(2 February 2022)
Facebook shares plunged 20% in after-hours trading today as earnings
and forward guidance came in below analysts' estimates. The tech-heavy
Nasdaq futures also fell 2% on the earnings disappointment. The steep
decline comes after the stock market has staged a powerful rebound
following the last Monday's low. Markets had seen a rise in volatility
in January following the Fed's promise to raise rates in order to
fight rising inflation. The prospect of higher rates are kryptonite to
this market since investors have relied on the Fed's ultra-loose
monetary policy since the pandemic began in 2020.
We can see this sharp sell-off quite clearly in the Facebook horoscope
(first IPO trade at 11.30 a.m. May 18, 2012). Typically, major
declines coincide with transits from either Saturn, Rahu/Ketu (the Lunar
Nodes) or a hard aspect from outer planets, Uranus, Neptune and
Pluto. In this case, the Facebook Ascendant (22 Cancer) is almost
exactly opposed by Saturn (21 Capricorn). Moreover, The Sun (19
Capricorn) is approaching its conjunction with Saturn and thus served
as a trigger which released Saturn's reservoir of negative energy.
Also, we should note the bearish alignment involving Mercury (0
Capricorn) which is square the natal Saturn (29Virgo56). While
Mercury-Saturn aspects are reliably bearish, this one was likely to be very bearish
since Mercury is moving slowly ahead of its direct station on Friday,
Feb 4 (UTC). As a rule, the slower the planet, the bigger the impact.
Mercury will station at 00Cp18 -- just 22 minutes of arc from an exact
square with natal Saturn.
This suggests that Facebook's stock is vulnerable to fall further. The twin afflictions of the Mercury-Saturn square and the Sun-Saturn opposition to the Ascendant suggest the pullback lasting until Friday at least. With both bearish alignments separating (i.e. weakening) next week, there is a better prospect for a rebound in Facebook shares.
The larger question is what effect these alignments will have on the market as a whole. Friday's Sun-Saturn conjunction looks bearish and could coincide with some weakness. The Mercury direct station may have a less predictable effect, however. Unlike the Facebook horoscope, Friday's Mercury station will not form any close alignments with other transiting planets. This suggests a more uncertain influence. That said, the closest aspects are nonetheless negative ones as it conjoins Pluto within three degrees and is aspected by Rahu within four degrees. Taken together, these two patterns look more negative than positive and could give bears the edge to end the week.
Next week looks mixed with some upside likely from Jupiter's alignment with Uranus and Chiron. And yet as Mercury returns to normal forward motion, it will again form a closer, more bearish alignment with Rahu and Pluto. The mix of these opposing energies could translate into some volatility but also significant moves in both directions.
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Photo Credit: Anthony Quintano
