Sunday, December 14, 2008

Forecast for week of Dec 15 - 19

US stocks ended mostly unchanged on the week as the Dow closed Friday at 8629 and the S&P at 879. The forecast early week rise to 9000 came off more or less as expected, but the decline afterwards was fairly modest. While Friday's open took the Dow down towards 8400, the market rallied through the rest of the day, despite the malefic Full Moon configuration and the failure of the auto bailout plan in the Senate. As Mars perfects its square to Saturn on Monday, it's hard to imagine the market going much higher this week. Declines would seem to be more in keeping with the planetary energy. A midweek rise is more likely given the Venus-Rahu conjunction on Tuesday and Wednesday. Rahu symbolizes acquisitiveness and compulsive behaviour and Venus is connected with money so we may see a strong up day. Mercury is in aspect with Rahu later in the week, so that could give some investors second thoughts and take the market down again.

Indian stocks rose 7% last week on hopes that China's stimulus package would help avoid the worst of the slowdown. The Nifty closed Friday at 2921 and the Sensex at 9690. While the early week rise was anticipated, the absence of a late week pullback was something of a disappointment. I think Mumbai will likely catch up on the downside this week as transiting Mars conjoins the ascendant in the NSE chart. At least one strong up day is likely, however, so the overall losses may be tempered somewhat. I think Indian markets are vulnerable to sell offs over the next two weeks as transiting Saturn is coming to its retrograde station on 31 December exactly conjunct the natal Moon in the 8th house in the Sensex chart. This doesn't mean the market will be completely negative until that time, but it will probably mean that any rallies will not get far as selling pressure will never be far away.

The US dollar sank a little further last week as the Euro and Gold moved higher. I think the US dollar will likely move higher this week, and likely continue to be strong through to the end of the month.