Weekly Column: A rare and highly charged time band of geocosmic phenomena

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Another change that could put pressure on stocks moving forward is the possibility of rising inflation as the Fed pledges to keep rates low and its monetary stimulus programs running. (Doubleline CEO and founder Jeffrey)Gundlach pointed to a comment made by Chicago Fed President Charles Evans on Jan. 4. Then, Evans said, “The more we get inflation up above 2% then markets are going to understand that, yes, we’re in it to win it.” Gundlach, who expects the consumer price index — a widely followed inflation metric — to hit 3% in its May/June report, said inflation “is a real game changer, should it occur.” – Fred Imbert, “Jeff Gundlach Says Stock Valuations Are Extraordinarily High, Supported Only by the Fed,” www.cnbc.com, January 11, 2021.

Many world stock indices soared to record highs last week, and many others rallied to multi-year highs as we enter the middle of three major outer planet aspects between December 21, 2020, and February 17, 2021. This is a rare and highly charged time band of geocosmic phenomena.

In Europe, the DAX made its all-time high one week ago, on January 8, at 14,131. It spent most of last week pulling back. The Amsterdam AEX index soared to 656 on Thursday, January 14, its highest mark in over 20 years. It was not quite so robust with the London FTSE or Zurich SMI indices, which did manage to post new post-crash highs, but could not exceed their highs of February 2020.

In Asia and the Pacific Rim, it was a similar performance. India’s NIFTY Index made a new all-time high on January 11. Japan’s Nikkei Index soared to 28,979, its highest mark in over 30 years. The Shanghai Composite Index of China rallied to 3622, its highest level since December 2015. But the Australian ASX and Hang Seng index of Hong Kong could not make a new yearly high, although both rallied to their highest levels since early 2020.

There was a more immediate case of intermarket bearish divergence in the Americas. The Dow Jones Industrial Average (DJIA) and the cash NASDAQ Composite made new all-time highs on Thursday, January 14, But the NASDAQ futures and S&P cash and futures did not take out their all-time highs of the prior week. In Brazil, the Bovespa was down all week after posting its all-time high the prior week on January 8.

Overall, it was a positive week for most world stock indices. But bearish divergences are beginning to appear as we enter this critical geocosmic time band of January 6-30, with the midpoint this weekend of January 15-18.

It was also a noteworthy week (again) for other markets. Bitcoin fell over 10,000 points from its all-time high on January 8 at nearly 42,000 to a low of nearly 30,000 by Monday, January 11. It rallied back to a secondary high of slightly over 40,000 on Thursday, January 13, before dropping over 5000 points the next day. Crude Oil rallied to 53.93 on Thursday, January 14, its highest mark since last February. But the bigger story was in the grain markets, where Soybeans exploded to 1436-1/2, its highest mark in seven years. Corn soared above 540 for the first time since June 2013, and Wheat tested 700 for the first time since May 2014. Food prices are rising – sharply – a sign that inflation may be readying to explode. However, it was not such a good week for metals as Gold and Silver continued to fall from the cycle highs and secondary highs of January 6. If inflation does erupt, metals would likely rise as well. 

Short-term geocosmics

To reduce astrology to an exercise in prediction is to have a poor grasp of its meaning. The risk of being ridiculed restricts freedom of thought or the courage to state one’s opinions; it is as if it were more important never to look ridiculous than to advance the truth. Andre Barbault, “The Value of Astrology,” The Astrological Association CIO, London, 2014. Translated from Éditions du Seuil (French), 2006.

It is often said that the stock market is not the economy. Likewise, we can say that the relationship (or correlation) of cycles in the cosmos is not directly related to cycles in financial markets. There is a correlation, of course, as evidenced by the research studies published in several of the books I have written, most notable the five-volume series on The Ultimate Book on Stock Market Timing, which examines daily movements in the U.S. stock market since 1928, and monthly/yearly movements going back to the 1690’s of the British stock market. But the more accurate correlation is that cycles in the cosmos correlate with cycles in human activity, and quite often – often enough, but not always – those cycles in human activity are reflected in the trends and turning points (reversals) in financial markets.

We are in such a period right now. Three of the five outermost planets in our solar system are unfolding in quarter cycle phases of the greater synodic (conjunction) cycles. That’s a lot. If we include Mars, then four of the six outermost planets are in these critical mathematical/spatial relationships to one another between December 21, 2020, and February 17, 2021. We have described this powerful time band in the Forecast 2021 book as well as in several of these columns over the past few months. But to reiterate, Jupiter made its 20-year conjunction to Saturn on December 21, 2020; Jupiter makes its waning square to Uranus this weekend, January 17 (a quarter phase of the 14-year cycle); and Saturn will make a waning square to Uranus on February 17, which is the 11.25-year quarter cycle of its greater 45-year synodic cycle. Mars has already joined this planetary summit with its square to Saturn (January 13, impeachment day), conjunction to Uranus (January 20), and square to Jupiter (January 23). Hence, we are now fully into the midst of the most powerful geocosmic time band of the year, December 21 through February 17.

According to our definition of astrology – that cycles in the cosmos correlate with cycles in human activity – I don’t think there is any doubt that what the nation and the world are going through now is indeed historic and consistent with this hypothesis. There are record numbers of new daily cases, hospitalizations, and deaths related to a global pandemic; there were riot and insurrection against the U.S. government and the Capitol on January 6; the U.S. president was impeached for the second time on January 13 (something that has never happened before), with threats of greater revolts to be carried out in the next week as the U.S. heads to Inauguration Day, January 20. The current geocosmic arrangement is consistent with the activities taking place in the world and the nation today.

But will these dramatic events in human activity result in a major reversal of trends in financial markets? That remains to be seen. As stated before, the relationship between the movements in the cosmos and financial markets is not as direct as it is between the cosmic and human activity as a whole. Yet, it happens often enough that as traders and investors, we need to be alert to the possibility.

With stock markets, Bitcoin, and grain markets all exploding in a bubble-like pattern, we take note of the planetary dynamics involved, and our observation of how they have behaved in the past. Jupiter in a quarter cycle (or trine cycle) aspect to Uranus, for instance, is the single-most consistent correlation of planetary pair cycles to the culmination primary cycles in the U.S. stock market within an orb of nine trading days. Quarter cycle phases between Saturn and Uranus are the strongest geocosmic correlate to the culmination of the 4-year cycle in stock indices within an orb of 10 months. In fact, every alternate 45-year cycle of the Saturn/Uranus waning square is the one consistent planetary cycle to the two steepest stock market crashes in the history of the U.S.: the decline of 1835-1842 when the market lost 80% and 1929-1932 when the market lost 89%. This is the third case of this alternating 45-year cycle (call it a potential 90-year cycle).

I know. This time will be different. That’s always the mantra of those who don’t know that they don’t know but like to believe that they do. But my experience is that whenever Saturn and Uranus enter into a quarter cycle phase (conjunction, square, or opposition), nothing happens as mainstream pundits predict based on their economic models or understanding of how the economy and societies will act. That’s why I am labeling this as “The Year of the Contrarian.” I suspect soon that people will understand what I mean. But don’t expect them to cite the history of astrology as providing a critical clue to this possibility. It’s not the time for that yet. Maybe it will be time when Pluto enters Aquarius and trines Uranus in Gemini later this decade.

I know many of you read this column for insights into potential market activity based on its correlation to geocosmic cycles. But the greater correlation, as described in this week’s column, is to overall human activity, of which financial markets are but a second-tier correlation. The correlation is there, but it is important to understand the greater correlation that exists between the macrocosm (the universe) and the microcosm (us). For now, be aware that current financial markets, just like overall human activity, may be very volatile and dangerous to your financial and psychological well-being. It is a time when traders may experience the one thing they most desire: maximum profit with minimal market exposure. When Mars, Jupiter, and Uranus are involved in multiple aspects to one another, as we see the rest of this month, prices can change quickly and sharply. Thus, in these conditions, the risk of loss is also much greater than usual for those who are not nimble or willing to “stop the bleed.”

Once again, we share the following mantra from the “Calm” app, especially this forthcoming week:

May you be happy.

May you be safe.

May you be healthy.

May you be at peace.