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Turbulences in the financial markets, what are the stars saying? (8/18/07)

The past weeks were characterized by serious turbulences in the financial markets (first in the stock markets and then also in precious metals, particularly silver) and when you listen to the news, you can't avoid the impression that a lot of people expect "the end of the (financial) world" soon because a crash of the system is repeatedly discussed. In this free market commentary I'd like to address the burning question what to expect for the future from the perspective of astrology, fundamental analysis and conspiracy theories.

First I'd like to answer a question asked a couple of times recently, namely if this development came as a surprise or was forecast. Below please find the 2007-8 prognosis chart for the benchmark index S&P 500 (SPX) published in December 2006, both the 2 scenarioNormally the main forecasts are distinguishing between a preferred (more likely) and an alternate (less likely) scenario that usually only diverge on the price axis but not on the time axis. Timing is always more important, reliable & accurate in the Amanita forecasts than prices.s (red lines) and the actual SPX closing prices (black line) end in August (the original prognosis chart runs through the end of 08 but was cut off here). The more bullish of the 2 scenarioNormally the main forecasts are distinguishing between a preferred (more likely) and an alternate (less likely) scenario that usually only diverge on the price axis but not on the time axis. Timing is always more important, reliable & accurate in the Amanita forecasts than prices.s based on the assumption that the hyperinflationary pressure continues to build up has so far been tracked very well, actually almost 100%.

Both scenarioNormally the main forecasts are distinguishing between a preferred (more likely) and an alternate (less likely) scenario that usually only diverge on the price axis but not on the time axis. Timing is always more important, reliable & accurate in the Amanita forecasts than prices.s agreed on the 2 major time lines for key bottoms in 2007: the more important of the two is now in late summer 07 (was adjusted recently) and the somewhat weaker one was March 2007. Needless to say, the annual lows so far were set in March but the SPX did re-test yesterday (lows at 1371 and 1364 respectively), and the summer decline has been considerably sharper (and longer, too). For the Amanita forecasts, timingIn the Amanita prognostications, timing is almost always more important, reliable & precise compared to prices. The standard window for all time projections is +/- 1 week, with the exception of the Amanita pivots (+/- 1-2 days). is always more important than prices because prices can be easily manipulated while timingIn the Amanita prognostications, timing is almost always more important, reliable & precise compared to prices. The standard window for all time projections is +/- 1 week, with the exception of the Amanita pivots (+/- 1-2 days). is rather "immune". In a nutshell, over the past 8 months (since December 06) we have an almost perfect fit with the scenarioNormally the main forecasts are distinguishing between a preferred (more likely) and an alternate (less likely) scenario that usually only diverge on the price axis but not on the time axis. Timing is always more important, reliable & accurate in the Amanita forecasts than prices. (which of course doesn't mean it has to go on like that; past performance is not necessarily indicative of future success).

The astrological side

Already a few months ago I warned that July (especially before and around the stationary-retrograde Venus on 7/27/07) would be quite dangerous. Which other factors than Venus were responsible? On 7/23/07 Uranus, the planet of volatility and of sudden turbulences, was squaring (angle of 90°) the center of mass (CM; barycenter) of the solar system, 7/24/07 was the 1st big down-day in the indices. The barycenter is always either very close to the surface of the sun or even below, which depends on the position of the heavy planets, above all Jupiter that is heavier than all other planets combined. According to my research, the CM is a very important point that should be taken into consideration. I suspect it is the "navel" of the solar system and plays a major role in converting the energy from the Galactic Center (GC).

While the connection of Uranus to the navel of the solar system and the direction change of Venus triggered the crisis exactly (timingIn the Amanita prognostications, timing is almost always more important, reliable & precise compared to prices. The standard window for all time projections is +/- 1 week, with the exception of the Amanita pivots (+/- 1-2 days).), the topic was set by the aspects of Saturn to Neptune and Pluto. From August 2006 through mid-2007 we had a triple opposition (angle of 180°) of Saturn and Neptune, the "hard" aspects of the 4th harmonic (0°, 90°, 180°) occur only once every 8-10 years. Saturn is the classic "malefic" and bear planet, everything it touches is reduced to the core in the best case, in the worst case it means problems, serious setbacks and heavy losses. Neptune (named after the sea-god) on the other hand is the symbol for liquidity and all illusory developments and therefore it also rules (liquidity-driven) bubbles in the financial markets. That's why the hard transits are THE "bubble-killer":

  • The passage 2006/7 made the real estate bubble burst (temporarily, the advances in oil and precious metals were capped, too, although these markets do in my opinion not fulfill the definition of a bubble).
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  • The passage 1998-99 (within orb until early 2000) did not only terminate the "new economy" stock bubble but also the Asian bubble, perhaps one can include the bond bubble, too (the 30-year US treasuries set their all-time high in late 1998 - although it's questionable if this was a bubble).
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  • The passage 1989 (within orb until early 1990) killed the real estate and stock market bubble in Japan, in 1989 Tokyo was the biggest exchange of the world.
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  • The passage 1979/80 saw the commodity bubble (especially oil, precious metals) burst, gold and silver haven't exceeded the January 1980 tops so far.
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  • The passage 1972/73 marked the end of the stocks bubble, 1973-74 was the most devastating bear market in the 2nd half of the 20th century.

This list ends in 1972 because in the decades before 1972 we had no series of bubbles - why? In 1971 Richard Nixon closed the gold window, since that time the world suffers from a fiat money system, Bretton Woods was still at least a kind of a "half" gold standard that kept the currency system rather stable and inflation low. But since 1971 we have experienced a world-wide inflation like never (!) before in history, the permanent expansion of liquidity and credit creates one bubble after the other - which, of course, have to burst sooner or later. All fiat money experiments in history ended with the fiat currency returning to its inner value (= zero), i.e. a total loss of purchasing power. Frankly, I don't see a reason why it should be different this time - and I don't expect this will happen "some time in the 21st century" but rather soon...

The Saturn-Neptune topic was triggered the last time on 7/17/07 (a contra-parallel in the declination). Early August (8/4-6) was interesting because of the trines (aspect 120°) of Saturn and Pluto both from the perspective of earth (= geocentric) and the sun (= heliocentric). The major financial angles (0°, 90°, 120°, 180°) of Saturn to the outer planets Uranus, Neptune and Pluto are all critical, even though the "malefic" Pluto stands out, among other things it also represents debt and borrowed capital (and thus papers like MBS, CDOs). The aspects between slow planets may form either in a triple or a single passage, single passages - like the one in August 2007 - are unloading their energy faster and much more abrupt. Moreover, this Saturn-Pluto aspect was reinforced because the heliocentric and geocentric aspect date aligned (just 2 days apart).

On an even higher level, Pluto (= debt, destruction) is currently strengthened a lot because it's passing over the Galactic Center in 2006-7, a cycleA cycle is a recurring event in the markets. of about 250 years. This cycleA cycle is a recurring event in the markets. of paramount importance was mentioned the 1st time several years ago, among other things it was a factor why in April 2001 very timely a gold bull market at least through 2006-7 was proclaimed. So the Saturn-Pluto connection triggered this cycleA cycle is a recurring event in the markets. of 250 years which means that events should happen that are beyond the personal experience of anyone living today (and that are therefore hardly expected by anyone). If we go beyond the year 2007 even longer cycleA cycle is a recurring event in the markets.s are activated, the longest based on the precession of the earth axis is 26,000 years...

Already in 2005 it was forecast that around late 2007 the Jupiter-Pluto depression cycleA cycle is a recurring event in the markets. would be due (because of the conjunction of Jupiter and Pluto (article). Since the 19th century this signature has without exception at least indicated a very serious recession and often a full depression. The recent development in the real estate market (the very last sector that did hold the US economy up!) explains why in all likelihood we'll see an economic downturn soon. This should mark the beginning of the deepest crisis in the history of capitalism that culminates in a hyperinflationary explosion and destroys the system as we know it.

Without doubt, the past weeks were astrologically the "hottest" of the entire year 2007, but now we have more or less arrived at the end of the danger window. The minimum window of influence for the critical constellations described above (the last one Saturn trine Pluto on the 6th of August) is about +/- 1 weekIn the Amanita prognostications, timing is almost always more important, reliable & precise compared to prices. When not explicitly stated otherwise, the standard window for all time projections is +/- 1 week, with the exception of the Amanita pivots (+/- 1-2 days). (= about 1 standard deviation in statistical terms), the maximum orb (= 2 standard deviations) is about +/- 2 weeks. Thus the situation should calm down the next weeks, although the trade horoscope does not allow to take a position here (described in the protected area).

However, the situation could be boiling again around December 11, 2007, when Jupiter meets Pluto (conjunction 0°) which again triggers the 250-year Pluto cycleA cycle is a recurring event in the markets.. So the current situation may find a kind of a resumption in December.  And beyond 2007? Compared to 2007,  the years 2008-9 are less critical and eventful but we are approaching stormy times afterwards in the new decade starting in 2010.