This will likely be another bearish month. It is advisable to defer stock purchases. There are several cycles that point down. The annual cycle peaks at this time. In addition, the four-year presidential election cycle and the decennial cycle peak here. There is yet another technique called anniversary dates. Simply accumulate the highs and lows from past price history and see where they coincide. For example, there was a major low in August of 1982, a minor low in 1983, a major high in the same month in 1987, etc. In other words, there have been many major trend changes in the month of August plus two in July (1990 and 1998).
This month is dominated by the solar eclipse at 18ø Leo on the 11th opposite Uranus and square Saturn in Taurus and Mars in Scorpio. Any stocks that are in the path of this cross will get hit more than the average stock.
The technology stocks, which primarily trade on the NASDAQ, made exceptional gains from the low of last October, topping near the January 31 Lunar Eclipse at 11ø Leo opposite Uranus. The NASDAQ was first calculated on February 5, 1971, and began trading on the 8th at 10 A.M. in New York. This technology-laden market has the Sun at 19ø12' Aquarius and Saturn at 16ø09' Taurus. The Moon connects to both by hard aspect from 0ø27' Leo and opposes Mercury at 1ø Aquarius.
This chart is hit by the eclipse on the 11th this month. The eclipse falls opposite the Sun as Saturn returns to its natal place and is also hit by Mars and Uranus. Given the hard aspects, close orbs, and basic incompatibility of the planets, this will likely be a turning point for this market. Even if we simply consider the symbolism of the planets, technology-related Uranus being squared by restrictive Saturn does not appear favorable. In addition, our loyal readers might recall that 11ø Aquarius is the Midheaven of such notable stocks as Microsoft, Oracle, and Intuit. The planets do not directly hit this degree but are a bit too close for comfort. And the very favorable contacts from the 4th and the 1st quarters are gone.
One tech stock that does get hit is Compaq (CPQ). CPQ's Midheaven is 15ø Scorpio and Jupiter is at 14ø Aquarius, so these degrees will be afflicted. Any news concerning this stock will be seen in a negative light and will send these shares lower. Cisco (CSCO) has a Moon-Node square that gets hit, so it will likely underperform.
Scanning the 30 Dow stocks, we find that Saturn and the Midheaven are afflicted in the first-trade horoscope of Caterpillar (CAT). The Moon and Saturn of McDonald's (MCD) are hit by the big T-square. Procter and Gamble (PG) takes hits to Venus and the Node. These three stocks will likely come down more than the others.
We do want to be alert to stocks that might be bottoming. If we scan the Dow to see where the 18ø Leo eclipse is hitting, here is what we get. The eclipse falls opposite the Midheaven, conjuncts Neptune, and squares Jupiter in the first-trade chart for Philip Morris (MO). This likely symbolizes a change in the perception of the stock for the better. But the market is likely to be falling now, so we will postpone any decision. Eclipses have a way of heating up a degree area and leaving it warm for months afterward, so there is time to wait.
On the 24th, Jupiter turns retrograde at 5ø Taurus. It will move back to 25ø Aries in December. Any planets in this 10-degree span will be transited twice more by the Greater Benefic. When it stations, it will be directly on the Mercury-Jupiter conjunction of Hertz (HRZ). Because HRZ is in the car rental business, the activation of its Mercury is more beneficial to this stock than it would be to a stock in another industry. HRZ began trading on April 25, 1997, with Jupiter at 19ø Aquarius, so the eclipse will be opposite natal Jupiter. Because these comments are written six months in advance, it is not possible to factor any advance price movement into the analysis. If HRZ has been rising into this period, look for a high now. If the stock has been flat to down, then HRZ will begin to attract investor interest now. But let's remember that Jupiter will come back to 5ø Taurus in early 2000, and the February eclipse will conjoin natal Jupiter. So this is one to keep your eyes on.
One more stock that will become more attractive over the coming months is Avon (AVP). The eclipse is on the natal Moon at 19ø Leo in the second house. The dispositor is the Sun at 0ø Taurus conjunct Jupiter at 2ø Taurus. As Jupiter sweeps back and forth, it will run over this area, and the February eclipse will be opposite the Moon. The Sun-Jupiter conjunction is trine the South Node and Ceres in Capricorn, and is trine Uranus and Pluto in Virgo. So this stock will outperform as soon as the market stabilizes.
One of the biggest economic shifts of the decade is most likely underway. Neptune in Capricorn brought on a period of deflation. This climate was strengthened by the trio of Saturn-Neptune squares, the last of which was in April. This greatly depressed stock groups whose companies benefit from inflation. These groups include mining, forest products, gold, and energy. With the depressing influences off, these groups should at least bounce up closer to their historical trends. This will prove to be bearish for the financial and consumer stocks that have been the leaders. This will require a change in strategy over the next year.
Another stock group that looks bearish is the Dow Utility average. Some of the stocks in this average are gas stocks, but many are electric utilities. These stocks are sensitive to rises in interest rates, and this bearish outlook suggests that rates are going higher. Perhaps that is the reason for the loss of investor confidence. There are three other likely reasons.
Whenever the market makes a major move, the media look for reasons to explain the move. Indeed, when I was a junior analyst in New York some years ago, I was often asked these questions. When I once said that there was no reason that I knew of for a move in a stock, those in management instructed me to make one up! So, knowing that, we can expect three occurrences to hit the headlines. First, there is conflict in the Mideast. Second is the Year 2000 computer bug, and the last is turbulence happening in the USSR.
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