Archive for June 2014

Buy-&-Reverse Stops in Stock Market Trading

I’m always intrigued by the questions I get from our Gold-Plus Elite members at FinancialCyclesWeekly.com – they’re a very savvy group of people who are quite conscious about their stock market trading, so there’s no telling what they have on their minds at any given time.

Earlier today, for example, we had a Q&A conference call with the group.

Several members had submitted questions in advance via email, so we got all those concerns taken care of as we began the call.

There were questions about Michael Yorba, and about the new e-book on “How To Time The Next Market Trading Top”. (It’s scheduled for publication tomorrow; you can find details at: http://harmonicresearchassociates.com/shop/shopexd.asp?id=162

We also talked about the new course on “How To Find The Money In Your Horoscope” and reviewed the steps to take in managing a buy-and-reverse stop on a short position in the markets.

That buy-and-reverse strategy is often especially appropriate when we have serious questions about the ultimate trend in the stock market trading environment.

But after we got through the pre-submitted questions, nobody wanted to talk.

Sometimes that happens, especially when the folks who are “just listening” get their most pressing questions answered because someone else asked them. So today’s call was a lot shorter than many of our Q&A sessions turn out to be.

And even though this one turned out to be more of a monologue than a lively discussion, I thought I’d share the recording with you.

You may find the topics useful, and it will give you an idea about some of the things we get into with our Gold-Plus Elite members, so you can get a peek behind the scenes in the process.

My ulterior motive, of course, is to encourage you to consider a Trial Membership in our Gold-Plus Elite program for yourself. You can sign up for that at: http://bit.ly/FCWjoin if you’re interested.

Anyway here’s the recording of the complete call, which only lasted about 21 minutes today. Once you’ve listened to it, please share your comments!

Video Review of S&P Stock Market Trading

As I’ve been putting the finishing touches on the new report on “How To Time The Next Market Trading Top” (it’s scheduled for release on June 30), I’ve had a chance to review our most recent forecast of resistance for the S&P 500 based on planetary factors and harmonic configurations.

The results have been pretty impressive for getting improved returns from your stock market trading, especially since the S&P was up during the trading day today, but still closed below our 1964 resistance point.

I’ve just posted a video that reviews the action, from the date that I first put the forecast together through the market close today:

By the way, if you haven’t gotten on the Early Bird list for the new publication on “How To Time The Next Market Trading Top” you can do so now at:

http://vibrationcode.com/timetop

Astrological Resistance Still Holding Firm for Today’s Stock Market Trading in the S&P

The S&P 500 had a nice pop up today, a welcome sight for the bulls who were left uneasy by yesterday’s sell-off.

The closely-watched index gained 9.55 points during the session, to close at a healthy 1959.53.

That closing price was, of course, well below our astrological resistance zone at 1964 that has shaped the stock market trading environment for much of the past week.

Even more important was the fact that the S&P 500 didn’t even come close to the 1964 during the course of the trading day today; its highest point was  1960.83.

While we’re expecting an additional push toward bullishness during the two remaining days of the trading week, we’ll have a void-of-course Moon in play throughout the trading day tomorrow, which means that whatever we observe that looks like a trend (or a trend reversal) in stock market trading  needds to be considered very cautiously.

If that resistance level continues to hold at 1964, however, it’s an increasingly strong indication that we’re dealing with a significant trading top as we close out the month.

Hitting Astro-Resistance in Stock Market Trading

For the last couple of trading days I’ve been keeping a close eye on the 1,964 price level in the S&P 500 index.

When I was on Michael Yorba’s radio show last week, I had used my astrological studies and harmonics work to identify two potential areas of resistance for stock market trading in the S&P – at 1,964 and at 2,009.

On Friday and Monday the 1,964 resistance zone held firm, with the index trading as high as 1,963 and change both days– but no higher.

Today, however, the intraday action in the S&P has already moved above the 1,964 level. As I’m writing this the index stands at 1,966.08; earlier today it moved a little bit above 1,968.

Does this mean that the 1,964 resistance level has been broken?

Possibly, but I won’t consider it a sure thing until after the closing bell for trading today.

If the S&P closes the session today above the 1,964 mark, I’ll consider it to be a signal that the resistance is no longer holding.

If that happens, I’ll be looking for another close above 1,964 in tomorrow’s trading to confirm the breakout. If that takes place, we’ll be watching for resistance at 2,009 next.

But my back-testing and astrological studies still seem pretty clear at this point that there’s considerable bearish pressure right now, so I’m anticipating a price pull-back before the end of the day.

If we get a pull-back, and if the S&P closes today at 1,964 or below, it will give us strong confirmation that our astrological was correct, and we’ll be looking for a further move to the downside before the end of the week in our stock market trading, with the possibility of a rebound during the final trading sessions on Thursday or Friday.

By the way, if haven’t put your name on the early-bird list for notification about our new publication on “How To Time The Next Market Trading Top” this is the time to take action! You’ll find the link to the list at:

http://vibrationcode.com/timing-trading-top-optin

W. D. Gann, the Number 90, and the Summer Solstice

The Summer Solstice is here at last, and we’ll be watching for a response from the markets as we move past the weekend and get a fresh trading week underway.

In the meantime, I’ve continued to explore the kind of connections with the Summer Solstice that I recently mentioned here in my posts about Silver and stock market trading, and in my most recent interview with Michael Yorba on his Traders Network radio show.

But as usual, it’s been W. D. Gann that has really gotten me thinking.

Back in the closing months of 1935, when Gann put together his brief essay on “Natural Resistance Levels and Time Cycle Points”, he wrote about lots of correlations to the number 90, which has key connections to the Summer Solstice.

That particular essay contained very little specific information about astrology and the markets, but Gann did reference the seasonal connections of this particularly important number. He also used the number 90 extensively in his discussion of practical techniques for timing market resistance zones.

The attention that Gann gave to the number 90 was what provoked me to put together a brief article on this important market timing factor for our members at FinancialCyclesWeekly.com. It’s a quick review of Gann’s work in the essay, but it does underscore the value in paying attention to the mathematics behind the markets.

You’ll find the full article at: http://www.financialcyclesweekly.com/members/W-D-Gann-and-the-Number-90.cfm

By the way, the work of W. D. Gann is also figuring prominently in the new report that’s currently being prepared on “Timing The Next Market Top”.

It should be ready for distribution by the end of next week– if you’d like to get early-bird notification as soon as it’s available, just CLICK HERE to leave your name and email address.

 

Astro-Trading Silver at the Summer Solstice

When I was interviewed by Michael Yorba on his Traders Network radio show yesterday, we had a great chance to discuss this weekend’s Summer Solstice and it potential impact on the markets.

The Summer Solstice will arrive at 6:51 a.m. EDT on Saturday morning, June 21st.

This event is carrying some extra weight this year because of the recent activations of the 90-degree cardinal point at the beginning of Cancer by Venus and Mercury. These events have already shown their importance in moving the markets; the Summer Solstice is the Sun’s activation of that same 90-degree point in the cardinal axis. That’s just one of the reasons that W. D. Gann gave it so much attention.

To get an idea about the potential impact of the Summer Solstice on stock market trading, be sure to check out this chart for the historic effect on the S&P 500. As you can see, our back-testing of this index during this annual event gives us good reason to consider adding some short positions to the Financial Cycles Model Portfolio at this time.

But not all markets are likely to decline at the Summer Solstice. Take a look at what happened to Silver when this event took place last year:

Silver Summer Solstice 2013

Silver responded emphatically to the Summer Solstice in 2013, with the precious metal climbing by nearly 13% in the month of trading just after this key planetary event.

Needless to say, if you’re interested in trading precious metals, be sure to your homework thoroughly! Even though we got a big bounce in Silver at the Summer Solstice last year, and even though the Summer Solstice coming within three trading days of an isolated low in Silver about 76% of the time, this event only triggers a trend reversal to the upside about 29% of the time. So a rally in Silver (or in any other precious metals) is not a foregone conclusion following the Summer Solstice this year.

You’ll get more details about the Summer Solstice activation of the 90-degree cardinal point and its creation of a major zodiac pressure point for the markets in this recording of the complete 10-minute interview with Michael Yorba during yesterday’s show on the Traders Network:


click here to download or listen on your mobile device

By the way, during this interview I mentioned to Michael that I’m currently working on some new planetary cycle research to help fine-turn our understanding of the trading top that’s just ahead of us in the equities markets. This new report on “How To Time The Next Market Top” will be available in about a week; CLICK HERE if you’d like to get on the list for early-bird notification as soon as it’s available.

Stock Market Trading at the Summer Solstice

Yesterday’s market action just after the announcement from the Federal Open Market Committee was a clear reminder not only of the power of the Fed in swinging market sentiment, but also of the power of the cardinal zodiac points.

It’s the 90-degree location that’s in play right now, at the start of the zodiac sign of Cancer.

This was one of W. D. Gann’s favorite spots to watch in his astro-trading research and market forecasting, and for very good reason.

As I’ve noted before, one of the things that made the timing of the announcement yesterday so noteworthy was the fact that transiting Mercury was conjunct Pluto in the Federal Reserve horoscope, which also happens to be at this key 90-degree zodiac location.

This kind of conjunction is not terribly rare in and of itself, of course– what was unusual was the fact that it came during an FOMC meeting.

The result, of course, was an extremely sharp response from the markets, as I noted in my post after yesterday’s market close.

In a kind of knee-jerk overreaction to the announcement, the equities indices rallied sharply during the final hours of trading, but we’re expecting some solid price consolidation and a possible pull-back during today’s trading, as the transiting Mars activation of the Fed’s Moon/Saturn midpoint comes into play more strongly.

The next time we get an activation of this key zodiac point is just ahead of us– it’s the Summer Solstice coming up this Saturday.

While the market impact is a little hard to forecast because this is a weekend event and because the net effect may be reduced somewhat by Mercury’s current retrograde condition, the Summer Solstice itself has a solid track record for triggering trend reversals in the markets– it happens about 3 out of 4 times.

S&P Summer Solstice

The Summer Solstice helps trigger trend reversals in the S&P 500 about 74% of the time.

We’ve been back-testing the last 53 times this event has happened, and have found that the Summer Solstice has previously triggered a trend reversal down roughly 44% of the time, a trend reversal up 30% of the time, and no trend reversal at all 26% of the time.

Since the stock market remains in a disturbingly persistent uptrend right now, it looks like the odds favor a move to the downside following the June 21 Summer Solstice this year.

We won’t know how it works out until Monday, of course, but right now our expectation is that we’ll see declining prices in equities as the new trading week gets underway.

Mercury & Pluto at the Fed Announcement: Big Action for Stocks, the VIX, and the Dollar, Too!

In spite of the fact that one of our readers has dubbed the comments posted here on the Fed’s announcement today “the worst call out there”, it’s still interesting to see exactly what the markets actually did in the final hours of trading today– and to anticipate what the action in equities will look like tomorrow.

Throughout most of the trading day prior to the 2:00 p.m. announcement, stock prices were churning in a somewhat apprehensive market with a decidedly bearish bias.

But when the Fed announcement was released, it immediately became apparent that Mercury’s conjunction with the Fed Pluto was having exactly the kind of dramatic impact we had anticipated. The major market indices all rallied, breaking into positive territory and pushing to new heights by the end of the trading session.

Fed Indices Response

The S&P 500, the Dow Jones Industrial Average, and the NASDAQ Composite all rose after the Federal Reserve’s Open Market Committee made its announcement on June 18, 2014.

The S&P not only rallied, it also managed to hit yet another all-time record high by the time the closing bell on Wall Street rang. Note as well that both Gold and the Euro showed significant strength for the day.

It was also worth watching the VIX during the trading session. This measure of market volatility took a sharp plunge right after the Fed’s announcement, confirming the old “buy the rumor, sell the fact” adage– once the facts were known about the Fed’s intentions, a lot of the uncertainty that had roiled the market action earlier in the day began to fade away.

Fed Announcement VIX Response

The VIX reaction to the Fed’s announcement was quite dramatic.

In looking at the VIX chart, it’s worth observing that the index had already risen to the higher levels we had forecast last week as a potential response to Mercury’s retrograde passage over the cardinal axis. We’re still looking for more action in this Fear Index during the coming weeks, with a return to higher levels of volatility as we approach the July 4 Independence Day holiday.

This dramatic action in the VIX was further confirmation of the power of the Mercury/Pluto combination that made the timing for this event so noteworthy.

But even though the Mercury/Pluto action bore out the forecast, I had also looked at the Mars transit to the Fed chart and had assumed that the market’s reaction to the announcement would be “less than enthusiastic,” based largely on the activation of the Moon/Saturn midpoint in the Fed horoscope.

Things didn’t turn out that way.

We certainly didn’t see a negative reaction in equities during the remainder of the trading day. But Mars moves more slowly than Mercury, so the impact of its transit is likely to carry on a little longer. That’s one of the reasons why we’re still anticipating a pull-back in stock prices before the end of the week– and why our Gold-Plus Elite members at FinancialCyclesWeekly.com are planning to add to the short positions in our Model Portfolio before the market closes on Friday..

Remember, too, that the influence of the Federal Reserve goes far beyond just the price of stocks. The Fed’s announcements have a big impact on currencies, of course, which is why it was particularly interesting to see what happened to the dollar this afternoon:

Dollar Reacts to Fed

The U.S. Dollar Index had been trending lower before the Fed’s announcement on Wednesday afternoon, but as soon as the official word was released the Greenback started going through wild swings. Volatility remained high for the rest of the day, with the dollar pushing sharply lower.

 

How Will The Fed Impact Stock Market Trading?

In many respects the Federal Reserve has lost much of the mystery that made it the subject of seemingly endless attention and speculation by active traders and market pundits. The minutes of the Federal Open Market Committee meetings are made public, and Fed officials are often in the public eye, sharing their comments and perspectives on the economy and other matters.

But when we look at the astrological charts for the Fed, we open up the realm of mystery once again.

The current transits to the horoscope for the Federal Reserve, especially at a time like now when there’s an FOMC meeting going on, can tell us a lot about what’s going on behind the scenes.

Federal Reserve astrology - Mercury at the FOMC announcement on 18 June 2014

When we examine Federal Reserve astrology, we can learn a lot about important dates and events in the life of the central bank. The red pointer here indicates the position of transiting Mercury at the time of the announcement following the Federal Open Market Committee meeting on June 18, 2014.

For example, we can look at the transits for the announcement following the meeting of the Federal Open Market Committee on June 18, 2014 and immediately see the importance of the event, including its hidden significance.

Transiting Mercury conjoins Pluto in the Fed chart, activating the cardinal axis of the zodiac as it triggers the Fed Moon as well as the midpoints of Sun/Admetos, Mars/Chiron, and Kronos/Vulcanus. It’s thus clear that no matter what the Fed says in its announcement, there’s likely to be a powerful reaction.

Sometimes, of course, actions speak louder than words. That’s why it’s instructive to see the way that Mars, the planet of action, activates the chart for the Fed as well.

Federal Reserve Astrology - Mars at FOMC Meeting 18June2014

Federal Reserve astrology reveals even more when we examine other planetary pictures.The red pointer here shows the position of Mars at the time of the conclusion of the FOMC meeting on June 18, 2014. It activates significant midpoints in the Fed horoscope, including Moon/Saturn, Neptune/Midheaven, and Cupido/Poseidon.

The midpoints that get triggered here suggest that the responses to the Fed’s actions will be less than enthusiastic, so we could see some nervousness in the equities markets as a result.

We’ll have to wait and see what the complete reaction will be in stock market trading after the FOMC does its thing this week. But with the aid of the astro-trading advantage, we can get some insights that other traders lack!

What’s Happening with Gold Trading Astrology?

With the situation in Iraq spiraling downward so precipitously and lots of uncertainty hitting the markets for Crude Oil, it shouldn’t be too surprising to see Gold getting some extra attention.

The yellow metal typically climbs in price whenever there’s some kind of geopolitical crisis brewing.

But in this case, we need to be paying attention to Gold trading astrology, too. It looks like Gold is getting some help from the Sun/Kronos combination that has had such a profound effect on the price of the precious metal in recent years.

In particular, we got a Sun/Kronos parallel last week as Gold was moving into rally mode; that parallel of declination will be coming into play toward the end of the month, as we get ready for the Sun/Kronos conjunction on June 29.

My expectation is that the Sun/Kronos conjunction then will give us the trigger we need for a substantial rally in Gold as we move into July and August.

If that’s the case, then the response we’ve seen in the last week with the Sun/Kronos parallel is just a preview of coming attractions!

By the way, you can see a chart for Gold that features the Sun/Kronos dynamics on the FinancialCyclesWeekly.com website. Check it out at:

http://www.financialcyclesweekly.com/public/Gold-Gets-A-Boost-From-the-SunKronos-Parallel.cfm

And while you’re at it, be sure to print out the list of Sun/Kronos alignments at:

http://www.financialcyclesweekly.com/public/The-Sun-and-Kronos-Move-the-Price-of-Gold.cfm