December 7 Weekly Update - Stock Market Forecast

December 7 Weekly Update - Stock Market Forecast

Fengshui: Market likely to be weak this week, except for December 7 & 8, while Dec 11 likely to be volatile.


Financial Astrology: There are bullish and bearish planetary alignments in the sky. Who will win the battle: Bulls or Bears?


Technical Analysis: US indices – there is a bullish chart pattern and a bearish chart pattern forming in the indices. Which way will the market go?

If S&P 500 breaks 1083 channel support, it would likely be a sell signal.

Review Friday December 4: “The US markets roared higher this morning on the back of a better than expected Jobs Report. However, it is only a minor part of why the market goes up or down. The real key is the dollar. The markets move directly inverse to the dollar and with a massive squeeze in the dollar higher, the markets have tanked. This explains exactly why the markets have rolled over in a major way – Dow reversing down more than 200 points before closing positive. This is a very significant reversal intra day and must be watched closely. This could very likely signal something bigger in the charts.”

“The entire stock market rally has occurred on the back of the weak U.S. Dollar. Simply put, this rally was nothing more than a re-inflation rally. Everything inflationary moved higher such as gold and agriculture. What will happen if the dollar begins to rally? One would think that commodities would fall. If this is the case, what would move this market higher? “

December 2009 Stock Market Forecast

December 7 2009 to January 4, 2010

This is the Yang Fire Rat Month. Strength to the Earth element will weaken equity markets. Equity markets may be seen trying to gain strength during the first half.

Favourable industries/sectors: Wood and Earth

Financial Astrology:

There are both Bullish and Bearish Planetary Alignments this month. Who will win the battle: Bulls or Bears?

Watch these dates:

1. December 16 – New Moon

2. December 20 – Mars Retrograde

3. December 21 – Jupiter/Neptune Conjunction, Winter Solstice

4. December 26 – Mercury Retrograde

5. December 31 – Partial Lunar Eclipse

Technical Analysis:

US Market: There is a bullish chart pattern and a bearish chart pattern in the indices. Which way will the market go? Will Phase 3 down start in December 2009 or will it be delayed till early January 2010?

Protect against downside risk – if S&P 500 breaks channel support at 1083-1078, it will be a sell signal.

Have you read "US Stock Market Outlook 2010"?

US Stock Market Outlook 2010

Studies by experts indicates that the 10-Year Cycle has been the most influential cycle in US stock market trends over the past century.

Statistical pattern of US Stock Market Trends:

1. US stock market bottoms in a year ended in ‘2’;
2. Rises to a peak in a year ended in a ‘6’ or ‘7’ ;
3. Experiences a crisis and slump;
4. Market rises to another peak in a '9' or '0' ended year;
5. Followed by another market collapse, with nearly always 2 down waves early in a new decade: DOW plunges to reach a low in the '0' ended year, experiences a major rally then plunges into another low either in '2'/'3' ended years or '3'/'4' ended years.

During the 2000's, the US stock market followed the 10-Year Cycle pattern:

1. Dow peaked in January 2000
2. Hit a bear market low in October 10, 2002
3. Rose to another record peak on October 11, 2007
4. Serious financial crisis occurred in late 2007, stock market collapsed in 2008 with a major low reached in March 9, 2009;
5. US stock market has been rising ever since.

So, what would be coming next based on this 10-Year Cycle Pattern?

Will US Stock Market peak soon (or already hit the peak on December 2 2009?), followed by another stock market collapse in 2010? Will another major rally follow before the next market decline into '2'/'3' ended year or '3'/'4' ended year?

What do my Stock Market Time Clocks say?

All these US stock market high and low dates are found in my Stock Market Time Clocks. The Stock Market Time Clocks have been 'ticking' since 1929. Will December 2009 be the peak or will it be in 2010?