(2 May 2022)
Investors are relieved to turn the calendar page this week after the
carnage they endured in April. Amid soaring inflation, slowing growth
data and mediocre corporate earnings, US stocks fell on average 8% in
April, with the tech-heavy Nasdaq falling 13%. On the first trading
day of May, volatility remained elevated as stocks initially fell to
new lows below 4100 on the S&P 500 before an afternoon relief rally
pushed stocks back into the green by the close.
As I've noted in previous posts, the April pullback was not unexpected
as it coincided with some fairly strong Saturn influences. Saturn
formed a powerful square aspect with Ketu (South Lunar Node) throughout
the month, as well as a 30-degree alignment with Jupiter and Neptune.
Saturn's bearish energy was also more likely to manifest during April
since it changed signs last week as it exited sidereal Capricorn and
entered the sign of Aquarius.
While the Saturn-Ketu and Saturn-Jupiter alignments have now largely
separated and weakened, there is likely some lingering Saturn influence
in May as it remains in a near exact alignment with Neptune. For the
record, Saturn is due to form an exact 30-degree alignment with Neptune
on May 17. But because of the approaching Saturn retrograde station on
June 4, the Saturn-Neptune alignment will stay fairly close into late
June. This doesn't mean that stocks will keep falling throughout that
time, but it does mean that there is likely to be intermittent
manifestations of this negative energy as long as the alignment is
within, say, one degree of exactitude.
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This week all eyes are focused on the FOMC meeting on Wednesday as the Fed delivers its latest statement on monetary policy. A 50-point hike is basically a given but the markets will be paying special attention to Powell's forward guidance and the possibility that he may moderate his hawkish stance. If Powell acknowledges the deterioration in some of the economic indicators, it is possible markets will see that in a dovish light which would be more positive for stocks.
The importance of Wednesday's meeting is reflected in the planetary alignments that day. As if to highlight that intensity, there is an exact alignment of Mars, Sun and Uranus. The Sun-Uranus suggests an intense and/or surprising situations that cause significant reactions. The 60-degree alignment with Mars is an additional injection of energy into the mix. FOMC days are usually quite volatile anyway, and this one may be even more so. Sun-Uranus conjunctions tend to be bullish, but the inclusion of bearish Mars makes a positive outcome less reliable. And since the Sun-Uranus conjunction (20 Aries) aligns closely with the natal Saturn (22 Aries) in the Nasdaq horoscope, we have to take the downside risk more seriously.
However, Mercury (9 Taurus) and Venus (8 Pisces) will also be in close alignment at this time and could offset some of the potential negativity. And the bullish influence intensifies further since it will align with the Ascendant (8 Aries) and the Jupiter-Neptune alignment (9-10 Scorpio). While it is possible these positive influences may not manifest exactly on Wednesday, they are nonetheless very much in the mix.
Finally, we should note an additional complicating factor. Not only is the Saturn-Neptune alignment an underlying bearish influence, but both of those planets are involved in a larger midpoint arrangement since the midpoint of Saturn and Uranus is conjunct the midpoint of Neptune and Chiron at 10 Pisces. (Sa/Ur=Ne/Ch). This is a few arc minutes past exact but still in very close proximity. The complicating factor is the addition of the Sun when it conjoins Uranus on Wednesday and Thursday. It is possible the Sun could act as a trigger to release more bearish energy from this midpoint pattern. I would not put this in the category of a high probability bearish influence, but it nonetheless carries some hypothetical weight.
Therefore, while there is some uncertainty around FOMC day, I do think the Mercury-Venus alignment offers a decent bullish set up for later in the week, especially if it isn't getting any traction on Wednesday.
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