(12 October 2022)
US stocks closed at a new low for the year today as wholesale PPI
inflation came in higher than expected at 8.5%. And with the Fed
showing no signs of pivoting towards easing any time soon, investors
are now considering the very real possibility that interest rates will
continue to climb well into 2023.
This week's decline was not unexpected as it coincided closely with the
Mars-Neptune square. Hard Mars aspects (0, 90 or 180 degrees) have a
bearish bias in any event, and this is even more likely when it involves
an outer planet like Neptune. Although it has been within range for
the past several days, Mars formed its exact square aspect with Neptune
this morning. It is also worth noting that this was a partial
strength backward square alignment rather the full-strength forward
square according to Vedic aspecting rules. Nonetheless, it was clearly
bearish in the days leading up to today's theoretical maximum
influence.
Tomorrow's CPI inflation number is likely to be a market mover. I must
admit I don't have any strong opinions of how the market will react
given the mix of influences. With Mars now moving past its square with
Neptune, there is the possibility of a reduction of negative sentiment
which could increase the odds of a rebound.
Also, the Moon will form a loose alignment with Mercury and Jupiter in
the morning which could also be a plus. But the Venus-Saturn-Uranus
alignment is more of a question mark and leaves open the possibility of
more downside. Of course, the underlying Saturn-Uranus square is not
doing the markets any favours here, especially as Saturn slows ahead of
its direct station on October 23. But the short term alignments do
offer some renewed hope for bulls here.
Next week, we can see that the entry of Venus into sidereal Libra could throw the bulls a lifeline. As I have previously noted, the transit of Venus through Virgo, its sign of debilitation, is often marked by market weakness. This has been the case again this year as markets are trading lower since the entry into Virgo on Sep 24. But where Virgo is a difficult sign for Venus, Libra tends to be better, especially right around the exact day of the ingress which occurs on Oct 18 this year. While this isn't always bullish, the correlation is fairly high nonetheless. If nothing else, it reduces the probability of some downside on that day.
This year's ingress is a bit more complicated since Venus will align with Mars. This Mars influence could offset some of the potential positive mood at the start of the week, although it seems less likely to totally negate it. In addition, we can see that there is a potentially bullish four-planet set up next week. Mercury and Venus will be separated by 13 degrees, and Jupiter and Chiron will also be separated by 13 degrees. While Chiron can be either positive or negative in its effects, the other three planets are generally considered benefics and therefore seem more likely to generate some optimism. These equal angular separations create a kind of bullish resonance among the four planets which make gains more likely during the time of when the angular separations are closest.
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