(25 November 2020)
Stocks extended their November rally this week as the latest vaccine
announcement reassured investors that the end of the pandemic is now
within reach. Markets also cheered the start of the formal transition
process of the incoming Biden administration as President Trump finally
backed off from his previous objections. The Dow Jones Industrial
Average hit a new all-time record high on Tuesday as it closed above
30,000 for the first time.
Despite the lockdowns and widespread economic hardship, stocks have
rallied off the March low on unprecedented intervention by the Federal
Reserve and other central banks around the world. Markets are now
anticipating a return to normal growth in 2021 post-Covid, albeit with
continuing support from the Fed.
From an astrological view, the ongoing strength in stocks in recent days
is not all that surprising. As I noted in last week's post, the
once-a-year entry of Jupiter into sidereal Capricorn late last week is
often accompanied by optimism which can take prices higher, if only
briefly. What is less certain is how long this positive Jupiter
influence can last.
Previously, I suggested that Jupiter's entry into Capricorn meant that
it was also approaching its conjunction with Saturn on December 21.
This is likely to be a less favourable influence on market sentiment
since Saturn is associated with caution and disappointment. But since
both planets move quite slowly, the specific time window when declines
can occur is more difficult to predict.
For another perspective, let's take a look at the natal chart of the Dow
Jones Industrial Average, launched May 26, 1896 after the close of
trading. Quickly, we can see why November has been a good month for US
stocks. Transiting Jupiter (1 Capricorn) aligns very closely with
Venus (1 Taurus) and Mercury (1 Gemini). Usually, this sort of Jupiter
alignment is bullish and we can see that the Dow has hit a record this
week just as the alignments are exact. In addition to the bullish
Jupiter aspects, there is an absence of any strong malefic influences at
this time.
But we should note that optimism usually begins to diminish in the days
following an exact Jupiter aspect so it is unclear how much higher
stocks could go in the short term. The fading influence of Jupiter here
suggests the market rally may be due for a breather, especially as
Jupiter conjoins Saturn in December. Any negative effects of the
Jupiter-Saturn conjunction could well be compounded by the approaching
Mars-Ketu alignment which will be exact in the second week of December.
However, one saving grace is that the Jupiter-Saturn conjunction and
the Mars-Ketu alignment will not form close aspects with any key planets
in the natal chart. Rahu is conjunct with Neptune, of course, but
this is not an especially strong influence in my view. This suggests
that any pullback we may see in the days ahead is unlikely to cause
much lasting damage to the market rally.
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