Please note that the Forecast for 2009 book is now completed and at the printer. We will resume the “Longer-Term Thoughts” section of this column next week.

Review and Preview

At last - a week with very little volatility. And during the week that ended with Uranus turning stationary direct, which is usually a very volatile signature. Of course it was a holiday week in the United States, which celebrated Thanksgiving on Thursday. The financial markets were closed then and they also closed early on Friday. But this lack of volatility may be short-lived, for we have another one of those “translation” signatures to the Saturn-Uranus opposition coming up December 10-15.

In the meantime, almost all equity markets were nicely higher all last week. This followed the multi-year lows, or re-test of the October multi-year lows, that took place exactly one week ago when Jupiter formed its last of five waxing trine aspects to Saturn on November 21. Previously we had referred to the abundance of Jupiter and Sagittarian signatures in effect November 13 through at least the first week of December. We anticipated either very healthy rallies or spectacular panic and hysteria. The first week was panic and hysteria. But since the tine between Jupiter and Saturn one week ago, it has been all optimism and hope, which are the positive expressions of Jupiter and Sagittarius.

In the Europe, the AEX soared form its multi-year low of 220.12 on November 21 to a high of 251.13 on November 28, a gain of 14.2% in just one week. The German DAX rallied to 4703 on November 28 from its low of 4035 the week before, for a gain of 16.5%. We note that the November 21 low was slightly higher than the 4014 low of October 24. Such a double bottom formation over a one-month period, occurring at the same time other stock markets in the region make lower lows, is a pattern known as intermarket bullish divergence. You can now assume the stock indices of Europe are now in a new bull trend until the 4000 level in the DAX is broken. The London FTSE index, like the DAX also did not make a new multi-year low on November 21, falling to 3734, which was above it sow of 3665 on October 27. By Friday, November 28, it was up to 4288, for a one week gain of nearly 15%. The SMI of Zurich, however, did make a new multi-year on November 21 at 5034. By this past Friday, it was up to 5816, for a one-week gain of 15.5%.

The situation was similar in Asia and the Pacific Rim. From a multi-year low of 3201 on November 21 in the Australian All Ords index, it soared to a high of 3672 on Friday, November 28, an appreciation of nearly 15%. All the other indices in this region did not take out their lows of late October. They tested them on November 21, and then like the others, they all rallied smartly into the end of last week. The Japanese Nikkei had a one-week rally from 7406 to 8518, also a gain of 15%. The Hang Seng rallied nearly 18% in that same week. The rally was not quite so strong in India, where a major terrorist attack on Thursday created a very unstable and dangerous climate.

In the United States, November 21 marked a new multi-year low in both the Dow Jones Industrial Average and the NASDAQ Composite. The former rose from 7449 to 8831 in the past four trading days, for a gain of 18.5%. The 4-day gain in the Composite was also 18.5%. It is not often that you see the amplitude of gains or losses in the world highest in the United States, but that was the case last week. The Bovespa of Brazil and Merval of Argentina also rallied smartly from their lows of the prior week. All in all, it was one of the best weeks for trading in a long time, for the market appreciated about 14-18% everywhere, with no sudden declines along the way.

Short-Term Geocosmics

 Although the volatility did recede last week, other principles associated with Uranus were operative, as witnessed by the sudden and shocking attacks by terrorists on innocent civilians in Mumbai, India. The principles of explosiveness and sudden, jarring events are all part of the developing conjunction of Sun and Mars in Sagittarius, as both move towards their T-square to Saturn and Uranus. It may also be a symbolic foretelling of what to expect as Pluto now re-enters the sign of Capricorn for the next 15 years.

 On November 27, Pluto – the planet of power, death, taxes, and transformation - re-entered Capricorn, the sign of the Establishment, tradition, and government. Under this 15-year reign, we can anticipate many governments and many government leaders being the object of hatred and secretive efforts to overthrow it. Government’s reactions to combat it will be just as heavy in response, and once again freedoms and liberties will be at risk. “Big Brother” will be watching ore and more closely in an effort to find and punish the terrorists.

On the same day, November 27, Uranus went stationary direct. And change of positions highlights the principles of that planet. Uranus represents shock and sudden events. It is one of the planets correlating with terrorism, especially when Pluto and/or Mars are highlighted at the same time. All three are highlighted now, because on December 5 (next Friday) the Sun and Mars come together in a conjunction aspect, in the volatile sign of Sagittarius. In a study I conducted several years ago, I demonstrated that the Sun-Mars conjunction was the most consistent of all to 10% or greater moves in the Down Jones Industrial Average than any other planetary pair signature, within an orb of 8 degrees. Once upon a time, 10% was considered a major move. But, as you saw last week, 10% is not so major any more. We are getting 10% moves every week now, so in this case, we may be looking at a 20% reversal developing. That is, within two weeks of the Sun Mars conjunction, look for a 20% move to end and a 20% opposite move to begin.

 The real test to the strength of this new bullish-looking market will come around December 10-15. That is when both the Sun and Mars will “translate” by square aspect the long-term Saturn-Uranus opposition. As noted before, every time such a translation has occurred in the past year, the stock indices of the world have undergone a very sharp decline. But it is not just in the stock market that we need to be alert for sudden changes and events, for this time this combination is taking place amidst new and bold terrorist activity. To say that this is a dangerous period is an understatement. It is a violent potential, and such violence can be activated in stock markets around the worlds too in the form of a sudden collapse. Can prices fall back below the lows of the last two months? If so, it can quickly turn into panic and hysteria to a degree that exceeds even that leading into November 21. If those lows can hold, however, we may be embarking upon a multi-month rally for after all, the world wants to have hope and it wants to believe things will improve. It wants to believe in the charisma and message of Barack Obama, to be specific. Jupiter is coming up to conjunct Uranus in Pisces, and both from a positive mutual reception with Uranus in Pisces, for the middle of 2009.

 There is danger in the world as we head into the holiday season. But there is also hope and the belief of the masses that something magical is happening or can happen. Astrologically, the heavy Saturn aspects are usually considered stronger than the Jupiter-Neptune ones. But Jupiter and Neptune is spiritual force. It will be interesting to see which wins out in the market place: the heaviness and danger of the Saturn-Uranus related aspects or the power of spiritual belief and positive thinking signified by Jupiter and Neptune. Is Barack Obama really THE one, or is he just THAT one? Is this Camelot or Armageddon? We should know the answer sometime by the end of 2009. We are living in a time of heroes and mad men. For now, we can all try to enjoy the magic, but also try to avoid the danger. The markets will reflect which forces are winning.