Sunday, October 18, 2015

Financial markets stable ahead of Venus transit of Virgo

(18 October 2015)  When used wisely and judiciously, financial astrology can be a useful tool to investors.  While no one can predict the direction of the market 100% of the time, there are many well-established correlations which have a good track record of prediction.  One of these is the transit of Venus through the sign of Virgo.  Or more specifically, through the sign of sidereal (star-based) Virgo as is commonly used in Vedic astrology in India.  Western astrology employs the tropical (i.e. seasons-based) zodiac but evidence suggests that this correlation does not hold in that system.

I have found that stock markets generally do poorly during the four weeks that Venus transits through Virgo.  In financial astrology, Venus is considered the planet of money and value.  When it is well placed and unafflicted, stocks are more likely to rise.  However, when it comes under pressure from malefic planets like Mars or Saturn, stocks are more likely to decline.  And since Virgo is traditionally believed to be a sign where Venus is said to be debilitated, its transit of Virgo is similarly bad for stock markets around the world.

I have written previously about this fascinating and surprisingly simple correlation between the stock market and the Venus.  In the summer of 2013, I warned that the upcoming transit of Venus in Virgo would likely be bad for stocks.  Indeed, it was bad as the Dow Jones Industrial Average fell 3% during its 25-day transit of sidereal Virgo.  This pattern also held in 2014, as stocks also declined 5% when Venus transited Virgo in late September and early October.  This bearish transit happens once a year between the months of August and December and lasts for about four weeks.  The chart below shows how reliable this transit has been recently since the Great Meltdown of 2008.  What's more impressive about this correlation is that the declines have occurred during a massive bull market where US stocks have almost tripled in value.  Clearly, this is a fairly robust correlation that can outweigh other potentially countervailing factors. 


Year Venus entry date Venus exit date Market outcome
2009 October 9 November 2 -4%
2010 July 31 August 31 -6%
2011 September 9 October 3 -6%
2012 October 22 November 16 -7%
2013 August 11 September 5 -3%
2014 September 24 October 18 -5%
2015 November 3 November 29 ???

This year, Venus is due to enter sidereal Virgo on Monday, November 3rd.  It will continue to transit Virgo until Sunday, November 29th. I am fully expecting stocks to decline once again during this period, perhaps significantly given the other difficult planetary influences during the month.   I would think that a decline in the upper range of previous losses (6-7%) is likely and we could even see something more than that, at least measured from tip to trough.  Interestingly, the US Federal Reserve is due to release its latest policy statement just a few days before Venus enters Virgo on October 28th.  This may well be the catalyst for a negative market reaction that lasts through much of the month of November.  In any event, this upcoming transit is likely to see stocks tumble again.  The day of its exact entry into Virgo on November 3rd is more likely to cause problems since it will be conjoined (and hemmed in) by malefics Mars and Rahu (North Lunar Node). 

Weekly Market Forecast

Last week, stocks generally extended their gains as investors digested the idea that the Fed likely would not raise rates until next year.  The likelihood of more loose money in the US meant that risk assets like stocks were a safer bet.  In New York, the Dow climbed gained 1% closing at 17,215.  India's market enjoyed similar upside as the BSE-Sensex rose 200 points to 27,214.  This October rebound has not been surprising given the fading of the Saturn-Ketu (South Lunar Node) aspect since September.  As expected, we did see markets decline going into that aspect in mid-September but stocks have generally bounced back since then, perhaps as Jupiter has closely aspected Pluto.  Jupiter-Pluto aspects are usually bullish. 

This week may see further gains, although I would note that the Jupiter influence may be weakening now that it is separating from Pluto.  Perhaps the gains will be modest and possibly short-lived.  Also, the Moon is aspected by Saturn on Tuesday and Wednesday so we are likely to see some declines near those aspects.  The late week may be more positive, however, as Mercury aligns with Venus and Pluto.