Friday, June 5, 2015

SPX vs North Node - Louise McWhirter's Theory of Stock Market Forecasting

Louise McWhirter presented her theory in 1938 in "Astrology and Stock Market Forecasting" (p. 7-8) as follows:

Whenever the North Node passes through Scorpio and Libra
[2012-2015], there is a transition period as the curve passes from normal, going from normal to high.

[…] The high point of business volume is reached when the North Node transits Leo
[2017-2018]. As the North Node goes through Cancer and Gemini, business volume is above normal, but slowly going to normal.

[…] Taurus
[2003-2004] is the transition point or normal point as the curve goes from normal to below normal in business volume.

[…] When the North Node enters Aquarius
[2007-2008], the low point of business activity has been reached. As the Node transits Capricorn [2009] and Sagittarius [2011], the normal position of the business curve is below normal going to normal.

[…] This is the natural position of the curve without the presence of secondary factors which can distort the curve favorably or unfavorably from one to twenty percent.

[…] The following secondary factors tend to lift the Business Curve:

(1) Jupiter conjunction the North Node.
[2009, 2016, 2023]
(2] Saturn trine, sextile, or semi-sextile Uranus.
[2002-2003, 2016-2017, 2025-2026]
(3) Jupiter in Gemini or Cancer.
[2000-2005, 2030-2035]
(4) Jupiter conjunction, sextile or trine Saturn and Uranus, when in aspect to each other.
(5) The North Node in Gemini.
[2013, 2016]
(6) Favorable aspects to Pluto.
[2013, 2016]

[…] The following secondary factors have been found to depress the Business Curve:

(1) Saturn conjunction, square or opposition the North Node.
[2013, 2016]
(2) Saturn conjunction, square, opposition, or semi-square Uranus.
[2012-2013, 2021]
(3) Saturn in Gemini. [2000-2003, 2030-2032]
(4) Uranus in Gemini.
(5) Uranus square, conjunction, or opposition the North Node.
[Jan 2015, Jun 2018]
(6) Unfavorable aspects to Pluto.
[Jan 2015, Apr 2019]

As the Node moved through Capricorn (2010) and Sagittarius (2011) the general economy approached a very high level of activity in Scorpio (2012), and should peak as the Node passes through the sign of Leo (2017). 

However, W.D. Gann associated the period of the Node in Libra (2015) also with stock market panics (HERE). Moving through the signs of Cancer (2018) and Gemini (2020), the economic activity is still positive but beginning to slow to more normal levels. 

The above chart of the SPX and the North Node in the zodiac signs clearly shows that in the past this basic theory was not always properly reflected in the stock market's movements. This has to do with other important astronomical cycles, e.g. the 19.86 Year Jupiter-Saturn Cycle, 19 Year Metonic Cycle, the different natured 18.61 Year Lunar Declination Cycle, the 18 Year Saros Cycle or the varying lengths of the Solar Cycle. Additional important "secondary factors" could be the amazing activities of central banks, especially during the past 40 years. Nevertheless, empirical research discovered a multitude of other interesting economic sub-cycles of 17 to 20 years length, never out-ruled by any human intervention. The Wave Length Index of the Foundation for the Study of Cycles lists the following:
Credits: Foundation for the Study of Cycles (1964): Catalogue of Cycles - Part I.