Tuesday, December 29, 2009

Happy New Year

Next post on Sunday January 3, 2010.

Sunday, December 13, 2009

Gold tumbles further, stocks flat


Stocks were mostly flat last week as positive US retail data was offset by renewed worries over government debt levels in vulnerable jurisdictions like Dubai and Greece. Blue chips performed a little better than the broader market as the Dow closed at 10,471 while the S&P finished at 1106. It was much the same story in Mumbai where equities again failed to punch above resistance levels as the Sensex closed at 17,119 and the Nifty 5117. While the early week Mercury-Saturn-Pluto alignment was bearish as expected, the relative easy rebound later on the Sun-Mars aspect demonstrates how much positive planetary energy is still available. No doubt part of the story is the approach of the Jupiter-Neptune conjunction which comes exact December 21. These two planets have played a huge role in this rally that dates back to March. Jupiter symbolizes optimism and expansion and Neptune embodies notions of idealism and image. Together, they are a potent combination that says "hope" for the future. It's not a coincidence perhaps that the Copenhagen climate conference is meeting just a few days ahead of the exact conjunction of these idealistic and hopeful planets. President Obama will address the meeting on December 18 at a time when Jupiter and Neptune will be separated by less than half a degree -- sounds like it could be a hopefest -- albeit one motivated by quasi-apocalyptic concerns as Saturn squares Pluto (death and suffering) and Mars (conflict and violence) is almost stationary. In market terms, the presence of this underlying force of Jupiter-Neptune optimism has prevented the more negative aspects from taking the market significantly lower.

This week offers more positive short term aspects as the transiting Sun will form a complex alignment with Jupiter, Uranus and Neptune early in the week. This could well boost stock prices temporarily as well as give a lift to gold, which has been recently beaten down by the rising Dollar. On Wednesday, a New Moon occurs in the first degree of sidereal Sagittarius and is another possible "reset" button for the market. Given that the Sun will be separating from those outer planets, some declines are more likely as the week progresses. That said, Venus is close on the Sun's heels at the moment so by Friday it will be within just two degrees of its minor aspect with Jupiter. These are two bullish planets so it's not unreasonable to expect an up day towards the end of the week.

Besides the upcoming Jupiter-Neptune conjunction, Mars goes retrograde the previous day on Sunday, December 20. We are fast approaching the apex of these two important medium term influences. Financial markets may therefore undergo a substantial re-organization in the very near future. A similar re-ordering of the currency markets just occurred with the Uranus station on December 1 when the Dollar finally reversed its decline as Gold topped out above $1200. With the carry trade now in jeopardy, we could see other important ramifications from the appreciation of the US Dollar.

Sunday, December 6, 2009

Dollar strength puts gold rally in jeopardy


The US Dollar showed signs of life late last week as a better than expected jobs report created increased the likelihood of higher interest rate hike. Stocks were generally higher with the Dow trading near 10,500 on several occasions before closing at 10,388 with the S&P at 1105. In Mumbai, positive growth numbers from September lifted shares almost 3% for the week with the Sensex finishing at 17,101 and the Nifty at 5108. While I had been more bearish, the market did generally follow expectations as most of the gains came early in the week on the Mercury aspects to Uranus and Neptune with declines occurring later as the harmonic aspect between Mars and Saturn tightened and Venus came under Saturn's sextile aspect. The most interesting day was Friday as the jobs report brightened the outlook for the Dollar. While stocks were up sharply at the open, profit taking took over and markets slumped after that. This was the first hint perhaps that more good economic news may longer be good for the markets since it risks ending Bernanke's low interest rate regime and the cheap dollar and the resulting carry trade that has fueled the bubble of 2009. After making a high of $1227 on Thursday, Gold plunged over 5% on the renewed enthusiasm for the Dollar.

This week looks more clearly negative, at least in terms of fast moving transits, as two transits will dominate the sky. First, Monday's Mercury-Pluto conjunction may trigger a lot of pessimism due to its 90 degree aspect with Saturn. It's possible that the bearishness may spill into Tuesday since Mercury will still be close enough. The Moon transits Leo early on the week and that may not help matters any since it will be hemmed in between malefics Mars and Saturn. Wednesday's Virgo Moon applies to Saturn is another source of worry since it will again release that problematic Saturn-Pluto energy. The second pattern of significance will be more prominent later in the week as the Sun will form an exact 120 degree aspect with Mars on Thursday. While both planets are natural malefics, it's not clear if this will generate negative market sentiment. It seems there will be enough malefic energy to generate one down day at the end of the week, but we should expect a bounce day here also.

As optimistic Jupiter slowly makes it way towards idealistic Neptune and their conjunction on December 21, it seems likely that we will see another manifestation of this hopeful planetary combination. Off the top, we can see that the Copenhagen climate conference from Dec 7-18 is an embodiment of this idealism and hopefulness as world leaders will once again come together with the best intentions and grapple with this seemingly intractable policy problem. It remains to be seen, however, if anything of substance can be achieved from this meeting. In market terms, the huge bubblicious rally that began back in March can be understood in terms of the initial conjunction between Jupiter and Neptune. Due to retrograde motion, these two planets have been in fairly close proximity with each other for the past eight months. Previously, this optimism manifested as hope for an economic recovery which, in turn, sparked a rally in stocks as investors looked forward to improved corporate earnings. While it is very possible that the December 21 conjunction could coincide with another move higher, there is another plausible interpretation. This time hope for economic recovery may only translate into a higher Dollar since continued good news will boost the greenback. This is exactly what happened on Friday as the Dollar soared against most other world currencies on good employment numbers which increased the likelihood for a rate hike sooner rather than later. But what's good for the Dollar may be bad for stocks because much of the recent rally is rooted in the dollar carry trade. If the dollar continues to appreciate on hopes for a recovery, the carry trade will unwind and this will generate a mass exit from equities. Needless to say, gold is also extremely vulnerable here as the Dollar gets its mojo back.

Sunday, November 29, 2009

Market slides after Dubai suspends repayments


Stocks ended down last week as worries over the Dubai debt crisis brought back uncomfortable memories of the meltdown of 2008. After moving higher in the early going New York was mostly unchanged as the Dow closed Friday at 10,309 and the S&P at 1087. Mumbai was lower by 2% as the Sensex ended the week at 16,632 and the Nifty at 4941. I had been more bullish on the Venus influence here and, indeed, the market was generally higher through Wednesday, especially in the US. I was correct in expecting gains Monday in the US on the Moon-Venus-Jupiter aspect, and the market even backed off on cue in the afternoon as the aspect separated. Tuesday did see some of the predicted selling in the morning come to pass on the bearish Sun-Saturn aspect, although I thought the decline might have lasted more into the close. Instead buyers moved back in and bid up prices in the afternoon. Wednesday also went more or less according to plan as stocks rose modestly on the Venus-Uranus-Neptune influence. However, I missed the extent and precise timing of the late week Dubai decline. While I correctly expected Friday to be down on Venus' ingress into Scorpio and the Moon-Saturn-Pluto pattern, the Dubai news broke Thursday. One possible explanation here is that Thursday's Mercury-Mars "trine" (120 degree) aspect also played a key role in changing sentiment. Although the trine is often thought of as a positive aspect, Mars may have been particularly damaging in this instance since it was 1) debilitated in sidereal Cancer and 2) moving more slowly than usual ahead of its retrograde station in mid-December. Given the plausible role of a Mars aspect in this unfolding of the Dubai crisis, this may be a clue that the upcoming Mars retrograde cycle may not be kind to markets.

The main question on investors' minds this week concerns whether the Dubai problem can be contained or whether it will spread like a contagion and expose other areas of financial instability in the global economic system. The planets this week point to the latter scenario as the tense aspects appear to have the upper hand in the near future. Monday could be fairly mixed as we see both negative and positive aspects at work simultaneously. Moon transits Aries in square aspect with Mars but Mercury forms a nice angle with Uranus. The negative may carry the day here, especially in the US, but stocks should move higher going into midweek as the Moon is exalted in Taurus opposite Venus. But even if we see a day or two of gains, I think the overall bias seems negative, with the possibility of a big down day at some point. Mars' minor aspect with Saturn is exact on Friday so that identifies the late week as a potential danger zone.

The potential Dubai default has emerged here as a reasonable catalyst for a significant market correction. Certainly, the planets over the next few weeks would support some kind of pullback. The upcoming Mars retrograde cycle occurs during a tight Saturn-Pluto aspect and even aspects it quite closely if minor aspects and divisional charts are used. This are a very bearish confluence of measurements. At the same time, we still have to try to make sense of the conjunction between Jupiter (growth, wealth) and Neptune (hope, illusion) conjunction that is exact on December 21. This planetary combination of "growth" and "hope" is often correlated with gains and rallies as indeed we saw the rally in spring 2009 largely coinciding with this conjunction. One possible interpretation is that the Jupiter-Neptune rally will occur but it will be squeezed into a relatively short time span in mid-December. It may still be fairly strong in terms of amplitude but its overall effects may be mitigated by losses that occur before and after. Just how this source of positive energy manifests will be an important question in the days ahead. It's conceivable that it won't be enough to move markets very much at all. Instead it may only reflect the role of inflationary (Jupiter+Neptune) spending from huge deficits in the current economic circumstance. We will have to watch this aspect closely as it moves into position in the coming days.

Sunday, November 22, 2009

Venus loves stocks



After another strong Monday that pushed the market to new highs, enthusiasm for stocks in New York faded last week as the indexes ended mostly flat. President Obama's midweek comment on the possibility of a double dip recession appeared to tipped the scales in favour of the bears as the Dow closed at 10,318 while the S&P finished at 1091. Indian stocks fared a little better as Friday's late day rally came on reassurances that the government would not tax foreign investment capital. The Nifty gained 1% on the week to close at 5052 while the Sensex stood at 17,021. Tuesday's Mercury-Saturn-Pluto alignment turned out to be a non-event as stocks showed only mild intraday weakness. This outcome gave some support to the idea that not all aspects are created equal. Last week I had wondered if the third house, sextile aspect was less malefic than the conjunction or square. In the current circumstance, this relatively benign result supported that view, my own bearish forecast notwithstanding. Empirical reality can be a cruel teacher. The second main aspect for the week was the Venus-Mars square which arguably created more problems. With Mars in debilitation in sidereal Cancer, even a strong Venus in Libra was put under significant stress by this aspect which coincided with modest selling in global markets Wednesday and Thursday. Even there, one could argue that the Thursday's decline was not the result of the Venus-Mars square but rather the Moon-Pluto-Saturn alignment. As I noted last week, this was the same pattern that sent stocks lower on the previous Thursday also. With declines coming on consecutive Moon-Saturn-Pluto patterns, we have a better sense of what kind of reservoir of bearish sentiment may be contained within the Saturn-Pluto combination. I believe we have only begun to tap into the possibilities in this malefic aspect.

With holiday-shortened week due to US Thanksgiving, markets are usually fairly quiet and show a bullish bias. This is likely to be the case also this year as benefic Venus will make its presence felt through several aspects. Monday features a Moon-Venus-Jupiter pattern that ought to encourage optimism, at least at the outset. Once the aspect is exact around midday, there could be some erosion of confidence. At the same time, the Sun will come under Saturn's aspect Monday and especially Tuesday, so that is a potentially bearish influence. There ought to be enough negative planetary energy there to generate several hours of selling which ought to be good for one down day. Wednesday appears to be a return to the happy influence of Venus as it forms close aspects to both Uranus and Neptune. This could well carry over into Thursday in many global markets. Friday could signal a change in the mood as Venus enters sidereal Scorpio and will therefore weaken somewhat. The Moon will oppose Saturn and may bring out the bleakness of Saturn-Pluto once again. Friday may be worse in Asian markets since the Moon-Saturn angle will be that much closer.

In the wake of Obama's trip to China, there is increasing concern to do something about the falling US dollar. China has invested heavily in US treasuries and they can't be too pleased with their tumbling value. Chinese banking officials are now openly complaining about the loose US monetary policy that lies behind the dollar's ongoing weakness. The Fed's near-zero interest rate policy has produced a new speculative bubble in equities and commodities may lead to another crash in the near future. While a crash may be overstating things, markets are certainly vulnerable to substantial correction in this upcoming period of the Saturn-Pluto square and the beginning of the Mars and Saturn retrograde cycles over the next two months.

Sunday, November 15, 2009

Stocks push higher; Mercury-Saturn ahead



Stocks bubbled higher last week as the US Dollar continued to teeter on the edge of oblivion at its key support level of USDX75. The Dow pushed to new highs midweek before closing at 10,270 while the S&P matched its October highs and finished at 1093 (beware the double top). In Mumbai, the indices shook off the recent correction as the Sensex climbed 4% to close at 16,848 and the Nifty finished at 4998. So the midweek Mercury-Uranus-Ketu pattern was mostly bullish, no doubt aided by the simultaneous Sun-Jupiter aspect. It's noteworthy that the high point for the week coincided with those two aspects after which there was a slight retreat. Thursday was an important statement of the bearish potential of the Saturn-Pluto aspect as the Moon acted as trigger during its tight conjunction with Saturn in sidereal Virgo. The release of this Saturn-Pluto energy pushed global markets down across the board. As precise as the timing of this aspect was, it's worth noting that the Moon is the fastest moving planet in the astrological pantheon and therefore is a fairly weak trigger. Usually, planetary power is inversely related with velocity: the slower the planet, the greater the capacity to manifest in human sentiment and action. If the market dropped 1% with the fast-moving Moon, I wonder how much it could drop with a slower moving body like the Sun, Mercury or Mars, to say nothing of Uranus, Rahu or Ketu?

This week may provide some useful data that may answer that question as Mercury falls under the full strength sextile (60 degree) aspect of pessimistic Saturn. This planetary combination is bearish enough, but the fact that Saturn is in a close square aspect with cold, cruel Pluto increases the potential for a significant move. The three-planet alignment makes its closest angle on Tuesday. One possible saving grace is that the sextile is probably not as strong as the conjunction or square so its damage may be mitigated somewhat. Nonetheless, this is still a dangerous combination.

On Wednesday and Thursday, Mars forms an exact square aspect with Venus. Since Mars is debilitated here in sidereal Cancer, it has considerable potential to do harm. Readers may recall the damage Mars did through its square aspect with the Sun back in late October. The market dropped about 5% in a three-day pullback. While there is some bearish potential here, it's important to note the differences. The Sun was also debilitated in Libra at the time, so that may have increased the bearish potential of the aspect. By contrast, Venus here is in its own sign (Libra) and hence much stronger. As a result it may be able to better withstand Mars' unwelcome overtures. We should also note that this Thursday will see an echo of last Thursday's bearish pattern as the Moon may once again activate the Saturn-Pluto square. The Moon will conjoin Pluto at 8 Sagittarius (Lahiri) during the afternoon in New York. History needn't repeat exactly since the Moon will be conjoining Pluto instead of Saturn, but it will nonetheless bear watching.
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Sunday, November 8, 2009

Stocks lift on Sun-Mercury conjunction; uncertainty ahead on Me-Ur-Ke



Stocks bounced back last week on some less-than-awful US employment data and more cheap money happy talk from Fed Chair Ben Bernanke. In New York, the Dow climbed 3% to 10,023 while the S&P finished at 1069. In Mumbai, equities rallied back after Tuesday's thumping as the Nifty ended Friday at 4796 and the Sensex at 16,158. The midweek conjunction of Sun and Mercury delivered higher prices as expected, although the early and late week downside did not quite deliver the goods. While New York was quite solid in the early going, Mumbai was down Tuesday on the Aries Moon and Mercury-Mars square, probably because of Mars afflictions to key placements in the NSE natal chart. Despite a minor Mercury-Saturn aspect, Friday saw the bulls once again carry the day. All in all, it was a victory for the bullish short term aspects over more challenging and shadowy medium term influences. In other words, another edifying lesson in empiricism.

This week could make or break the correction as the Mercury-Uranus-Ketu grand trine configuration takes root around midweek. Both Uranus and Ketu are planets that symbolize change and sudden events and their close aspect here would seem to incline towards new and unforeseen developments. As a fast moving planet, Mercury may be able to act as a trigger to release whatever surprises Uranus and Ketu have in store. By itself, the Mercury-Uranus combination is often bullish, and all the more so given Neptune's additional harmonic influence there. But Ketu changes things up considerably, and it's unclear if stocks can handle so much uncertainty and suddenness. The background influence of the Saturn-Pluto square should also be seen as a negative factor, although it's precise due date is still up in the air. Venus forms an alignment with Saturn and Pluto before trading on Monday, so that could generate some fear and disappointment. However, this aspect clears out fairly quickly so it's conceivable that Monday may not be too bad. Tuesday features the Sun-Jupiter square, a classic symbol of unfounded optimism and excessive expectations. The market could rally briefly but it's perhaps more prone to quick pullbacks once it separates. Thursday will be an interesting measure of the Saturn-Pluto square as the Moon will conjoin Saturn in sidereal Virgo before the close in New York. This combination of energies represents solitude and isolation so it may be more difficult for investors to feel comfortable with their positions. In addition, I think the hardship symbolized by the Saturn-Pluto aspect may correspond with a rebound in the US dollar very soon. All that coldness and cruelty could have investors rushing back to safe harbours.

Sunday, November 1, 2009

Stocks pummeled by Sun-Mars aspect



Stocks moved lower last week on recovery worries and poor US consumer data. Despite Thursday's rally on the upbeat Q3 GDP numbers, the New York market fell 4% as the Dow closed at 9712 and the S&P at 1036. Meanwhile, Mumbai tumbled 6% on disappointing Q2 results as the Nifty closed at 4711 with the Sensex finishing at 15,896. This bearish result was in keeping with last week's forecast as the double dose of malefic debilitation from the Sun-Mars square contributed to the anxious mood. The tension inherent in the Sun-Mars tandem was powerful enough to counter much of the optimism of the passing Venus-Jupiter aspect. Monday started higher in New York on the Moon-Jupiter conjunction but selling soon engulfed the rally faithful. Thursday's 2% bump came on the same day as the exact Venus-Jupiter aspect so that is one possible explanation for it. Not surprisingly, its effects didn't last long as the market sold off sharply on Friday as the Moon set up a nasty t-square pattern with Saturn and Pluto.

This volatility is likely to continue this week as we will see more potential planetary trouble spots. Monday's Full Moon in sidereal Aries occurs at the tail end of a difficult Mercury-Mars aspect, a very dangerous combination that could prove anathema to investor confidence. At the same time, however, Venus will form an aspect with Rahu, Uranus and Neptune which may offer some support. While otherwise positive, its simultaneous occurrence here may not be enough to bring sellers back into the market. As the Moon enters Taurus late Tuesday, the Sun and Mercury will form a conjunction at 18 degrees of sidereal Libra in midweek. This is normally a favourable combination for stocks so some kind of bounce back is to be expected. Of course, the other medium term influences look less positive so it's unclear how much lift this configuration can generate here. Friday looks like more skittishness as Mercury will fall under the minor aspect of Saturn, especially in New York.

The long-awaited correction seems to be fully underway now. The bearish promise of the Saturn-Pluto and Ketu-Uranus aspects would tend to suggest that we're going to see a decline that is larger than a standard-issue 10% dip. Even with some optimism returning for the Jupiter Neptune conjunction in early December, there's good reason to think this 7-month rally is undergoing some fundamental transformation.

Sunday, October 25, 2009

Stocks slip back; Sun-Mars aspect ahead


Stocks slipped last week as investors took profits on positive earnings news. In New York, the Dow backed off its highs and closed Friday down about 1% for the week at 9972 while the S&P finished at 1079. In Mumbai, stocks retreated 3% as the Sensex closed at 16,810 and the Nifty at 4997. No surprises here really given the mix of aspects in play, although as always the exact timing defied an easy logic. The bullish Mercury-Jupiter aspect manifested a day early in Monday's gain while the midweek Sun-Saturn minor aspect similarly arrived somewhat ahead of exactitude as the market pulled back on Tuesday and Wednesday. Interestingly, Friday's apparently bullish Mercury-Uranus-Neptune aspect did not pay off as stocks fell in New York, albeit after a positive open. The failure of the market to hold onto its initial gains on this configuration is a possible sign of developing weakness.

This week's planets seem somewhat more difficult and will be an important test of the underlying sustainability of the rally. For the bulls, Venus comes under the benefic influence of Jupiter early in the week, with gains possible on either Monday or Tuesday. The Moon may play the role of midwife here as it conjoins Jupiter in Capricorn for both these days, although I am skeptical if we will see gains both days. Actually, the aspect is exact early Thursday but it seems more likely to manifest early all things considered.

For the bears, the Sun is entering into a potential tense square aspect with Mars, also on Thursday. These fiery planets can produce a lot of energy for good or ill but the square aspect can mean that there is an uncontrolled or harmful element present here, particularly since Mars is debilitated in sidereal Cancer and the Sun is debilitated in Libra. While it's conceivable that this combination may not reflect problems in investors sentiment, it's nonetheless an aspect to take very seriously. In addition, Mercury is in a minor aspect with Saturn midweek so that is another potentially bearish energy. By the time Friday rolls around, Mercury (10 Libra) will be close to coming under the influence of that debilitated Mars (12 Cancer) so that is definitely a hazardous aspect for stocks. It's still two degrees short of exactitude but that may not be enough to prevent fear from taking hold in the market. As a special bearish bonus, on Friday the Moon forms a t-square with Saturn and Pluto, now just one degree away from an exact 90 degree aspect. While these two slow moving planets will be in aspect for several weeks in November, this may be a possible early activation by the transiting Moon. It will definitely bear close watching.

Sunday, October 18, 2009

Dow hits 10,000 on Jupiter station



Euphoria is back in fashion as the Dow hit 10,000 last week on a parade of encouraging earnings reports. A double shot of Intel and JP Morgan on Wednesday was the big market mover coming just one day after Jupiter's direct station. Despite the danger implied in the Venus-Saturn-Rahu pattern, Jupiter's extra dose of stationary energy prevailed as the Great Benefic did the heavy lifting this time around. After Friday's retreat, the Dow finished the week at 9995 and the S&P at 1087. In Mumbai, stocks were also buoyant as the Nifty climbed to 5142 and the Sensex hit a 17-month high of 17,322. Heady days indeed for this rally that has bounced back from every correction thus far. I had thought the Saturn-Rahu might have been enough to nullify the Jupiter station but again my best laid bearish plans were thwarted.

What may be occurring here is a kind of planetary inversion where some apparently negative patterns are corresponding with highs rather than lows. One of the most prominent features of the October 2008 crash was an alignment of mostly malefic planets -- Sun, Saturn and Rahu. Negative sentiment and market declines correspond with "bad" planets in close aspect. The lows are typically marked by the exact aspect after which prices rebound and move higher. The March 2009 lows also occurred in a similar way as malefic Saturn was in close aspect with a stationing Venus. The negativity of the aspect manifested at the same time as the market low. But since this is the unknowable world of astrology, there are many exceptions to this pattern. In fact, global stock markets made their highs in October 2007 very close to a rare triple conjunction of Venus, Saturn, and Ketu. While Venus is a benefic planet, Saturn and Ketu are first class malefics and thus render the pattern quite harmful. So in that case, bad planets corresponded not with a low, but with a high. Where did all that negativity go? Perhaps some negative combinations only mark the beginning of a negative trend, like opening up a black door of bearishness. Once the market made its highs in late 2007, it plunged 40% over the next 12 months.

So it may be that some of these difficult patterns we've seen in September and October may actually be marking significant highs for the market. While the market has rallied going into these patterns, the Saturn-Rahu and Saturn-Uranus aspects may well have opened the black door once again and some significant declines are about to unfold.

This week holds some promise for the bulls as Tuesday's Mercury-Jupiter aspect usually brings optimism and good news. And Friday sees Mercury moving into a minor aspects with Uranus and Neptune so that also augurs positively for stocks. But on the other side of the ledger, Mars is in a harmonic aspect with Pluto on Monday and the Sun receives a minor aspect from Saturn on Wednesday and Thursday. We could well see an increase in volatility this here leading into the very difficult Sun-Mars-Mercury square next week.

Sunday, October 4, 2009

Planetary trainwreck looms


Last week US markets fell the for second straight week amidst growing fears that the recovery may not be just around the corner. Stocks fell 2% as the Dow closed at 9487 and the S&P finished at 1025. Indian markets bucked the worldwide negative trend in a holiday-shortened week as the stocks moved 2% higher. The Sensex closed Thursday at 17,134 while the Nifty ended the week at 5083. This outcome was mostly in keeping with expectations since I had been bearish on the unusually prolonged minor Mercury-Mars aspect last week. After Monday's gain in New York, stocks fell over the next four days as the retreat from the previous week's highs proceeded apace. So far, the Saturn-Uranus aspect is proving to be a significant signpost for the markets as stocks rose leading up to the exact opposition aspect on September 18, and have fallen as the aspect has separated. This mirrors what happened in the two previous oppositions in November 2008 and February 2009. Mumbai is an important exception to this trend so far, perhaps due to some benefic hits in the relevant natal charts that have offset the transit energy.

The markets now stand on the precipice as we have an impressive array of foreboding planetary aspects this week. Mercury (trading) conjoins Saturn (pessimism) while under the damaging aspect of Rahu (exaggeration). While there is no certain interpretation of this configuration, I believe we are likely going to see increased fears and investor caution which will translate into greater selling and more declines. As an added dimension, I note that we will have no less than four planetary ingresses this week. When planets change signs, there is supposed to be a shift in energy. Usually this is fairly subtle, and often undetectable (read: unfalsifiable) especially on a mundane level. Now once again moving forward, Mercury re-enters Virgo on Sunday while Mars enters Cancer on the same day. Virgo is generally kind to Mercury so that may be construed as a slightly bullish factor. But Mars is debilitated in Cancer and that may increase volatility as aggression and conflict is more likely to come to the surface. Mars is also in a close conjunction with unpredictable Ketu, so that ratchets up the chances for unusual or sudden outbursts of conflict or violent action. (As a side note, the September 11th attacks took place under a Mars-Ketu conjunction). So that's two planets changing energy on the same day and neither in is good planetary company -- Mercury is with grim, old Saturn and Mars is with nutty Ketu. This is quite unusual, and perhaps destabilizing although the ingresses may be less important than the aspects and conjunctions

But we also have two outer planets, Uranus and Neptune, also changing their sidereal signs this week according to Lahiri or Krishnamurti. Unlike inner planets which change signs every month or so, outer planets change signs every few years and hence their ingresses may be more noteworthy. According to the Krishnamurti ayanamsha, Uranus enters Aquarius Monday while Neptune enters Capricorn on Thursday. Since these distant planets move so slowly, their ingresses will vary by a few days depending on which ayanamsha is used. I should also point out that this will not be the initial ingress for either Uranus or Neptune since both are retrograding back to a previous sign, and hence one could argue that the ingress may be less significant. Nonetheless, having four planets changing signs in such quick succession is a very rare occurrence and may serve to amplify any developments we see in the markets or the world over the next week or two. American astrologer Richard Houck noted that outer planet ingresses often coincide with major changes in the status quo. Uranus in particular was associated with major stock market declines. The 1987 US crash occurred the day Uranus entered Sagittarius, and the Dow lost 6% the day Uranus entered Capricorn in 1994. It's by no means a certain correlation or even a probabilistic one since we can point to many Uranus ingresses when the markets were relatively calm. But it should be seen as another potentially negative factor that could weigh heavily on markets, especially combined with the difficult Mercury-Saturn-Rahu and Mars-Ketu patterns.

This week nothing would surprise me. Get ready for anything.

Sunday, September 27, 2009

Stocks decline in aftermath of Saturn-Uranus aspect



World markets staged a modest retreat last week as investors grappled with disappointing economic data coming out of the US. After some early week strength that saw indexes climb to new yearly highs, stocks in New York had three straight losing sessions as the Dow finished at 9665 and the S&P at 1044. Indian markets also pulled back fractionally as the Nifty closed below 5000 to 4958 while the Sensex ended the week at 16,693. This decline was in keeping with our expectations for a significant correction in the wake of the Saturn-Uranus opposition. Tuesday's exact Mercury-Saturn conjunction coincided with gains rather than losses so that was an important anomaly that echoed a similar outcome of the Sun from the previous week. The declines later in the week therefore reflected the dissipation of positive energy following the the exact aspect of these various planetary combinations. Just as we saw a rise into the Saturn-Uranus aspect through the first half of September, the backside of this aspect may well see the market sell off. The addition of trigger planets such as Sun or Mercury may also reflect this before/after dynamic.

The planetary picture appears even more entangled this week as Mercury turns direct on Tuesday while in close minor aspect with Mars. Mercury's normally bearish retrograde period has been overshadowed by stronger bullish energies. However, we should recall that its aspects with Mars can be troublesome for the market, such as in late August when Mars formed a square aspect with Mercury and the market experienced a small correction. While this 60 degree aspect is considered less malefic, it's closeness and long duration of influence this week may well produce bearish results. The close proximity of Saturn to stationary Mercury may not be helpful in that regard either and could well make matters worse. And with Saturn and Rahu moving into closer aspect, there is good reason to be very cautious about this market this week and through much of October.

It's a dangerous time.

Sunday, September 20, 2009

Stocks advance into Saturn-Uranus aspect


Fueled by a seemingly unending stream of positive economic reports, stocks continued their ascent to new 2009 highs last week. In New York, the Dow rose 2%
to close at 9820 while the S&P finished at 1068. In Mumbai, the Nifty added 3% for the week and flirted with 5000 before ending the week at 4976. The BSE Sensex closed at 16,741. Commodities were mixed as crude oil rose to $72 USD while gold gave up midweek gains and ended mostly unchanged at $1007 USD. While I had anticipated some higher highs here, the absence of any significant late week pullback on the Sun-Moon-Saturn conjunction was disappointing. On the whole, the week was somewhat anti-climatic given the exact culmination of Saturn-Uranus opposition aspect. The Venus influence delivered predicted gains into Wednesday when it formed its closest angle to the Saturn-Uranus-Neptune alignment and indeed we saw the biggest gains of the week at that time. Against expectations, equities mostly held their own into the late week, however, as the Sun-Saturn conjunction only modestly damaged gold's prospects.

With the Saturn-Uranus opposition now behind us, we need to pay extra close attention to any new developing trends this week. Previous oppositions in this series have seen the bulk of the bearishness manifest after the exact opposition, so any downward moves this week would keep this correlation intact. Higher prices this week would provide significant evidence against the bearish view of the aftermath of the Saturn-Uranus aspect. With Mercury retrograding across Saturn, we would seem to be confronted with an even more bearish mixture of planetary energies than in past weeks. The exact conjunction occurs Tuesday so the early week may be more prone to selling. Of course, the Sun occupied a similar position last Thursday and we saw only a fractional decline. Nonetheless, Mercury's condition may be more vulnerable given its retrograde status. Some late week gains are likely as the Sun forms a minor aspect with Jupiter Thursday and into Friday. We should also pay attention to the approaching aspect from Rahu to Saturn. While not yet exact, the negative energy from this contact could begin to manifest fairly soon.

Sunday, September 13, 2009

New highs on Venus-Jupiter aspect


Against a backdrop of improving economic data, stocks gamely added to their recent gains and made new highs for the year. In New York, the Dow rose 2% and equaled its highs from late August closing at 9605 while the broader S&P500 finished at 1042. In Mumbai, equities rallied more than 3% as the Sensex ended Friday's session at 16,264 while the Nifty broke above some significant resistance at 4750 closing at 4829. This bullish outcome was more or less in line with our expectations as the Sun-Venus-Jupiter configuration strongly pointed towards some gains. What was somewhat surprising was that the lion's share of the gains occurred early in the week, although solid momentum was maintained in the US for Wednesday and Thursday at the time of the tightest orb. Friday saw a modest negative day in the US, probably due to the separation of the Venus-Jupiter aspect.

In astrological terms, this week promises to be a moment of truth of sorts, as the long-awaited Saturn-Uranus opposition aspect will become exact on Tuesday. There is actually a lot more going on in the sky this week and that will only serve to ramp up the torque and increase the potential size of any moves. As a possible triggering mechanism, the Sun will conjoin Saturn on Thursday while the Moon follows suit on Friday. As an added source of planetary energy, Mercury will square Pluto late in the week and this should be seen as a burden on risk taking and optimism. Notwithstanding the fairly negative outlook here, the earlier part of the week holds the possibility for further gains in both stocks and commodities as benefic Venus will enter into alignments with Saturn, Uranus and Neptune.

We should also note that this Sun-Moon-Saturn-Uranus-Neptune configuration (all in the first sidereal degree of their respective signs) not only increases the chances for declines, it may also function as a cosmic signal for a trend reversal. Previous Saturn and Uranus oppositions in the current series have also coincided with significant pullbacks, although not during the immediate period around their aspect. On November 4, 2008 Saturn opposed Uranus (along with a helpful square aspect from Venus) and that marked an interim high for the US market. Stocks fell 20% in the subsequent three weeks into the November 21 lows. Similarly, Saturn again opposed Uranus on February 5, 2009 near an interim high and the market fell 25% into the lows of early March. In both instances, it was not the time around the exact aspect which took the market down, but rather the aftermath of the aspect which coincided with the decline. This 'high water' scenario is something to ponder as we confront another Saturn-Uranus opposition this week.

Sunday, September 6, 2009

Markets retreat on Mercury-Mars square


Stocks staged a modest retreat last week as more investors entertained second thoughts about the sustainability of the rally. After trading below 1000 earlier in the week, the S&P ended the week at 1016 while the Dow finished at 9441. In Mumbai, caution was also the watchword as stocks fell four sessions out of five with only Friday's gains precluding a rout. The Sensex ended the week at 15,689 and the Nifty backed off last week's highs to close at 4680. While I had been ambivalent about the ultimate outcome last week due to the uncertain impact of Jupiter, the basic contours unfolded as expected with weakness early on followed by gains later. Monday and Tuesday saw the bearish effects of the Mercury-Mars aspect prevail while the approaching positive aspect between Venus and Sun at the end of the week coincided with solid gains. In the end, Jupiter's minor aspect with both Mercury and Mars did not provide enough encouragement for bulls to assume long positions but rather served to magnify the selling pressure, as Tuesday's across the board decline in New York was the sharpest in several weeks. While Jupiter is most often a bullish influence because of its optimistic nature, it is also a planet that can sometimes serve only as an accelerator to prevailing trends regardless of their direction.

With US markets shut for the Labor Day holiday, Monday will feature the beginning of the retrograde Mercury cycle on September 7. Since Mercury is the planet associated with trade and commerce, its reverse motion is often indicative of negative or sideways markets as investors take a 'time out' to review their positions and re-assess their portfolios. The Mercury retrograde cycle will last until Sept 29 and should be seen as an additional bearish factor that will tend to work against the markets extending its rally. With Saturn entering sidereal Virgo on Wednesday, we may see traces of its energy manifest in the world as it changes sign. Saturn represents structure, authority, loss and tradition so some of these themes may be more in evidence in the coming days. This needn't have an immediate effect on the market although the early week period may be more prone to selling. We may see stocks rebound strongly Wednesday and Thursday (and possibly into Friday, esp. in Asia) on the opposition aspect between Venus (24 Cancer) and Jupiter (24 Capricorn). This combination of benefics may promote spending and investing and encourage greater risk taking in the marketplace so we could well see stocks approach their previous week's highs. The fact that the Sun (24 Leo) will be in minor aspect to this opposition may increase its bullish potential. Since Sun symbolizes gold, we can expect gold to continue it recent rally, probably above $1000. Given the preponderance of difficult aspects next week, however, this rally seems very short-lived indeed.

Sunday, August 30, 2009

US stocks stay strong; Mumbai rises to new high



World markets continued to defy gravity last week new yearly highs were established on many bourses, including US and India. After trading around 9600 in the week, stocks in New York closed mostly unchanged as the Dow ended at 9544 and the S&P at 1028. Mumbai was even more bullish as markets rose in all five sessions, as the Nifty closed Friday at a 2009 high of 4732 while the Sensex finished at 15,922. I had expected more downside on the Mercury-Mars-Rahu-Pluto pattern but it seems the offsetting Venus-Ketu conjunction on Wednesday may have been stronger than anticipated. As expected, we did see some more gains later in the week, especially in India, as transiting Venus improved the overall energy in the Mercury-Mars aspect. And while gold was weaker early on in the week as I had suspected it might be, it also staged a strong recovery by Friday.

This week offers another opportunity for the bearishness of the Mercury-Mars square to manifest, possibly early on when the Moon joins Rahu in Capricorn. By midweek, however, this energy may be redirected by Jupiter's minor aspect to this square. Jupiter is essentially an expansive influence so it has the capacity to enhance whatever trends are already underway. This could conceivably amplify any down move, although given Jupiter's benefic default setting towards gains, one might think it could take stocks higher also. By the end of the week, Venus will be moving into a minor aspect with the Sun, so that is another potential bullish energy source in the face of the negativity of the Mercury-Mars square and Mercury's imminent retrograde station on September 7. As the planet of trading and commerce, Mercury's condition is of critical importance in understanding the market, at least on a short-term basis. When it is strong, markets rise and when it is weak or afflicted, markets tend to fall. Its current placement in sidereal Virgo (which Mercury is said to rule according to astrological tradition) is an indicator of strength and no doubt that is one reason the market has so far been able to continue to rise despite the problematic input from the Mars aspect. But Mercury will likely come under further stress as we move into its retrograde cycle from Sept 7th to 29th.

While the overall planetary picture looks increasingly tense here, I would not be too surprised to see higher highs this week. Much will depend on what role Jupiter is playing midweek through its contact with Mercury and Mars. If Tuesday sees gains, then that will likely tip the scales in favour of more gains overall for the week and a possible new high.

Sunday, August 23, 2009

US stocks rise to new 2009 high


Stocks in New York made new highs for 2009 last week as improving housing data supplied the hope necessary to extend the summer rally. After Monday's sharp decline, stocks rebounded and ended 2% to the good with the Dow closing at 9505 and the S&P at 1026. While I have a pessimistic view of stocks right now, this outcome was not that far out of line with last week's forecast -- at least in terms of ebb and flow. Monday's pullback came right on schedule with the Mercury-Saturn conjunction, even if it was fairly mild, at least in the US. I had also suggested that some gains were likely Wednesday through Friday as Mercury and Venus were involved with better planetary company. This bullish script also played out more or less as rehearsed as stocks went straight up after Monday. There was a somewhat different story in Mumbai as stocks fell over 1% for the week, although the basic trends were the same. Monday's decline was steeper (5%) and hence that perhaps better captured the extent of bearishness I was expecting. The rebound was also somewhat more muted especially since Wednesday ended down. Thursday and Friday were positive though so that was solid evidence for the benefic effects of Mercury and Venus.

The planetary focus this week is a fairly rare and powerful four planet alignment involving Mercury, Mars, Pluto, and Rahu. All these planets will be a 6 degrees of their respective signs and will therefore be in mutual harmonic resonance. In addition, Mercury falls under the full strength aspect of malefic Mars and disruptive Rahu. On paper, it's a rogue's gallery of planetary evil-doers all ganging up on Mercury, the quintessential innocent bystander and has all the makings of a bear party for all markets, including oil and especially gold. Since Mercury is slowing down in advance of its retrograde cycle, this alignment could conceivably kick-in at any time in the week, although the early to midweek may be more likely. One interesting twist here is that Venus will conjoin Ketu on Wednesday and this bullish influence could be enough to interrupt the bear party, if only for a few hours. Later in the week, Pluto and Rahu get left behind and Venus moves into the picture, so there may be more opportunity for the bulls to run again then.

Despite these new highs, it's hard to come up with too many more bullish planetary patterns in the coming weeks. Sure, there are a smattering of a fairly good aspect late this week and a potentially significant two-day multi-aspect next week, but these little pools of hope are fast petering out and there will soon be no more oases for the bulls to feed on. And with fewer good aspects and an increasing number of bad aspects, the market will soon begin to fall.

Sunday, August 16, 2009

Markets cautious ahead of major planetary alignment


Stocks in New York finished slightly lower last week as disappointing retail sales weighed against improved industrial production data. After trading at key resistance levels on Thursday, the Dow closed at 9321 and the S&P at 1004. Meanwhile, Indian shares managed to move modestly higher after hitting midweek lows of 4400 on the Nifty. While still significantly below recent highs, the Nifty closed at 4580 and the Sensex at 15,411. This middling sort of outcome was more or less in line with expectations as the early week declines on the Mars-Saturn square were offset by the Sun-Mars-Jupiter alignment on Wednesday and Thursday. As is often the case, Friday's decline in New York came on the heels of this positive aspect and was not unduly surprising, particularly since our outlook is generally bearish here.

This week promises to be even more volatile as there are two very potent multi-planet alignments that form exact angles early on. Monday will feature an apparently bearish Mercury-Saturn conjunction at 27 Leo. Generally speaking Saturn contacts are considered bad news for stocks and this one is perhaps more likely to signal a retreat because Jupiter is also involved. Jupiter (27 Capricorn) sits in a tense 6/8 quincunx aspect with this conjunction and that would appear to bode poorly for markets this week. In addition, no less than four planets -- Sun, Mars, Uranus and Neptune -- are all placed at 1 degree of their respective signs Monday and Tuesday. This adds a lot of planetary fuel to the mix and could magnify any moves this week. The most likely scenario here would appear to be early week decline -- possibly a steep one -- followed by a recovery later as Venus forms a minor aspect with Jupiter on Wednesday and Thursday. Mercury's opposition to Uranus on Friday also has the potential to lift stocks, but perhaps only if we've seen real damage inflicted earlier in the week from the Mercury-Saturn aspect. The negative payload of these planets have to be released first before more positive energies can be expressed.

With Saturn approaching its opposition aspect with Uranus in September, it's very hard to imagine the market going anywhere but down. The more important matter therefore concerns how low could this retracement might go. Given all the tense aspects between now and November and the relative absence of positive ones, it seems that this decline may be much bigger than a garden variety correction.

Prepare the lifeboats.

Sunday, August 9, 2009

US stocks rise on Mercury-Venus


Stocks powered higher in New York last week on better than expected employment data. Despite some midweek profit taking, the Dow rose 2% to close at 9370 while the S&P finished near a key resistance level of 1010, which was the post-crash November 2008 high. This bullish outcome was more or less in keeping with my forecast last week as the Mercury-Venus aspect provided sufficient optimism to encourage risk takers. More specifically, Monday was up as expected but Thursday's anticipated gain arrived late as markets only rose Friday. In Mumbai, worries over the monsoon trumped global cues as the indexes fell 3-4%. After some early week strength that retested key resistance levels at 4700, the Nifty ended the week at 4481 while the Sensex stood at 15,160. So we did see more upside as forecast although the gains did not hold. Interestingly Thursday was higher intraday but gains disappeared by the close. This was perhaps an instance of a generally favourable transit aspect between Mercury (12 Leo) and Venus (12 Gemini) feeding into the stressful natal position of Saturn (12 Aquarius) to produce a decline instead of a rise.

Now that the triple eclipse series is behind us, we should look at this stock rally as living on borrowed time. The eclipses have lit the fuses and started the timer so it's now only a matter of the right triggering planets coming together to release the explosive bearish energy and push prices down. This week features a couple of very strong aspects which have the potential to move markets in both directions. Mars squares Saturn on Monday but this 90 degree relationship is arguably more effective since they mutually aspect one another according to classical Hindu aspecting rules. Mars casts its 4th house square aspect forward to Saturn and Saturn casts its 10th house square aspect to Mars. Since both planets are malefic, there is a probability for negative fallout here. However, as the week progresses Mars will be influenced by Jupiter's benefic rays so that could change sentiment considerably. This is all the more likely given that the Sun will be part of this multi-planet alignment.

Caveat emptor has never been better advice.

Sunday, August 2, 2009

Markets stay bullish; Lunar Eclipse this week


Stocks continued their drift upward last week on better than expected Q2 GDP data in the US. After some midweek bearishness, the Dow closed Friday at 9171 while the S&P stood at 987. In Mumbai, the Sensex touched a 13-month high intraday on Thursday before closing at 15,670 while the Nifty ended the week at 4636. This bullish outcome was mostly in keeping with expectations as the quick succession of Venus and Mercury aspects with Jupiter provided enough optimism to move markets higher. Monday's Mercury-Saturn aspect largely offset the Venus-Jupiter trine as stocks treaded water. As I expected, there was more selling Tuesday and Wednesday in the "hangover" aftermath of that positive configuration. The Mercury-Jupiter aspect on Wednesday and Thursday arrived more or less on schedule, although Wednesday was mostly down. Friday did not see any big declines despite retrograde Jupiter entering sidereal Capricorn, although that is a longer term bearish influence that will be operating for the next several months.

This week we will see the third and last eclipse in this series as a lunar eclipse occurs on Wednesday (EDT) at 19 degrees of Capricorn. Eclipses mark periods of change and instability in the world and this eclipse seems to promise that and more. The previous solar eclipse featured a close Venus-Saturn square which, I argued, foretold of coming problems and losses (Saturn) with financial markets and money (Venus). Well, we will soon see if that interpretation will be borne out by events. This lunar eclipse also has a strong Saturn aspect, this time with Mars. And as (bad) luck would have it, it is also a tense square aspect within three degrees of orb. Mars-Saturn aspects can represent situations of violence, oppression, frustration, and destruction and in the present context may indicate growing geopolitical concerns that could involve military conflict in the coming weeks. On that point, we should note that President Obama's chart is also under a lot of stress in the coming weeks as Saturn and Mercury will conjoin atop his natal Mars. While this pattern may simply represent increased frustration and failure with his health plan reforms (polls indicate he's in trouble on that issue), the Mars factor here opens the possibility of some kind of military or geopolitical problem.

This week the market may well be able to stave off the bears for a little while longer as Mercury moves into aspect with Venus by Friday. We could see some sizable moves in both directions this week, with Monday and Thursday looking the most positive on paper. So I would not be surprised to see more upside here, although with the Mars-Saturn square due to come exact next Monday the 10th and the Mercury-Saturn conjunction on the 18th, all gains should be seen as very temporary indeed. Investors would be well advised to practice their best version of Buddhist non-attachment to any long positions before this rally falls apart.

As the man with the sandwich board sign tells us, the end is nigh.

Sunday, July 26, 2009

Stocks continue to rise on Solar Eclipse


With the solar eclipse showing no immediate effects, markets continued their winning ways last week as stocks rose 4% on more good earnings reports. The Dow closed at 9093 while the S&P stood at 979. It was much the same story in Mumbai, as the Nifty climbed to 4568 and the Sensex to 15,378. While the eclipse correlated with modest declines Tuesday and Wednesday in India (but only Wednesday in New York), the apparently unstoppable ebullience highlighted the ongoing influence of the Jupiter-Neptune conjunction. While the late week gains fell in line with expectations for a bump up from the Sun-Moon parivartana yoga, I thought the eclipse might have claimed more victims. As I have previously noted, eclipses are not atomic clocks and cannot be relied upon to dictate market moves. They are probabilistic instruments not unlike road signs that notify the traveller of trouble ahead ("Construction Zone: next 10 miles"). Just when the trouble will manifest isn't always clear, but that Venus-Saturn square of July 22 does not portend a happy ending to this rally.

This week's planets would appear to offer more bullish fuel to investors as Venus forms an aspect with the Jupiter-Neptune conjunction (and later Uranus, too) while Mercury follows suit Wednesday and Thursday. Monday's positive alignment has a large asterisk however, since Mercury is in a close minor alignment with Saturn and that has the power to take markets down on at least one day in the early going. Nonetheless, the balance of energy would seem to favour the bulls here as we can expect to see stocks to bounce back from any losses they might incur. This seemingly bottomless reservoir of well-meaning but ultimately deluded hope will likely also push oil and gold higher. In the wake of the positive Mercury-Jupiter aspect late week, there is increased risk of a hangover-like reaction that follows the completion of a triggering aspect by a fast moving planet (Venus, Mercury) to a larger configuration of slower moving planets such as Jupiter, Neptune and Uranus. In investment parlance, this reaction is known as profit-taking.

The planetary weather in August looks conducive to more gains on optimism over the prospects for recovery, at least at the outset. By month's end, however, the folly of our ways will be revealed.

Sunday, July 19, 2009

Stocks rally on Sun-Mercury conjunction


Stocks rallied strongly last week on positive US earnings reports and favourable economic data coming out of China. In New York, the Dow gained 7% to close at 8743 and the S&P finished at 940, as markets rose back towards their June highs. In Mumbai the rally was no less impressive as the Nifty gained 8% to end the week at 4374 while the Sensex once again pushed toward the 15k level as it closed at 14,744. Although I allowed for some up days on the Sun-Mercury conjunction, my forecast was far too bearish last week. Interestingly, the Mars-Rahu aspect did indeed push the market down Monday in Asia with recovery coming in the afternoon in New York as stocks moved higher on the Sun-Mercury conjunction in late sidereal Gemini. As it turned out, both the Mercury-Uranus aspect and the Sun-Jupiter aspect later in the week overwhelmed whatever bearishness was contained within Friday's Mercury-Ketu aspect as stocks moved higher. The bullish momentum from last week is perhaps an indicator of the resilience of the market here so there is likely a little more upside to come as we move into August before the status quo is upset. Jupiter enters sidereal Capricorn on July 31 where it will remain until December. As the planet of optimism and confidence, Jupiter will be weakened by its transit into the sign of its debilitation. This is another reason for being skeptical about the staying power of any rallies in this market.

And speaking of upsetting the status quo, this week features a total solar eclipse on Wednesday (GMT) which will be visible in central India and China. The eclipse will occur at the same time Venus (24 Taurus) is in square aspect to Saturn (24 Leo). This not only can create feelings of caution and pessimism (Saturn) around money (Venus) during the early and middle part of the week when the aspect is closest, it may also foretell a significant decline in the world economy in the weeks and months to come. Eclipse effects usually take days or weeks to manifest (and many astrologers would also say months in some cases), so that is an indicator that the optimism over the economic recovery may wane in the near future. As this lengthy Jupiter-Neptune conjunction finally separates, we will likely see a major decline in stock prices, starting sometime in August and continuing into the fall. In terms of other aspect specifics, Mercury and Mars form a minor aspect on Monday and Tuesday and this is another possible source of nervousness that could cause some investors to exit the market. Some bounce is more likely toward the end of the week on Thursday and Friday as the Moon enters Leo and forms a parivartana yoga with the Sun in Cancer while Venus applies to aspect Jupiter.

Wednesday, July 15, 2009

Stocks rise on earnings reports


Stocks in New York rose sharply after Intel reported stronger than expected earnings. The Dow closed up 3% and closed at 8616 while the S&P ended trading at 932. The rally got started in Asia as Mumbai also bounced off last week's lows as the Nifty closed at 4233. So much for the much-ballyhooed head-and-shoulders pattern that was portending lower prices. Markets have broken above the "neckline" at Dow 8550 and are rapidly approaching their June highs.

This uptrend is largely in keeping with our weekly outlook given the Sun-Mercury conjunction and the Mercury-Jupiter aspect, although I admit it's somewhat stronger than I expected. I still see a good chance some substantial profit taking for tomorrow and especially Friday on the Mercury-Ketu conjunction, although it seems that we will finish higher on the week.

Sunday, July 12, 2009

Markets continue decline as eclipse approaches


Markets fell across the board last week on fears that the much anticipated recovery may have to wait until next year . In New York, the selloff began in earnest on Tuesday's sharp loss, as stocks dropped over 2% on the week as the Dow closed at 8146 and the S&P at 879. In Mumbai, the damage was much worse, as investors were disappointed by Monday's budget that offered greater spending initiatives (and attendant high deficits) and little in the way of significant market reforms. Stocks fell 9% as the Nifty closed at 4003 and the Sensex at 13,504. This bearish outcome was largely in keeping with expectations as the selloff commenced with the exact alignment of Mars with Jupiter and Neptune within a day of the Full Moon. Thursday's Moon-Sun-Saturn alignment did broadly coincide with some modest gains as forecast, although they were not sufficient to break the negative trend for the week. The markets are now in full-blown correction mode as stocks search for a solid bottom.

With the approach of the total Solar Eclipse of July 21, we may continue to see the predominance of caution and pessimism. The key aspects this week suggest a mixed outcome with high volatility and a possible further downward bias. Monday will see the tail end of a very nasty Mars-Rahu-Pluto alignment that might be enough to push down markets in Asia, at least in the early going. Recovery seems more plausible later in the day and into Tuesday as the Sun will conjoin with a very strong Mercury in late sidereal Gemini. As the week progresses, we see Thursday's apparently positive Mercury-Uranus aspect that normally might push markets higher. But given Mercury's proximity to malefic Ketu, I am not confident that this aspect can produce gains. By Friday, Mercury will be almost fully in the clutches of Ketu (the South Lunar Node) and this is more likely to put a lot of pressure on investors (as represented by Mercury) as Ketu's penchant for otherworldliness and spiritual release could make the stock market into an unpopular place.

Sunday, July 5, 2009

Stocks slip in New York on separating aspect


Stocks in New York sold off sharply Thursday and ended down by more than 2% for the week. After approaching 8600 Wednesday, the Dow closed at 8280 while the S&P ended at 896. Mumbai ended a little higher on the week, mostly on the strength of some buying late Friday in anticipation of Monday's budget announcement. The Nifty closed at 4424 while the Sensex finished the week at 14,913. I had expected more of a rise last week given the Mercury-Venus-Jupiter-Neptune alignment so this outcome was somewhat surprising. It nonetheless provides a useful clue that the strength of the Jupiter-Neptune conjunction may now be fading. I had thought we might see some weakness especially given the separation of the Mercury and Venus aspect to Jupiter after midweek and Thursday's sell off in New York coincided nicely with that phenomenon. India fared somewhat better although Thursday and much of Friday was fairly flat and uninspired. Interestingly, the rally in the last two hours of trading Friday occurred just as the Moon was moving into exact square aspect with the Jupiter-Neptune conjunction. Although the Moon was debilitated in Scorpio, aspects to benefics will often trump other considerations.

This week features a Full Moon on Tuesday at 21 Sagittarius which may incline markets towards caution especially earlier in the week. On Monday, Mars will be in alignment with the Jupiter-Neptune which may conceivably maintain the enthusiasm for stocks early but the separation of this aspect may bring out sellers in force later. The Full Moon occurs close to the Mars-Rahu aspect in the NSE chart so that increases the likelihood of a decline around that time. On a more positive note, there is a three-way Moon-Sun-Saturn aspect on Thursday that may also move the markets significantly. Since Saturn is in the Sun's sign of Leo, this Sun contact may possibly correspond with a rise. Transiting Venus will conjoin the ascendant of the S&P500 natal chart (11 Taurus) later in the week so that also bodes well for higher prices then.

Sunday, June 28, 2009

Stocks hold their ground


Stocks were mostly unchanged last week as the early selloff from the Venus-Mars-Saturn alignment was offset by late week strength on the Mercury-Saturn square aspect. In New York, the Dow closed at 8439 while the S&P ended at 918. In Mumbai, the Sensex ended Friday's session at 14,764 and the Nifty at 4375. I thought the market would be more negative here, mostly because I thought the Mercury-Saturn aspect would tend to encourage more selling. As it turned out, the Mercury-Saturn aspect on Thursday and Friday was a net positive for stocks, perhaps a reflection of the improved condition of Mercury's dispositor, Venus, which had just passed its conjunction with Mars.

This week looks more positive as benefics Mercury (1 Gemini) and Venus (1 Taurus) move into harmonic conjunction by midweek. What makes gains more likely is that this Mercury-Venus association will feed straight into the Jupiter-Neptune (2 Aquarius) conjunction. While some pullbacks are possible Monday or perhaps later in the week, some of this positive energy seems likely to predominate here. Even with the Jupiter-Neptune conjunction now moving retrograde, this rally seems like it has further to go. The next exact conjunction of Jupiter and Neptune occurs Friday, July 10 and the current period is likely to provide support for current levels. After that, the solar eclipse of July 21 may signal a shift in energy that could interrupt the prevailing upward trend.

Sunday, June 21, 2009

Week of June 22 - 26


Stocks lost ground around the world last week as prospects for recovery suffered on poor US housing data. In New York, the Dow closed down 3% at 8539 while the S&P finished at 921. Indian stocks also declined almost 5% as the Sensex ended Friday's trading at 14,521 and the Nifty at 4313. As if to underline the importance of Jupiter and the Jupiter-Neptune conjunction in this spring rally, stocks moved lower Monday the same day that Jupiter turned retrograde. As I noted last week, these retrograde stations can often coincide with market reversals and this one was a textbook case. I had thought we might see more upside midweek on the Sun-Jupiter aspect, but that was not enough to move markets higher. Mumbai only saw a gain Tuesday as well as a nice move higher right at the close Friday. The Venus-Mars conjunction did not coincide with much in the way of a correction, and indeed US stocks enjoyed a late week bounce.

This week has a good chance to start higher as Venus passes Mars on Monday. Monday will also feature the Gemini New Moon in close opposition to Pluto, so this may increase the size of the price move. The Pluto opposition often creates problems for government and authority, although this needn't have any immediate negative market consequences. As the Mercury square with Saturn tightens into a conjunction by Friday, the market may well turn bearish again and make the week negative overall. It will be interesting to watch how Jupiter's new retrograde condition will affect aspects involving faster moving planets. While still benefic and supportive of higher prices, we may find that an aspect with Jupiter doesn't produce the same kind of lift that we've seen in the past two to three months. Overall, I don't think this will be a huge pullback, especially in the US market, and next week we could well see more strength. Watch for gold to move higher early in the week but the rally should fade fairly quickly.

Sunday, June 14, 2009

Week of June 15 - 19


Stocks mostly treaded water last week on mixed bag of economic news. New York continued to trade well above its 200-day moving average, as the Dow closed Friday at 8799 while the S&P finished at 946. In Mumbai, losses in the beginning and end of the week offset midweek gains as the Nifty closed at 4583 and the Sensex at 15,237. This outcome was not unexpected, as I noted the possibility that the bullishness of Mercury-Jupiter-Neptune pattern could be counteracted by the negativity of the Mercury-Mars velocity equivalence. Interestingly, Mumbai's trading patterns seemed to bear more resemblance to the transit aspects as Tuesday and Wednesday did see a rise with selling late in the week. By contrast, New York saw some modest gains only late in the week, although they were large enough to change the basically uncommitted tone for the week.

With Jupiter turning retrograde Monday, we have another reason to consider the chances of significant correction across markets this week. When planets change their direction, markets can often mark a reversal in their direction. Given that markets have been generally rising lately, this Jupiter retrograde influence makes some kind of pullback somewhat more likely over the coming days. With the Sun moving into position with the bullish Jupiter-Neptune-Uranus alignment early and midweek, I would think that some gains are likely before any possible move lower. With Sun-Jupiter-Neptune lining up for the bulls this week, the bears can ponder the negative potential of benefic Venus coming in contact with malefic Mars by next weekend. Since aspects usually express their energy before forming an exact angle, one would think the days before the conjunction on Sunday, June 21 would be more prone to negativity. But perhaps the key word here is "usually".

Sunday, June 7, 2009

Jupiter-Neptune still in control


Stocks gained 3% last week to new 2009 highs on improved prospects for a quick recovery. Most of the week's gains came on Monday's session with some levelling off afterwards, as the Dow closed at 8763 and the S&P at 940. In Mumbai, anticipation of economic reforms in July's Union Budget helped push stocks higher as the Nifty closed at 4586 and the Sensex at 15,103. Much of the early week bullishness came off as expected on the Venus-Jupiter-Neptune alignment as benefic Venus was the trigger to release the optimism of Jupiter. The Mars-Rahu square could be implicated in Wednesday's decline, but the pullback was more muted than expected. And Friday's Sun-Saturn square was only malefic enough to force a mostly flat outcome. Even if Jupiter is now separating from Neptune, their proximity seems to be close enough to be overriding other potentially offsetting influences.

We can see a couple apparently positive aspects forming early this week. Venus trines Pluto on Monday, while Mercury moves into alignment with Jupiter, Neptune and Uranus on Tuesday and Wednesday. Of these two aspects, the Mercury would seem to be more reliable to produce an up day or two. Later in the week the picture gets murkier, although there are no clearly negative aspects. Nonetheless, if there is going to be profit taking this week, I think the late week is a better candidate. Another clue that we could see some kind of correction starting perhaps midweek and beyond is that Mercury and Mars will be moving at the same velocity -- 44 minutes of arc per day as of Wednesday. The malefic influence of Mars may be transmitted to the trading impulse of Mercury and push prices lower. The timing of this influence is fairly close to the Mercury-Jupiter- Neptune aspect, so it's conceivable that there will be some balancing out. And given the tenacious optimism of Jupiter and Neptune, it's hard to picture a big decline here, the separating aspect notwithstanding.