Sunday, March 15, 2009

Stocks surge on banking hopes

Stocks rose sharply last week on new hope for the viability of the US banking sector, as the Dow ended Friday at 7223 and the S&P at 756. In Mumbai, stocks also posted substantial gains in the holiday-shortened week as the Sensex closed at 8756 and the Nifty at 2719. The gain was largely in keeping with our astrological expectations given the benefic influences of the Sun-Uranus conjunction and the Venus-Jupiter aspect. An added bullish element could be found in the favourable overlay that these aspects created in the relevant natal charts. In the Mumbai NSE chart, for example, the Sun-Uranus conjunction at 28 Aquarius was in exact trine aspect with the Jupiter at 28 Libra.

This week Saturn once again finds itself the centre of attention as Mercury makes its exact opposition aspect to it on Wednesday, while Jupiter is just one degree from forming an exact 6th house aspect with Saturn. While the complexity and uncertainty of astrology often precludes clear causal statement, any alignment that contains Saturn tends to promote fear and pessimism and hence declines are more likely. Another possible bearish influence is the Sun's entrance into sidereal Pisces on March 14. Pisces is ruled by Jupiter and since Jupiter is currently debilitated in Capricorn, this may weaken the Sun's ability to boost sentiment and inspire confidence. On Wednesday, Mars forms a close 3rd house aspect with Pluto and this may add and extra dose of energy and desire to traders. By itself, it is a neutral aspect that can either be positive or negative for the markets. It may indicate higher volumes and could be associated with a larger market move as investors may feel a greater sense of urgency to enter or exit their positions.