The volatility has picked up in the markets.  Last week the Nasdaq timing signal turned bearish for the long term.  The Dow however remains bullish for the long term.  We would need to see 2-3 weeks of continued selling pressure for the Dow to also signal a bearish trend.  In light of my projections for the first week of November I believe we will see the Dow also turn bearish the week of October 20th.

Bill Gross's departure from Pimco and move to Janus is a big deal.  The markets rebounded on Friday with the announcement but in my view there is more trouble to come.   Gross's departure has the signature of a former professional gambler calling the cards, it was expected that he would be dismissed on Saturday.  After the first week of October there could be a mass exodus from Pimco funds as more investors learn Bill is no longer a part of the firm.  There have been rumors for months that Bill was potentially going to be forced out/retire.  An article in Reuters last February titled "Is It Time For Bill Gross To Retire?" said it all, they wanted him out.  Looks like Bill threw has his own agenda and the market volatility peaked on the rumors.

The risk for more volatility is higher now with Uranus moving retrograde and then square the U.S. Sun at 13 degrees Cancer in October.  From here the markets will likely resume an upward trend and could potentially test the recent highs.  We will book profits into strength and look for short setups into October.

Lunar Eclipse October 8, 2014

Last week I covered the Mercury retrograde beginning October 5th.  On the heels of the retrograde is a total lunar eclipse at 15 degrees Aries.  This is a powerful eclipse so I have added the astrology chart to illustrate what is happening.  You can see a kite formation in the center with the aspect lines.

Kites are powerful configurations and I often mention them in stock chart analysis. When these patterns form prior to an earnings report we can anticipate a 'high flyer' in terms of a bullish move if other alignments warrant.  What I will caution about this kite formation is the Sun/Moon t-square to the U.S. Sun while Uranus is conjoin the eclipsed Moon and opposed the U.S. natal Saturn.  The combination is very explosive and could bring an earth quake or even terror attack involving explosive weapons within days or weeks of the eclipse.  The energy of this eclipse is so intense that an event could occur prior to the eclipse on October 5th or 6th.  This is the type of chaos I have been warning about throughout 2014.

The tip of the kite is the Sun at 15 degrees Libra--conjoin the U.S. Saturn at 14 degrees 48 minutes Libra.  A political move to gain more executive powers prior to the midterm elections as a means to influence the vote, control the voting process, or even change it.  There is a point-counter-point to this setup on October 12-13 with a Saturn return to 21 degrees Scorpio and a dispensation that will uphold the rule of law.

The lunar eclipse is also significant for the CME Group.  There could be some type of computer glitch with a hedge fund group.  Volatility, abnormal price movement, or flash crash type moves are all a greater possibility.

The following is from this weeks premium report by Astrology Traders. You can view all our trades here verified by Marketfy.