Review and Preview

This Mercury retrograde period continues to be a killer for financial markets all around the world. It is not so much that Mercury retrograde is the culprit, for we get three of those events per year, on average. But when you begin a financial panic right at the beginning of it, and your financial leaders start the alarm bells ringing by stating that everyone must act immediately and without any time for thoughtful discussion, and then on top of that you add in the politics of a presidential election, you have the ingredients of an escalation of that panic, not the subduing of it as our leaders attempted. Mercury retrograde is regarded by Mundane and Financial Astrologers as a time for fact-finding, research, and thoughtful contemplation. It is not regarded as the “best of times” to make a final decision on matters. In this Mercury retrograde case, however, the sense of urgency and alarm was so great that the luxury of time was simply not allowed for fear that matters would become worse very quickly. Unfortunately, matters became worse very quickly even after the decisions were hastily agreed upon.

Equity markets in all regions of the planet fell to multi-year lows last week. Some made those lows on Tuesday, others on Friday. In Europe, the Netherlands AEX, London FTSE, and Swiss SMI Index all fell to their lowest levels in over three years last Tuesday, September 30. The German DAX fell to its lowest level in over two years on Friday, October 3.

In Asia and the Pacific Rim, the All Ordinaries of Australia made a double bottom last week to the lows realized on September 18, but together those were the lowest levels seen since December 2005. The Hang Seng of Japan fell to 16,800 last week, which held above the 16,283 low of September 18, But that is the lowest level since July 2006. On Friday, the Nikkei Index of Japan fell below 11,000 for the first time since 2004. The NIFTY index of India fell to 3715 on September 30, its lowest price since April 2007.

The U.S. markets fared even worse. On Friday, both the Dow Jones Industrial Average and the NASDAQ Composite fell to their lowest levels since 2005. The only good news is that each of these indices did not make new lows on technical oscillators we follow, which might give rise to a case of bullish oscillator divergence. But with Mercury retrograde, we already know not to depend upon technical studies. They are much more reliable when Mercury is not retrograde.

It wasn’t only the stocks that experienced an elevator ride down in price. Precious metals – especially Silver – and Crude Oil also fell hard last week, but not to new cycle lows. It seems that investors are cashing in everything now, for even food prices fell to their lowest price in several months last week. It doesn’t seem at all like inflation is the threat now, but rather deflation may be preparing to strike. However, remember one thing: it is still Mercury retrograde, and shortly after it returns to direct motion on October 15, the trends that were in effect prior to mid-September could very well resume.

Short-Term Geocosmics

 We are now right in the middle of this retrograde period. It is not unusual to see a sudden and sharp reversal of trends right around this period for those markets that have been in trends the past two weeks. Almost every market we track has been bearish during that time, so the possibility of a sudden brief and sharp rally is very real, according to this study.

 On Monday, the Sun will square Jupiter. Since Jupiter relates to the principle of exaggeration, there is a possibility of further panic and sell-off early this coming week. Maybe the bottom signified by the middle of Mercury retrograde period, and the Sun square Jupiter, is achieved by Monday.

 I think it is also interesting to point out that the Jupiter-Saturn trine in Earth signs for 2008 did not result in stable financial markets as modern day astrologers (such as myself) would have expected entering into this year. I posed the question earlier this year that perhaps the classical astrologers might have it right. Jupiter and Saturn in earth signs are more bearish for financial markets. Earth signs suppress prices, regardless of whether the planets are in a favorable trine relationship or not. This is a victory for the classical rules of astrology over modern day, and it is also an indication that the tropical zodiac may be more relevant to financial markets than the sidereal system. In the sidereal system, this trine would have taken place in fire signs, which would be considered more bullish. Last year (2007), Saturn and Jupiter were in trine in fire signs in the tropical system (water signs in sidereal), and the market was at record highs. Fire and air signs are generally bullish for equities, whereas earth and water are generally more bearish. So we score one for the tropical zodiac over sidereal, and another one for classical over modern day astrologers.

Longer-Term Thoughts

 Let me share a quote from the “Forecasts for 1996” book that was written 13 years ago. “But based upon these assumptions… there is not likely to be a major world war, nor nuclear holocaust, nor world wide economic collapse, nor major collapse of a political system that strongly influences the course of Humankind for the next twelve years minimum… Why 2008-2011? That is because there are no periods of time in which multiple aspects between the major long-term planets form in cardinal signs until then. And what happens then? Pluto ingresses into Capricorn, Uranus into Aries, Saturn into Libra. In addition, the Moon’s North Node will also move back into Capricorn. The last time these three planets (and Node) were all in Cardinal signs was 1967-72 and 1929-1931.”

 I bring this up for one very important reason. It is not because I, the Financial Astrologer, am so great. It is because astrology itself is such a valuable tool for society. In these turbulent times, Mundane and Financial Astrologers are oftentimes asked, “Well, if astrology works, why didn’t it predict this chaos we are now going through?” The fact is that in every Forecast Book written since 1995, this period of time beginning in 2008 was pointed out as one of the most significant anyone would ever live through in a lifetime. And the implication was always that it would be cathartic in terms of finances and economics, and probably other aspects of the human experience. Yet even though I was (to my knowledge) the first to specifically identify this important period of time, and the first to refer to it as the “Cardinal Climax,” this potent planetary line up could have been identified by any astrologer even decades before I identified it in a book written in 1991 titled: “Evolutionary Astrology: The Journey of the Soul Through States of Consciousness” (http://www.mmacycles.com/shop/).

 And so here we are, on the verge of a planetary “climax” that has been known for many years by anyone who studies the relationship of planetary movements to cycles in human activity. I would like to say this chaos will end quickly, but I cannot state that. My view is that this transformative period will last at least three years (this is the first year), maybe as many as seven years, and possibly even more. It is not the end of the world, but I believe it is the end of an era as we have known it, just as the 1920’s were the end of an era as we had known it. And if you have been wise and adhered to basic principles of saving money, then in the next couple of years you will be able to purchase things of value (like land, real estate, stocks) for approximately 10-50% of what the cost would have been prior to this period. In that regard, you can look at this as a giant “fire sale.” This is one of the characteristics that pertain to Pluto in Capricorn, 2008-2023. How far are we along in this cycle? I would guess that we have at least 40% more to go in the depreciation of equity values than we have seen so far. That is, the Dow Jones Industrial Average has now fallen almost 4000 points from its high of one year ago. I think it has at least 3000 more to go before the ultimate bottom is in, and maybe more. The real estate and vacant land market is probably in a similar phase of this cycle. There will be some outstanding values available to those who can afford it. But of course, at the very bottom, no one except the very brave and courageous will be willing to buy. So outwardly, we can use this period to save money and avoid debt, and inwardly we can use this period to develop our inner strength, a sense of courage and bravery to initiate action when the opportunity arises. It is coming.