Shanghai Composite : 2008-2012



Never too late?
It really feels a bit late to be writing a post on the Asian markets. Maybe, I should have written this last October, when I first looked at them. I see from my files that that was 26 October 2007! Still, that assumes I am only in business to predict when bubbles will burst and that is not so. I am here to predict all changes and even the times when nothing happens at all. All information is equally good.

Having said that, it is worth peek at what astrological factors correlated with the huge increase in the Shanghai composite and its subsequent fall before looking to the future.

In the period 2001-5 things were depressed in the Chinese market. Progressed Venus and progressed Saturn were in conjunction the whole time – this reached its maximum in 2005 when a Saturn transit opposed the degree.

However things were changing in the background, the progressed Sun was also in conjunction with Uranus at the time, showing a tendency for a rapid swing about. And in 2004 Mars turned direct in the chart and in 2006 Mercury did the same; indications of a big change in the level of trading.

During 2006-7 the progressed Sun was in conjunction with progressed Neptune – a sure sign of things losing touch with reality. But Pluto was conjoining the natal Sun – a sign of transformation of the index and with this roughly sextile the MC there was a potential for any trend to be magnified. On 16th October 2007 Jupiter transited the progressed descendant creating a turning point. At the same time transiting Mars sextile Saturn/Venus was mirroring the aspect in the chart and triggering the negative pattern again.

In 2007-8 we also see that the progressed MC is square the Ascendant and progressed Mars, suggesting difficult trading patterns.

Can we put the gas back in?

Now, in late July 2008, Pluto is making its final aspect to the Sun and the progressed Sun is leaving Neptune, suggesting this particular bubble will not re-inflate. However with Jupiter transiting that progressed Sun there maybe some brief rallies now and when it returns to this position in October.

The eclipse on 1st August is close to the IC and quincunx the chart’s conjunction of Venus Mercury and Uranus. We might have reached a bottom.

The eclipse on 16th August is accompanied by Saturn trining this conjunction, further suggesting that we will have seen the worst of the downward trend by then. The eclipse is trine progressed Mercury and square progressed Mars, suggesting fluctuations in trading however, which is not surprising given that there is no major upward trend forecast for a while and the fact that the Olympics will disrupt everything in the country for a few weeks.

In September Uranus stationed sextile the Moon for almost six months and Uranus trines Pluto. Despite the fact that some people are now nervous about this market, this coupled with a trine form Saturn to the Sun/Neptune conjunction will probably be seen later as a buying opportunity.

In October, as mentioned there is even a rally, and when the configuration of Jupiter Saturn and Uranus meet the chart’s Moon and Pluto in November this might gain some momentum. Though this will not be on the scale of 2006-7 , it may be a change to make some quick profits which can be realised in December when Jupiter transits Saturn and Pluto makes another sextile to the
Progressed MC, or in January 2009 when Jupiter transits progressed Venus.


2009
After the potential winter rally, the chart looks a little dull for a few months, but obviously the conjunction of May 2009 involving Jupiter Neptune and Chiron merits consideration.

Uranus sextile progressed Saturn at that time and is beginning to activate progressed Mars as well as square the natal Sun. Signs of more activity. Transiting Saturn is trine Neptune and the progressed Sun again- suggesting that people are looking for real value again.
The major conjunction itself is square that progressed Mars but sextile both progressed Mercury and the Sun. This does not say much about price direction. It does suggest lots of trade. On balance it is not bad for this market though.

The theme continues through the summer without much change in direction of the overall market, and again it looks as if we are hovering around a bottom as Saturn trines the Moon and Saturn between July and September.

By December Saturn is quincunx the MC it look as if there are opportunities for the risk adverse investor when it trines the progressed Venus. Pluto again sextile the progressed MC suggests a reorientation of the index but this is not necessarily bad.

2010
There are conflicting themes this year. Saturn continues trining the progressed Venus throughout the period – suggesting value remains important. However it is not a hard aspect which might mean depressed prices- rather it ensures that prices reflect fundamentals.

During this time, Neptune will complete its approach to the progressed Mars and will stay in aspect to Mars for a couple of years. This can mean frantic trading or depressed trading – depending on the other factors – it guarantees lack of clear direction and that delusion will dominate. However it is also sextile the Sun and progressed Mercury. This suggests that the balance will be in favour of another unsubstantiated rise in the index despite the Saturn influence.

Uranus sextiles the chart’s Saturn in February 2010 – this could mark the start of the trend. Jupiter is sextile Venus/Mercury and Uranus briefly – providing the impetus in the form of renewed optimism. Indeed there could be a significant rally in mid March as Jupiter reactivates the Neptune /Sun relationship at the same time as transiting Neptune sextiles the Sun and the progressed Moon squares them, to accentuate the trend. However not everything in the garden is rosy and with Uranus square the Sun it would be wise to expect an unexpected shift either regulatory/sector wise or otherwise.

Trading is likely to be frantic again in April when Uranus sextile the chart’s Mars and given the other factors at play we can assume that buying is the favoured mode and that prices will rise.

By May anything could happen. Neptune continues to square Mars. But now Uranus is joined by Jupiter, doubling the effect, and at the same time Saturn will trine Mars. These aspects remain in force throughout the summer, but by late July they are picking up the progressed Venus too. All in all the following aspects will be in force in August (Pluto sextile MC prog, Saturn trine progressed Venus with Uranus and Jupiter sextile it and Neptune sextile the Sun. It does seem like this market will be a good place to be that summer.

The themes do continue into the latter part of the year but they are more subdued. And by December Saturn is square the Mercury Venus Uranus conjunction – probably selling before then would be wise.

2011
Although Uranus and Jupiter repeat their sextile with Mars in January 2011, Saturn is now square Neptune and the progressed Sun. This will almost certainly depress prices even though not too severely. The progressed Moon square Saturn in February confirms this trend and in March when Saturn stations square the progressed Sun things are quite difficult. Although Jupiter will square Venus and Mercury etc. at the same time, this is likely not to be a favourable event – rather volatility will rise but prices will not.

May 2011 is equally mixed. Positive events shown by Uranus sextile progressed Venus again are offset by Jupiter square the Saturn Moon conjunction – the balance is negative for the month. June looks more positive as Jupiter sextiles the progressed MC, but care is needed as Chiron is also activated.

Things look better from July to September when Jupiter trines Venus/Mercury/Uranus and the progressed Moon trines Neptune and the progressed MC. And the last few months look volatile – with falls in September as Saturn squares Neptune again, rises by November as Jupiter returns to the Venus configuration. All in all trading is uninformed with Neptune still square Mars. But as we can see that may be the clam before the storm.


2012
In January 2012 Neptune is square the Ascendant- showing confusion and misinformation abound. But Jupiter is sextile the progressed MC – people are optimistic anyway. And we are approaching big changes. These will have been highlighted by the themes of 2010-11 but only now will they start to become really apparent as in February Pluto reaches the 8th degree of Capricorn and the conjunction of Venus/Mercury and Uranus. At the same time transiting Uranus is activating the chart’s progressed Venus again. This is about fundamental change. Global forces are at work and they are affecting the Chinese index. Prices look set fro a big re-evaluation – but not due to a bubble mode- rather as a result of real fundamental shifts.

That this is a critical year for the index is confirmed by the fact that two progressions are exact- the progressed Mercury reaches the Sun and the progressed Sun reaches the Moon. This confirms what we have seen elsewhere, that major political and economic changes will be taking place in China at this time and it should come as no surprise that they will be affecting the stock-market.

The themes continue throughout the year. By June Pluto and Uranus are close to their transiting square – We have a fundamental shift in technology, in government structures, in the capitalist system and free markets, and with Neptune conjoining the progressed MC most will have no idea of what the outcome of this will be in the longer term. July is critical- the progressed Moon squares Jupiter and the MC/IC axis, Jupiter transits Mars and the Ascendant- a crucial turning point is reached. Mostly this looks positive – although with Pluto at play dead wood will have to go and only the strong companies will survive to be more successful. But the process is ongoing and will still be in play as we move into 2013.


Chart:

Shanghai Composite Index. Shanghai, Base date 19 December 1990, 15.00 local time (base calculations use closing prices but that this happened on the base date is not confirmed). Source Shanghai stock exchange www.sse.com.cn

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