The U.S. stock market fell to its major cycle trough on November 15, on concerns that the Republican tax reform proposal would not have enough support to be enacted. The DJIA fell 138 points on that day, prior to the House vote on the matter. But the House passed the measure for tax reform the next day, November 16, and the DJIA exploded nearly 200 points higher, while the NASDAQ Composite raced to a new all-time high. The next day, Friday, the DJIA was down 100 points again, and ended the week down 64 points. Congress will now take a break for Thanksgiving holiday (markets will be closed on Thursday, November 23), before returning for the Senate vote, expected the following week, just in time for the first of three passages of the Jupiter/Neptune trine on December 2 (weekend). As discussed in this column before, Jupiter and Neptune in a trine aspect is indicative of euphoria and “irrational exuberance,” to borrow a phrase coined many years ago by former Fed Chair Alan Greenspan. That is an aspect of infatuation, of thinking you are in love, of feeling like it is time to celebrate. But afterwards, reality strikes, you wake up the next day, and you have to deal with the hangover. Was it even “real?” What were we thinking?
I am doubtful the Senate and the House will be able to reconcile an agreement and pass this tax reform bill before the Jupiter trine Neptune of December 2. And, if they don’t, this could spell trouble for the U.S. and other world stock markets into early 2018. If I am wrong and they do pass it, then for a while, it may seem like “Happy Days Are Here Again.” Until winter begins.
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I am doubtful the Senate and the House will be able to reconcile an agreement and pass this tax reform bill before the Jupiter trine Neptune of December 2. And, if they don’t, this could spell trouble for the U.S. and other world stock markets into early 2018. If I am wrong and they do pass it, then for a while, it may seem like “Happy Days Are Here Again.” Until winter begins.
Copied from
Mmacycles.com