Why use Financial Astrology

Solar and Lunar Effect on Stocks

Many studies have proven the Moon’s and Sun’s effect with some shown below. The other planets are not so easy to detect with their slow movement far away from the Earth.

Stock Market Lunar Returns

Lunar Cycle effects in Stock Returns – University of Michigan
Lunar Phases and Stock Returns – University of Michigan
Autumn Panics: A Calendar Phenomenon – Christopher Carolan

Recessions and Solar Sunspots

The maximum in Sun Spots almost always precedes a recession. The 1969 Sun Spot cycle high was a lower high than the previous cycle high and gave us the Bear Market into early 1975. The developing 2014 Solar cycle 24 high may also be a lower high as the forecast by NASA suggests and a recession in the next 2 years and a possible Bear Market into 2020 are real possibilities.


Recessions and Sunspots

Geomagnetic Storms and the Stock Market – Federal Reserve of Atlanta

Sunspots, GDP and the Stock Market – Theodore Modis

Financial Astrology is based on emotions

As Edgar Cayce said below, the Sun and the Moon affect us in a visible way and the two most used Calendars in the World are based on the Moon and the Sun. Sunny days do affect most people positively and are called blue skies by the bulls. On the other hand, we often refer days without Sun as gloomy and depressing.

Astronomy is considered a science and astrology as foolishness. Who is correct? One holds that because of the position of the earth, the sun, the planets, they are balanced one with another in some manner, some form; yet that they have nothing to do with man’s life or the expanse of life, or the emotions of the physical being in the earth. Then, why and how do the effects of the sun so influence other life in the earth and not affect Man’s life, Man’s emotions?

Fibonacci Spirals are Common

Note that the 1974-75 decline, and both the 1987 and 2008 crash happened just past the Sunspot cycle lows which puts a possible 2008 style crash window near 2020 which also happens to be the end of the Fibonacci Spiral from the creation of the USA and may be the biggest crash seen since the South Sea-Mississippi bubble and Tulip mania.

Fibonacci Spiral
1788 – US Constitution
+ 89 = 1877 – Great Rail strike
+ 55 = 1932 – Great Depression
+ 34 = 1966 – Major Top
+ 21 = 1987 – Market Crash
+ 13 = 2000 – Major Top
+ 8 = 2008 – Market crash
+ 5 = 2013 – ???
+ 3 = 2016 – 4 year High ???
+ 2 = 2018 – 4 year Low ???
+ 1 = 2019 – ???


52 / 4 = 13 year Season
1896 – Low 1903 – Low
+ 13 = 1909 – High + 13 = 1916 – High
+ 13 = 1922 – Low + 13 = 1929 – High
+ 13 = 1935 – High + 13 = 1942 – Low
+ 13 = 1948 – Low + 13 = 1955 – High
+ 13 = 1961 – Low + 13 = 1968 – High
+ 13 = 1974 – Low + 13 = 1981 – Low
+ 13 = 1987 – High and Low + 13 = 1994 – Low
+ 13 = 2000 – High + 13 = 2007 – High
+ 13 = 2013 – High ??? + 13 = 2020 – 4 year High ???
+ 13 = 2026 – ??? + 13 = 2033 – ???

Astrology was once Accurate

Astrology or the study of the effect of heavenly objects on life is a complex and lost art. Few, if any understand well today, but the most accurate Astrological prediction is written in books from different cultures that are thousands of years old.

Astrologers, or Magi correctly interpreted the light seen in the sky over 2000 years ago as the coming of a Messiah that was to change and or rule the world. This prediction was taken so seriously as to cause the slaughter of thousands of children to prevent it from being fulfilled.

We all know the result: Jesus or the Christ went on to become the largest influence of the last 2000 years and the Christian Churches ruled financially and politically for many centuries.

So we know that with the correct knowledge, Astrology can be quite powerful in its predictive ability, and was once trusted enough to mobilize armies against its predictions.

Most modern Astrology is too distorted, and the most accurate knowledge is the oldest you can find about Astrology. The Roman and Greek mythology is full of mostly correct interpretations, and the older Persian and even older Hindu sources must be full of gems, but are not readily available to everyone.

The oldest source of Astrology is Atlantis. When their continent sank, three escaping groups took their knowledge to the rest of the World. The Maya which then passed it down to Native American lore like the Hopi. The largest group went to Egypt and their knowledge filtered down into the Middle East, Persia and probably Asia. The smallest group went to the Basques and their knowledge migrated into the Etruscans, Greeks, Romans and was later mixed back with the Middle East version.

Mosaics in the Middle East show Jewish, Christian and Astrological symbols all together in temples. No one can deny that Jesus possibly picked 12 disciples to represent the twelve signs, or fundamental types of people. The same can be said about the 12 tribes of Israel.

Financial Astrology and Stock Market

The Sun has the greatest effect, being the source of the Sell in May and Christmas rally seasonal cycle which are well documented. The Moon is second and the effects of the Lunar cycle on stocks is also well documented. Followed by Venus, which represents Love, Beauty, Desire, Fertility and Prosperity in Greek-Roman lore.

Others bodies are slower moving and their effect is not as obvious. Saturn is known as Kronos or Father Time and the God of Agriculture or the well-known Reap what you Sow Karma planet. It can mark major turning points like the sub-prime debt high of 2007, but its effects are not always financial, or affect stocks directly or not.

The Venus effects on Stocks

The importance of Venus can be seen in the chart on the right which helped to successfully identify the low on March 6, 2009, but also highlighted the October 10, 2002 low, the 2007 high, the April 2001 low and may signal a late July 2015 high as well.

The lows can be extremely accurate with Venus turning retrograde on October 10, 2002 at 14:35 and the market bottomed near 10:00am which is about 4 hours early. Venus also turned retrograde on March 6, 2009 at 13:17 and the market bottomed near 15:00 which is about 4 hours late.

The greedy highs are not as emotion driven as the fear filled lows, and the effect of the planets is expectedly slower and less exact with Venus turning retrograde on July 27, 2007 with the S&P-500 making a high at 1555 on July 19th and basically only exceeding that 1555 for a single day on the October 11, 2007 high of 1576 before returning below 1555 until mid March 2013.


The Saturn effect on Stocks

The effect of Saturn and Venus together can be seen in this rare triple meeting of Saturn and Venus in the sky only two days from the exact October 11, 2007 high, but also highlighting the Venus retrograde of July which made this triple meeting possible, and the August low only off by 3 days.

October 2007 High with Saturn and Venus

The Uranus effect on Stocks

Even the effect of far off Uranus can not be denied with life changing Manias and Bubbles tied to the Uranus cycle as the following event dates show.

The largest Panics all occur with Uranus in Libra or in the opposite sign of Aries which makes the Uranus in Aries from 2010-2019 period critical and where we might see the result of a failed 10+ trillion experiment in money printing if we include Japan, the USA and Euro zone.

In the unlikely event that this Uranus in Aries period turns out to be a malaise helped by the Fed rather than a crisis induced by the Fed, then the next Uranus in Libra period from 2052-59 will certainly be a major problem for the next generation.

  • From The Tulip Mania of 1637 (Uranus in Libra) to the South Sea Bubble of 1720 (Uranus in Libra) there was 83 years.
  • From the South Sea Bubble of 1720 to the 1929 Crash (Uranus in Aries) there was 209 years which is 2.5 x 83 years.
  • From The Tulip Mania of 1637 to the 1973 Crash (Uranus in Libra) there was 336 years which is 4 x 83 years.
  • Going back 83 years before the 1929 crash there were Panics in 1837, 1847 and 1857 (Uranus in Aries)
  • Uranus in Aries from 2010 to 2019 high windows
  • 1973 + 41.5 years = 2014 high +/- a few years
  • 1929 + 83 years = 2012 high +/- a few years
  • 1720 + 7 x 41.5 years = 2011 high +/- a few years
  • 1637 + 9 x 41.5 years = 2011 high +/- a few years

The prophet Edgar Cayce was the only one to predict both the run up to the crash in 1929 and the bottom in employment in 1932. He said this about Uranus, which explains the Bubbles and Manias it can periodically create and burst.

This psychic reading given by Edgar Cayce at the Phillips Hotel, Dayton, Ohio, this 24th day of November, 1923, at 3:30pm
(Q) What effect will the planet, Uranus, have on the people during the next two years?
(A) We find in this planet those of the exceptional forces, those of the ultra forces, those that carry the extremes in every walk of physical life and forces, and these are those that will, in the next two years, especially, give of their strength to the greater force, as has been given.

January 2016 Stock Market Forecast

Monthly Trend is Bearish – Daily Trend is Bearish

Current Stock Market Forecast Allocation

Bullish the S&P-500 since December 2012 near 1450, but close to becoming Bearish with a weekly close below 1900.

A major Stock market high in 2015 is very likely but not quite confirmed

We have a number of cycles suggesting a major high in 2015, and Global Markets, Sectors and Indicators are turning back down without making a new high. This makes 2134 a possible multi-year high but we will need a weekly close below 1900 before a 12 to 24 month Bear Market is confirmed.

Retail Sales are acting like early 2008 which is a warning

Retail Sales are hovering near 1-2% year over year like in early 2008. This could be dangerous and is a drag on future GDP, but we need to see a negative Retail Sales report to turn this bearish. With the Christmas shopping season just around the corner, we are unlikely to see negative Retail Sales until mid-February.

US_Retail Sales YOY

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Another good Jobs report but still 20% less than 2014

The Jobs report was good, but the 2015 levels are 20% lower than in 2014. This suggests that Job growth is slowing down, and could continue to do so in 2016.

US Jobs Report

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GDP is diverging since 2000 and dropping like 2001 and 2008

The final number for Q3 GDP came in at 2.0% dragged down by inventories. GDP has not made a new high since Q1 2015. Annual GDP is now 2.1% and barely above the 2.0% necessary to avoid a recession. The first estimate for Q4 2015 will be watched for a deterioration or rebound to set the tone going in 2016. Since GDP is 50% Services, 25% Goods and 20% Government, the ISM Non-Manufacturing Index is the one to watch.

US GDP, Sentiment and S&P 500

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ISM Non-Mfg. is turning down but above late 2000 and early 2008 levels

The ISM Non-Manufacturing index represents 50% of GDP and can give early warnings of deteriorating GDP. It gave early warnings in 1998 and 2007, and more sudden collapses in late 2000 and could be doing the same in late 2015.

ISM Non-Manufacturing Index

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Sentiment is diverging like 1973 (Bear) or 1983 (Bull)

The Michigan Sentiment Survey warned ahead of the 2008 crisis and is acting like 1973 which saw a large drop but also 1983 which began a rise into 1987. The jump in Sentiment would be bullish if matched by rising GDP and if it did not start to drop again like in 1973.

Historical Michigan Sentiment

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A Kondratieff shift in Rates is building since 2010

Kondratieff wrote about a cycle of growing debt and low rates in one generation causing rising rates and debt deflation for the next generation. Only after the people involved in one cycle have died or are too old to influence policy can the cycle repeat. The Rates cycle may have bottomed with the low in late 2012 or will do so in late 2017. However, do not expect rates to rise quickly since the biggest borrowers like governments and the Central Bankers who fear Debt Deflation the most will do their best to keep Rates low. Rates did not rise significantly until the 1950’s or 20 years after the Depression started.

US Yield Curve

Venus Altitude and Speed suggests a major turn like August 2007

The Altitude of Venus is the largest component of the Bradley indicator, but the most accurate signals come from the Venus retrograde periods when the Speed of Venus goes to zero and reverses. Examples of this are the 77 month turns between the October 10, 2002 and March 9, 2009 lows and 77 months later is the current pair of dates on July 25th and September 8th, 2015.

Venus Altitude and Speed and Stock markets

Cumulative New Highs – Lows are bearish and suggest a Bear market

The Cumulative New Highs minus New Lows are the most reliable long term indicators. They have turned bearish with the move below 2000, but have since stalled. This keeps the possibility of new highs, but they are not guaranteed after being overbought for longer than in 2000 and 2007.

US Cumulative New Highs - Lows

Historical Down Volume is rising

The 200 day Down Volume is rising like in 2000 after being as overbought as the March 24, 2000 high. However, the Up/Down Volume did not break enough into the Bearish zone yet to suggest the start of a 12-18 month Bear market.

Historical Up and Down Volume

The Yield Curve is turning down

An inverted Yield Curve used to warn of a recession but the Central Banks have distorted rates quite a bit. The ratio of the 5 and 10 year rates is currently the best to detect the large shifts in allocation necessary for a +20% decline. This indicator is failing for the second time after breaking the bullish trend line, which is a warning like in late 2000 and 2007.

US Yield Curve