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ASTRO-TREND
Prepared by Norman Winski
Market Watch
(December 29, 2000) January should be a very interesting month with powerful planetary events. Although the number of major events is small in number, the concentration of energy has significantly increased as compared to the past several months.
One event of note is the 1/9 lunar eclipse, which occurring at perigee, should add an extra kick to the eclipse. The 1/24-26 time window is simply phenomenal as it is loaded with a new moon, helio Mercury at both greatest elongation East and on its own North Node, Jupiter and Saturn leave Taurus and enters Gemini. The 1/9 and 1/24-26 are certainly the two big high energy time windows for the coming month. This is when the biggest changes in trend for the greatest number of markets should occur.
Some of these planetary cycle points may reverberate into the future for many months to come. For example, Jupiter and Saturn have been retrograding back toward a hard aspect to Uranus for the past several months. During this period the U.S. economy and several other major national economies have significantly slowed. particularly hard hit have been those sectors ruled by Uranus, such as Internet, electronics and computer related companies. 1/25, Jupiter and Saturn are scheduled to reverse their apparent geocentric direction which I think should closely correspond with a gradual improvement in the economy lasting into May or June. Of course, the conventional media won't report how much the economy slowed the past several months or how it is improving into the spring until it is too late for it to have any value for investors. Hopefully, the insights shared here will serve the intended purpose of keeping your ahead of the curve.
The energy level for January is significantly higher as represented by the number of markets and areas that made our monitor list. The January aspect analysis indicates that the best markets to monitor are: 1.) stocks, 2.) copper, 3.) T-bonds, 4.) soybeans, 5.) coffee, 6.) soybean oil, 7.) wheat, 8.) oats, 9.) cattle and 10.) Australia.
Date Events Markets Effected 01/09 Lunar Eclipse at Perigee Coffee, corn, CRB, gold, orange juice, silver, stocks 01/17 North Node 90 US Saturn Stocks, T-bonds, U.S. Dollar 01/24 Saturn/Taurus Direct Cattle, coffee, cotton, stocks 01/25 Jupiter/Gemini Direct Copper, CRB, oats, oil, soybeans, soybean oil, stocks, wheat 01/26 Helio Saturn>Gemini Copper, CRB, oats, oil, soybeans, soybean oil, stocks, wheat 02/03 Mercury Retrograde Copper, corn, oats, soybeans, soybean oil, stocks Stocks
The forecast for December was "for a rally to begin 12/4 and last until 12/14 From this peak there should be a pullback or continued correction until circa 12/20-22. From that low, there should be a Santa Claus rally into the New Year." In fact, a rally of approximately 5% ensued as expected. The S&P 500 peaked on 12/11 and the DJIA peaked on 12/12. This rally was followed by a decline of approximately 8% which bottomed on the close of 12/21, right in the middle of our time window for a low. Santa Claus delivered a 6% rally that, so far, peaked on the 12/29 opening.
The Fibonacci cycles for January are mostly trending sideways, whereas the Planetary Index is somewhat bearish. Both forecast models are in agreement for a turn 12/22-23. The Planetary Index is giving a strong indiction for a change in trend circa 12/29 which is currently indicated as a low. However, Jupiter and Saturn are shifting from retro to direct on 12/25, so this is a period where cycle inversions have an above normal probability. Overall, I think January will be a whippy choppy month with a slight downward bias for the stock market.
Longer term, the good news is that with Jupiter and Saturn turning direct on 12/25, the intermediate term planetary outlook should start to gradually improve for the stock market. A late January or early February bottom should be the foundation for a good rally into the May/June period.
Key Dates--1/2, 1/5, 1/12, 1/16, 1/17-18, 1/22-23, *1/25-29*, 2/2.
12/1 SPX close 1315.23. 12/29 SPX close 1320.28.
U.S. Treasury Bonds
Our outlook for T-bonds is clouded by the fact that we have both short-term and long-term indications for a high, but at different times. In accordance with our Martian Market of the Month, in the December issue and reviewed later in this issue, we forecasted a change in trend for the 12/22-26 holiday weekend. In fact, March T-bonds, so far, peaked on 12/26 at 105-23 and have now dropped more than $1. The conflict here is that based on short-term technical patterns and on our Martian Market approach, the market was due to peak on 12/26. However, the level at which the marked peaked was slightly beyond the expected Fibonacci resistance level, which implies that higher prices should be in the future. Longer term, the bigger picture for T-bonds indicates that a high is likely either 1/17 or 1/25-29. The 1/25 time window, with Jupiter and Saturn turning direct and as result causing improvement in the economy should spell a longer term top for T-bonds and a low for long-term yields.
The best strategy now is to sell T-bonds against the 12/26 high of 105-23 using an eight-tick stop loss at 105-31. If the stop is hit, go flat until 1/17 or 1/25. If market continues to rally to new highs, look to sell at the later dates near the 111 area, which would be the next Fibonacci price target.
Key Dates--1/2, 1/5, 1/16, 1/18, 1/29, 2/2.
12/1 USH close 102-03. 12/29 USH close 104-20.
December 29, 2000 Norman Winski Astro-Trend 6457 Autumn Woods Blvd., Napes, Florida 941-594-3939
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