Cycles

Starting firstly with the long term cycles...

First up is a chart posted by Dave1968 on Hotcopper. One of the things that impresses me with this chart is that it ties in very nicely with the expected astrological effects out to 2020 and beyond. The upcoming low point in December this year also fits the current state of excessively bullish sentiment.

Next is the sunspot cycle. Back testing of this cycle is only limited by historical price data but even with the relatively short period of the following chart it is easy to see:

• Low around 1997 - Dow took off at start of 1995
• High in 2000 - Tech bubble, Dow peak etc.
• Low in 2009 - GFC
• High around 2013 to 2014 - Has recently passed so take note.
• Next low due around 2020 or 2021

The lunar node cycle bottomed in 2008 and reaches its high in mid 2018, hence the notable correlation with Dave1968's chart above! A picture can paint a thousand words though so I've copied my extension of Gann's financial timetable (which is based on the lunar node) below. It's worth noting that the panic in 2019 and low in 2020 will be concurrent with (and hence reinforce) the sunspot cycle.

Next is some upcoming planetary aspects. The short list below shows the major aspects hitting between now and the end of the year. 

The first aspect on the list is Saturn square Neptune on the 10th of September. According to James Mars Langham this pair is not a major market driver but given the moves over the last couple of weeks I'm inclined to see it as a direct hit on this occasion. Not included on the above list is the Mercury inferior conjunction which is also well correlated with lows and was exact earlier this week on the 12th... So there were two good reasons for the market to drop this week but the question now of course is whether they mark a low or does the market just continue down.

The next upcoming major aspect will be Saturn square the lunar node on October the 8th (on a SaturnDay no less!). This is very very negative so I'm inclined to at least start with the expectation that this may mark the low for the year. 

The aspects which follow the Saturn-node square are mostly positive and become very positive with the Saturn-Uranus trine on the 24th of December. Jupiter will be making an opposition to Uranus at almost exactly the same time however I've heard that Saturn generally dominates such situations so that is where my bias will lie, especially given that Saturn and Jupiter will be very near to an exact sextile (+ve) at the same time. 

I haven't listed the aspects for 2017 but will do so by the end of this year. I can say that I've done a quick review of the major planets and that they were almost universally positive throughout the year. This will of course reinforce the overall positive trend of the lunar node cycle so at the moment I'm expecting a big up year next year.