More Clarification on Working the Down Side of the Market

Thanks to reader Ftrsman who writes in with further clarification about working the down side of the market! 

ftrsman

Hey, Denise, great site, thanks so sharing so freely! Didn’t think I’d ever write in, but I have to say something about trading options. While put options are a way to make $ if something goes down, and betterdaysahead is right, technically, saying ‘limited risk with maximum potential”‘, that’s making it sound a little too good. Over 95% of regular investors lose every cent they ever put into an options contract, so their ‘limited risk’ keeps happening over and over. (The minute you buy an options contract it starts losing value, because it has an expiration date, and few non-pros understand when an option is fairly priced to begin with). Another poster is right in saying it should be left to professionals.

Right now the options market is really screwy, because people are paying for fear and the normal parameters of price/time/volatility just aren’t working (IOW, the move has to be so big, and relatively fast, before the risk/reward pays off – it’s not simple like ‘the dow goes down 5%, your option goes up 5 or 10 or 20%. ‘ ). A lot of pro options traders are staying on the sidelines because pricing is so screwed right now. Besides, any pro will tell you that a newbie who wants to trade options oughta not just take a basic course online or wherever but spend a year or more ‘paper trading’, meaning, practicing on paper, and if they start doing that right now, a year from now the ‘big move’ may be over (but the next year may give a good education). If they really want to, s/he could give some $ to a pro options trader, but you usually have to start with $50K-100K, and I don’t know if I’d be trying someone new out right now. Don’t mean to be a joykill, but don’t want to see anyone hurt. There’s nothing wrong with cash.

The S&P 500, The Promised Analysis…

 

Really there is nothing of great note in the S&P Protected E PEF. Except Saturn conjunct the natal Moon Sun in the 9th and of course on over the course of the year to just conjunct the natal Venus. Meaning foreign investment in this market will be down and money tight but not a horror show. There’s a little dip mid-December, but there are also positive aspects offsetting the negative. I don’t get a bad feeling, not that it won’t go through some major changes, it will, Pluto is going through its 1st house, so along with all the other new regulations and market face lifts this one will have its share, but it won’t be as adversly effected for some reason.

What will be going on with the S&P Chicago is a bit more complex. There will be a lot of volatility as aspects both negative and positive move through the chart. The most troublesome is transiting Pluto squaring the natal moon in the 10th house in late December of this year (08). I feel this will have to do with lay offs and make the market extremely volatile at that time, fluctuating wildly as people try to get a grasp on what is happening. Just before this period in mid-December there will be a transiting Jupiter square to natal Pluto in Libra in the 5th house. This could mean the disclosure of some sort of legal malfeseance, making speculators weary about investing.

The one area that should do OK, maybe even do pretty well is food products, especially comfort foods as Pluto will be making a trine from the 6th house (very likely grain or corn or something like that related) to natal Sun in Taurus (again food reference here, healthy conscious with it being the Sun) and because the Sun is ruled by Venus natally in Pisces in the 10th I’m going to speculate its an older company, one that has been around since the depression or before the depression of the 30s (also related to liquid, could it be soup again?) But because the Sun is in the 11th, a company that has tried to re-invent themselves as healthy, delicious and nutritious. 

Now onto the S&P Protected E PEFX:

Again a lot of volatility. There are a lot of aspects (and a feeling I’m getting here) that people will feel trapped, unable to get out even if they want to. Saturn is transiting the 8th house so there isn’t a tremendous amount of money here in general for investors to make and there hasn’t been since a little over a year ago. Not a lot of money being paid out to. But with Jupiter transiting the 1st house and trining tranisiting Saturn in the 8th, both planets making sextiles to natal Mercury and eventually the natal Moon there is and has been opportunity for financial growth its just relatively conservative and feels more stable then many other markets right now, like a good place to keep your money for the time being. 

However in late December and through mid-late January Pluto will be conjuncting the natal Part of Fortune in the 12th meaning there will be a (more then likely a temporary) shift in value not seen by the general public, but it could encourage some secret restructuring to keep the S&P Protected E PEF on track. In mid-February there will be some trouble cracking through the ice as transiting Neptune will square natal Mercury in the 10th. During this period there could be losses and the public perception of loss and under-performance of this market. 

So there you go. Hope that helps. If you have a specific question about any of these markets please post it and I will answer as quickly as possible.

Best wishes and good luck to all,

Denise

Answering Readers’ Questions… (And Alaska!)

OK, I had a bunch of bad, creepy dreams about Alaska. I posted what I thought they meant. I’m not saying it wasn’t one manifestation of those creepy dreams, but it looks like something very fishy did indeed go on up there! It’s just coming out now. I’ll be curious to see how this situation unravels.

tckal

Hi Denise: Many Republicans want Sarah Palin to run for president in 2012. I think you had mentioned that she will be impeached. When will this happen and will the republicans change their minds afterwards? Thanks

Hi Tckal,

We are just starting to see the skeletons shake loose from her closet. In the post where I mentioned there being a very good chance she might be impeached as governor, I also talked about how there was a mess of ugly stuff being hidden about Palin. 

I asked the tarot if she would be impeached:

It says: Maybe. 

She has a lot of enemies as I said in that prior post, and at the center of all this is gossip. The impeachment energy could be her ousting from the political arena once she’s served her term as governor never to be seen or heard from again. There is a lot of dirt on this woman. It isn’t over yet! The cards basically say, she may manage to keep her job as governor, but it won’t matter because her political career will be ruined by the end of her term.

Also in that previous posting I remember she has some bad aspects to her 7th house, the house of open enemies and the public. I said she had a bunch of enemies, people who would try to destroy her. It looks like this might end up coming from the McCain camp! They’re calling her a Diva, a hillbilly and saying she didn’t know Africa is a continent. That is pretty nasty stuff.

sunbeyond

I have a couple of questions:
Did the stock market bottom out for the year of 2008 on oct 10th or will it find new lows as mentioned in the tsunami coming in December?
Also since this would be the worst recession in 100 years What year will the stock market bottom out at and what number should i be looking at on the DOW before all the damage is done?
thanks

Hi Sunbeyond:

No, the bottom hasn’t come yet. The aspect goes exact at the end of December and into January 21/22 of 2009, until about the time when Obama is inaugurated. Then the horrible aspect receeds, giving the market a bit of a break. But it will come and go over the next year. I will remind everyone when the next exact aspect is about to happen so those who want to get out can do so before there’s another major drop. Here are the dates for future reference: The aspect goes exact again on 6/21/09 or 6/22/09 until 8/5/09 or 8/6/09, then comes back again 10/18/09 or 10/19/09 until 11/24/09 or 11/25/09. After that we will go through some smaller crisis, but be out of the major storm. 

In essence what I’m saying is the market is going to be crazy volatile and require major restructuring for the next year. Obama’s chart does soften these aspects so believe it or not (and you won’t because its going to be bad) it would have been a million times worse with McCain’s chart interacting with the Dow. Obama will lesson the effect of this crazy market. Not that he can pull butterflies out of the air and walk on water, just that he will be able to get it under control, and steer it toward the restructuring side of these aspects rather than the death side of these aspects. 

Hope that helps.

Keep sending me questions. I am also going to start looking into foreign affairs so if anyone has a question in regards to that please post it!

Best wishes and blessings to all of you!

Answering Reader’s Questions…

Michelle posted this question:

Michelle // October 8, 2008 at 9:50 am (edit)

I have been having strange dreams ever since the economic bailout took place last week. most recently, I had a dream that I was in a large city–such as New York and entered an area where families were huddled in small rooms, much like a motel but smaller. The rooms could only hold one bunk bed. There were many families. My question is will the homeless situation get better? How can we help?

Not knowing you personally I can only tell you what I read about the dream which has both personal and global implications. I believe your dream is a premonition about families having to cut back in terms of their budgets, lower their expectations and work together in ways our generation and even our parents generation haven’t done. The room represents the psyche, ambition, how we see our life in terms of expectations. The one bunk bed represents that whole families are going to find themselves “in bed” together, meaning we are going to have to help one another out.

The families were in a city like New York. I would interpret the city metaphor to be a microcosm of the world at large. Cities are melting pots, New York in particular. I think you’re subconscious is picking up on the global nature of this crisis and how it will trickle down to families. The fact that there was one bunk bed is interesting. A bunk bed is elevated, so again I think the metaphor is that we are going to have to be our better selves in order to get through this. I wondered if the beds you saw were white. I kept envisioning them this way. Were they? If so this has the added meaning of success being reached through working together.

In your own life, you are probably feeling small, unimportant, like one of millions. You feel helpless as to how to turn the situation around and are worried about the people you love and your family. 

In answer to the question about the homeless situation. It isn’t going to get better any time soon. It will get worse for a little while as all of this is going on, but I’m hopeful if we all get involved in whatever way we can, little by little we can turn this situation around.

Best wishes and good luck.

Readers Questions and General Financial Advice…

I’ve been getting a lot of questions about individual stocks. At this point we are getting so close to seriously bad aspects about to hit the Dow Jones, that it’s getting too difficult to really read. I can do individual readings on stocks, but I don’t have everything in my data base and at this point its not the best use of the time I have to help people. What is important is everyone getting out as soon as they feel safe in doing so.

I can give some general info about the financial markets and if anyone has a yes/no question about a time frame they are thinking about in terms of selling their stock, I can do that. But the bleeding is so bad right now that the ratio of time I would spend evaluating the stock is not worth doing. I can do yes/no spreads which are quick if you have a time frame you are looking at in terms of selling your stock.  

But truly you are going to have to rely on your own intuition. For those of you who are not as in touch with your intuitive side, here’s an exercise to try. You don’t have to believe in anything in particular. what you are going to do is tap into your own higher mind, intuition, instinct or psychic ability, whatever you want to call it. 

Get a white candle and some pleasant incense. I suggest Sandalwood because it is associated with money and business matters, but whatever you like is fine. Either before bed time, or early in the morning, some time when it is quiet in your home and you are in a relaxed state. Light your incense and candle, sit either straight up in a chair with your feet touching the floor, or Indian style on the ground. Try to still your mind. This won’t be as easy as it sounds. You will have a thousand thoughts hitting you at once, acknowledge them and let them go. Don’t berate yourself, don’t follow them, just let them go.

Ask your higher self, God, the Great Goddess, the Universe, Angels, Elementals, the Great Spirit, or whatever you acknowledge as a higher power. In the case of those who are atheists, go ahead and see this power as a part of you (which it is) and call on that side of yourself for protection. Visualize white light around you and ask the Being or Part of Yourself to protect you while you delve into your intuition. 

Now visualize your intuitive ability as a light switch on a wall. Turn the switch from off to on. I also like to visualize a damn breaking, and all the information coming through. Once you are in this meditative state, ask yourself whatever question you want answered. The information will be pictures, words, somewhat incoherent so write down everything you see and hear as soon as you get out of the meditative state. This is why knowing a skill like tarot or astrology is helpful in that it focuses the unconscious mind and can help sharpen the intuition, and focus it on where you want it to go. 

Please feel free to share your revelations and information in the comment section here. I’ll try to help decipher it for you when I can and other readers can weigh in to help you figure it out. It is important though to realize you can do this. We may not all be great at it, just like we can all learn to ride a bike but not everyone is Lance Armstrong, but you can do it. And the more you use your intuition and trust in it the better your instincts will become. Prayer and or mediation are important to the development of this part of you, finding a quiet place to hear this inner voice is key. During these times we will all need these skills to help us stay calm and protect us from harm, and give us a leg up.  

I will come up with a list of good books for those interested in furthering their study of meditation and opening up their intuition in a later post.

Blessing to all and good luck.

Saving the Economy…

As I said in an earlier post we are seeing the tip of the iceberg in terms of the financial crisis. I was heartened to hear that congress was working in bipartisan fashion to solve this problem. Obviously, the Bush administrations plan of no oversight is not a good idea, but we do need to do something about this impending disaster.

But my panic light went on today when talks broke down after McCain showed up, not that he was solely responsible, but he did use the crisis to try to look like a hero when he clearly doesn’t have any answers or even knowledge of what’s going on. As I said in an earlier post McCain would plunge this country and the world into the worst depression ever (based on his aspects to the Dow Jones, and of course now that the world is interlinked all the markets would crash) and this couldn’t be more illuminated in just his slightest touch of involvement unraveling the talks. According to reports coming out McCain had nothing to say at the meeting, but obviously tried to use it politically.

And by the way the Republicans have caused this mess — a free market without rules isn’t free. Deregulation is what caused this. Deregulation or no regulation is China’s case has doesn’t work. We put regulations in place for formula after babies started dying when formula companies watered milk down. Babies died of malnutrition in this country, the US. This is exactly what happened in China just recently, but instead of water they used melamine to try to falsely boost the protein levels in tests.

Regulations are laws — like us the normal everyday citizens have to abide by, such as you can’t kill, steal or rape someone. No regulation is akin to abolishing punishment for criminals. Companies policing themselves has never worked, because it is not in their best interest, as we are seeing in this banking debacle.

So all of you who think the market will correct itself, that deregulation is good for the economy — here’s the result: global DEPRESSION! It may have worked in the short term for companys to be able to gobble each other up. We’ve seen the melt down of the music industry partially from this cannibalistic approach. That’s a whole other story and another article if anyone is interested.

But its safe to say cutting off all the arteries to your heart will eventually kill you.

John McCain? What’s up?

Can he not deal with crisis? Cause that’s kind of one of the most important job’s the president is supposed to be able to do, and more importantly he/she should be good at handling crisis. If McCain was in power when the trade center was hit would he have done what Bush did, sit for 7 minutes reading to a group of kids while our country was attacked and then fly around in a airplane all day afraid to touch down.

If anything this is PURE POLITICS on McCain’s part. He said he didn’t know anything about the economy so how does he plan on solving this problem? He was supposedly incoherent in the latest meeting about the bail-out, uttering a few minutes worth of bizarre verbiage that no one could make sense of as the meeting ended.

It seems McCain can’t handle the heat, doesn’t know anything about the economy is afraid this will come up in the debate and is trying to cover for his crazy “soul mate,” Sarah Palin. From what I’ve heard McCain wanted to reschedule the presidential debate during what would be the vice-presidential debate. Now that’s convenient. I guess they don’t want the ice princess to melt under the spotlight.

Comparison chart of FDR and Barack Obama

A friend told me there has been comparison made between Obama and FDR. Let’s see how this stacks up against their astrology. In FDR’s case we don’t have his time of birth, but I’ve done a solar chart which will give us a pretty good comparison to Obama except for the placement of planets in FDR’s houses.

Both have a Sun Mercury conjunction giving them intelligence, diplomacy and understanding of financial matters, close ties to women, and good oratory abilities. Both have a planet at 1 degree Cancer in FDR’s case it’s his moon and in Obama’s case his Venus. In the chart of the US Constitution this is a critical point as it is the mid-point between the US’s Mars and south node in the 5th house of speculation (also ruling the stock market). They understand crisis well and FDR responded emotionally (some would say his wife did, which would make sense as the moon is in the 5th and would indicate her) and Obama understands it fiscally and diplomatically — a more cool approach, but solid. Both had and have great passion when it comes to domestic issues especially in regards to the 5th house — stock market.

Barack’s point of fortune is on the US Constitution’s Moon, giving good luck when we need it most in foreign affairs (Sag rules the foreign) and in the 10th which is the career or industry of the nation. FDR had his North node there and it also gave us luck and a vision of how to solve future problems via government oversight and regulations which the Republicans have widdled away at ever since. As a side, we are now seeing the effects of deregulation and non regulation in the case of China — it doesn’t work, never has. It’s akin to putting the fox in charge of the hen house.

FDR  had a stellium in Taurus trining the US’s stellium in Virgo. Barack has conjunctions to this stellium, both good in this instance. Barack’s rising conjuncts FDR’s Sun and reflects the same humanitarian urges FDR showed during the Great Depression.

They definitely have major differences as well. FDR had a lot of air and earth in his chart making him even cooler than Obama, who would come at this crisis with tremendous passion and dedication to solving it, not unlike FDR, but the style would be different. FDR came at it with the same resolve, but in a more plodding manner.

FDR had Neptune in Taurus close to the same degree Obama’s opposite Neptune in Scorpio, again the see-saw, similar in a way. Obama however is more spiritual, FDR more pragmatic. I wouldn’t be surprised to find that FDR was completely secular. Obama looks for the hidden and has a genuine interest in the spiritual.

Barack has Saturn in Capricorn opposite the US Constitution’s Uranus, helping to stabilize unseen, out of the blue lightning strikes. This also gives him tremendous ability to foresee potential problems before they happen. He may not realize it, but his intuition about the state of the Union is right on. Barack has both his Sun and Mercury trining the US Constitution’s Moon, again helping to stabilize the country and sooth the emotional roller coaster we’re feeling. FDR had his Sun and Venus sextiling the US Constitution’s Moon again creating the opportunity to do the same, but not with as much punch as Obama’s. 

While the two are not the same, having very different personalities, both their charts give luck, stabilization and confidence to the US’s chart. I’m not saying Obama is magic and all our problems will dissolve if (and hopefully for our sake when) he becomes president, but he will significantly ease our upcoming difficulties and be a great president. It may take a while for him to unravel this mess, but he will be able to get us back on track and the longer he stays in office the more he’ll be able to dig us out of the rabbit hole. 

There are definite parallels between these two men. Both great in a crisis with tremendous aspects to the US chart.

Global Economic Meltdown

OK the pundits are now saying it… this trillion dollar bail out. It’s only sand in the wind of the storm.