I believe financial astrology works for the same reasons market technical analysis works: despite advancements in technology and civilization, people are people. Basic emotions like fear and greed influence the markets just as do fundamental drivers of growth and decline. Moreover, as a species, we see patterns readily in nature, and are influenced (consciously or subconsciously) by them.
TECHNICAL TOOLS
Trend lines are known to work across time, allowing traders to see potential resistance and support levels for a given security. Fibonacci analysis is a widely accepted tool that traders use to measure the retracement and expansion of price in the market. The patterns these tools create have relevance because of humanity’s synchronicity with nature, or maybe because our collective awareness of the patterns influences our behavior. One could argue astrology works for the same reasons.
MY STORY
In the summer of 2008, the economic crisis loomed. While economists argued about whether or not we were technically in a recession, regular Joes like me knew we were. At Astro.com, a popular site for astrologers and students, the economic crisis was called well in advance by one of our own. While I do not recall his methods, there are common ‘planetary cycles‘ that coincide with market peaks. The Saturn/Uranus cycle was present in 1987, 2000, and again in early 2009. In 1987, Saturn and Uranus were conjunct (0 degrees), in the spring of 2000, Saturn and Uranus were square (90 degrees) and in early 2009, Saturn and Uranus were in opposition (180 degrees).
My own interest began when I studied oil that summer and noted that the 2008 transits to the natal OPEC chart were repeats of the 1979 transits. In July, I started a thread at Astro.com noting the similarities for the transits coming up September 30, 2008 to the October crashes in 1929 and 1987. On September 29, the Dow fell more than 700 points. As a budding astrologer who had only treated astrology as a hobby for the previous decade, this was an important call for me and cemented my passion for financial astrology. Moreover, I began to see how astrology could add an important layer to the study of economics, the markets and history in general.
In August, I posted on mariarinehart.com that a potential market breakout (S&P 500 break above the April highs) would potentially see hiccups between mid-September and early October. This hypothesis was based on observations of the S&P’s relationship with oil over the last two years and coming transits to the OPEC chart by Pluto. Commodity cycles act to rebalance the market with the economy every four to five years, so understanding oil is critical to understanding what the market is going to do.
OPEC’S CHART
OPEC, which was established September 10, 1960, has natal Pluto at 6 degrees Virgo. Studying transits to a sensitive area in an entity’s chart is a common predictive method for astrologers. OPEC’s Pluto at 6 Virgo is one such area. It was triggered by the Saturn transit in 1979 and again in 2008. Both these periods marked a sharp rise and then decline in oil. In the late 1990’s, oil precipitated another market correction when transiting Pluto was square (90 degrees) this area. This event coincided with the Saturn/Uranus pattern mentioned above. (Incidentally, in 1986, transiting Saturn was square (90 degrees) OPEC Pluto and presaged the Saturn/Uranus pattern in 1987.) Mid-September of this year, per my August call, OPEC Pluto at 6 Virgo was triggered by the current transit of Pluto when it ‘stationed’ at 6 Capricorn. This coming April 2013, transiting Pluto will station again, this time at 11 Capricorn, triggering OPEC’s Saturn. In general, when Saturn and Pluto come together, it is a period of restructuring and merits attention.
CURRENT OPEC TRANSITS
The implications of OPEC’s current transits are supported by the long term price action of oil and its relationship with the market. We’ve observed over the last two years that once light crude oil futures breach $104, this price begins to put pressure on both consumers and industry. For example, in February 2011, oil breached $104, and while the market itself did not go into full blown correction yet, the long term bond market had bottomed and many of the strong fundamental stocks began to give way to more risky securities.
OIL ACTION
A general market correction took place in the spring. In short, the reality of $4.00 at the pump is not sustainable in a struggling economy. Add this to the Pluto/Uranus phenomenon that marks the global economic and political shifts that occur about every 40-50 years, and it might be prudent to expect increased volatility in oil and its effect on the larger market cycle over the coming months. So far, our August call for mid-September has proven itself as light crude futures peaked during the Pluto station and presaged the larger market correction in October.
While the market is again in a confirmed uptrend, it is too early to determine the strength of the uptrend and whether it will precipitate another market breakout of leading stocks, or if it is simply a temporary reaction to the main trend that began with the oil peak in September.
THE TAKEAWAY
Financial astrology is not as simple as looking at transits and predicting the future. It requires an understanding of market cycles and other important analytical tools. Perhaps we can map market and social cycles with the planets because of man’s synchronicity with nature, or perhaps our awareness of these patterns itself influences our response to them. Either way, financial astrology can be as valuable to market participants as traditional technical analysis. Like trend lines and Fibonacci, financial astrology provides a window into the market’s psyche that the trader can use to his profit.
[Editor’s note: Do you have questions for Maria? Post them below.]
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