Tuesday, July 12, 2016

Is Jupiter pushing stocks higher? Lessons in financial astrology

(12 July 2016) Global stock markets have extended their post-Brexit rally into the start of another week.  While there remains considerably uncertainty about the UK economic situation, investors are seeing the glass half-full here after the sudden victory of moderate and pro-EU Theresa May for the leadership of the British Conservative Party.   The re-election of Japanese PM Shinzo Abe over the weekend was also seen in positive terms as it likely means even more government and central bank stimulus will be forthcoming for its perennially moribund economy.

The current rally has even managed to hit a new all-time high for the blue chip S&P 500 on Monday with the Dow now just a few points away.  Other US smaller cap indexes still have some ways to go before they make new highs, however.  European and Asian stocks are no less bullish here as Japan's Nikkei has added 7%  in the first two trading days this week while India's Sensex finished the Tuesday session at 27,808, an 11-month high.

In last week's market forecast, I had thought we might have started to see some of the negative effects of the entry of Mars into sidereal Scorpio early this week, but so far optimism is still the prevailing mood. It is worth remembering that the problematic Mars transit of Scorpio will last for the next nine weeks (into mid-September) so we should not be too surprised by this week's early gains.   Mars is moving fairly slowly still as it recently completed its retrograde cycle at the end of the June.

On the basic lessons of financial astrology is that rising stock prices are linked in some way to the position and condition of the planet Jupiter.  Jupiter is a bullish investor's best friend as gains are more likely when it forms close geometric angles with other bullish planets.  When it aligns with bearish planets like Mars, Saturn and Rahu, however, Jupiter's inclination for optimism becomes less reliable and can often be negated.  While I emphasized the destabilizing role of Uranus and Mars in the Brexit vote and subsequent sell-off, Jupiter did conjoin Rahu (North Lunar Node) in June (exact on 20th June) and that may have been an additional indicator for some of the downside we saw both before and just after the UK referendum. 

Now that Jupiter (24 Leo) is moving away from its conjunction with Rahu, stocks appear to be recovering quite strongly.  Jupiter (22 Leo) aligned with Pluto (22 Sagittarius) in the last week of June (exact 26th June).  just as most stock markets bottomed out after the Brexit vote.  Jupiter is now approaching a non-aspect alignment with Uranus in early August (exact 12th August) so that could provide an additional boost for sentiment around that time.  It's ultimate impact on the market is less clear, however, since it is not a proper aspect (0, 120, 240 degrees).  As a rule, non-aspect alignments tend to be weaker in their effects. 

Of course, forecasting market trends requires an analysis of many factors. Occasionally, a single factor will be strong enough to outweigh all others.  This appeared to be the case with entry of Uranus into sidereal Aries on 23rd June. Usually, however, assessing the collective sentiment that moves markets requires consideration of all of the planets and their aspects.  Well, easier said than done.

But even when considering the condition of a single planet like Jupiter, aspects are still only part of the story.  We also need to consider its sign placement and its dispositor.  Jupiter is in sidereal Leo now which is ruled by the Sun.  The Sun is therefore Jupiter's dispositor.  Therefore, the situation of the Sun may provide useful information for assessing the condition of Jupiter. 

I have also found that the relative placement of the planets around Jupiter can contain important information about the public mood and market sentiment.  One of the oldest of astrology across all cultures is the symbolism of the planets.  In both the East and the West, Jupiter represents expansion, gains, optimism and wisdom.  No wonder it is considered a bullish planet.  Since Jupiter is said to rule over the notion of gains, it is naturally associated with the 11th house of gains and income. 

A "house" is just astrological jargon for a region or area in the sky relative to a fixed frame of reference.   When the 11th house is strong in an individual's chart, then that person will tend to make money and fulfill their desires and wishes.  When the 11th house of a stock exchange or index chart is strong because of a positive transit, etc, then stocks are more likely to rise.  But we can extend the logic one step further: when the 11th house from Jupiter is strong, then stocks may also be less likely to fall and more likely to rise.  What defines "strong" or "weak" is a matter of interpretation (as always, facts must be understood theoretically!) and yet there are some basic notions that can be used with a reasonable degree of objectivity.

The current arrangement of planets around Jupiter seems to be positive since the Sun is placed in Gemini in the 11th house from Jupiter.  (N.B. I am using whole sign houses as per Indian Vedic custom).   The Sun is an important planet in any event, but perhaps doubly so here since it is Jupiter's sign dispositor of Leo. Until a couple of days ago, Venus and Mercury were also in Gemini in the 11th house from Jupiter, so that could have been an additional positive influence on sentiment in late June and early July.  It is possible that the entry of Mercury into Gemini (it's Gemini sign ruler) on 27th June could have been a key bullish factor in the the start of the post-Brexit rebound.  Mercury represents the ruler of the 11th house from Jupiter and it became stronger in its own sign.  Interestingly, stocks began to rebound on the 28th -- just a day or two after Mercury entered Gemini. 

Of course, hindsight is 20-20.  While I thought we could get some upside after the initial Brexit sell-off, I certainly did not expect the rally to be this strong.  Weighing the relative importance of different factors is always a matter of interpretation and that is where error resides.  Nonetheless, the changing influences on Jupiter offers a intriguing explanation for moves in recent days.

Now that Mercury and Venus have moved into Cancer, there may be less of that positive 11th house energy available for Jupiter to tap into.  The Sun is still in the 11th house/Gemini but it is due to leave early on Friday, 16th July.  This would place all of the fast-moving inner planets in Cancer, in the 12th house from Jupiter.  The 12th house symbolizes loss, among other things.  This does not necessarily mean that this placement will be decisive in determining the market trend, but it should be seen as a reduction of positive energy available for Jupiter.  Let's see how it plays out.

Weekly Market Forecast

Besides the last days of the Sun's bullish transit of Gemini this week, we are still awaiting any effects from the Mars entry into Scorpio.  It may take the conjunction of the Moon with Mars on Thursday and Friday to act as a trigger for that more destabilizing Scorpionic energy.  Stocks are more likely to be positive until the second half of the week.