By Astrology Traders

The Markets

2014-11-23_1721There are several key indicators occurring, suggesting a Bearish market trend, while at the same time the markets are moving counter intuitive to those indicators.  This week we are going to outline the indicators and put our perspective into what this means for the markets going forward.  below is Jeff’s technical indicator, Chris’s options conundrum, and the wild card aspect in the astrology that suggests–volatility.

  • Technical Long Term Bear market, Short Term and Mid Term Bullish
  • Uncommonly inconclusive Long Call/Married Put profitability and Covered Call/Naked Put losses.
  • Pluto/Uranus square and volatility

The market gap up on Friday was unable to hold, closing lower and showing some consternation confirming the Bulls have a challenge in convincing this market is about to breakout much higher .  The confusion is confirmed in the technical analysis.  Jeff’s timing signal for the Short and Mid Term flipped Bullish a couple of weeks ago, while the long term trend remained very Bearish.  When this occurs it usually signals a “Sell” in the markets, similar to what is called a dead-cat bounce.  At the same time the Covered Calls and Naked Puts became unprofitable, signaling also a Bear market.  That was several weeks ago, now,  to throw a curve to this analysis, the Long Call/Married Put Index, which signals a strong Bullish trend, is currently profitable, which only happens in a strong Bull Market.

The combination of these factors is further emphasized by the looming Pluto/Uranus square that will peak on December 14th.  Jeff’s chart illustrating the time frame of each prior Pluto/Uranus square shows how the volatility has materialized, both Bullish and Bearish, near the peak dates.  we have a total of 7 exact squares between these two  celestial bodies with the final exact square March 16, 2015.


I  have projected a very bullish move in the markets in mid December.  Considering the push higher in the markets it does appear to me that we could get a sideways move, or more intraday corrections to burn off some of the overbought conditions, and then another break higher.

The correction may be happening strategically in order to manipulate the markets. It’s called the ‘great rotation’, some index stocks can be pushed higher while others pullback.  Then the stocks that pulled back can rally while the overbought stocks pullback.  The index can continue higher for a long time with this strategy.  Only 13 of the 30 Dow Jones stocks have made a new high since the pullback in October while 17 have not.  Economic news can also be distorted in order to deceive the public.  The market rallied at the end of the week on news that existing home sales rose 2.5% higher for the first time since October of 2013.  This is a nice way to spin the overall decline year over year of 5%.

The following is from this weeks premium report by Astrology Traders. You can view all our trades here verified by Marketfy.

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