Some astrological insights for the markets – a valuation example

In the upcoming week, we have a New Moon on the 28th in Scorpio – usually that is a time of temp market lows (New Moon mark beginnings) but in Scorpio it might rather mark new debt, since that week huge sums of Treasuries will be issued (much more than usual). On the other hand, we have a FED meeting the next day and we might see a little rally for a few days still – before the week after we drop to new lows. That depends very much on how deep we drop, if at all in the first days of the week. We still need our second capitulation move but that might rather happen in the week of the election.


As mentioned earlier, we are fast approaching the Saturn-Uranus opposition of November 4. But the day before, November 3, is also important, for that is when Venus will “translate” the Saturn-Uranus opposition in a T-square (squaring both). Every “translation” of the Sun or Venus to the Saturn-Uranus opposition of this year has coincided with a serious sell-off in stocks throughout the world. This one is no different. Venus rules assets, and has special significance to currencies and Soybeans. Both are falling hard since their all-time highs of just a few months ago.

We also note that our next time band of heavily populated geocosmic signatures starts on Halloween, October 31, and lasts through November 13. There are nine important signatures unfolding then, of which five are Level One (strongest) types. We can anticipate the week starting November 3 may be one of the most important reversal weeks of the year. We already know that politically it will mark an important change as well. An era will have ended and a new one will begin. The new era will be dramatically different than we have experienced for the past 8 years in terms of economics and military activity, regardless of who wins.


Just how ugly? Have a look at the average P/E ratio of the entire S&P 500 index over these three periods of market mayhem:


Average S&P 500 P/E Ratio

8.27 times

7.78 times

9.01 times

Compare that to the average P/E ratio today of around 20 times and a seven-year average of more than 24 times, and it’s pretty apparent that stocks could fall much, much further than they already have, just by returning to the lows they historically hover around during downturns.

Assuming earnings stay flat, revisiting those historically low levels could easily mean a nearly 50% decline from here. For the Dow Jones Industrial Average, that’d correlate to roughly Dow 5,000 — give or take. Of course, I’m not predicting, warning, or forecasting — I’m just taking a long look at history.


~ by behindthematrix on October 26, 2008.

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