(17 March 2021)
To no one's surprise, Fed Chair Jerome Powell has refilled the punch
bowl yet again. In today's FOMC meeting, Powell reaffirmed his
commitment to an ultra-loose monetary policy of zero percent interest
rates and $120 Billion a month in QE asset purchases. Despite recent
inflation worries and sharply rising bond yields, Powell asserted there
would be no rate hikes until 2023 at the earliest. Markets rallied
modestly to new all-time highs as investors anticipated stronger growth
in a post-Covid world.
Jupiter is still very much in the driver's seat here. Since Jupiter is a
bullish influence, markets tends to rise whenever it forms a close
alignment with a slower-moving outer planet. This seems to be the case
at the moment as Jupiter approaches its 30-degree alignment with
Neptune, which is exact on March 20. While this is not a major Jupiter
aspect by either Vedic or Western reckoning, angular separations of any
30-degree multiples can often coincide with a rise in stock prices.
However, once the Jupiter-Neptune alignment begins to separate on March
21, the probability of further gains will begin to diminish. While
this often manifests as an gradual shift in relative positive and
negative energies, sometimes there is a sudden reversal immediately
after the exact aspect, as if flicking a switch. In other words,
aspects can play out in different ways depending on other factors.
The condition of Saturn is another component in this equation. If
markets tend to rise with a Jupiter alignment, markets tend to fall when
Saturn is more prominent. As it happens, there is a Saturn aspect
upcoming fairly soon. On April 9, Saturn is due to form a 120-degree
alignment with Rahu, the North Lunar Node. In traditional Vedic
astrology, both Saturn and Rahu are considered malefic planets which
tend to deliver negative or otherwise unwanted outcomes when they are
under affliction. In market terms, their aspects are more likely to be
associated with declines than gains.
While the exact aspect is still more than three weeks away, there is
often some preceding downside, much like periods of rain precede the
arrival of the center of a storm. Next week could well see some early
rain in that respect as Mars approaches a conjunction with Rahu and
thereby activating a larger alignment with Saturn. In that scenario,
since all three planets involved are natural malefics, the downside risk
rises further.
And we see that next week's Mars-Rahu conjunction could have a
significant impact on the horoscope of the blue chip S&P 500 Index
(March 4, 1957). Both Mars and Rahu are setting up opposite natal
Saturn (20 Scorpio) and square the Sun (20 Aquarius). It is very
difficult to see the current rally continuing through these malefic
influences.
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