Financial Astrology Index for 16 August 2018

Introduction

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.  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 very much a work-in-progress.  I will likely be tweaking the relative weights of the different factors down the road. 

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.  The bottom line is this is not to be taken as investment advice.  For informational purposes only.






Market comments on Wednesday 15/8/2018


Stocks fell sharply on Wednesday as currency volatility from the Turkish crisis appeared to spread to other emerging markets.  This decline was unexpected although the morning proved to be more negative than the afternoon in keeping with the shifting Moon aspects from Pluto (bearish) to the Sun (bullish).  One possible reason for the decline was the Mars declinational station which I did not expect to be a key factor. 


FAI score for Thursday, 16 August 2018

 Total     Trend     1 day ago  1 week ago
   65       bullish        77              75-80


Notes

Lunar Phase: 20/30

The Moon is starting to lose shine as it moves further away from the Sun.  It forms a very wide, but bearish square aspect tomorrow which could indicate more volatility.  Moreover, it makes a square aspect with Mars near sunrise which may reflect selling in Asia and Europe.  A recovery is more likely by the start of US trading. I should note that the Moon will align exactly with Uranus and Saturn at the start of the US trading day.  This doesn't seem bullish although it may simply reflect a very energetic trade rather than rising or falling value.  Nonetheless, there is likely a new vulnerability here in the lunar component to the index.

Sun   7/10

The position of the Sun is somewhat undermined by the tense situation of its dispositor Moon.  It is otherwise unafflicted.


Jupiter  9/10

Jupiter is still strong through its alignment with Jupiter and its wide conjunction with the benefic Moon.


Saturn   5/10

Saturn's energy could remain fairly middling.  The Uranus and Moon alignment seems unfavourable but its 6th house alignment with the Sun may be more positive.   It is also in the 3rd house from the Moon which is generally more constructive.

Transits  14/20

The Moon alignments with Saturn look bad for the morning but this is unlikely to last through the entire trading day in the US.  The Venus-Mercury alignment also moves a bit closer so that could boost outcomes here.  It is hard to justify raising this score from yesterday's 14, however.

Natal alignments  10/20

The pre-market morning aligments of the Moon and Mars align with the Saturn-Neptune in the NYSE chart and suggest more weakness.  But Moon aspects generally don't last so the chart overall still seems at least mildly bullish.  But the ongoing Ketu-to-Rahu alignment should instill a sense of caution in the coming days.  The Mercury-Jupiter alignment is very bullish but it depends on the correct birth time of the 1792 NYSE chart.

The Bottom line:

While the total FAI score is lower tomorrow (65), I would still not rule out a positive day.  It will depend on what kind damage is inflicted by the early morning Moon aspects.  If stocks manage to stay flat to positive at the open, then there could be a strong rally.  But overall, the downside risk is higher.