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.