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What can Financial Astrology tell us about the current Market

|Includes: DIA, QQQ, SPDR S&P 500 Trust ETF (SPY)

Financial Astrology is a tool that can help provide insight and predict the direction of the markets. It is based on the study of planetary cycles and their influence on us. Financial Astrologers are oftentimes asked, " If astrology works, why did it not predict this current near depression that we are now going through. The truth is that in the Astrology community, Astrologers have been talking about this period since the mid 1990's as being one of the most difficult periods anyone would ever live through in a lifetime. We Astrologers began forecasting the period 2008-2015 as a potentially very serious economic crisis period for several years now, based solely on Financial Astrology. There are a few time periods that strongly influence the destiny of humankind as the next several years. That is because of the multiple aspects that occur between the major long-term planets. These same signatures were present during 1929-1931 and 1967-72. We all know what happened then.

One of the astrological signatures that I want to talk about is the planet Saturn opposing Uranus and its implications to the current financial markets. There are few astrological signatures that have the potential for near-total devastation as Saturn and Uranus in a difficult aspect to one another. You may remember the last difficult aspect between these two major planets that unfolded three times between July 18, 1999 and May 13, 2000. Many of the world's stock markets made their all-time high in January-March 2000, but as you remember before the aspect was completed, the "technology bubble" burst and a dramatic decline in the "tech stocks" commenced. The tech-heavy NASDAQ Index plunged 80% by October 2002. Many of the start up " dot com" companies went out of business.

Currently the opposition cycle between these two powerhouse planets started in November 4, 2007 and does not end until July 26, 2010. This phenomenon is a very serious planetary cycle, signifying the potential to lose control, and entering a period of sudden and dramatic losses. This aspect is a harbinger of great change. Saturn is the planet of the "establishment" or "status quo". Conservative by nature, conventional, wanting to preserve security, stability and tradition. Uranus on the other hand is the opposite of Saturn. The planet of change, revolution and freedom. It has utter disregard for tradition, convention and stability. The unexpected can happen, and usually things happen much more shockingly than anyone expects. Revolutionary by nature volatile, restless and a rebel. We have here a major struggle between security and freedom, conventional and unconventional, stability and change, All this causes chaos, instability, uncertainty and fear in the financial markets. It increases the volatility in the markets and we have sharp price swings up or down.

To illustrate this we will look at the first two passages of this opposition. The first one occurred on November 4, 2008. The second one occurred on February 5, 2009.The stock indices were making a high going into the aspect and then there was a sharp sell off right after the aspect occurred. On November 4, 2008 the S&P Index closed at 1005.75 and after the sharp decline, on November 20, 2008 it closed at 752.44. A decline of 253.31 or about 25% in a matter of a little over two weeks. On February 5, 2008 the S&P Index closed at 845.85 and after the sharp decline, on March 9th 2009 it closed at 676.53. A decline of 169.32 or about 20% in a matter of just over a month. Now you see the devastation of Saturn opposite Uranus.

Guess what the third passage is upon us. Are the previous two passages a preview of what to expect when this current planetary cycle unfolds? Saturn will again be in opposition to Uranus on September 15, 2009. The equity markets are again making highs going into this aspect. Are we going to be setting up for another 20% or greater decline in a short period? I think so. Uranus is an important key and has no respect for convention or the norm. You never know what to expect. You only know to not expect the normal. Anything can happen such as a sudden reversal, and usually things happen much more shockingly, dramatically and quickly than anyone expects. As a financial astrologer I am going to stick my neck out and predict that the S&P Index will decline from a high of around 1050 to around 790. I am personally taking up positions in October 33 & 34 Puts for the QQQQ's.

If what I am predicting comes to pass then you may also want to know the remaining passages of this Saturn / Uranus cycle. The 4th passage is on April 26, 2010 and the final passage is July 25th 2010. My "best guess" is that we shall hit the peak of the Saturn-Uranus opposition cycle within the next three months. The Good News is that the bear market will quite possible be completed within three months of the time this aspect ends on July 25th 2010. 

One other note. When the planet Mercury is also retrograde ( which it is right now) during the period of influence of the Saturn-Uranus opposition, it can exaggerate the fear associated with Saturn, and the hysteria associated with Uranus. Financial markets can get wild and the result can be huge daily price swings. Extreme volatility is back in the market trade accordingly.