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ASTRO TREND
Prepared by Norman Winski
Stocks
Our accurate forecast for a strong up move for November, published on 10/24, was also accompanied with a warning to wait until after the 10/31. *New moon to commit to a trend. This was sage advice for those bullishly inclined, as heeding this advice resulted in missing the October 27-28 Asian Flu selling panic. You could have then bought on a pullback near the retest lows of the October 31 opening. (*There was a typo in last month's letter whereby it stated there was an October 31 full moon when it should have read “new” moon).
The outlook for December shows only an occasional preponderance of evidence tipping the scales in favor of the upside. The long-term orientated Fibonacci Nominal Weighted Composite Average will be trending sideways to lower. The shorter- term Fibonacci Nominal Average will be trending sideways, whippy, and slightly lower toward the end of the month. However, the Astro- Trend Planetary Index is showing a very strong uptrend for all of December. Additionally, I see a reemergence of the 23-week and 46- week cycles which would imply that a high is not due until at least early January. Please keep in mind the huge energy point for 12/8- 9.
Here is how I see to trade this market in line with these cycles. I recommend trading from the long side at those times when the Planetary Index, the Planetary Energy Points, and the Fibonacci Nominal cycle Composite are in harmony for an up move and exiting when the latter shows a short-term peak. These time windows suggest, look to go long it market weakness circa 12/10-11, exit if there is a buying bulge circa 12/12-15, and the highest confidence buy point is look to go long for rally into the new moon raid day on 12/29.
Key Dates– 12/1-2,4, *8-9*, 10-11, *12-17*, 22-23, *12/26-29*, and 1/2-5.
10/24 close SPX 941.64. 11/28 close SPX 955.40.
T- Bonds
Our November forecast was “after an initial low on 10/30-31, I expect a choppy basing action with should resolve itself, after some whipsaws 11/8-9, with a rally into 11/18.” Also alluded to was the possibility of a test, circa 11/18, of the all time high at 122. The actual result was that the market was especially whippy in the early part of November, made its high close for the month on 11/19 and its intra- day high on 11/20.
The big cycles for T-bonds indicate a major cycle peak is due 12/7-10. This is a reoccurrence of some of the same cycles that topped the U.S. financial markets in early August of this year. After that time window, I see no strong directional indications until at least January.
Key Dates–12/1-2, 12/4, *12/8*, 12/10, 12/15, 12/26-29, & 1/2.
10/24 close USZ 116-25. 11/28 close USZ 119-06. 11/28 close USH 119-01.
U.S. Dollar
The big event this month for the U.S. Dollar is the Jupiter Conjunct and Parallel the U.S. Moon, 12/7-10, as mentioned in the above T-bond analysis. This is an aspect which was a major part of the big picture coinciding with the highs we accurately forecasted in early August 1997. Watch for a retest of the 105 August high circa 12/-7-10, which maybe a major high.
Key Dates–12/1-2, 12/4, *12/8*, 12/9-10, 12/15, 12/26-29, & 1/2 AC.
10/24 close DXZ 97-70. 11/28 close DXZ 97-81. 11/28 close DXH 97-61.
Japanese Yen
The current multi-month decline in the yen can only be described as relentless. Now, with the Asian and Japanese financial problems being highlighted in the media, the situation has become all the more interesting and perhaps closer to some culmination or resolution.
The last consolidation had a high at the .92 area and a trading-range low at the .82 area. That support has now been violated, suggesting a minimum downside of .76, a more likely projection of .72, and the possibility of .66.
We will look for this market to have a selling climax into one of these levels near a key date in order to consider a buy. The only major energy point for this period is due after the close of January 2. Could it be that the yen will follow the frequent pattern for currencies of a major change in trend at the turn of the year? We will review this situation next month.
Key Date–1/2 AC
10/24 close JYZ 8265. 11/28 close JYZ 7842. 11/28 closed JYH 7956.
Oats
The price-chart pattern indicates that March oats are likely to test the 1.45 area soon. The planetary picture shows a high probability period of downward price pressure coming this month for grains, especially the week of 12/3, but also during the entire Mercury retrograde period, 12/8-12/26. One factor increasing the risk in oats is that Jupiter, oats' ruling planet, will be changing signs in January. This Jupiter effect adds a large unknown to the price picture for oats. Therefore, other than short-term aggressive trades, I recommend avoiding this market until the bigger picture clears.
Key Dates–12/1, 12/8, 12/10, 12/12-15, 12/17, 12/26-29, 1/2 AC
10/24 close OZ 1.660. 11/28 close OZ 1.470. 11/28 close OH 1.572.
Copper
In addition to making our monthly monitor list, copper is also this month's Martian market of the month by virtue of the coming Mars ingress into Aquarius, copper's ruling sign, on 12/18.
Copper is still in a long-term bear market. But on a short- to intermediate-term basis, copper is now getting oversold and approaching its 1996 low at the 82 cent level. It is reasonable to expect a bounce here, especially if the setup looks good at the 12/18 Mars entering Aquarius.
One more pattern to watch at the 12/18 Mars ingress is for a good change in trend by those markets ruled by the opposite sign. For example, November 9, Mars entered Capricorn and accordingly we were closely watching coffee for a good move. As it turned out, coffee bottomed one day early and there was a good 20 cent rally. But, probably the better move was made by silver, ruled by the opposite sign, Cancer, which commenced an even stronger rally. During the past two years, I have noticed a pattern shift in this manner. The coming Mars ingress would imply that in addition to watching copper, ruled by Aquarius, one should also be watching those markets ruled by the opposite sign Leo. Those Leo markets are corn, gold, and OJ, watch these markets circa 12/18.
Key Dates–12/2, 12/10-12, 12/16, 12/18, *12/22-24*, *12/26-29*.
10/24 close HGZ .9110. 11/28 close HGZ .8405. 11/28 close HGH .8605.
November 30, 1997 Norman Winski
Astro-Trend
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