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ASTRO-TREND
Prepared by Norman Winski
Stocks
The stock market forecast last month was for a choppy market with a low due on 9/9 and a high due on 9/22. The low occurred on 9/11 and the high close was on 9/22, the latter being only slightly exceeded intra-day on 9/24.
As expected, the stock market spent most of September in a choppy Wave IV type consolidation. At this writing, it is not clear as to whether the market has yet finished this pattern, which should lead to a Wave V top.
The Planetary Index is in agreement with the shorter-term Fibonacci nominal composite average in timing 10/8 as an important change in trend. Unfortunately, the directional indication for these two cycle indices is diametrically opposed. The Plannetary Index shows a potential peak due for 10/8. This does agree with the longer-term orientated Fibonacci nominal weighted composite average to the degree that the latter is showing a definite downward bias for most of October. The shorter-term orientated Fibonacci nominal composite average also resolves itself to the downside near the last week of our forecast month. Synthesizing these three cycle indices, paints a picture for extreme volatility near 10/8 with a probable eventual resolution to the downside as the bigger cycles re-assert negative pressure.
The recommended strategy is to use small positions to fade any extreme stock market swings near 10/8, especially if the SPX nears 1006 at that time. How the market behaves relative to 10/8 and the 10/13 Uranus direct energy point should give us a big piece of how to trade this market. Keep in touch.
Key Dates-9/29, 10/6, 10/8, 10/13, 10/16
8/29 close SPX 899.47. 9/26 close SPX 945.22.
T- Bonds
The cycles for T-bonds indicates that T-bond prices should be under negative pressure until 10/7. this should be followed by a technical bounce, a choppy trading range for most of the month, a minor high 10/27, and then more negative pressure into 10/30.
Key Dates-9/29, 10/1, 10/6, 10/7, 10/9, 10/13, 10/17, 10/27, 10/30.
8/29 close December T- bonds 112-24. 9/26 close December T-bonds 115- 24.
U.S. Dollar
The dollar index has been in a gradual decline ever since the early August high which we accurately forecast. The cycles indicate weakness into 10/7, a bounce into 10/9, sideways until a minor 10/27 peak, and then down into 10/30.
Key Dates-9/29, 10/7, 10/9, 10/13, 10/17, 10/27, 10/30
8/29 close December U.S. Dollar 98.77. 9/26 close December U.S. Dollar 97.02.
Canadian Dollar
For the second consecutive month, our planetary aspect analysis shows strong activity for Canada. A cursory study of the Canadian Dollar shows a multi-month basing consolidation pattern. There is a huge planetary pattern culminating September 28 which indicates a probable major low for Canada. Just as interesting is that the next big energy point is due October 16 which should be a cycle high. this scenario presents a low risk opportunity to buy the Canadian Dollar for a breakout rally into mid October. At this writing, it is still to early to be definitive on this strategy, but we should be able to make a decision by Monday, 9/29. Keep in touch.
Key Dates-9/29, 10/16.
8/29 close December Canadian Dollar 7246. 9/26 close December Canadian Dollar 7252.
Oats
In addition to making our monthly monitor list, the oat market also qualifies for monitoring as our Trade of the Month candidate based on our Mars ingress lunation trading pattern. The Mars ingress lunation pattern is when Mars enters a new sign at the first lunation (new or full moon) we look for an opportunity to enter one of the markets ruled by the sign that Mars is entering. 9/28, Mars enters Sagittarius, which rules oats. The first lunation following that is a new moon on 10/1. We study the chart of that market and decide if it is approaching support or resistance and if it is oversold or overbought. For example, in the current case of oats, if they were to decline 5-10 cents, they would be coming down to an important support area, so I would be inclined to buy them. We will have to see how they look coming into 10/1.
Key Dates-10/1, 10/6, 10/8, 10/13, 10/16, 10/23, 10/24 AC.
8/29 close December oats 1.6550. 9/26 close December oats 1.5575.
Soybeans
Last month, the planetary cycles indicated a possible big change in trend for soybeans during the first week of September. Fortunately, our system of analyzing these energy points by observing the price pattern at these key times said that it was likely that the soybeans were stuck in a narrow trading range and that they should be avoided. Our system proved accurate as this is exactly what transpired. At this time, we have no strong directional indications for soybeans. We will have to take soybeans and the rest of the grain complex on step at a time for the next several weeks.
Key Dates-9/29-30, 10/16, 10/22.
8/29 close November soybeans 6.2550. 9/26 close November soybeans 6.3175.
Wheat
As alluded in the above soybean commentary, I have no strong planetary directional indications for this market at this time. But, there are several significant energy points that should be respected if one is planning to trade this market in the coming month.
Key Dates-9/29, 9/30, 10/1, 10/6, 10/13, 10/14, 10/16, 10/24 AC.
8/29 close December wheat 3.4900. 9/26 close December wheat 3.5725.
Copper
Copper continues to languish in an apparent long-term bear market. 10/8, Jupiter turns direct, finishing its last pass in its conjunction aspect with Uranus. During the past year of this major planetary pattern that rules copper, I believe that copper has been putting in a major distribution top. How copper act in the next few weeks following the 10/8 event, should also provide significant clues in solving this puzzle. by the way, it is very interesting that last week IBM announced new technology that would allow them to use copper rather than aluminum in chip production. One may think this would be the kind of news that would precipitate a big rally in copper. Copper prices barely budged on this news and have hardly moved since. A market that can not react with higher prices on bullish news is a market that is in trouble.
Key Dates-9/29, 10/3, 10/8, 10/13-14, 10/24
8/29 close December copper 99.30. 9/26 close December copper 95.20.
September 26, 1997Norman Winski
Astro-Trends
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