Financial Astrology Index for Friday, 31 August 2018

Total        Trend        1 day ago         1 week ago
  49         Neutral         46-54                44-48

(Bearish 0-40  Neutral 40-60;  Bullish 60-100)

Comment:  More negative divergence

US stocks fell modestly on Thursday on news that the Trump administration would slap tariffs on another $200 Billion of Chinese goods.  The news arrived at 2 p.m. which was within the afternoon time window for the bearish Mars-Moon square aspect I mentioned in yesterday's post.  With the index still in the neutral 40 to 60 range, these kinds of declines may be more likely to occur.  The index is therefore creating a negative divergence with the rising prices of this strong rally.  This should be seen as an indication of more volatility ahead.

Friday's index is 49 and thus in the same neutral range as we have seen this week.  Gains and declines are equally likely with this total on any given day, although the ongoing divergence from the upward momentum from the rally should be noted.  Bullish investors may be more cautious here since Jupiter, their planetary benefactor, may not be as strong as it has been recently. 

Readers interested in a more general weekly overview can refer to my Market Forecast (see bottom).  And I offer a much more detailed discussion of short, medium and long term market trends in my subscriber newsletter


Moon  10/20

The Moon looks somewhat better for tomorrow compared with today as it is in the 9th house from the Sun.  It leaves the Ashwini nakshatra and enters Bharani around 11 a.m. EDT.  This could be a bit more positive.  However, without any close aspects, the Moon may not be decisive either way on Friday. 

Sun  5/10

The Sun looks mostly neutral without any close aspects. 

Transit Alignments  11/25

The transits again look mixed at best.   With Venus debilitated in its final degree in Virgo, there is some risk for a decline, especially since the Mars node is close by.  Also, Mercury forms a 15 degree angle with Rahu, the North Lunar Node.  The Jupiter-Neptune aspect is still boosting sentiment but I wonder if it is starting to fade now that Jupiter is two degrees past exact. 

NYSE Alignments   11/25

Moon-Venus could help for a couple of hours midday, but Mercury forms a 30 degree angle with natal Mars.  Transiting Mars (4 Capricorn) is still aspecting the natal Saturn at 5 Aries so that could limit the upside at least. 

NASDAQ Alignments   12/20

This chart looks a bit better as Mercury and Venus align with the Nodes.  Mars will be gearing up to aspect the Ascendant more closely in the coming days but it may still be too far away tomorrow to inflict much damage.


Financial Astrology Index for Thursday, 30 August 2018

Financial Astrology Index for Wednesday, 29 August 2018

Financial Astrology Index for Tuesday, 28 August 2018

Financial Astrology Index for Friday, 24 August 2018

Financial Astrology Index for Thursday, 23 August 2018

Financial Astrology Index for Wednesday 22 August 2018

Financial Astrology Index for Tuesday 21 August 2018

Financial Astrology Index for Monday 20 August 2018

Financial Astrology Index for Friday 17 August 2018

Financial Astrology Index for Thursday 16 August 2018

Financial Astrology Index for Wednesday 15 August 2018

Financial Astrology Index for Tuesday 13/14 August 2018

Background and disclaimer (Updated 30 Aug 2018)

The Financial Astrology Index (FAI) has a theoretical range between 0 (all bearish) to 100 (all bullish).  Most of time, it should move between 20 and 80.  Readings above 60 should be considered bullish, while readings below 40 are bearish.  Readings between 40 and 60 are neutral. 

It may be read in a similar way to technical indicators such as the RSI and Stochastics which show overbought and oversold conditions in the market. A number above 80 is very bullish and suggests a strong up trend.  In some situations (e.g. near resistance, in a bearish market), this may also indicate a heightened risk of a reversal lower.  Alternatively, a falling FAI in a rising market can create a negative divergence which may be an indication of rising downside risk.  Conversely, a rising FAI can set up a positive divergence against a backdrop of a bear market or market correction.  This divergence could be signal that a rebound may come soon.  The trend in the FAI is at least as important as the actual value in terms of understanding possible future price patterns. 

As always, it is not intended as a substitute for established stock market technical indicators.  If anything, it is intended to stand alongside them and should be treated as an additional source of information -- just another tool in the investor's toolkit.  Fair warning: this is still experimental and more of a work-in-progress.  I will likely be tweaking the relative weights of the different factors as I go.  

By way of disclaimer, let me state the obvious: do not use this index as a stand-alone method for investing.  There are simply too many unknowns in astrology.  Astrology is best used as a supplementary source of information in tandem with other technical and fundamental approaches.  This is not to be taken as investment advice.  For informational purposes only.