Financial Cycles
September 25, 2005
FinancialCyclesWeekly.com #0539 -- September 25 -- October 1, 02005 with Tim Bost
COMMENT: The plot--and the posturing--are getting thicker and thicker. The mainstream news media in the U.S., after having been caught napping when Hurricane Katrina hit, were determined to be more aggressive and proactive with the coming of Hurricane Rita. With Rita out in the Gulf of Mexico packing 165-hour winds and the shoreline between Houston and New Orleans in her sights, the major media outlets sent reporters by the dozens to cover the unfolding action.
As the storm weakened and then moved toward landfall, the round-the-clock, on-the-spot news coverage, with reporters in raincoats apparently stationed at 10-foot intervals along the coast, got more and more surreal. As they watched anxiously for gusts of wind that could be captured by the television cameras and positioned themselves in front of whatever swaying trees and loose signage they could find, their strident pronouncements in the absence of anything substantive to report got increasingly ludicrous. By Saturday morning, with the eye of Rita having come ashore without direct loss of life and with apparently only minimal structural damage, the stalwart members of the news media were obliged to discuss the damage that could have been caused by the storm, and the horrendous impacts that we might have seen had the situation only been a good bit worse.
The one thing that helped the media save face was the fact that they were upstaged by the antics of President Bush, who personally hunkered down in the national strategic command center to provide the Commander-in-Chief's direction for the storm watching efforts, courageously demonstrating that he is indeed a hands-on president after all. He even boldly decided to stay away from the areas that had been directly impacted by the storm, saying that he didn't want to risk having his personal celebrity appearances disrupt the much-needed relief efforts there.
The whole circus was interesting mainly because of the storm's possible impact on oil refineries and on the overall economic picture for the country. But even that interest in following the money was decidedly tangential -- after all, as the government frequently reminds us, the economy is in great shape if we don't look at the costs of things like food and energy, so it's only reasonable to expect us to ignore energy-related impacts in this situation as well. In fact, hurricanes may actually be making significant positive contributions to the economy, since they have become the ultimate "reality" TV shows, pumping up the size of the television audience enormously.
That's not to say that Katrina--and even Rita--have not been accompanied by some real suffering. We certainly don't want to make light of the genuine devastation that has uprooted countless lives and brought more death and destruction to the U.S. than any event since the Civil War. But in the case of this most recent storm, it was the preparation for the hurricane, and the lemming-like response of the citizenry to the evacuation commands issued by well-meaning but inept officials, that created the most grief and occasioned the greatest number of deaths. At its best, being in the gridlocked crowd trying to get out of Houston was far from a pleasant experience. At its worst, it was tragic.
OTHER CROWDS, OTHER PLACES
In spite of the media's efforts to keep public attention focused on the storm-related "state of emergency," there were other significant events that took place as the week drew to a close. Antiwar rallies were held in London on Saturday, with thousands of protestors demanding that Britain withdraw its troops from Iraq. Smaller gatherings echoed the protests in Helsinki, Copenhagen, Paris, Rome, Damascus, and Seoul. In the U.S., nearly 100,000 people massed in Washington to protest the continuing American occupation of Iraq, with about 50,000 gathering in San Francisco and other large protests in Los Angeles and Seattle. It was the biggest voicing of opposition to the war since the U.S. invaded Iraq in early 2003.
Compared to previous antiwar demonstrations opposing the Iraq war, the biggest difference in the weekend's protests was that the participants were linking U.S. involvement in Iraq with inadequate responses to natural catastrophes at home. Some protestors reported that they had joined the demonstrations because of outrage at the federal government's lack of effectiveness in dealing with Katrina, while others carried placards reading "Make Levees, Not War."
UNDERGROUND IN NORTH KOREA
Whenever North Korea is featured by the American news media, it is typically because of the country's potential nuclear threat. But with a six-party accord signed this past week, we may soon be seeing another rationale for international interest in North Korea. The accord paved the way for cooperation between Seoul and Pyongyang, with South Korea providing electricity for North Korea and with the two countries working together to expand the development of North Korea's natural resources.
The specific resources that are currently catching the attention of Italy, Germany, Japan, and other countries are rare metals. North Korea may have untapped supplies of gold, tungsten, nickel, and cobalt, but the most important of these is likely to be tungsten. The metal is not only much in demand for the manufacture of personal computers; it is also a key component in making the bombs and tanks currently being built in the US. The key player in the international market for tungsten is China, which has about 62% of the world's known deposits and which controlled 88% of the world's tungsten market last year. With the possibility that North Korea has a tungsten supply that can compete with China in the global market, it makes a lot of sense for the US to keep an eye on developments there. North Korea's tungsten could become a prize that the US pursues, even though some weapons of mass destruction may need to be concocted at some point to justify a direct intervention. Stay tuned.
AN UNFEELING FED
We noted in our last issue that the week's "biggest economic impact is likely to come from the Federal Reserve, with the Open Market Committee meeting on Tuesday," with "another interest rate hike virtually a foregone conclusion." As it turned out, those market watchers who were hoping that the Federal Reserve Open Market Committee would relax its money-tightening ways in the aftermath of Hurricane Katrina were sorely disappointed. It's clear that we are in an inflationary situation that is steadily getting worse, and tackling inflation trumped the more immediate needs of a hurricane-gutted economy. Not only did the Fed push up interest rates by the now-standard 25 basis points that we had anticipated; it also did nothing to ease the anxieties of the pundits who feared that additional rate hikes are a real possibility. The net result in US equities markets was a sharp sell-off.
*****
THE WEEK AHEAD
The week's calendar of earnings reports is scheduled to include Analogic Corporation (ALOG), Jabil Circuit, Inc. (JBL), Walgreen (WAG), Aehr Test Systems (AEHR), AngioDynamics (ANGO), Bioenvision (BIVN),Lennar Corporation (LEN), Manugistics, Inc. (MANU), Meade Instruments (MEAD), Paychex (PAYX), Pepsi Bottling Group (PBG), Spectrum Control (SPEC), Stride Rite Corporation (SRR), Synnex Corporation (SNX), Copart (CPRT), Financial Federal (FIF), Intermagnetics (IMGC), Kerr-McGee (KMG), Landec Corporation (LNDC), McCormick and Company (MKC), Merix (MERX), Red Hat (RHAT), Research in Motion (RIMM), Resources Global Professionals (RECN), Topps (TOPP), American Greetings Corporation (AM), Arrow International (ARRO), CRA International (CRAI), Ducati Motor Holdings (DMH), Emmis Communications (EMMS), Family Dollar (FDO), Lawson Software, Inc. (LWSN),
HyperSpace Communications (HCO), and Novamerican Steel (TONS).
This week's economic news will be highlighted by reports on Existing Home Sales, ICSC-UBS Store Sales, Consumer Confidence, New Home Sales, MBA Purchase Applications, Durable Goods Order, EIA Petroleum Status, Corporate Profits, GDP, Personal Income, Consumer Sentiment, Jobless Claims, Help Wanted Index, Farm Prices, and the Money Supply. The week will also feature speeches by Federal Reserve Chairman Alan Greenspan and Kansas City Federal Reserve Bank President Thomas Hoenig. Both addresses will take place on Tuesday; look for possible market reactions during the final hour of trading on Tuesday and immediately after the opening bell on Wednesday.
The astrological picture this week is dominated by the buildup toward the Mars retrograde station on October 1 and the Solar Eclipse on October 3. We are expecting both of these astrological events to have a profound impact on the markets and on the economy, and with Mars playing so prominently in the picture we're likely to see that impact sooner rather than later. Over the years that we have been involved in these studies, our experience has shown that Mars dynamics tend to manifest early, sometimes even taking place prior to the exact astrological aspect itself. That's why we have repeatedly pointed to this upcoming phenomenon in our comments about the growing presence of anger and tension in the markets and in the environment at large.
Mars isn't the only player on the current astrological stage. The hypothetical transneptunian planet Hades also makes a station this week, and we are likely to feel its impact as the trading week gets underway, with the most likely manifestation being a mild downward trend in equity prices. The Jupiter/Apollon conjunction on Tuesday will in all probability add a little energy to that downward thrust. However, with a void-of-course Moon in play during the first half-hour of New York trading on Tuesday, we will definitely be watching cautiously rather than taking any plunges based on our logical assumptions or on our reading of technical indicators.
The market action on Wednesday is framed by a heliocentric Venus/Chiron conjunction a couple of hours prior to the opening bell and by a Jupiter/Vulcanus square a couple of hours after the close. Given these dynamics, we wouldn't be surprised to see a fairly positive day of market action. If that trend to the upside manifests, it is likely to continue into Thursday morning, gaining some momentum with a Jupiter trigger to an eclipse point and a heliocentric Venus/Saturn opposition. Thursday is a day that will require a good bit of caution, however, since a Void-of-Course Moon will kick in less than two hours after the opening bell and remain in effect throughout the rest of the trading day.
The motif on Friday will be one of eighth-harmonic heliocentric aspects at work. As we observe the trading action and look for opportunities to put new positions in place, we will be watching Mercury, Zeus, Pluto, Hades, Earth, and Admetos, with the planetary lines set for all of them in the eighth harmonic (H,45,N,-2). To time intra-day swings and potential entry points, we may also add a line for the Moon (G,45,N,-2) to the charts we are studying.
Have a great week!
*****
SPIRITUAL FOCUS FOR THE WEEK
Many of history's most successful traders have clearly understood that emotional balance is the key to effective trading. Through Practical Spiritual Astrology we have an opportunity to restore inner harmony, enhance emotional balance, and make wiser choices in the markets.
When we are confronted with challenging situations, it often seems enough for us simply to survive in the face of overwhelming odds and threatening circumstances. If we manage to escape unscathed, it's entirely natural for us to feel a sense of relief. But what is even more important is the inner calmness, the profound knowing, that that relief engenders. When we are centered in the ultimate peace of pure consciousness, we can effortlessly bring into manifestation any possibility we can imagine.
"There is nothing with which every man is so afraid as getting to know how enormously much he is capable of doing and becoming." --Soren Kierkegaard
*****
GLOBAL EQUITIES MARKETS LAST WEEK
U.S. blue chips hit their lowest levels since the London terrorist bombings last July, with other U.S. equity markets losing ground as well. In Australia, however, the All Ordinaries set a new all-time high, with London and Tokyo setting new multi-year records. The market that suffered the most was the Frankfurt DAX, where inconclusive German election results left the stock market mired in uncertainty.
Dow Jones Industrial Average -- down 2.09%
Dow Jones Transportation Average -- down 0.29%
Dow Jones Utilities Average -- down 2.26%
S+P 500 -- down 1.83%
NASDAQ Composite Index -- down 2.01%
Russell 2000 -- down 2.46%
London FTSE-100 -- up 0.56%
Paris CAC-40 -- down 0.72%
Frankfurt DAX -- down 2.08%
Sydney All Ordinaries -- up 0.32%
Tokyo Nikkei Index -- up 1.55%
Hong Kong Hang Seng Index -- up 1.07%
Singapore Straits Times Index -- down 0.58%
*****
U.S. EQUITY TRENDS
The recent weakness in stocks has triggered some short-term trend reversals, and we have adjusted our expectations and index positions accordingly.
S+P 500 -- Long-Term Bearish; Intermediate-Term Bearish; Short-Term Bearish
NASDAQ -- Long-Term Bearish; Intermediate-Term Bullish; Short-Term Bearish
RUSSELL 2000 -- Long-Term Bullish; Intermediate-Term Bullish; Short-Term Bearish
*****
FINANCIAL CYCLES MODEL PORTFOLIO
POSITIONS CLOSED DURING THE PREVIOUS WEEK: LEN, RBA, EME.
We closed three Model Portfolio positions during the past week, with two winners and one loser producing a net profit of $160.00.
On September 19 we sold 200 shares of Lennar Corporation (LEN) at 60.35, taking a profit of $352.00 (a 3.00% gain in 14 trading days).
On September 19 we bought to cover 300 shares of Ritchie Brothers Auctioneers (RBA) at 43.85, taking a loss of $210.00 (a 1.62% loss in 5 trading days).
On September 20 we sold 200 shares of EMCOR Group Inc. (EME) at 56.05, taking a profit of $18.00 (a 0.16% gain in 10 trading days).
*****
POSITIONS ADDED TO THE PORTFOLIO DURING THE PREVIOUS WEEK: HLTH, GGB, RDC, TXI.
We added three long positions and one short position to the Model Portfolio during the previous week.
We sold short 1,000 shares of WebMD Corporation (HLTH) at 10.90 on 09/19/05, with an initial buy stop set at 11.65.
We bought 700 shares of Gerdau SA ADS (GGB) at 14.75 on 09/22/05, with an initial stop set at 12.50.
We bought 300 shares of Rowan Companies (RDC) at 36.70 on 09/22/05, with an initial stop set at 34.95.
We bought 200 shares of Texas Industries (TXI) at 56.65 on 09/22/05, with an initial stop set at 53.50.
****
YEAR-IN-REVIEW MODEL PORTFOLIO ACTIVITY
So far this year we have had a total of 155 completed trades, with 64 winners and 91 losers bringing us a total net profit of $15,368.00. The largest profit for a single trade has been $4,884.00, with our winners averaging $635.36; the largest single-trade loss has been $956.00, with our losers averaging $300.14. The overall average profit per trade has been $99.15, and the mean duration of our trades has been 10.8 trading days.
During 2004 we had a total of 213 completed trades, with 104 winners and 109 losers bringing us a total net profit of $48,913.50. The largest profit for a single trade was $5,645.00; the largest single-trade loss was $750.00; the average profit per trade was $229.64. The mean duration of our trades was 10.3 trading days.
During 2003 we had a total of 176 completed trades, with 99 winners and 77 losers bringing us a total net profit of $51,717.00. The largest profit for a single trade was $9,240.00; the largest single-trade loss was $1,170.00; the average profit per trade was $293.85. The mean duration of our trades was 10.1 trading days.
During 2002 we had a total of 195 completed trades, with 119 winners, 74 losers, and 2 break-even trades bringing us a total net profit of $50,956.00. The largest profit for a single trade was $5,100.00; the largest single-trade loss was $1,055.00; the average profit per trade was $261.31. The mean duration of our trades was 12.7 trading days.
*****
CURRENT POSITIONS IN THE MODEL PORTFOLIO
BASF AG ADS (BF) -- sold short 200 shares at 74.66 on 09/12/05; currently 71.46. Lower buy stop to 72.50.
Bebe Stores Inc. (BEBE) -- sold short 400 shares at 24.29 on 08/22/05; currently 17.33. Lower buy stop to 17.95.
Gerdau SA ADS (GGB) -- bought 700 shares at 14.75 on 09/22/05; currently 14.95. Raise stop to 14.20.
Quilmes Industrial (Quinsa) S.A. ADS (LQU) -- sold short 300 shares at 33.96 on 08/29/05; currently 32.50. Lower buy stop to 33.80.
Rowan Companies (RDC) -- bought 300 shares at 36.70 on 09/22/05; currently 35.86. Raise stop to 35.25.
Texas Industries (TXI) -- bought 200 shares at 56.65 on 09/22/05; currently 55.37. Raise stop to 54.00.
WebMD Corporation (HLTH) -- sold short 1,000 shares at 10.90 on 09/19/05; currently 10.68. Lower buy stop to 10.85.
*****
STRONGEST MARKET SECTORS LAST WEEK
Copper; Railroads; Specialty Eateries; Aerospace and Defense Products and Services; Steel and Iron.
*****
WEAKEST MARKET SECTORS LAST WEEK
Textile Manufacturing; Home Furnishings and Fixtures; Aluminum; Toys and Games; Education and Training Services.
*****
ASTRO-TRADING GANN PLAN:
ASTROLOGICAL EVENTS DURING THE COMING WEEK
September 25
Mercury sesquiquadrate Mars 01:59 EDT
Moon square Sun 02:41 EDT
True Lunar Node retrograde station 02:53 EDT
Venus square 4/24/2005 Lunar Eclipse Antiscion 03:21 EDT
Moon conjunct Kronos 03:50 EDT
Jupiter conjunct Apollon in right ascension 04:18 EDT
Mars conjunct Admetos in right ascension 05:45 EDT
Mercury quintile Vulcanus in right ascension 05:55 EDT
Mercury in 24th harmonic to Jupiter 06:55 EDT
Mercury sextile Saturn 06:58 EDT
Venus quintile Chiron 07:26 EDT
Mercury conjunct Zeus in right ascension 09:00 EDT
Heliocentric Mercury quincunx Heliocentric Admetos 09:22 EDT
Heliocentric Venus square Heliocentric Jupiter 09:48 EDT
Mercury sextile Cupido in right ascension 09:54 EDT
Moon crossing Universal Clock 24 Line 09:59 EDT
Mercury sesquiquadrate Admetos 10:39 EDT
Moon trine Poseidon 10:39 EDT
Heliocentric Mercury square Heliocentric Vulcanus 11:58 EDT
Mercury in 24th harmonic to Apollon 12:34 EDT
Heliocentric Mars quintile Heliocentric Kronos 13:03 EDT
Moon trine Uranus 13:37 EDT
Moon semisquare Mars 14:07 EDT
Hades retrograde station in right ascension 14:14 EDT
Mercury conjunct Zeus 14:25 EDT
Heliocentric Mercury sextile Heliocentric Pluto 14:44 EDT
Moon semisextile Saturn 14:48 EDT
Venus opposition 11/09/2003 Lunar Eclipse Point 14:57 EDT
Moon semisquare Admetos 15:16 EDT
Moon square Zeus 15:48 EDT
Moon square Mercury 16:01 EDT
Moon biquintile Neptune 16:04 EDT
Moon in 24th harmonic to Vulcanus 16:09 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Uranus 16:25 EDT
Heliocentric Mercury in 24th Harmonic to Heliocentric Zeus 16:27 EDT
Heliocentric Mercury conjunct Heliocentric Apollon 16:52 EDT
Sun square Kronos 17:10 EDT
Moon quincunx Cupido 17:27 EDT
Heliocentric Mercury trine Heliocentric Hades 18:52 EDT
Moon in 24th harmonic to Hades 18:54 EDT
Hades retrograde station 22:27 EDT
September 26
Moon square True Lunar Node 01:17 EDT
Mercury sextile Cupido 02:11 EDT
Heliocentric Earth trine Heliocentric Saturn 03:36 EDT
Moon quincunx Neptune 04:00 EDT
Venus contraparallel Saturn 04:37 EDT
Mercury quintile Pluto 04:57 EDT
Moon biquintile Cupido 05:26 EDT
Sun square Kronos in right ascension 06:38 EDT
Heliocentric Mercury semisquare Heliocentric Cupido 07:03 EDT
Moon trine Venus 07:54 EDT
Heliocentric Uranus quincunx Heliocentric Zeus 08:35 EDT
Mercury quintile Pluto in right ascension 09:05 EDT
Mercury quincunx Uranus in right ascension 09:37 EDT
Moon in 24th harmonic to Kronos 09:39 EDT
Mercury conjunct 10/03/2005 Solar Eclipse Point 09:42 EDT
Jupiter quincunx Admetos 12:42 EDT
Venus contraparallel Admetos 15:43 EDT
Heliocentric Mercury conjunct Heliocentric Jupiter 15:51 EDT
Mercury parallel Zeus 16:04 EDT
Moon quintile Sun 17:41 EDT
Moon quincunx Pluto 17:52 EDT
Moon sesquiquadrate Uranus 19:30 EDT
Moon sextile Mars 20:18 EDT
Moon in 24th harmonic to Saturn 21:01 EDT
Moon sextile Admetos 21:14 EDT
Moon square Jupiter 21:24 EDT
Void-of-Course Moon begins 21:24 EDT
Moon square Apollon 21:35 EDT
Moon conjunct Vulcanus 22:11 EDT
Moon sesquiquadrate Cupido 23:32 EDT
September 27
Moon semisextile Hades 00:58 EDT
Venus sesquiquadrate Kronos 02:19 EDT
Moon quintile Zeus 03:55 EDT
Heliocentric Venus enters Aquarius 04:32 EDT
Moon opposition Chiron 05:40 EDT
Moon biquintile Pluto 05:59 EDT
Sun semisextile Poseidon in right ascension 06:07 EDT
Mercury sextile Saturn in right ascension 06:33 EDT
Jupiter conjunct Apollon 08:17 EDT
Mercury crossing Universal Clock 24 Line 09:27 EDT
Moon enters Leo 10:02 EDT
Moon crossing Universal Clock 24 Line 10:02 EDT
Void-of-Course Moon ends 10:02 EDT
Moon quintile Mercury 10:08 EDT
Heliocentric Venus biquintile Heliocentric Hades 10:26 EDT
Heliocentric Mercury enters Scorpio 11:54 EDT
Moon biquintile Uranus 13:37 EDT
Moon semisextile Kronos 15:53 EDT
Heliocentric Mercury square Heliocentric Venus 19:08 EDT
Moon sextile Sun 20:06 EDT
Moon quintile Mars 20:41 EDT
Moon quintile Admetos 21:28 EDT
Moon parallel Kronos 22:31 EDT
Moon square Poseidon 22:55 EDT
September 28
Moon sesquiquadrate Pluto 00:13 EDT
Heliocentric Mercury square Heliocentric Chiron 00:54 EDT
Jupiter in 24th harmonic to Zeus 01:35 EDT
Moon quincunx Uranus 01:44 EDT
Heliocentric Mercury trine Heliocentric Kronos 03:01 EDT
Heliocentric Venus in 24th Harmonic to Heliocentric Neptune 03:20 EDT
Moon conjunct Saturn 03:35 EDT
Moon sextile Zeus 04:14 EDT
Moon in 24th harmonic to Vulcanus 04:31 EDT
Moon trine Cupido 05:54 EDT
Moon parallel Hades 05:57 EDT
Heliocentric Venus conjunct Heliocentric Chiron 06:50 EDT
Moon semisquare Hades 07:18 EDT
Mercury opposition True Lunar Node 09:17 EDT
Moon quintile Apollon 10:02 EDT
Mercury biquintile Uranus 10:16 EDT
Moon quintile Jupiter 10:28 EDT
Heliocentric Venus quincunx Heliocentric Kronos 11:02 EDT
Venus quintile Chiron in right ascension 11:20 EDT
Moon parallel Vulcanus 12:21 EDT
Venus biquintile Hades 12:32 EDT
Heliocentric Mercury square Heliocentric Saturn 13:33 EDT
Moon trine True Lunar Node 13:43 EDT
Moon contraparallel Cupido 14:04 EDT
Moon sextile Mercury 14:27 EDT
Venus biquintile True Lunar Node 15:58 EDT
Moon opposition Neptune 16:28 EDT
Jupiter square Vulcanus 18:53 EDT
Moon semisquare Kronos 22:16 EDT
Moon contraparallel Venus 22:28 EDT
September 29
Sun quintile Vulcanus 00:37 EDT
Mercury contraparallel True Lunar Node 02:24 EDT
Moon square Venus 02:54 EDT
Moon parallel Admetos 03:16 EDT
Jupiter opposition 10/17/2005 Lunar Eclipse Point 03:57 EDT
Moon parallel Saturn 04:36 EDT
Mercury trine Neptune 04:38 EDT
Moon semisquare Sun 05:13 EDT
Sun semisextile Poseidon 06:36 EDT
Moon trine Pluto 06:37 EDT
Heliocentric Venus opposition Heliocentric Saturn 08:39 EDT
Moon square Mars 09:16 EDT
Moon square Admetos 09:54 EDT
Venus square Neptune in right ascension 09:54 EDT
Moon in 24th harmonic to Saturn 10:10 EDT
Moon sextile Apollon 10:21 EDT
Moon semisquare Zeus 10:38 EDT
Moon semisextile Vulcanus 10:54 EDT
Moon sextile Jupiter 11:11 EDT
Void-of-Course Moon 11:11-22:43 EDT
Moon quintile Poseidon 11:24 EDT
Moon sextile Hades 13:40 EDT
Moon contraparallel Neptune 14:50 EDT
Moon parallel Mars 15:06 EDT
Heliocentric Earth quincunx Heliocentric Poseidon 15:07 EDT
Heliocentric Mercury conjunct Heliocentric Poseidon 15:07 EDT
Heliocentric Earth quincunx Heliocentric Mercury 15:08 EDT
Moon quincunx Chiron 18:20 EDT
Moon sesquiquadrate True Lunar Node 20:00 EDT
Moon contraparallel Pluto 20:02 EDT
Moon enters Virgo 22:43 EDT
September 30
Mercury biquintile Admetos in right ascension 00:19 EDT
Moon semisquare Mercury 01:42 EDT
Moon contraparallel Poseidon 04:31 EDT
Moon sextile Kronos 04:33 EDT
Venus in 24th harmonic to Poseidon 04:36 EDT
Moon contraparallel Chiron 04:46 EDT
Mercury biquintile Mars in right ascension 05:07 EDT
Moon biquintile Chiron 06:24 EDT
Mercury biquintile Uranus in right ascension 06:58 EDT
Heliocentric Mercury semisquare Heliocentric Pluto 07:35 EDT
Heliocentric Mercury semisextile Heliocentric Zeus 09:18 EDT
Heliocentric Mercury trine Heliocentric Uranus 09:34 EDT
Heliocentric Mercury in 24th Harmonic to Heliocentric Apollon 09:44 EDT
Venus biquintile Hades in right ascension 19:51 EDT
Moon sextile Poseidon 11:35 EDT
Heliocentric Mercury sesquiquadrate Heliocentric Hades 11:56 EDT
Moon quintile Hades 13:48 EDT
Sun quincunx Uranus 14:03 EDT
Moon biquintile True Lunar Node 14:04 EDT
Moon opposition Uranus 14:08 EDT
Moon semisextile Sun 14:08 EDT
Mercury biquintile Mars 14:33 EDT
Heliocentric Mars semisextile Heliocentric Admetos 14:58 EDT
Moon semisquare Apollon 16:34 EDT
Moon semisextile Saturn 16:34 EDT
Moon semisextile Zeus 16:52 EDT
Moon semisquare Vulcanus 17:05 EDT
Moon semisquare Jupiter 17:54 EDT
Venus semisextile Pluto 18:25 EDT
Mercury biquintile Admetos 18:27 EDT
Moon square Cupido 18:30 EDT
Moon quintile Venus 18:56 EDT
Moon contraparallel Uranus 23:32 EDT
Heliocentric Earth semisquare Heliocentric Admetos 23:43 EDT
October 1
Moon contraparallel Apollon 00:16 EDT
Moon sesquiquadrate Chiron 00:24 EDT
Heliocentric Mercury semisextile Heliocentric Cupido 01:23 EDT
Moon quincunx True Lunar Node 02:02 EDT
Moon contraparallel Jupiter 03:24 EDT
Moon quintile Kronos 04:33 EDT
Moon quincunx Neptune 04:45 EDT
Heliocentric Mars square Heliocentric Vulcanus 05:45 EDT
Sun sesquiquadrate Mars 07:08 EDT
Moon contraparallel Mercury 09:41 EDT
Moon crossing Universal Clock 24 Line 10:43 EDT
Heliocentric Venus square Heliocentric Poseidon 10:45 EDT
Mars contraparallel Neptune 10:46 EDT
Moon semisextile Mercury 12:25 EDT
Mercury trine Neptune in right ascension 12:39 EDT
Sun sesquiquadrate Admetos 13:17 EDT
Heliocentric Earth in 24th Harmonic to Heliocentric Mars 13:23 EDT
Heliocentric Mercury in 24th Harmonic to Heliocentric Jupiter 13:48 EDT
Mercury opposition 4/08/2005 Solar Eclipse Point 16:02 EDT
Sun quintile Vulcanus in right ascension 16:38 EDT
Moon biquintile Neptune 16:39 EDT
Moon parallel True Lunar Node 16:55 EDT
Moon semisquare Poseidon 17:29 EDT
Mars retrograde station in right ascension 18:01 EDT
Mars retrograde station 18:04 EDT
Moon square Pluto 18:46 EDT
Sun in 24th harmonic to Apollon 20:01 EDT
Moon sextile Venus 21:13 EDT
Moon trine Mars 21:21 EDT
Void-of-Course Moon begins 21:21 EDT
Moon trine Admetos 21:51 EDT
Jupiter semisquare Cupido in right ascension 21:59 EDT
Heliocentric Mars trine Heliocentric Pluto 22:13 EDT
Sun sextile Saturn 22:23 EDT
Moon semisextile Apollon 22:24 EDT
Moon semisquare Saturn 22:35 EDT
Moon in 24th harmonic to Sun 22:36 EDT
Moon in 24th harmonic to Zeus 22:42 EDT
Venus opposition Mars 22:44 EDT
Moon sextile Vulcanus 22:53 EDT
Sun conjunct Zeus 23:52 EDT
Sun conjunct Zeus in right ascension 23:55 EDT
October 2
Heliocentric Earth opposition Heliocentric Zeus 00:01 EDT
Sun parallel Zeus 00:04 EDT
Moon semisextile Jupiter 00:12 EDT
Moon contraparallel Sun 00:18 EDT
Moon contraparallel Zeus 00:19 EDT
Sun sextile Cupido in right ascension 01:10 EDT
Heliocentric Earth semisextile Heliocentric Uranus 01:12 EDT
Moon square Hades 01:33 EDT
Kronos retrograde station in right ascension 03:34 EDT
Venus opposition Admetos 03:59 EDT
Jupiter semisquare Cupido 05:51 EDT
Moon trine Chiron 06:05 EDT
Heliocentric Venus biquintile Heliocentric Kronos 06:13 EDT
Moon quintile Cupido 06:13 EDT
Kronos retrograde station 08:47 EDT
Heliocentric Mars semisquare Heliocentric Uranus 08:54 EDT
Heliocentric Mars opposition Heliocentric Apollon 08:59 EDT
Venus semisextile Apollon 10:12 EDT
Moon sesquiquadrate Neptune 10:20 EDT
Moon enters Libra 10:23 EDT
Void-of-Course Moon ends 10:23 EDT
Venus semisquare Zeus 13:35 EDT
Heliocentric Earth biquintile Heliocentric Mercury 13:50 EDT
Heliocentric Uranus sesquiquadrate Heliocentric Apollon 14:15 EDT
Mercury square 5/31/2003 Solar Eclipse Antiscion 15:11 EDT
Venus trine Vulcanus 15:29 EDT
Venus opposition Admetos in right ascension 15:42 EDT
Moon square Kronos 16:03 EDT
Heliocentric Venus semisquare Heliocentric Pluto 18:55 EDT
Sun sextile Cupido 19:56 EDT
Saturn sextile Zeus 20:13 EDT
Heliocentric Mars sextile Heliocentric Hades 20:27 EDT
Heliocentric Mercury square Heliocentric Neptune 21:12 EDT
Mercury quintile Saturn 21:16 EDT
Mercury conjunct 10/14/2004 Solar Eclipse Point 21:39 EDT
Venus opposition Mars in right ascension 22:06 EDT
Heliocentric Venus trine Heliocentric Zeus 22:08 EDT
Moon in 24th harmonic to Mercury 22:23 EDT
Moon quintile Vulcanus 22:23 EDT
Moon semisextile Poseidon 22:55 EDT
Heliocentric Venus semisextile Heliocentric Uranus 22:59 EDT
Sun in 24th harmonic to Jupiter 23:32 EDT
For more Gann Plan trading insights be sure to read the free GANN PLAN TRADING LETTER. The current issue can be downloaded without charge or obligation at http://www.gannplan.com/archive/2005-09.pdf.
*****
STOCKS TO WATCH: COH, DGIN, MFC, OCN, SKX, TXN.
Coach Inc. (COH)
NYSE; optionable
First Trade Date: 10/05/2000; 09:30 a.m.
Trading Strategy: The price/earnings ratio for this stock is higher than we typically like to see, so if we were only looking at the fundamentals we might be inclined to pass up COH as a trading vehicle. Technically, however, COH has just found short-term support at a level that provided important resistance in March, and its daily trading is making a solid attempt to break back above its 10-day moving average. On top of that, the upcoming Solar Eclipse will conjoin the Sun in the COH First-Trade chart, potentially setting the stage for an upward price move. That's why we are currently ready to add a long position in this stock to the Financial Cycles Model Portfolio. Our plan is to do so on Friday, setting our initial stop at 29.40.
Digital Insight Corporation (DGIN)
NASDAQ; optionable
First Trade Date: 10/01/1999; 09:30 a.m.
Trading Strategy: During the past couple of weeks, DGIN has broken below its 10-day moving average to test the support levels it set in early August. The current Jupiter/Apollon conjunction is conjoining the DGIN First-Trade Mercury, however, so we are anticipating some positive news about this stock. Like COH, this stock's P/E ratio is uncomfortably high. Also like COH, however, DGIN is about to experience a Solar Eclipse activating its First-Trade Sun. Our plan is thus to add a long position in DGIN to the Model Portfolio toward the end of this trading week, especially if we see a price pull-back offering a buying opportunity. We will set our initial stop at 22.00.
Manulife Financial Corporation (MFC)
NYSE; optionable
First Trade Date: 09/24/1999; 09:30 a.m.
Trading Strategy: We featured this stock last week, noting that we planned to sell it short after a daily close of 52.50 or above. While MFC hit that price level on an intraday basis, it did not do so on a close, so we did not enter our trade. The stock began a downward move, but retraced some of its losses on Friday. Our plan right now is thus to sell MFC short as trading gets underway early this week. We will set our initial buy stop at 54.00.
Ocwen Financial Corporation (OCN)
NYSE
First Trade Date: 08/01/1997; 09:30 a.m.
Trading Strategy: OCN gapped upward recently when the transiting Jupiter/Apollon conjunction activated its First-Trade Mars, sparking our interest. The ensuing rally was short-lived, however, and this stock's current pull-back is starting to look like the precursor to further losses. Although this is a low-priced stock with no options available, we are still ready to sell it short at the beginning of this trading week, thanks primarily to Saturn's proximity to the OCN First-Trade Sun. Our initial buy stop will be set at 7.75.
Skechers USA Inc. (SKX)
NYSE; optionable
First Trade Date: 06/09/1999; 09:30 a.m.
Trading Strategy: SKX just formed a double-top recently as it broke below its 10-day moving average and started to head south. Transiting Saturn is about to pass over the SKX First-Trade Ascendant and transiting Neptune is just a few weeks away from making a direct station as it conjoins the SKX First-Trade South True Lunar Node; neither of these astrological factors kindle much positive enthusiasm for this stock. Our plan is thus to sell SKX short, but because it's not a high-priced stock we want to be a bit cautious about entering the trade. A move this week to 17.90 or above will offer us a shorting opportunity, unless there's clear breakout to the positive side above that price level. Contrariwise, if we see a daily close at 15.50 or lower, we will view it as a confirmation of the downward trend and sell SKX at the start of the next day's trading. In any event, we will set our initial buy stop about 1.50 above our entry point.
Texas Instruments (TXN)
NYSE; optionable
First Trade Date: 10/01/1953; 10:00 a.m.
Trading Strategy: TXN has just seen a brief price pull-back and has been working hard to resume trading above its 30-day moving average. There's still plenty of speculative potential ahead for this stock, however, since the Jupiter/Apollon conjunction is currently activating the TXN First-Trade Neptune. The TXN First-Trade Sun is also about to get triggered by the upcoming Solar Eclipse, so we have even more reason to see this stock as a good candidate for a long trade. Even so, a little bit of caution may be necessary in trading this stock, since next weekend's Mars station in conjunction with transiting Admetos will be within orb of the TXN First-Trade Descendant. Our trade may thus be short-lived, but we will enter a long position in this stock near the start of this trading week. We will set our initial stop at 31.00.
*****
FINANCIAL CYCLES WEEKLY (ISSN 1055-8527) is published by Taylor-Bost Consulting and edited by Tim Bost at 2132 Beneva Road, Sarasota, FL 34232 USA. Phone: 941-921-2588. Fax: 941-927-5798. Web: http://www.TimBost.com. Entire contents © copyright 2005 Timothy L. Bost. No portion of Financial Cycles Weekly may be reproduced without the publisher's written permission. Subscriptions to FINANCIAL CYCLES WEEKLY are $39.00 per month for weekly issues sent by email, payable by monthly billing to a major credit card. Advance payment options (by credit card, check, or money order) are $228 for 6 months, $432 for 1 year or $815 for two years. All subscriptions are payable in US funds only-- Visa, MasterCard, American Express, Diners Club, and Discover/Novus accepted; please make checks or money orders payable to Taylor-Bost. PayPal is also accepted for online orders; to subscribe go to http://www.TimBost.com/newsletter/subscribe.html.
By providing a source of independent market analysis, the purpose of FINANCIAL CYCLES WEEKLY is to foster the growth of person-centered business and investment astrology; to enhance the development and dissemination of financial literacy and prosperity consciousness; and to explore the use of technical analysis and financial astrology in promoting an esoteric spiritual understanding of economic trends, geocosmic cycles, geopolitical events, and market movements. FINANCIAL CYCLES WEEKLY is a general interest publication which is prepared from astrological information, news reports, cycle projections, and market observations which are believed to be accurate and reliable, but which cannot be guaranteed. Portfolio and trading reports in this publication do not include taxes and transaction fees, which should be taken into consideration by prospective traders and investors. Even with accurate information, past performance is no guarantee of future results. Speculation in securities and commodities involves considerable financial risk, and readers who plan to invest or speculate in securities or commodities mentioned in FINANCIAL CYCLES WEEKLY have the complete responsibility for making themselves fully aware of all the risks involved before they invest. The editor may or may not have positions in the securities and commodities discussed in this newsletter, and the information in FINANCIAL CYCLES WEEKLY should in no way be understood or construed as a solicitation or an offer to buy or sell any products or securities, nor should the material published in this newsletter be considered buy/sell advice.
*****
