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  • Financial Astrology: Pluto Square Uranus 0 comments
    May 26, 2013 7:50 AM

    The following is from Sunday premium report published on May 19th by Astrology Traders.

    Another potential power shift could come for the Fed:

    Bernanke is meeting with Congress next week. There could be negotiations and secret deals that are very likely centered on the unfinished business of the "Grand Bargain." Recent maneuvers by Congress to block the administrations CFPB director Richard Cordray in his ability to function as director, may be circumventing the administration and Fed's monetary policies. While this is taking place the Chairman is under the influence of a lunar eclipse that will be over his Mercury while at the same time receiving a square from Neptune at 5 degrees Pisces.

    The combination shows the potential for mistakes where the Chairman's policies are at risk of unraveling in ways that were not expected. Congress may be holding the rugs here and Bernanke may have to acquiesce to political pressure.

    I wrote about these coming events in the March 3rd update and this week I am going to connect the dots to what I believe are some very important Fed and Congressional maneuvers that are clues to how this shape shiftcould evolve into the Fall. April 21st turned out to be a key date that I identified in the March 3rd update, here are the details:

    In the March 3rd update I illustrated the potential for an increase of liquidity (the money supply) beginning April 21st thru May 5th. In March we were in the midst of a Mercury retrograde that I explained could bring new financial engineering and shadow banking. It is not surprising that on exactly April 21st reports surfaced the the Bureau of Economic Analysis will be revising GDP higher by $500 billion by including intangibles such as music, film royalties, and other entertainment categories. So, here we have it, inflation and economic growth--increased liquidity--lining up with Neptune trine the U.S. Jupiter on the heels of financial engineering (Mercury retrograde and Jupiter conjoin the U.S. Uranus in March) with the rearrangement of decimal points to magically create a higher GDP that could be reported in July numbers. (read more here)

    I want to illustrate this important trend as this is long term and could be what is also fueling the markets here. Mercury retrogrades often bring financial opportunities but Mercury is also the trickster, so with it comes a warning. The warning is if people accumulate more debt and create another financial crises, where the next time is more serious than the previous in 2008. Currently there is a trend, according to the NY Fed, that is showing a decline in consumer credit card debt. Many Americans are deleveraging and this will not give the banks an edge in a financial crises. The maneuver by Congress to block the recess appointment of Cordray and the Fed's ability to move forward with direct funding to the CFPB (shadow banking) without Congressional oversight, if successful, could disrupt the Federal Reserve's agenda to gain more power. The shape shift for the Fed could be the unwinding of much of the CFPB's efforts over the past year, where the power they thought they had disappears.

    The market decline in April, where we noted a change in the timing signal to bearish on the April 23rd, fell right in line with where I pointed to a potential increase in liquidity. Looking back the pullback in April was likely where insiders were buying. We may see another pullback in the next couple of weeks where in my view we will get another buying opportunity.

    Astrology Traders provides specific dates and in-depth analysis of future events for the financial markets through weekly updates, trade alerts, and educational webinars. We now provide a free 2 week trial and you are not charged until after the 2 weeks are up so you can sample risk-FREE.

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