The U.S. jobs machine kept humming along in April, adding a robust 263,000 new hires while the unemployment rate fell to 3.6%, the lowest in a generation, the Labor Department reported Friday. Nonfarm payroll growth easily beat Wall Street expectations of 190,000 and a 3.8% jobless rate. Average hourly earnings growth held at 3.2% over the past year, a notch below Dow Jones estimates of 3.3%. Unemployment was last this low in December 1969 when it hit 3.5%. At a time when many economists see a tight labor market, big job growth continues as the economic expansion is just a few months away from being the longest in history. – Jeff Cox, “Jobs Surge in April, Unemployment Rate Falls to the Lowest Since 1969,” https://www.cnbc.com, May 3, 2019.
President Donald Trump tweeted that he wants the economy to “go up like a rocket,” ratcheting up his efforts to badger the Federal Reserve into slashing interest rates… The Fed, as expected, left its key interest rate unchanged Wednesday after a two-day meeting… Here’s the rub: Trump is cheer leading for an excessively large rate cut for the wrong reasons, economists say. And his proposal, if enacted, carries unpalatable risks for a relatively modest reward, even putting aside the potentially bigger hazard that the Fed would jeopardize the public’s confidence in its independence if it were to follow Trump’s advice. –Paul Davidson, “Trump: Rate Cuts Would Make Economy Soar,” USA Today, May 3, 2019.
You can just feel the buoyancy, even overconfidence, of Jupiter in Sagittarius in the two quotes above. You can also sense the continued building of a possible “bubble” in the economy and stock market, and the development of a psychological attribute coined by former Fed Chair Alan Greenspan as “irrational exuberance.” This is the kind of collective attitude, encouraged by the president of the United States, that could cause investors to start becoming speculators in U.S. stocks, which is consistent not only with Jupiter in Sagittarius (where everything is “large”), but at the same time, in a square aspect to Neptune in Pisces (delusion, illusion, and over-the-top wishful thinking). This is the kind of aspect that symbolizes grandiose thinking and placing large bets on the herd instinct. And the danger is that once it ends in December 2019, it immediately shape-shifts into the Capricorn Stellium involving the Saturn/Pluto conjunction starting in January 2020. Even Jupiter moves from the ever-expansive sign of Sagittarius (November 8, 2018-December 2, 2019) into the hardly ever-expansive sign of Capricorn. History shows a dramatic correlation: long-term stock market highs often occur with Jupiter in Sagittarius (2019), followed by a steep decline when Jupiter goes through Capricorn, often continuing as Jupiter ingresses into Aquarius and even Pisces in many cases (2020-2022). Jupiter was last in this set up in 2007-2009.
On the very good news with the employment reports, stocks soared. The Dow Industrial Average was up nearly 200 points, but still well off its cycle high of 26,696 recorded on April 23, and even further off its all-time high of 26,951 on October 3, 2018. The NASDAQ Composite, on the other hand, soared to a new all-time high last Monday, April 29, at 8176, then closed very near it again on Friday, May 3, at 8164. The S&P made a new all-time high last week too, soaring to 2954 on May 1, and closing the week at 2945.
These upside breakouts in equities (minus the DJIA so far) are also consistent with comments stated in our last column of two weeks ago, stating, “We are about to begin a time band containing several important geocosmic signatures with historical correlations to reversals in many markets, April 22 through May 18. This time band will be book ended by the Sun/Uranus conjunction on April 22 and the Venus/Uranus conjunction May 18. Both involve Uranus, which makes this a very challenging period for both investors and market analysts, since Uranus pertains to the unpredictable. In most cases, such periods coincide with reversals. But in a surprisingly large percentage of cases, such Uranus signatures also have coincided with sharp breakouts of well-defined resistance and support zones, leading to new highs in some markets and new lows in others. The stock market is nearing new highs…. this surge up to new highs can be associated with the Sun/Uranus conjunction in Taurus (money and stocks) this Monday, April 22. It is possible that these breakouts will continue, or resume, near the time when Venus conjoins Uranus on May 18, again in Taurus, the ruling of sign of Venus.”
This period has also proved to be favorable to Bitcoin, which broke out to a high of $5796 on Friday, its highest level in nearly 6 months. However, it had the opposite effect on Gold, Silver, and Crude Oil, which fell hard. Gold and Silver both made new cycle lows on Thursday. But Friday’s employment reports changed all that. Silver was especially impressive, rising 32 cents on Friday. I think traders also sense the Jupiter in Sagittarius, which – despite what the Fed and the White House say – suggests that the seeds of inflation may be hidden, but readying to sprout in the payroll report numbers. Yes, excluding food and energy, inflation seems tame. But food, and especially energy itself, are showing signs that they may not be so tame soon. And the costs to travel have been soaring lately. Jupiter and Sagittarius rule travel. You may wish to monitor the travel industry closely, for after prices peak with Jupiter in Sagittarius (2019), they tend to come down hard when Jupiter moves through Capricorn in 2020.
Honor thy mother and father that it may be well with thee and thou mayest live long on the earth – the fifth of the Ten Commandments, Exodus 20: 2-17, the Bible, King James version.
Mothers all want their sons to grow up to be president, but they don’t want them to become politicians in the process. – John F. Kennedy, https://www.goalcast.com
We are right in the middle of that time band containing several important geocosmic signatures with historical correlations to reversals in many markets, April 22 through May 18. Gold and Silver are falling to new lows for 2019, while stocks and Bitcoin are making new highs.
This week is particularly active. On Sunday, May 5, Mars will form an opposition to Jupiter which can relate to extreme euphoria or recklessness. It is a time when some people may blurt out what is really on their mind, without thinking about the consequences and reactions from others it may generate. This is not an aspect of tactfulness or self-control. It can be blunt and offensive, careless and stupid, if not controlled, especially with Mars now in the talkative sign of Gemini. It would be wise to avoid speaking or tweeting on impulse, especially if your intent is to be self-congratulatory and attempt to solicit praise for whatever it is you are doing. Instead of praise, you may elicit the ire of others for arrogance, if not careful.
On Tuesday-Thursday, May 7-9, Venus in Aries will form a square to the Saturn/Pluto conjunction in Aries. That isn’t likely to help the problems created under Mars opposed to Jupiter. In fact, it probably represents the reprehension and consequence of one’s untamed and self-indulgent behavior. Pack it in (your impulse) if you are tempted to let your uncensored self loose, which would probably be a very bad idea. In terms of markets, however, we have this rule that any market declining into this type of an aspect becomes an attractive candidate to buy. Since Venus rules Soybeans, and Soybeans are making new cycle lows, this may be a market to watch for a potential buying opportunity.
This is followed by the Sun in Taurus making a favorable trine to the Saturn/Pluto conjunction in Capricorn, May 11-13. This is a favorable cosmic combination for making long-term plans, or initiating activities that will have a long-term favorable outcome if you stick with the idea. It is favorable for business decisions and investments that have a longer-term horizon. The results may not show up right away, so patience and belief in the idea are essential to capitalize on this dynamic. It is also a favorable time to honor those who are legends in your world, in your mind. It just happens to fall on Mothers’ Day this year, so this is likely to be very special and rewarding celebration for many families.