024 economic growth results in line with government targets of 5% growth. In Australia, the December 20 low has held, and the rally continues, despite not having taken out the December 2 high. Brazil’s Bovespa index also appears to have found a multi-month low, as a double bottom to the June 2024 low, which is indicative of a new cycle. Let’s see if it is able to take out the Aug 2024 ATH.

 Gold and Silver, both in the early bullish stages of their respective primary cycles, responded well to the CPI report, which released the bullish potential forecasted in our weekly and monthly MMA reports. Gold rallied to 2759.10 on Friday and Silver to 3199 on Thursday. Crude Oil is also on a breakout, having reached $80.77 on the nearby contract, hitting some of our upside targets within our weekly report. Subscribers will recall we were looking for a low of significance to form around the Dec 6-9 CRD as Neptune, the co-ruler of Crude Oil, turned direct. We have seen a 20% rally since then, which could be troubling for future CPI reports.

Cryptos are bullish with the incoming administration, with Bitcoin having rallied over 62% since the November 5 elections. With the inauguration around the corner, Bitcoin is back up above the 100k mark, and the star of the crypto world this week was XRP, which managed to form a new ATH at 3.40, having rallied 578% since November 5!

Short-term geocosmics and longer-term thoughts

Israel’s security cabinet approved an agreement on a cease-fire in the Gaza Strip that would free Israeli hostages, ending two days of debate that had underscored the pact’s fragility. “Frankly, it better be done before I take the oath of office,” Trump said in a radio interview.

—Summer Said, Jared Malsin, and Anat Peled, Wall Street Journal, January 16, 2025.

Donald Trump is set to push a range of policies that could affect your finances…He wants to bring cryptocurrency into the mainstream. He is expected to do away with Biden-era student-loan relief efforts. His allies want to fundamentally alter two mortgage giants, which could lift rates. And that is aside from the tariffs and deficit-reduction policies that could have an impact on grocery prices and investments.

—Ashlea Ebeling, Joe Pinsker, and Oyin Adedoyin, Wall Street Journal, January 16, 2025.

Mars, the planet of aggression, fire, confrontation, and war, is retrograde and in the sign of its fall (Cancer). This crafts the planet to be weak and depleted. On the other hand, Venus, the planet of love, harmony, and peace, is in its sign of exaltation (Pisces). Therefore, with the Sun’s opposition to Mars, we heard news of a ceasefire between Israel and Hamas.

Over the coming week, we will have the Venus-Saturn conjunction taking place on January 18. We generally like to buy any markets making a low as this aspect is forming. The Sun will ingress into Aquarius on January 19, forming a conjunction with Pluto on January 21. These dates are important as they mark the active degree of the December 2020 great conjunction between Jupiter and Saturn, commencing the “New Aira.” We would expect a sudden shift in mass psychology as the Sun changes signs, which will be marked by the important US presidential inauguration on Monday.

The January 20, 2025, inauguration chart for Donald Trump suggests a presidency marked by deep transformation, conflicts, and unexpected developments. Central to the chart is the Sun-Pluto conjunction on the midheaven in opposition to Mars, Uranus in Taurus in the first house, and a Grand Square, indicating themes of disruption, emotional tensions, and challenges in leadership, both domestically and internationally. From our cycle studies, we know that the next four years will be extremely eventful for the financial markets, as we anticipate the 18-year crest and trough to form in the equity markets. However, the US Presidential Inauguration Chart provides a richer picture of a nation and world in turmoil and undergoing dramatic change.

In reviewing prior inauguration charts, there are strong similarities to the inauguration chart of Franklin D. Roosevelt on January 20, 1941, who had to deal with the attack on Pearl Harbor and the US getting dragged into World War II. This chart also had Uranus, the planet of sudden disruptions, unexpected shifts, and innovation (the Manhattan Project and the development of the atomic bomb) in the first house (the nation). The Sun in this chart was in opposition to Pluto. There was also a grand square aspect indicating tension and turmoil, involving 3 of the same planets that we have in the 2025 chart (Chiron, Moon, and Mercury).

The Sun-Pluto conjunction at 0° Aquarius (the charged degree marking the 2020 great conjunction) suggests the presidency will be defined by profound societal changes. The Sun represents the president, and Pluto governs transformation, power struggles, and dismantling outdated structures. This alignment indicates a presidency aimed at restructuring American society, particularly in areas like governance, technology, and collective ideals associated with Aquarius. However, the opposition to retrograde Mars on the IC suggests internal struggles and resistance to these transformative efforts, with the potential for external conflict, as the IC also signifies the homeland.

Uranus in the First House suggests that Trump’s public persona and leadership will be marked by sudden and unexpected shifts, which already define him with his natal Sun conjunct to Uranus. Uranus is a planet of rebellion, innovation, and unpredictability. Uranus in Taurus points to disruptions in material areas such as the economy, resources, and financial systems, suggesting that Trump’s actions may impact economic stability or environmental policies, potentially creating significant shifts in these sectors. Expect disruptions. This signature is exacerbated by Uranus entering Gemini (Trump’s Sun sign) in 2025, heading towards a Uranus return to his natal chart. This will create further unpredictability, instability, disruption, and even danger for the president.

A Grand Square involving the Moon in Libra, Mercury in Capricorn, Chiron in Aries, and Retrograde Mars in Cancer create significant tension and conflict between the signification of these planets. The Moon in Libra focuses on the public and their emotional needs, while Mercury in Capricorn represents structured communication, authority, legislation, and trade. The square between these two suggests difficulty in conveying clear and effective policies, particularly as Trump’s leadership may face criticism around trade (Mercury) wars (Mars). Chiron in Aries highlights wounds related to national identity, restrictions on personal autonomy, the hard-working labor force, and enemies. This placement suggests that Trump’s presidency may prompt the nation to confront painful issues related to its values and self-image, potentially resurfacing unresolved conflicts over leadership and the country’s direction.

Retrograde Mars in Cancer adds emotional complexity to the Grand Square, as Mars governs action and aggression, and Cancer represents the homeland and security. Retrograde Mars suggests that conflicts related to national security, family values, immigration, or domestic policies may be internalized or unresolved. This dynamic could lead to emotional battles and public dissatisfaction with Trump’s handling of key issues like national security, public safety, or social justice.

Under these conditions, it is worth becoming more attentive and prudent around your risk management strategies. Take profits early and err on the side of caution as we enter choppy waters.