THE ECONOMY AND ASTROLOGY: IS THE GAME CHANGING?
THE ECONOMY AND ASTROLOGY:
Last week I did a webinar for the New York Astrology Meetup Group hosted by terrific astrologer, Anthony Picco. I covered the pandemic and the economy and made several predictions. I mentioned several stocks that I am invested in and thought they were just about to explode. I call these post-pandemic stocks. One of those stocks was AMC, which was trading at around $3.00. While I DO NOT directly recommend or hype stock picks for my listeners, I do occasionally imply that there are some I consider. Yesterday, less than one week later AMC went from $3.00 a share to $20.00. Reddit, which I’m sure many of you have been reading about, represents a revolt in the financial markets, shouting with a loud voice that there needs to be a freer market where not only the rich can get richer, but the rest of us can also have a shot. Of course they are trying to accomplish this through manipulation of the stocks; something the “establishment” has been accused of many times. This discussion is too complicated for a short Facebook post, so I’m not going into it at the moment. I will in a webinar I’m preparing for next month. For now I just want to look at the markets and the near future.
Over the past few days the DOW has fluctuated more than 600 points each day. All the broader markets are getting extremely volatile, down and up between 2-3% each day. This action often takes place right before the bottom falls out.
We are probably seeing the beginning of a correction and if so, it will fall exactly when I said, the end of January into early February. Those who have followed my work know that I have been predicting it exactly for this time for more than a year. Saturn is in square to Uranus, and those who have seen any of a number of webinars I’ve either hosted or been guest speaker know that this is a very bearish configuration that often accompanies stock crashes, corrections and bear markets. Since 2019 I have been predicting that soon after the inauguration we would see a precipitous drop in the markets. Now this isn’t a reason to panic. If you’re day trading then you need to reexamine your parameters and trade defensively. If you’re looking at your 401K everyday (not a good idea, frankly) try not to get hysterical. The markets go up, the markets go down. The fact that this is beginning just on the Leo Full Moon shouldn’t really be a surprised to any astrologers who follow the markets. It’s right on time. We are about to experience some very difficult aspects that could affect the financial world: Here they are:
Mercury will retrograde on Saturday. This implies a reversal in the motions of the equities and much confusion.
Venus, ruler of money will enter erratic, changeable Aquarius next Monday and then conjuncts Saturn on Saturday February 6th. It will then square Uranus later that day. These all imply restrictions and violent changes in direction.
Then we have a New Moon on February 11th in Aquarius right after Venus conjuncts Jupiter. Either this will reverse the trend and the correction may be a short, but painful one, or this will continue the collapse and we will see a much deeper drop. Going into that New Moon you must be vigilant and pay attention to what’s going on. The difference between a correction and a crash is just a matter of percentages. 10-15% is a correction. More than 20% with panic selling is a crash. The problem with many corrections is that the middle class panics and sells at the worst possible time, just when the markets are tumbling. Try to use some common sense and wait it out. The markets always come back.
But some stocks rallied in the face of recent downturns. Some on fundamentals, because there’s a reason for them to go up. Others are moving against common sense. Game Stop continued to explode. It has jumped to ludicrous heights this week. Yesterday it was down substantially, because the FEDS and some of the trading platforms, such as Robinhood changed the rules and so we are seeing this stock become very volatile the same way that many bubbles do. This is an ongoing argument that will take some time to sort out. AMC was up tremendously then dropped precipitously for that same reason that Game Stop has. AMC just got a cash infusion of almost a billion dollars to stay afloat. I have believed for some time that some stocks are priced way too low and it’s worth the risk to buy them and hold until the pandemic is under control. People will go back to the movies, I have no doubt. I miss the experience, and I know I’m not alone in this.
But that isn’t why AMC is exploding on the upside. These stocks are being manipulated through the option pits by Reddit, a small online group in an attempt to hurt hedge funds. The question is who’s likely to be hurt in the end? It may very well be the little trader, the person just trying to make a few bucks, and many of those who are doing the manipulating happen to fall into that category. They will get crushed if they don’t take their profits in time. It’s just the nature of the beast. And with Game Stop, AMC and other stocks being wildly manipulated don’t be surprised by some violent volatility. If you’re on your toes you could make some good trades. Just don’t stay too long at the fair. Nobody ever went broke taking a profit. But they can get crushed being piggy and thinking they can squeeze out another dollar, risking a huge run up. That’s what happened when the Dot Com bubble popped. I knew people who had a million dollars or more in their account, and when the bubble started to pop refused to believe it and wound up losing everything. I knew one person who had more money than he ever dreamed of and wound up having to sell his car to cover his margin call.
The markets are due for a correction, and I believe it would be a healthy action to take some of the unfounded exuberance out of the mix. Pay attention in the coming weeks and try to use some common sense. Best of luck to you all. Mitch
There are three waxing Saturn squares to Uranus sprinkled throughout 2021 and two more closer direct squares in later 2022. With so much foreseen volatility due to these squares, when would you find a bottom?