May 2, 2000
According to standard stock-market cycles, the probability is that this month will be down, as it was last month and will be next month. Turning to the planets, we see an unusual phenomena--a very close grouping of planets in a narrow range of degrees in Taurus. On the third, seven placements will occupy this sign. Research has demonstrated that conjunctions are usually stock-market tops. One only has to look at the August 25, 1987, market top in order to see how a peak can be created by a multiple conjunction. A grouping such as this does not meet the definition of a conjunction, due to the very wide orb, but it can be considered a planetary cluster. (A listing of clusters can be found in Michelsen's Tables of Planetary Phenomena.) So we have a statistical probability of a down month plus a planetary signal of a high. Therefore, we are still on the defensive.
In the last column, I discussed a sell signal in the all-important semiconductor group. The correlation between this group and others, such as electronics, computer hardware, and others, is high. If semis go down, so will many tech groups that have led the market. From the 13th through the 20th, Jupiter and Saturn are contraparallel the February eclipse point. Uranus turns retrograde on the 25th at 20ø Aquarius on the Sun of the NASDAQ exchange (Feb. 8, 1971). Saturn squares Uranus on the 13th at 20ø fixed. Previously, this chart's Sun and Saturn had been buffeted by the previous two Solar Eclipses and the Saturn-Uranus square. These hits likely signal a change of trend. Because this index has been so strong and because there are other signals of a market and a semiconductor top, this tech-laden average is likely to come down.
It is time to be conservative and to protect profits. There are several options. For most investors, wait until the market bottoms out before making longer-term commitments. If one must be in stocks, then retain those that have the most resistance to downside pressure. Traders may want to go short weak stocks. Let's look at some charts that are going from very well to very poorly aspected. Advanced Micro Devices (AMD--Oct. 15, 1979) is a maker of commodity-type chips; they also have a stake in the pc arena with their K6 microprocessor. The Moon is at 21ø Leo square Uranus at 20ø Scorpio. The nearness of Uranus to the 24ø Scorpio Ascendant accounts for the stock's volatility. The Uranus station ties right into this axis, and AMD shares will likely fall. Another such tech stock is Automatic Data Processing (AUD--November 10, 1970) began trading with the Sun, Venus, and Jupiter in Scorpio opposite Saturn at 19 Taurus. This axis will get rocked by planetary activity. AUD shares will likely wilt under planetary fire.
There are more stocks to either avoid or go short. The May 13 Saturn-Uranus square hits many horoscopes in the internet sector. Earthweb (EWBX--Nov. 11, 1998) has the Sun at 19ø Scorpio near Venus at 22ø. Thus, this net issue will likely fall. Birds of a feather flock together, and many net stocks started trading in the first quarter of 1999 with the Node at 21ø Leo. Because the market opened at 9:30 A.M. E.S.T. ,and many of these stocks were born in March, the Midheaven is around 17ø to 21ø Aquarius opposite the North Node. The Saturn-Uranus square will tee off on all horoscopes with this configuration. This includes such hot issues as Autoweb, Miningco.com, Pipeline.com, One Main.com, Priceline.com, Cheaptickets, Ivillage, and Autobytel.
Although BMC Software (BMCS--August 12, 1988) is not a net stock, it will likely follow them down. It has a Sun-Moon conjunction at 20ø Leo.
There is another approach. We can look at the Jupiter-Saturn conjunction's contacts to individual stocks and try to pinpoint some issues that may do well when the market settles. One such chart is that of semiconductor maker Rambus (RMBS--May 14, 1997), a specialist in high-speed chips. The Sun is at 24ø Taurus square natal Jupiter at 21ø Aquarius and square natal Moon at 2ø5 Leo. Uranus stationary on the natal Jupiter this month will likely pop the stock up this month. The drop in the overall market will likely then pull RMBS down. But note that the Jupiter-Saturn conjunction is right on the Sun applying with an orb of 1 degree. So if my projection of a new economic wave based upon the semi is correct (See the "Planets and You" column for a more complete discussion), then RMBS may be a key stock in the next upmove. But we will have to wait until the dust clears.
The same can be said for a familiar face, Amazon (AMZN--May 15, 1997). Jupiter, at 21ø Aquarius, will be hit by the Saturn-Neptune square. But the Sun is at 24ø45' Taurus, in line to be hit by Jupiter-Saturn. Thus, AMZN has the potential to be a key in the next up cycle.
The points to keep in mind are that the market will likely be weak. The tech sector, particularly the internets, will pull back. But the Jupiter-Saturn conjunction will provide new opportunities for the rest of the year.
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