A Trough in the Jupiter/Saturn Cycle

May 21, 2010

When we use astrology in the markets, we bring a unique perspective to our trading. One of the most important benefits that we enjoy is an awareness of cycles and their impact on market trends.

While it's certainly possible to study market cycles without using astrology, and to apply cycle analysis to our trading strategy without considering planetary phenomena, we can gain a real advantage when we add an understanding of planetary motion to our trading plan.

The best thing about planetary cycles, of course, is that they can be precisely measured and studied as historical events, and can also be determined ahead of time for accurate forecasting of future market trends. There are both short-term and long-term planetary cycles that impact market dynamics, and it is the short-term cycles, like the ones produced by the movements of the Moon, Mercury, and Venus, that have the closest correlations to the ebb and flow of market patterns on a daily and weekly basis.

The long-term planetary cycles, however, deserve our special attention, if only because they are rare and powerful enough to correspond with major shifts in market dynamics.

The Jupiter/Saturn cycle is a classic example. Perhaps more than any other planetary pair, Jupiter and Saturn describes the basic impulses at work in the markets: Jupiter is the planet of expansion and rising trends, while Saturn brings contraction and bearish tendencies. But the Jupiter/Saturn cycle is not a rapid one- the entire thing takes about 20 years.

The last time we had a Jupiter/Saturn conjunction was on May 28, 2000. The next one will come on December 21, 2020. Right now we are at the midpoint of the Jupiter/Saturn cycle, with the two planets in opposition to each other. Because of the retrograde motion of these planets, there are three dates when the geocentric lineup of the opposition will be exact: May 23, 2010, August 16, 2010, and March 28, 2011.

In each case, we can expect added stress and volatility in the markets. But rather than being indicators of setups for short-term trades, the Jupiter/Saturn oppositions are better seen and understood as reminders of the kinds of underlying economic trends and market conditions that occurred during our previous experiences of this planetary alignment- in 1930-1931, in 1951-1952, in 1970-1971, and in 1990-1991. A quick glance at the history books should be more than enough to give you some ideas about the unique opportunities that this cycle trough brings.

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