New high in DJIA follows astrological pattern

When the Dow Jones Industrial Average (DJIA) on March 5, 2013 surpassed its previous all-time high set six years earlier, it followed in the astrological path of its two previous 45-year cycles based the interaction between Saturn and Uranus, planets that impact financial and economic events.

That pattern starts when the two slow-moving planets are in the same zodiac sign and degree, or “conjunct.” Then, roughly every 10 years, the planets move another 90 degrees apart until they come back together again and start the cycle over. History shows that the DJIA marks important turning points at each of these 90-degree points in the planetary cycle.

In the current cycle, which began in 1988, the DJIA has now fulfilled the step of surpassing its previous all-time high in about six years. But, because we are in the waning phase of the cycle, it portends a severe bear market — establishing a low akin to those in 1932 and 1974 — is on the horizon within the next few years.

DJIA Pattern with Saturn/Uranus

The DJIA was first published on May 26, 1896, about six months before Saturn and Uranus were exactly conjunct in Scorpio. So, the DJIA is neatly aligned with the astrological cycle pertaining to finance. Here is the pattern it follows:

1. The DJIA makes a significant low as Saturn/Uranus approach the first exact conjunction (same zodiac sign and degree).
2. The DJIA makes a new all-time high during the Saturn/Uranus opposition (180 degrees apart, in opposite signs of the zodiac). This high is not surpassed for several years.
3. The DJIA ultimately surpasses the high made during the Saturn/Uranus opposition as the planets lead up to or are in the waning square (270 degrees apart by zodiac sign), which then leads to a significant bear market that begins the cycle over again at the next conjunction.
4. The characteristics of the zodiac sign in which the cycle begins establish an investment theme for the entire cycle.

Cycle I—Research and Digging—1897-1942

The first cycle began with Saturn and Uranus conjunct in Scorpio, the sign that represents digging deep to find the answer. Certainly to develop an index like the DJIA that represents detailed research about the underlying stocks has a Scorpion fingerprint, as does the Gold Rush of going underground to mine for precious metal, which kicked off the economy’s recovery in the cycle’s first year.

The entire cycle was attuned to the rush to speculation and making it rich quickly. It started with the Gold Rush in 1897, at the initial conjunction. It gained steam during the opposition, making a new all-time high in 1919 that led to several years of sideways action before surpassing the high five years later.  

Ultimately, the bull market of the 1920s, which ended in 1929 just before the waning square, was driven by speculation of trading on margin on the stock exchange, which was its downfall, and led to the Great Depression of the 1930s during the strength of the waning square.

Beginning in the zodiac sign of Sagittarius, this cycle has a theme of freedom, exploration and foreign influence. And, certainly this is reflected in the global expansion of trading due to increasing prevalence of electronic trading platforms and the elaborate, new methods traders have devised to trade, with virtually unfettered freedom.

Just a few months before the initial conjunction (first exact in February 1988), “program trading” was the culprit in the DJIA’s largest-ever daily loss of 508 points, or 22.6%, on October 19, 1987. Program traders had developed schemes to trade the new stock index futures contracts, launched in 1982, to protect physical stock portfolios. When the stock market started going south that morning, all the program traders sold futures, and simply accelerated the decline.

The dot.com/online trading boom among individual investors also took hold at the beginning of this cycle and culminated at the waxing square in 2000, with the DJIA and Nasdaq index of technology stocks both setting all-time highs. In freedom-loving Sagittarian fashion, the question throughout this period was whether we were truly entering a new paradigm of investing in which the promise of making money—not actually making money—was enough to justify enormous stock values. When the bubble burst, the answer clearly was “no.”

The financial crisis of 2008 marks the Saturn/Uranus opposition, and the high in October 2007 was set as the impact of creative financing via credit default swap derivatives was starting to unravel. Although mainly devised by U.S. institutions, the derivatives were bought by investors the world over, and the crisis truly threatened to dismantle international finance. As in the previous two cycles, it took 5-6 years to surpass the DJIA record high set while Saturn and Uranus were in opposition.

Based on the previous two Saturn/Uranus cycles, the final shoe has yet to drop on the market, but we likely will be well aware of it as the two planets approach their waning square in 2021. Given this cycle’s theme, one can speculate that the cause of the final collapse will be related to professional/institutional traders pushing the envelope of creative financing using derivatives on an international basis.

Cycle IV—Communication and Duality—2032-2079

The fourth cycle between the DJIA and Saturn/Uranus begins when the planets are conjunct at 28 degrees Gemini in June 2032. Almost 20 years away, it will mark the time of a significant low in the DJIA if the pattern stays true to form. From a theme perspective, communication and duality are indicated by the sign Gemini. Could it be that the next cycle has something to do with communication that lets us be in two places at once? The ability to exist in two dimensions simultaneously? Communicate between two planets or two universes? Only time will tell.