Saturday, August 1, 2015

DJIA vs Lunar North Node in Zodiac Signs

The mathematically calculated Lunar Nodes are sensitive points in space where the Moon’s orbit around the Earth intersects the ecliptic - the
Earth’s orbit around the Sun. The Ascending Node is where the Moon crosses from south of the ecliptic to north of the ecliptic. The Descending
Node is where it crosses from north of the ecliptic to south of the ecliptic. In Western astrology the Ascending and Descending Nodes are known
as the "North Node" and the "South Node". Only the North Node is usually marked in horoscopes, as the South Node is by definition at the opposite
point in the chart. In Vedic astrology, the North and South Nodes are called Rahu and Ketu respectively, and both are marked in the chart. Nodes
always move retrograde and are considered natural malefics. Astrologically the Nodes are thought to powerfully influencing both the affairs of
nations and of people. Eclipses occur only near the Lunar Nodes: Solar eclipses occur when the passage of the Moon through a Node coincides with
the New Moon. Lunar Eclipses occur when passage coincides with the Full Moon. The plane of the lunar orbit precesses in space and hence the Lunar
Nodes precess around the ecliptic, completing a revolution (called a Draconic or Nodal Period, the period of nutation) in 6798.383 days or 18.612
years. The Nodes need 1.55 years to pass through one zodiac sign.
In her book 'Astrology and Stock Market Forecasting' published almost 80 years ago, financial astrologer Louise McWhirter described a theory of the business cycle. She claimed the low point of the depression was reached in summer of 1933 (Lunar North Node in Aquarius) and predicted the next peak in economic activity would occur in November 1942 (NN in Leo). Her prediction for recovery in 1942 coincided with the massive economic stimulus spending set in motion by the build-up for World War II. Looking at 100 years of stock market prices she consistently found the North Node in the sign of Aquarius during periods of low economic activity. At the halfway point in the 18.6-year cycle, the North Node is moving into the sign of Leo, where economic high points have historically been recorded. After this, the long-term trend moves lower as the North Node slowly and systematically makes its way back to the sign of Aquarius, where the cycle begins anew (see also HERE). 

Enlarge
Using McWhirter’s method, one would have expected the lowest economic period between January 2008 and August 2009 (NN in Aquarius), and then gradually improving from below normal levels to normal levels between August 2009 and August 2012 (NN in Capricorn, Sagittarius and Scorpio). The period between September 2012 and February 2014 was projected to be an above normal period for economic performance (unfortunately the red line of the averaged composite in the above chart doesn't clearly reflect this pattern). 

Though a considerable market correction between now and Q1 2016 is likely (HERE & HERE), a larger ensuing double-dip recession wouldn’t fit into the McWhirter-pattern (HERE). Instead the general upward trend should continue into the major peak-out between May 2017 and November 2018 (NN in Leo - HERE), followed by collapsing and declining markets into the 2020s (HERE).