FINANCIAL FORECAST 2017

NEWS BEFORE THE NEWS

2017  FINANCIAL FORECAST

Stock prices are a neat reflection of public sentiment.  In the rise of business there is exuberance, in the fall there is despair.  Public confidence, spending, and investment are high as the market goes up.  When the market turns down, pessimism, hoarding, and conservative investment set in.

The stock market (and hence the economy in general) performed well in 2016 gaining 13% based on the DJIA start of 17,425.  The market got off to a bad start in February however losing over 8% then resumed its rise.  A second problem in September temporarily halted the rise and culminated November 4 when almost all of the gains of the year were erased.  The presidential election turned the tide when the market realized that business tycoon Donald Trump would be the next president.  The market rose meritoriously from 17,888 to end the year at 19,763.  The milestone 20,000 mark was breached in the third week of January 2017.

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The forecast ahead involves an analysis of seven key factors.

{} Sunspots indicate the highest bull markets and the lowest bear ones.  2008 was a year of sunspot minimum, so a lowest bear market was indicated – hence, the Great Recession.  December 2014 marks the last sunspot super high.  The NOAA projects the next sunspot low in 2019.  This will be the approximate time of the next sunspot super market low.

{-/+} The planetary aspects:  2 of 5 cycles indicate a higher market while 3 point to bear conditions.

{+} The Saturn-Uranus zodiacal aspect indicates a higher market in 2017.  The first of three trines peaked December 2016 as the market closed higher.  The second and third trines peak in May and November 2017.  {} The Jupiter-Neptune cycle is primarily an inflation indicator but 4 out of the last 5 conjunctions led to a financial crisis.  The last conjunction took place in 2009 and correctly indicated the severe recession.  The next conjunction takes place in 2022.  {-} Jupiter-Uranus indicates a down market 2017-18.  {+} Jupiter-Pluto points to a higher market.  {-} Jupiter-Saturn pushes the market moderately lower.  {-} The Saturn-Pluto cycle signals the beginning of a sudden drop in prices.

{} Saturn-Neptune is primarily a deflation cycle reflecting modest deflation starting in 2009.  Deflation will continue until a major deflationary period is reached in 2015-2016!  Note the lower oil prices in 2015-16.

{+} When there are an above average number of eclipses in one year (six or seven) the market tends to be disrupted.  Four eclipses grace 2016.

{-} This is the most important market indicator.  Major financial down turns have correlated remarkably well with Mars-Jupiter-Saturn aspects.  A brief history illustrates:  The three-planet cycle correctly indicated a correction near August and December 2007.  The next Mars-Jupiter-Saturn aspect was in January 2009, correctly predicting the Great Recession.  Mars-Jupiter-Saturn again formed an aspect with one another in August 2010.  The market did reach a yearly low (9686 DJIA) the week ending July 2.  March 2011 was the next alignment, which correlated with a severe market reversal in August dropping to 10,818, and briefly breaking this low the week ending September 23, before climbing right above 12,000 by the end of the year.  There was another Mars-Jupiter-Saturn aspect peaking in July 2013 but this produced null effects.

The next market downturn is expected near February 2017 triggered by Mars opposition Jupiter.  This may have been realized the week ending November 4, 2016 but more likely is a correction, not a recession, near February.

{} Short-term:  Sun conjunction Mercury in Capricorn, especially if correlating with a conjunction or opposition involving the Sun, Mars, or Jupiter, indicates a sharp turn up in the market beginning 25 days before the Sun/Mercury conjunction.   There was a Sun/Mercury Capricorn conjunction 12/29/13 and a Sun opposition Jupiter 1/5/14.  This prediction was realized with the 2013 market close.

1/14/2016 is the next Sun conjunction Mercury.  Expect the market to rise dramatically beginning around December 20, 2015.

This did not take place.  The market topped in early November 2015 instead.

12/28/2016 Sun/Mercury conjunction correctly pegged the rapid rise in the market from a low the week ending November 2016 to end the year 13% higher at 19,763.

The next Sun/Mercury Capricorn conjunction is not until January 2020 and this correlates with a Sun/Jupiter conjunction!  Expect a super rise at this time.

{+/-} Dry weather is also an indication of a bear market.  2007 was the third year of drier weather.  2007, in fact, turned out to be drier than average – a dire warning of the recession that manifested.  2008 and 2009 were wetter than 2007 but, then, 2010 turned drier by an inch and 2011 still drier by two additional inches.  2012 continued the short dry trend ending 2.41 inches drier than 2011.  2012 was the driest year since 1988!  The economy indeed struggled throughout 2012 although stocks regained much of their Great Recession loss.  2013 finally reversed the drop in precipitation (don’t try to tell that to Californians) with an average gain throughout the U.S. of 1.12 inches.  Drier conditions in 2014 stalled but did not stop the gradual market rally.

2015 was dramatically wetter than 2014.  2015 was the wettest year since 1983!  The stock market hit an all time high ending May 29, 2015 (19,019) in testimony to wet 2015.  2016 turned drier but precipitation was still above average.  The market surge above 20,000 for the first time in January 2017 is a sign of even higher prices ahead.

{-}  Lastly, there are transiting planet cycles to the U.S. chart that have repeatedly correlated with recessions and panics.  The greatest economic downturns tend to be when sunspots are low, during dry weather trends, and when certain slow transits (21-year Uranus, 41-year Neptune, and 62-year Pluto) are formed to the U.S. natal chart.  Saturn, Uranus, Neptune, or Pluto transiting one of the U.S. chart angles also indicates panic.

All of these conditions were met in 2008.  This was also a Saturn year (Diurnal Planet for a Year progression) for the U.S.  There have been three previous crashes during Saturn years: the 1837 Cotton Crash, the 1873 Bank Collapse, and the 1990 Gulf War.  The next Saturn year is July 2017 – July 2018 (read prediction below).

Prospects for 2017 are troubling as Saturn is transiting the U.S. lower culmination (IC) peaking in January, June, and October.  Transiting Uranus is also making a challenging aspect to Pluto in June and September.  The Pluto year (Diurnal Planet for a Year progression) July 2016 – July 2017 has also correlated with two previous financial crises: The Housing Bubble of late 2007 that led to Great Recession (2008) and the Cotton Crash of 1837.

Last Year’s Prediction

“2016 will start slow after a probable sharp correction beginning in late 2015 through February or March 2016.  Mid-year growth is likely until a significant down-turn begins around October or November amplified by the February 2017 Mars-Jupiter-Saturn aspect.”

This prediction was correct with the February and early November drop in prices.  In spite of the interruptions the market showed strong growth ending the year 13% higher than 2015.

THIS YEAR’S PREDICTION

The six economic indicators illustrated above show an even split.  Stocks are likely to correct in February before surging to record highs.  June and more likely September-October is the time for a more severe economic test.  Nevertheless, the market will show a positive gain for the year.

 

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