Review and Preview

Most stock indices throughout the world completed their decline to new cycle lows early last week. After that, all indices rallied smartly into the end of the week. Technically, they all look very positive as we enter Election Week in the USA and - just as importantly to Financial Astrologers - the first of five passages of the very powerful 45-year Saturn-Uranus opposition.

In Europe, the Netherlands AEX and London FTSE dropped to new 5-year lows last Monday, falling to 231.50 and 3665 respectively. By Friday they were up to 267.69 and 4383 for gains of 15.6% and 19.6%. The German DAX bottomed the Friday before, on October 24, at 4014. By Friday the DAX was up to 5066, an appreciation of 26.2%! The Swiss SMI Index held well above its multi-year low of 5265 that unfolded on October 10, thus exhibiting a case of intermarket bullish divergence to the other European stock indices.

In the Americas, both the Bovespa of Brazil and Merval of Argentina fell to 29,435 and 819.36 early last week. For the Bovespa, that is the lowest level in three years. For the Merval, it was the lowest level in 5 years. Both rallied at least 20% by the end of the week. The NASDAQ Composite fell to its lowest level in five years also the previous week (October 24), down to 1493. By Friday of this past week it was back as high as 1742, for a one-week gain of over 16%. The Dow Jones Industrial Average, on the other hand, did not take out its low 7882 recorded on October 10, thus creating a case of intermarket bullish divergence in the Americas too. It reached 9454 on Friday’s high, for an appreciation of approximately 20%. We will point out once again that in 2004, the stock market bottomed on October 26, just a few days before the 2004 election won by George W, Bush (well, some might question whether it was really won or not). In any event, the stock market soared from October 26, 2004 right into the election, and poll numbers advanced in favor of George W. Bush then. The equivalent date this year is October 27, 2008, a Monday. Again, this may be an important low just before the election. Could the Republicans and John McCain begin another rally that carries them into the White House? Anything is possible under Saturn-Uranus. But McCain is much further behind at this point than Bush was in 2004.

In Asia and the Pacific Rim, all four indices we follow made multi-year lows early last week. In Japan, the Nikkei fell to 6995 on Tuesday, its lowest level since August 1982. The Hang Seng of Hong Kong plunged to 10,676, a level not seen since 2003. It is now only one-third of its all-time high levels achieved just one year ago. The All Ordinaries of Australia fell to 3693 and India’s Nifty found a temporary bottom at 2252, both on October 27. By the end of the week, India’s Nifty was back to 2921 for a gain of nearly 30% within the same week. Do you think the forthcoming Saturn-Uranus opposition is still volatile? These are huge moves, and consistent with prior columns that described Uranus signatures as coinciding with moves up and down that are greater in amplitude than anyone expects.

New yearly lows were also witnessed in Crude Oil and Silver last week. Crude fell to 61.30 last Monday, now down nearly $86.00/barrel from its all-time high of 147.27 back in July. That’s nearly a 60% decline in just three months. Silver fell to 840 on the overnight market, October 28. Two days later it was back up as high as 1064, a two-day gain of over 25%. Volatile? Yep. It’s Uranus – lots of Uranus, and some rather large planetary cycles involving Uranus.

Short-Term Geocosmics

 It is not just the Saturn-Uranus opposition of November 4 that is operative right now, although that is the “Gorilla in the room.” On Friday, October 31, Mars formed a waning trine to Uranus. On Monday, Venus will form a square aspect to both Saturn and Uranus (known as T-square). On Tuesday, the “Big Gorilla” finally steps to the stage as the first of the five Saturn-Uranus oppositions forms its exact aspect, right on the Election Day in the USA. And finally, on the following Monday, November 10, the Sun will for a waning trine aspect to Uranus. That is four major Uranus signatures in 11 days. Even though the technical picture looks very bullish right now, don’t expect any stability or “gradually moving patterns” in market prices. If the technicals are valid, we might see extremely strong rallies this coming week. If there are “fake-outs” and surprises in store, we could see sudden collapses too. With Uranus, you never know what to expect. You only know to not expect the normal for the next week. You can anticipate very large price swings, but whether it is up, down, or both, is impossible to know via the study of Financial Astrology alone. There is no pattern to this history, except to say that it falls much harder than any expects, when it falls. This has certainly been the case since Saturn and Uranus began entering their orb of influence last January.

Longer-Term Thoughts 

 We have been discussing the approach of this Saturn-Uranus opposition for the past several months. It feels like we have been rehearsing for this event all year. And now comes opening night. Will it operate in this sense that it brings in a new era of hope and optimism, the end to the last 8 years of something akin to a collective psychological and financial repression for the working class people of the world? Or will it be a major upset in expectation, and the perception by the masses of no change at all?

 Make no mistake about it: this USA election is about class warfare. Or should I say class welfare? One side (the Democratic Party) believes the past 8 years have been nothing more than corporate welfare – benefits and tax advantages for the large corporations and wealthy people of the United States. The other side (Republicans) believes that a victory by Obama and the Democratic Party will usher a new era of social welfare and redistribution of wealth, whereby the highest wage earners (10%) will see their taxes increase and distributed in the form of tax credits or tax reductions to the bottom 55% of the working force.

 So what does Saturn and Uranus say? How is it likely to manifest (as if someone can truly predict how this aspect will manifest)? It seems most likely that Obama and the Democratic Party will be victorious, with a much wider margin of victory than anyone thinks. It looks like it will be a landslide and the Democratic Party will control the Presidency, House and Senate. If so, then Saturn-Uranus will represent a major and fundamental change of government in the USA. It will truly be a new era, and this possibility will arouse great hope in people throughout the world, as well as in the USA. It will be a tsunami shift from conservative principles of governance (which has been badly applied) to much more liberal policies. It will be a major shift from Saturn to Uranus. Will it be successful? That is another matter altogether. But at first, it will seem like a great relief, and cause for great celebration, to the majority of people.

 Now the other manifestation of Saturn and Uranus would be an upset, along the lines of Harry Truman winning over Thomas Dewey in 1948, when ALL the polls predicted a Dewey victory right into the election. This would be one manifestation of the “upset” and “surprise” potential of Saturn in opposition to Uranus. No one is expecting this, and neither am I. But it does fit with the nature of these two planets in such a powerful aspect. If that does happen, then another element of Saturn and Uranus could very well erupt: chaos and riots. A great number of people will likely rebel (Uranus) against the Establishment (Saturn), amidst claims of fraud and cheating (Mars and Neptune are in square that day too). Martial Law may have to be declared, and the worst of it is that a huge segment of the population would lose all faith in their government. I could speculate further from there, but I prefer not to in this column at this time. But suffice it to say that the Republicans and John McCain cannot win, even if they win. It is Obama’s time, and it is time for a major fundamental change in governance of the USA. If not, expect chaos and great social upheaval. Either way, Saturn and Uranus principles will prevail. The old ways will be torn down, and new structures will be built. The stock markets of the world will eventually take this into account, and changes are seldom easily digested by financial markets in such an unsettling economic, political, and social environment. Going into this election is just the first hill on this monster roller coaster ride with stocks.