Weekly column: Fed cautious on rate hikes as job growth surges, but geocosmic conjunctions loom

Review

 “‘We’re waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence, and we’re not far from it, it’ll be appropriate to begin to dial back the level of restriction,’ Powell said in response to a question about rates and inflation. He said the cuts would be so the Fed doesn’t ‘drive the economy into recession rather than normalizing policy as the economy gets back to normal.’” —Jeff Cox, “Powell Says the Fed is ‘Not Far’ From the Point of Cutting Interest Rates,” www.cnbc.com, March 7, 2024.

U.S. employers added 275,000 jobs in February and the unemployment rate ticked higher, the Labor Department reported on Friday. Growth was driven by the hiring of health care and government employees, along with food services. On the flip side, the manufacturing sector cut 4,000 positions. Strong job growth combined with rising wages is fueling inflation, according to some economists.—Suzanne O’Halloran, “US Economy Adds 275,000 Jobs in February, Unemployment Increased to 3.9%,” www.foxbusiness.com, March 8, 2024.

The Jupiter/Uranus steamroller keeps rolling along as new highs continue to be achieved in several world stock indices, as well as other markets such as Gold and Bitcoin. It makes one wonder if there will be any significant pullback before those two planetary behemoths conjoin near the end of a Mercury retrograde cycle on April 20/21, depending on where you live.

All-time stock market highs were recorded last week in Germany, the Netherlands, Australia, Japan, India, and the U.S. on the S&P and the NASDAQ. That’s quite impressive, and just the way Jupiter and Uranus like it when they work together. But there is always reason to be alert for sudden reversals when Uranus is involved, as it was March 3-9 by order of its square with both Venus (March 3) and Mars (March 9). There was, in fact, a sharp decline on March 5—in both stocks and Bitcoin—but in each case, prices bounced right back and made new all-time highs by Friday (except in the case of the DJIA, where the high of February 23 remained intact).

Bitcoin was an interesting study of the role Uranus plays in financial markets. Early on March 5, right between the squares of Venus/Uranus and Mars/Uranus, Bitcoin soared to a new all-time high of $69,202. Less than five hours later, it lost nearly $10,000, down to $59,313. However, by Friday, March 8, BTC was making another new all-time high, up to $70,175. It’s hard to keep a force like the approaching Jupiter/Uranus conjunction down once it sets new all-time highs in its sight. But once it turns, it is also hard to stop the demon drop-down.

The same can also be said of Gold, which skyrocketed to a new all-time high, reaching $2203 during Friday’s session. Silver had a good week, rising to $24.73 on Thursday, its highest mark yet in this young year. Crude Oil, on the other hand, failed to hold above the $80 mark, but for the moment, it continues to lumber along in an upward channel as long as it can remain above $74.

Short-term geocosmics

 “Look, I view myself as a bridge, not as anything else,” Biden said at a March 2020 campaign rally in Detroit. He called himself a “transition candidate.” …I’m struck when I speak with exasperated Biden voters by how often they bring up the “bridge” quote and the “transition candidate” line. This suggests that they viewed their past support for Biden as an emergency proposition—and that his ongoing presence violates an implied bargain…. You can understand how voters might feel bait-and-switched by Biden’s refusal to go away.—Mark Leibovich writing for the Atlantic, March 6, “Notable & Quotable: ‘The Biden Bridge,’” Wall Street Journal, March 7, 2024.

Democrats know they’d be toast if Republicans nominated a younger, less-encumbered candidate. But Mr. Trump’s own liabilities and peccadilloes give Mr. Biden at least a fighting chance, without the risks of an intraparty meltdown that a contested nomination would have brought…. Expect this codependency to continue to define the general election campaign…. The race for the moment is one of relative unpopularity. –Kimberley A. Strassel, “The Trump-Biden Codependency: Both Presumptive Presidential Nominees Are So Weak That They’d Lose to Virtually Anyone Else,” Wall Street Journal, March 7, 2024.

The dramatic cosmic conditions of the past few weeks will now take a slight break after this weekend’s hard square aspect between Mars and Uranus. No Mars—No Uranus—No Jupiter—highlights until April’s return to the celestial sphere of geriatric gladiator activities. The primaries for the U.S. 2024 election have mostly been determined as a result of last week’s Super Tuesday results, in which the expected contest between the current and the former president is indeed underway—a rematch that the vast majority of U.S. citizens (and probably most people throughout the world)—do not wish to see. But it is what we have, which means independents will have to choose who not to vote for—again.

Financial markets will likely not pay much attention to the election polls until summer has passed. However, they will continue to reflect on the state of cyclical and geocosmic factors, as already noted by the forthcoming Jupiter/Uranus conjunction on April 20/21, 2024. Well, let’s clarify that. Financial cycles are distorted by this powerful conjunction. It acts like a magnet for higher prices—in stocks, precious metals, and cryptocurrencies. And it may continue into and even beyond April 20/21, for Jupiter will continue making favorable aspects to the other outermost planets (Neptune and Pluto) into early June. After that, the good times may begin to turn by late summer as Jupiter embarks upon a 10-month hard square aspect with Saturn. What goes up, must come down.

Shorter-term, we may see a semblance of a return to more normal cyclical behavior as the aspects involving Mars, Jupiter, and Uranus peel back the rest of this month, perhaps to recharge their power for another barrage in April. What’s happening between now and then?

First, we have Venus entering Pisces on Monday, March 11, lasting until April 5. That’s a lovely combination of love and romance, but by itself, it doesn’t bestow much energy for financial market fireworks. On March 17, the Sun will conjoin Neptune, another cosmic union of peace and love (especially since it takes place in Pisces). This is considered a Level 1 geocosmic signature with a surprisingly very high 79% correlation to primary cycles within 10 trading days. Four days later, just one day after the spring equinox of 2024, Venus will conjoin with Saturn. This is not usually a great union unless it combines beauty and youth with wisdom and experience. But this is a signature we like because it often coincides with a rally in any market that declines into it. If the stock market rally stalls now, this would be a fine place to look for a primary or major cycle trough. Hence, it is a good time for our Options Webinar on March 16. You want a major or primary cycle low if looking to buy call options or bull spreads in options.

It’s after April 1 that the real cosmic fireworks return. First, Mercury turns retrograde in the late degrees of fiery Aries. Tempers and temperatures start to rise. This is followed by a powerful eclipse on April 8 at 19° Aries, conjoining not only the Moon’s North Node but also Chiron, the “wounded healer.” Someone (anyone) could get hurt. This is further highlighted by the war threat aspect of Mars conjunct Saturn on April 10. It could get very hot. Finally, it culminates with Jupiter conjunct Uranus on April 20/21, around the same time that the Sun conjoins Pluto. All this occurs just before Mercury turns direct on April 26, near the same degree of the solar eclipse in mid-Aries, which, by the way, cuts right across the mid-section of the United States.