Gold soared to 1350 on Friday

REVIEW AND PREVIEW

Stocks fell sharply on Friday, adding to their steep weekly losses, as investors assessed the possibility of a trade war brewing between the U.S. and China. Week to date, the major averages posted their worst week since January 2016. – Fred Imbert, “Dow Drops More Than 400 Points Into Correction, Posts Worst Week Since January 2016,” www.cnbc.com, March 23, 2018.

Stocks fall as markets doubt the White House has a trade strategy… The president’s trade hawks want to punish China more than they want to change its behavior. This is the mentality that could lead to a trade war and economic damage to everyone. Equity markets reflected that worry Thursday by falling …724 points on the Dow Jones Industrial Average. “Trump’s China Tariffs,” Wall Street Journal Opinion page, March 23, 2018.

Last week’s column discussed that markets are now very nervous. This week’s global equities markets underlined that observation in bold lettering. In the USA, the Dow Jones Industrial Average fell 1413 points last week, its biggest weekly loss in over two years. It closed at 23,533, very close to its 23,360 low of February 9, 2018. The S&P also held its lows of February 9, 2018, and with a much greater cushion, suggesting that a case of intermarket bullish divergence could occur next week, i.e. the DJIA makes a new low for 2018 next week, but the other two indices do not. Other markets followed the same pattern of selling off sharply, yet so far holding their lows of February 9, 2018, as in China, Hong Kong, Australia, Russia, Argentina and Brazil. But others did not hold their February lows, such as in India, and most of Europe, and instead of a reversal, these markets may be leading other world stock indices lower in the next leg and down into a longer cycle trough.

The enactment of tariff wars between major nations of the world does not usually have a positive correlation for stock markets or economies anywhere. In this instance, it would also accelerating pressure on the U.S. Dollar, which is already struggling near its lowest levels in over three years, after posting its 16.5-year cycle crest just 14 months ago. As the Dollar continues its weakness, however, Gold and Silver have rallied sharply. Gold soared to 1350 on Friday. On Tuesday, it was trading below 1310. Treasuries also benefitted from the stock market selloff, as the Ten-Year notes rallied to their highest level since February 9, 2018, which was the low in the DJIA this year – so far. Bitcoin had a good week amidst all this worry about tariffs and the stock market sell off. The cryptocurrency was up $1156 for the week.

 

SHORT-TERM GEOCOSMICS AND LONGER-TERM THOUGHTS

“Crazy Joe Biden is trying to act like a tough guy. Actually, he is weak, both mentally and physically, and yet he threatens me, for the second time, with physical assault. He doesn’t know me, but he would go down fast and hard, crying all the way.” President Donald Trump tweet, March 22, 2018.

The only element of the American political system to which Donald Trump poses an existential threat is his own presidency. Daniel Henninger, “Yes, Shut Down Mueller,” Wall Street Journal, March 22, 2018.

It is not as if there is a lack of geocosmic activity that correlates with this latest sell off, and beyond that, the occurrence of probably ill-advised decisions, and reactions, by world leaders, such as Donald Trump. After all, Mercury turned retrograde last week, March 22, 2018, the very day Trump announced his decision to levy tariffs against China. Basic Astrology 101 teaches that Mercury retrograde is a favorable period to gather information and hold discussions with others before making a formal decision – especially a decision that may be hurried and a surprise to others. Mercury, the Trickster, is not only retrograde now (implying decisions that will either be regretted, lead to unintended consequences, or later must be modified and changed), but it is turning retrograde in Aries, the sign of impulsivity and bravado. It can be immature, if it isn’t directed to initiating discussions designed to result in positive new beginnings. Perhaps that is what President Trump intended with his Tariff announcement against China. Maybe he is trying to start a new negotiating process with China that will lead to an outcome considered “fair trade.”

However, I am not sure why Trump wants to start a romp with Joe Biden. There is no upside in Trump taking that bait (not that this condition ever mattered to someone with Mars on his Leo Ascendant – in his mind, he must appear as a tough guy). Given that Mercury rules Gemini, and both Biden and Trump (as well as Xi Jinping) are Geminins, and Mercury is retrograding in the war-happy sign of Aries (ruled by Mars), this could turn out to be very entertaining. I mean, can you imagine two Geminis threatening to fight one another? Geminis are known for their words, not their physical prowess. Each could claim victory in such a contest. It would be a war of words and threats, without either laying a hand on the other.  

But back to reality. This unstable and confrontational environment could last another ten days, as described last week, and not end until the Mars/Saturn conjunction on April 2, 2018. During that time, the Sun in Aries will also be in a square aspect to Mars (March 24) and Saturn (March 30), while Venus will square Pluto and conjoin Uranus (March 23-28). This does not bode well for stocks, except to say that a bottom of some sort could unfold in these next ten days.

You might make a better return betting on the outcome of the Trump versus Biden match. However, if you are trying to make a killing in the markets during this period of Mercury retrograde, you better be very nimble, and at the same time, less reactive to the bait that others set for you. Think before acting. Know that under Mercury retrograde, there will an abundance of fake outs and false buy and sell signals, where support and resistance get broken, only to witness a sudden turnaround, until it happens again 1-4 days later. If you are not careful, Mercury the Trickster will have your head spinning with sudden twists and turns in the markets. And Mercury retrograde in Aries, with Mars its ruler – coming up on Saturn – are not signatures indicative of being careful with one’s words or actions. They can be useful, however, in making progress on projects that require no assistance from others. Others could interfere with your efforts. Go solo.