Market Jyotish

Stocks higher on Fed easing; Venus-Mars this week

2012-01-28T22:39:00.002-05:00

As the old song goes, "hurts so good". Fed Chair Ben Bernanke admitted that the US economy was sufficiently weak and listless that additional stimulative measures may be necessary. He extended the zero interest rate policy for another year to 2014 and promised to deliver another round of "quantitative easing" if the economy showed any signs of further deterioration. As bleak as his message was, financial markets largely cheered Bernanke's pledge to pump up the system with whatever liquidity was required. These days bad news for the economy can paradoxically be good news for the markets since it means money will continue to be printed as long as inflation remains within the target range of 2%. For the short term, liquidity trumps bad economic fundamentals. In New York, stocks inched higher with the Dow closing at 12,660 and the S&P 500 at 1316. Indian stocks were more positive as the RBI offered a similarly accommodative policy decision and eased the banking reserve ratio by 50 basis points. The indices rose by 3% with the Sensex closing at 17,233 and the Nifty at 5204.

I thought we might have seen more excitement from last week's Mars retrograde station on Monday/Tuesday but it seemed whatever negative energy there was from this measurement manifested simply as more slow growth economic forecasts. For the moment, this retrograde has been a bit of a non-event, although as I noted, they rarely operate like clockwork. I also pointed out the bullish potential of the midweek Moon-Venus conjunction which appeared to coincide with the upside that stemmed from the Bernanke FOMC statement.

Jupiter is still very prominent here as it remains in close aspect with Uranus. While it is gradually weakening at the moment, it is due to form another positive aspect with Pluto in March. Whether that translates into higher highs remains to be seen. With Saturn turning retrograde on February 7, there is a good astrological argument for some kind of down move before Jupiter's bullishness returns when it combines with Pluto.

This week will be an interesting test of the Mars retrograde cycle as Venus opposes Mars on Tuesday and Wednesday. This pairing is usually bearish in its short term effects. With Mars extra-powerful here from its slow, backwards motion in the sky, there is a chance that the move could be somewhat larger than it otherwise would be. Monday's Moon-Jupiter conjunction is more positive so that may temporarily boost sentiment. Venus enters sidereal Pisces on Friday so that is another potentially positive indication. Nonetheless, I would expect the difficult Venus-Mars aspect to dominate the proceedings this week.

S&P downgrades France and most of EU

2012-01-14T13:35:00.002-05:00

Mon Dieu! In a widely anticipated move, the credit rating agency S&P downgraded France and 8 other EU countries on Friday. The downgrade again puts the spotlight on the intractability of the debt crisis in the Eurozone. Borrowing costs are likely to rise and the integrity of the EFSF bailout fund may also be called into question as a result of the loss of France's coveted AAA rating. While markets reacted negatively to the news, the declines were fairly modest, an indication that many investors were taking a wait and see approach. Indeed, the week was mostly a positive one as Italy's closely watched bond auction earlier in the week went fairly well with short term yields falling sharply. Stocks in New York rose 1% overall closing at 12,422 while the S&P 500 finished at 1289. Indian stocks did even better as the Sensex added 2% closing at 16,154 and the Nifty at 4866. I had been somewhat uncertain about the market last week given the high number of close and potentially offsetting aspects in play. I noted how the early week entry of Venus into Aquarius would likely be bullish and US stocks climbed on both Monday and Tuesday. Indian stocks reserved their up move to Tuesday only. The late week was more subdued than I expected, however, as most markets rose into Thursday as Venus approached its conjunction with Neptune but then sold off on Friday once the conjunction was exact.

This debt downgrade is another classic manifestation of Saturn. Saturn represents debt and caution and so it is not surprising that we should these symbolisms more prominent when Saturn is very strong. As I have noted previously, Saturn's opposition aspect with Jupiter over the past several weeks has made it unusually strong. This has translated into a focus on the dangers of the EU debt levels and the necessity to reduce spending. It will be recalled that the initial EU debt scare occurred back in May 2010 when the insolvency of Greece was brought to light. At that time, Saturn was similarly strong by virtue of its opposition both Jupiter and Uranus.

Of course, stocks have managed to drift higher in recent weeks despite this most recent Saturn aspect. This is likely due to the boost that Jupiter has received from its aspect with Uranus. Now Neptune is joining the fray so we have a very rare alignment of four of the five most powerful planets. While I thought Jupiter's presence could generate some upside, I thought that Saturn's presence would cast more of shadow here than it has done thus far. Nonetheless, the alignment still has several weeks left before its constituents go on their merry ways. This means that worries over debt levels and restraint will likely continue for the near term. Perhaps the Saturn retrograde station on February 7 will correspond with a significant development. Planets are usually very strong when they are moving very slowly near their stations so we may expect more Saturnian concerns (i.e. debt, recession, austerity, pessimism) to crop up as we approach that date.

This week will feature the closest aspect between optimistic Jupiter and speculative Uranus. This bullish pairing has likely been most responsible for propping up the market recently. As these planets form an exact 30 degree angle here, it increases the probability that the market is close to some kind of top. Once these planets begin to separate, they will lose their strength. Optimism may therefore be in shorter supply thereafter. Another planet that bears close watching is Mars. It begins its retrograde cycle next week on the 23rd. Since Mars only turns retrograde once every two years, these two-month long cycles can be important. While they are bearish, they are not an infallible source of negativity. Mars energy may increase, but it is still possible that the positive side of Mars may manifest. As a result, enthusiasm, trading volume and quick decisions may be front and centre over the next few days. Nonetheless, the close proximity of two retrograde stations of Mars and Saturn, the solar systems' most malefic planets, should be cause for concern. That will coincide with a lot of negative energy. But it seems more likely that the irascible energy of Mars will stay sheathed until next week. In the meantime, we could see some weakness in the early going this week as Mercury is in aspect with Rahu on Tuesday. By midweek, the Sun enters the alignment of Jupiter and Saturn so that may boost sentiment once again for a couple of days. The late week period is more uncertain, however, as Friday's Moon-Mars aspect could cause some problems.

2012 starts positively; Venus vs. Saturn this week

2012-01-07T13:46:00.002-05:00

2012 started off on a positive note as stock markets climbed on more signs of global growth in China and the US. Friday's US jobs report showed gains of 200,000, although there were a number of caveats attached to this larger than expected number. In New York, stocks posted a 2% gain as the Dow closed at 12,359 while the S&P 500 finished at 1277. Indian stocks similarly put in a winning week with the closing almost 2% higher at 15,867 and the Nifty at 4754. While I thought we would see some early week upside on Mercury's entry into Sagittarius, the extent of the rise was somewhat surprising. As expected, the late week period was less positive as the Sun-Rahu aspect put a damper on enthusiasm.

The reaction to Friday's jobs number underlined the caution approach of financial markets these days. While the number was larger than expected, the US market actually declined modestly. Part of the reason for this was that the job growth was a little deceptive owing to a high number of temporary seasonal jobs. 200K is good, but it seems less likely to be duplicated when January's report comes out. The gains for the week also came despite more worrying signs coming out of Europe. With unemployment rising sharply (e.g. it is now 22% in Spain), it is unclear how the economy will begin to grow again. While stock traders appeared to have a fresh supply of rose-coloured glasses at the ready for 2012, the bond market was taking a less sanguine view of things as EU bond yields continued to inch higher. Higher yields means higher borrowing costs which will ultimately force more austerity and slower growth. Definitely not a recipe for recovery. Private European banks have become so fearful of lending to each other that they are choosing to forgo the higher interest rate and park their money at the ECB instead.

Perhaps its only fitting that such a mixed and convoluted financial situation would occur at a time when the planets are offering signs of both hope and fear. Bearish Saturn is still very much front and center as it opposes Jupiter. Its role in the larger alignment with Jupiter and Uranus over the past several weeks is one important reason that stocks have been limping along. While some markets have melted higher, volume has been low and conviction has been lacking. At the same time, bullish Jupiter is in a very close and powerful aspect with speculative Uranus. This has been a crucial reservoir of hope in the economy and one reason why some stock market investors have not hit the panic button. Although not yet robust, the signs of economic growth are there. And even if growth underwhelms, there is still the Fed which can be relied upon to inject another dose of its magical quantitative easing to goose the market higher. Neptune has now moved into this alignment but will be closer to Saturn over the next month or so. This could easily tilt the whole equation more clearly towards the negative. To make things even more ripe, Mars is due to turn retrograde on January 23.

This week is particularly interesting because of the high number of close aspects in play. Usually this suggests larger than normal gains or losses. Cautious Saturn is well represented as it makes its closest aspect with Jupiter. At the same time, it forms a 45 degree aspect with nefarious Rahu. These are both important sources of pessimism that should not be taken lightly. On the other hand, Jupiter is still just a few arc minutes away from its bullish aspect with Uranus so that might produce some significant upward movement along the way. The short term influences are no less potent. On Monday, bullish Venus enters sidereal Aquarius. Whenever Venus changes signs it often correlates with higher prices. The midweek has perhaps fewer distinguishing aspects so those medium term (negative) Saturn influences may have more opportunity to express themselves. The late week period is the real puzzle, however. Thursday and Friday sees a remarkable Venus-Neptune-Saturn alignment, a Mercury-Pluto conjunction and a Sun-Mars aspect. The concentration of these aspects suggests a larger than normal move is more likely here. But which direction? Mercury's affliction by Pluto looks negative as does the Sun-Mars aspect, but the Venus alignment has the potential to flip things into the plus column.

2011 ends on down note; Saturn-Rahu could dampen start of 2012

2011-12-31T15:26:00.005-05:00

2011 ended on a quietly somber note as global markets factored in lower growth expectations from the ongoing Eurozone problems and rising Italian bond yields. In New York, the Dow slipped less than 1% on reduced volume closing at 12,217 while the S&P 500 finished at 1257. As has often been the case this year, Mumbai suffered a larger loss as the Sensex declined 2% closing at 15,454 with the Nifty ending the year at 4624. This bearish outcome was largely in keeping with expectations as the Mercury-Rahu conjunctions on Tuesday/Wednesday and the Sun-Pluto conjunction on Thursday weighed down sentiment. As expected, we did see a brief rise on Monday in India right on the same day that Jupiter became stationary. This was a fairly clear bullish indication. Friday's Moon-Mars aspect also corresponded with declines on the final trading day of the year.

On the whole, 2011 was a negative year for the economy and most global markets as runaway inflation and diminishing growth prospects weighed heavily. US markets were mostly flat on the year, while European and Asian markets suffered heavier losses. India declined 25%. Given the rash of Saturn aspects through 2011, this negative performance certainly did not come as a surprise. I thought we might have seen more downside in US market than we did, but generally the market appeared to reflect my understanding of the various planetary energies at work. As ever, Saturn revealed itself again as the killjoy of the solar system as its aspects approximated times of particular pessimism in the markets while Jupiter's aspects tended to correlate with periods of expansion and optimism. There is still so much we (meaning I, of course) don't know about how planetary positions may correlate with financial sentiment. The margin of error in financial astrology is depressingly huge. And yet it is somewhat reassuring when such basic first principles such as Saturn = bad and Jupiter = good are broadly reaffirmed by a fresh batch of data points. This suggests to me that astrology has more in common with science than intuitive art and should be amenable to scientific investigation -- with apologies to Galileo. Financial markets provide an excellent source of data on which some of these seemingly implausible assertions about the significance of the position of the planets can be tested.

The first week of 2012 seems like a good candidate for more declines. The medium term influences are apparently negative: Saturn is almost at its closest aspect with Jupiter, while Rahu is also moving into position for its aspect with Saturn. Saturn-Rahu aspects are notoriously bearish, although it is conceivable that it could manifest next week rather than this week. Mercury's entry into sidereal Sagittarius on Tuesday and Wednesday could correspond with some optimism but it does not look particularly robust. At the same time, the Sun will be forming an aspect with Rahu which may further undermine sentiment. All in all, the cards seemed stacked against the market here, perhaps in a big way. And yet there is an absence of any clear short term triggering aspects that makes me wonder if some larger moves could be postponed for a while.

Overall, 2012 looks like another difficult year for the markets. The current configuration of Jupiter-Saturn alongside Neptune and Uranus may well exercise a negative pull on markets into February. Jupiter will take over for a while after that and could bring a good relief rally into March. But the problem is that Jupiter will weaken after March while Saturn remains quite strong through much of the spring. This greatly increases the likelihood for more troubles in the financial world during Q2. To make matters worse, we will have an exact square aspect between Uranus and Pluto in June. These two distant planets only form aspects quite rarely so this aspect is definitely one to watch. Generally it is considered bearish and disruptive to the status quo. Since markets don't like uncertainty, we can expect to see some fallout from this aspect near the middle part of the year. This aspect will last through much of 2012 and will tend to create more upheavals and uncertainty. If anything, 2012 looks like it may be worse than 2011 in terms of global market performance.

Santa arrives bearing ECB gifts; Jupiter stations on Monday

2011-12-24T11:53:00.002-05:00

Stocks rallied last week as Santa Claus arrived carrying a sack full of ECB liquidity. In the latest attempt to solve the European debt crisis, the ECB announced plans to buy bank $600 Billion in bonds as a way of supporting the broken sovereign debt market. After some early week jitters, the Dow rose more than 3% closing at 12,294 while the S&P 500 finished at 1265. Indian stocks also participated in the rally as the Sensex climbed more than 1% closing at 15,738 while the Nifty ended the week at 4714. This bullish result was in keeping with our expectations as the Sun and Venus aspects to Jupiter laid the cosmic groundwork for higher stock prices. I was also correct in my forecast for some early week declines as Monday's Sun-Saturn aspect corresponded with significant down move. Once Venus moved into alignment with Jupiter on Tuesday/Wednesday, buyers moved in.

Central bankers continue to prop up markets as best they can as the European banking crisis threatens to engulf the global financial system. With so many European banks over-leveraged, they remain dangerously exposed in the event of any national default. This makes it more important that bond yields be kept as low as possible lest borrowing costs spiral out of control. With so few buyers left in the bond market, the ECB stepped in where others were afraid to tread and provided a floor. Last week's Jupiterian intervention did calm markets although it is unclear for how long. Several hundred billion euros worth of debt is scheduled to come due in the next couple of months. Will the ECB simply go more deeply into debt in order to buy these up and keep rates low? It is possible, but Germany may grow increasingly uncomfortable with the ECB's increasingly burdened balance sheet as Merkel faces political opposition at home.

The planets suggest that the usual solution of throwing money at the problem may run into some problems in the near term. To be sure, Jupiter is quite strong at the moment as it prepares to station on Monday December 26. Stationing planets are very powerful so we cannot rule out the possibility of more bank intervention to keep all the plates spinning in the air. Jupiter equates to optimism in a general sense and to economic solutions that are often rooted in borrowing and greater levels of debt. Debt is, after all, a statement of confidence and optimism of a brighter future where projected revenues can cover all interest payments. But the close opposition aspect between Saturn and Jupiter suggests that the tried and true solutions may not gain traction in the short term. Saturn's presence in the current mix indicates a possible obstacle or disappointment which could affect the economic bottom line and sidetrack the markets. Saturn is the cosmic pessimist (or is that realist?) and takes a dim view of excessive borrowing. If the glass is half-empty, then how will all this borrowed money ever be paid back? That may become more of a worry over the next few weeks.

This week looks more troublesome. Jupiter does station on Monday (when most markets are closed, however) so it is possible that we could see some very early gains, especially in Asian markets. But the conjunction of Mercury and Rahu (North Lunar Node) on Tuesday and Wednesday could be more of a problem. Rahu creates distortions and uncertainty so there is a bigger opportunity for declines. As an added source of potential trouble, the Sun conjoins Pluto on Thursday. This is less clearly bearish but it is less likely to boost the prospects for any follow through for the Santa Claus rally. Friday's Moon-Mars opposition will also be another burden for investors to negotiate, especially in Asia.

Markets have second thoughts on EU fiscal pact

2011-12-17T12:36:00.004-05:00

After reading the fine print on the EU's new fiscal pact, investors had a change of heart last week as stocks and commodities tumbled across the board. Confidence in the proposed fiscal union quickly unraveled as the market realized that economic growth may be more difficult under stricter austerity measures. US Stocks fell 3% as the Dow finished at 11,866 and the S&P 500 ended the week at 1219. Indian stocks were even weaker as the Sensex lost 4% closing at 15,491 with the Nifty coming in at 4651. Gold plunged 7% and broke below $1600 for the first time since July. This bearish outcome was pretty much in line with expectations as the Mars-Rahu aspect depressed sentiment. I thought this would likely make the first half of the week more vulnerable to declines and this was the case in the US and in commodity markets such as gold and oil. The late week brought the anticipated rebound as the dual ingresses of the Sun and Venus injected a measure of relief. Mumbai extended its slump into the late week, however, as worries over the falling rupee and the RBI update undermined the otherwise improving mood.

The problem is that the European Central Bank is unwilling to give the markets what they want. The bond market is signaling that debt levels are unsustainable and must be brought down. This is what the latest EU agreement addressed by imposing strict limits on the size of future government deficits in the Eurozone. But that means that governments will have to cut spending and raise taxes -- two things that reduce economic activity. A slowing economy means lower corporate profits, and this creates a drag on stocks as investors rethink the risk-reward of owning stocks. Theoretically, the ECB could undertake a Fed-style quantitative easing program and buy large amounts of sovereign debt from teetering economies like Italy and Spain, but its mandate does not permit it to do so. In addition, there is a political unwillingness to undertake such an inflationary policy, probably because Germany is the puppet master here and it does not want to fuel inflation and thereby lower its standard of living.

The stock market was looking for more stimulus and liquidity from the EU and the ECB but it was disappointed when all it got were more promises to cut spending. As I have been saying for a while now, the growing strength of Saturn here tends to reduce the possibility of a stimulus QE-style program. Saturn's opposition with Jupiter limits the range of policy action as collective psychology may be more geared towards accountability and responsibility. "Getting one's house in order" and "doing the right thing" are very typical catch phrases of this conservative Saturn-Jupiter ethos. Parenthetically, I should say that I don't actually believe that the planets somehow 'cause' these mental states or events. It may only be that there is a correlation between planetary positions and the ebb and flow of these collective phenomena. A giant cosmic clock, so to speak, where the planets are the hands of the clock and they tell us what 'time' it is, i.e. what mood should prevail. Metaphysics aside, the current Saturn-Jupiter aspect would tend reduce the probability of an announcement of any major central bank liquidity "bazooka" in the near term. The aspect is due to make its closest angle in early January and will still be quite close until Saturn's retrograde station on February 9.

The planets this week seem more positive than last week as Jupiter is seemingly highlighted more than Saturn. That said, the early week period does look more vulnerable to declines as Monday's Sun-Saturn aspect could see distress involving governments (more EU downgrades?). This could easily correlate with a decline in stocks and especially gold which is usually more sensitive to afflictions to the Sun. Tuesday's Moon-Saturn conjunction is another potentially problematic aspects, although it may be offset somewhat by Venus-Jupiter. A rebound seems set to begin on Tuesday or Wednesday as Venus moves into aspect with Jupiter and Uranus. The Sun follows suit by Thursday so that should serve to lift the mood of the markets. Friday's Moon-Rahu conjunction is more suspect, however, so weakness may be more likely at that time.

EU summit agrees on fiscal union; Saturn guides Merkel to austerity

2011-12-10T13:35:00.002-05:00

If at first you don't succeed, try, try, try again. European leaders came together last week and forged yet another agreement to solve the continent's ongoing debt crisis. Rather than raising bailout money for insolvent countries as they did in October, this time the emphasis was on fiscal responsibility. The new fiscal pact will therefore regulate government spending levels by member states in an effort to reduce debt levels and thereby reduce borrowing costs. The German-led plan will attempt to improve the balance sheet through collective austerity at the expense of national sovereignty. The UK was the only EU country that did not sign on to the fiscal union, much to the ire of its European partners.

Germany's focus on austerity and fiscal responsibility carried the day and suggests that there will be not be a quick fix for the Eurozone. Interestingly, on the previous day the European Central Bank (ECB) had ruled out any inflationary QE-style bond buy back program. Both of these developments seem to be an appropriate reflection of growing strength of Saturn. As the planetary symbol of restraint and responsibility, Saturn will tend to emphasize caution and reduce the appeal of free spending (liquidity) and excessive borrowing in order to solve economic difficulties. True, we have seen some modest attempts to inject money into the system recently as the ECB reduced its overnight rates to 1% shortly after the Fed opened up its wallet to European banks earlier in the month. As we know, planets are constantly in motion and their influences are subject to ebb and flow. Expansive Jupiter and risk-taking Uranus have recently come into close aspect and this is one reason why we have seen some efforts to keep the financial system afloat through inflationary means. But these efforts will probably be fairly limited given Saturn's proximity for the next two months.

World markets reacted favourably to the latest EU plan as the Dow rose 1% closing at 12,184 while the S&P 500 finished at 1255. Indian stocks were more negative in part due to political opposition to a proposal to allow FDI in the retail sector. The BSE lost almost 4% closing at 16,213 while the Nifty ended the week at 4866.

The global financial situation continues to be quite shaky at the moment as opposing economic philosophies do battle. Keynesian-inspired inflationistas seek to borrow more money to revive confidence and stimulate spending and thereby boost government revenues. Most market participants seem to favour this approach since the increased liquidity (free money from the Fed, ECB, RBI ,etc) means greater economic activity and the reduction of risk. We can see how dependent the stock market has become on this approach from Thursday's sharp decline. Stocks sold off after the new ECB Chair Mario Draghi announced there would be no Eurobonds and no QE-style buy back program. In others, we was not going to follow in the footsteps of Ben Bernanke. If the stock market tends to prefer the free spending largesse of most central bankers, the bond market tends to gravitate towards the stricter accounting procedures of the free market school of Austrian economics. If a country spends and borrows beyond its means, buyers of its debt demand a higher yield on their bonds since the risk of default is greater. This is where Europe is now and one of the main reasons why it has chosen to focus on reducing debt.

At this point, it is unknown if the financial markets will accept the current focus on austerity and debt reduction. Austerity will tend to lower bond yields which is very important to recovery, but austerity usually also entails a painful period of economic slowdown that the stock market does not like. This is the main reason why stocks will tend to decline during times of debt reduction. The astrological dimension here suggests that Saturn's preference for austerity, caution and accountability is more likely to be the driver's seat (alongside Angela Merkel) for several more weeks at least. While Jupiter-Uranus may generate some stimulative proposals, they are unlikely to be significant as the market will tend to focus on the pitfalls of spending (excessive debt) rather than its upside of more economic activity.

This week will feature a potentially nasty Mars-Rahu aspect in the first half of the week that suggests more downside. Saturday's lunar eclipse may serve to amplify the proceedings so there is a wild card element at work here. At the same time, Jupiter and Uranus will form their exact 30 degree aspect this week, so that may provide some support for buyers along the way. It may also serve as an accelerator of events and consciousness in a more generic way. The sidereal sign ingress of both Venus and the Sun in the late week period also would seem to boost the possibility for gains then.

Stocks rally on cheap Fed loans to Europe; EU summit due Friday one day before eclipse

2011-12-03T14:14:00.004-05:00

How do you solve a debt crisis? With more debt, of course! Europe's financial endgame was put on hold last week as a coordinated central bank intervention flooded its crippled banking sector with cheap US dollars. The Fed's injection of fresh liquidity was widely applauded as global stocks markets soared and bond yields fell back to earth. In New York, the Dow zoomed higher by 7% closing at 12,019 while the S&P 500 finished at 1244. While the size of the rally was unexpected, I did suggest that the first half of the week was somewhat harder to call and that upside surprises were more likely to occur then. Such sudden developments are not uncommon during eclipse periods such as we are in now. As expected, the late week was weaker on the Mars influence, although its negative effects were quite muted. Indian markets also moved sharply higher throughout the week as the Sensex rose 7% closing at 16,846 while the Nifty ended the week at 5050.

Now we are one step closer to some kind of resolution -- for good or ill -- to the European debt crisis. An EU summit is scheduled for this Friday where the latest bailout package will be unveiled for all to see. What will the markets think? In previous posts, I have noted the approach of the Jupiter-Saturn opposition aspect in December and January and how this is likely to create a mood of caution and skepticism towards any new Eurozone bailout plans. Last week's free spending intervention was suggested that we might have to wait a little longer for the the true spirit of Saturn to settle in. The complicating factor in the upcoming Jupiter-Saturn aspect is that these two planets will have company. As I have discussed in more detail in my newsletter, Uranus and Neptune will also figure prominently in a much larger four-planet alignment that will be in its tightest configuration in January. At the moment, risk-taking Uranus (6 Pisces) may well be resonating more closely with expansionary Jupiter (6 Aries). This is usually a bullish pairing that often coincides with rallies. Their unusually long conjunction in 2009 and 2010 was a key factor in a huge QE1 and QE2 recovery rally after the meltdown. So this latest example of inflationary Fed largesse is more likely the result of this Jupiter-Uranus aspect. It is worth noting that both planets are moving very slowly this month since Uranus stations this Saturday and Jupiter is due to station in late December. Slow planets are more powerful, and powerful bullish planets can translate into optimism and significantly higher prices for assets.

But Saturn is gradually edging its way into this equation as it moves closer. Just when we might see more fear and caution enter the markets is harder to say. It could be next week, or it could be next month. But what we can say is that the presence of Saturn in this larger alignment undermines the likelihood of a quick resolution to the Eurozone crisis. If Jupiter and Uranus like to solve debt problems through by issuing more debt and stoking inflation, Saturn prefers the tougher road of austerity and constraint. Germany's PM Angela Merkel appears to be holding fast onto this more Saturnian approach to the crisis as she has categorically refused the possibility of issuing Eurobonds which would weaken Germany's credit rating and fan the flames of inflation. As Saturn is likely to strengthen over the coming weeks, there is little reason to expect Merkel's view will change. The markets may want a full-blown money printing QE-type solution, but they are unlikely to get what they want with Saturn sitting on the doorstep. It will be recalled that the first brush with Greece's insolvency appeared in mid-2010. Markets fell sharply in May (the flash crash) as the vulnerability of the Eurozone became apparent. It was no coincidence that Saturn played a key role in that event as it formed a close alignment with Jupiter, Uranus and Neptune from May to August 2010. The same planets are involved this time around, although the angular arrangement is different. History may not exactly repeat itself, but it may well rhyme.

This week could see some weakness in the early going due to the Sun-Rahu conjunction on Tuesday and the approach of the Mars-Rahu aspect. Both of these are short term influences however, so it is unclear if they will be enough to crowd out the otherwise bullish influence of Jupiter and Uranus. Perhaps gains are more likely as we get closer to Friday. Uranus will be super strong on Saturday for its direct station as it concludes its four month retrograde cycle and returns to direct motion. Uranus stations can be turning points in the market that deserve close watching. What makes this particular station particularly interesting is that a lunar eclipse occurs on the same day. Since this will be just one day after the EU summit, there is a greater chance for major new developments. On paper, this eclipse + Uranus combination should not be positive for finding a durable solution for Europe. Eclipses are destabilizing influences which shake the status quo. More conservatively, it is possible this energy will simply reflect proposals for a new fiscal union in the Eurozone. This would chart a course that would fundamentally change the EU from a simple currency union between countries into something that resembles a "United States of Europe" that is more closely integrated. Whether or not it will be favourably received is harder to say. Saturn's fairly close proximity here makes me think the reaction won't be good, although it may not happen immediately.

Germany's bond auction undermines confidence; Eurozone faces tough choices

2011-11-26T13:45:00.004-05:00

What if you held an auction and nobody came? Germany's failed bond auction sent markets lower across the board last week as the Eurozone debt crisis appeared to enter a new and more ominous stage. Now the loss of confidence in the Euro has made its way into the very heart of the EU as the debt contagion threatens to engulf the entire region. In New York, the Dow lost 4% closing at 11,231 while the S&P 500 finished at 1158. In Mumbai, the Sensex also lost around 4% closing near support at 15,695 while the Nifty ended the week at 4710. As expected, we did have some significant downside moves in the first half of the week around the deadline for the US Congressional Supercommittee on spending reduction. The declines coincided fairly closely with the Venus-Saturn aspect which normally constrains buying and reduces cooperation. The late week recovery was more spotty than expected, however, as Asia and Europe only saw small bounces while the US market tumbled in all four sessions of the holiday-shortened week. All in all, these declines seemed to be appropriate given the strong Saturn influence that has dominated the month of November.

World markets are growing more impatient with the EU as it attempts to solve its endless debt crisis. The trouble now is that a lasting solution requires Germany, the economic engine of the whole EU system, to accept some measure of pain. Most observers now believe that the only way to stabilize markets is for the ECB to either embark on a massive quantitative easing (QE) bond buyback scheme or become the lender of last resort and issue its own eurobonds which would effectively guarantee the bonds of all member countries. The problem is that such a move would inflict damage on Germany through higher inflation and rising debt service costs as its once-unassailable AAA+ rating would likely be downgraded. Germany is also reluctant to agree to backstop the bad debts of peripheral EU countries because this would reduce the incentive to commit to reforms and to cut spending. Too much carrot, not enough stick in other words.

So the dynamic between Germany, the other Eurozone members, and the financial markets now resembles a version of game theory where the interests of the self and the collective are nominally separate but intrinsically related. Germany wants Italy, Greece and Spain to cut spending. But with more investors now increasingly reluctant to buy any Eurozone debt, Germany now must accept that it may have to share the pain in the form of inflation and higher debt service costs due to rising bond yields. In seeking to protect German interests, Angela Merkel may attempt to fashion a compromise solution whereby the ECB undertakes a limited quantitative easing plan to resuscitate the forlorn EU bond market. Whether or not the bond market accepts such a lesser intervention remains to be seen, however. The choices available to policymakers appear to be narrowing as the market is demanding a bold move which reverses this loss of confidence. In crafting a solution to the impasse, Merkel and the ECB have to calculate where the most effective common interests of all EU members lie. Because the governing structure of the EU is interdependent, it may not be possible for Germany to protect its own narrow interests in the short term without suffering some negative consequence down the road. The difficult choice facing Germany now is that it can no longer escape the damage from the economic sins of its neighbours. A quick and painless exit from the Eurozone is not an option. While the EU member states may retain narrow self-interest, their collective interest may now take precedence.

From an astrological perspective, the current strength of Saturn is likely to make Germany and the ECB less amenable to some huge QE-style money printing scheme. Saturn is soon approaching its opposition aspect with Jupiter (closest aspect due in early January), so that would tend to suggest that inflating their way out of trouble would have less appeal or be less successful. Saturn demands responsibility and control over one's actions, so I think it is unlikely that Merkel would agree to any plan which creates moral hazard for the indebted nations of southern Europe. Merkel will likely continue to insist upon accountability for economic reforms in the periphery. While this may not preclude some important new measures by the ECB, I somehow doubt they will be a far-reaching as, say, the Fed's attempts at QE1 and QE2.

The planets this week seem tilted towards the negative as malefic Mars may rule the roost. Mars is now forming a difficult square aspect with the Sun, Rahu (NN) and Mercury over the next two weeks. This is a bad combination and the fact that these planets are clustering here makes it that much worse. The Mars-Sun aspect is closest at the end of the week so we could look for declines to be more likely and more pronounced at that time. The first half of the week lacks any close aspects so that opens up a range of possible outcomes. We are still in an unstable eclipse period (Nov 26-Dec 10), so that may reduce the chances for any lasting rebound. But eclipses are all about surprises and shocks so we cannot rule out the possibility of some pleasant surprises also. However, the Mars aspect stands out a like a bit of sore thumb this week so it seems that surprises will be on the downside.

Markets unimpressed with new Italian PM; solar eclipse due Friday

2011-11-19T12:39:00.003-05:00

Well, it didn't take long before the markets cast their dissenting vote on the new governments in Greece and Italy. The initial sense of relief quickly gave way to rising skepticism that the pro-austerity technocratic duo of Papademos and Monti were going to magically solve Europe's crushing debt overhang. Politicians can offer soothing sound bites but economics is where the rubber meets the road. Bond yields on Italian debt once again pushed above the critical 7% level by midweek and stocks promptly sold off. The Dow lost 3% for the week closing at 11,796 while the S&P 500 finished at 1215. It was a similar story in Mumbai as the Sensex tumbled 4% closing at 16,371 with Nifty ending the week at 4905.

This negative outcome was largely in keeping with expectations although I thought we might see more downside in the early week. The malefic tandem of Saturn and Rahu (NN) were true to form as Monday was lower across the board. Saturn's entry into sidereal Libra suggested was likely going to correlate with a rise in caution. We saw the bounce from the Mars-Jupiter arrive a little early on Tuesday in the US and that set the stage for a surprisingly bearish Sun-Saturn aspect on Thursday.

It seems that Saturn is calling the shots for now. It's perhaps not surprising that stocks are been driven by the dictates of the bond market. Since bonds are debt and Saturn symbolizes debt and loss (i.e. money owed), Saturn's grand entrance into Libra last week placed the bond vigilantes front and center. As European bond yields rise into the danger zone, the market is telling policy makers that their current plans are insufficient and the risk of default remains. As it currently stands, the EU has a credibility problem. It can only resist the logic of the market for so long before it relents. The late October agreement sounded good but was short on specifics and probably short of cash as well since Italy's debt is beyond the scope of the current EFSF bailout package. The current focus on the dangers of debt is likely to continue as Saturn approaches its opposition aspect with Jupiter over the coming weeks. The aspect is closest in early January when the two planets are separated by 178 degrees. Such opposition aspects tend to highlight tension, slow progress, and frustration.

This week marks the beginning of the bi-annual eclipse period as a partial solar eclipse occurs on Friday. This eclipse does not look especially powerful or disruptive so it may not exert any immediate influence. The close aspect between the Sun-Moon and bullish Jupiter suggests that gains are more likely late in the week. This would be in keeping with the bullish tendency near the US Thanksgiving holiday. On Wednesday, however, the deadline for the Congressional Supercommittee to cut government spending (Saturn!) arrives so we could see some nervousness ahead of that date. The early week Venus-Saturn aspect looks negative and could translate into a reluctance to buy stocks. So I would not be surprised to see some early week downside and then for gains to accrue in the second half of the week. Large moves seem more unlikely this week, however.

Europe steps back from the brink; Saturn enters Libra this week

2011-11-12T11:33:00.002-05:00

Europe backed away from the precipice last week as both Greece and Italy finally ceded to the austerity demands of their paymasters. Greece swapped Papandreou for Papademos, while Italy's Berlusconi agreed to resign as the Senate passed the EU's austerity package. Financial markets approved of these changes as US stocks staged an impressive rally after Wednesday's frightening sell-off. The Dow closed about 1% higher on the week closing at 12,153 while the S&P500 finished at 1263. Indian fared worse, however, as slumping industrial production and rising oil prices dragged down stocks. The Sensex fell by 2% closing at 17,192 and the Nifty ended the week at 5168.

Wednesday's near-death experience coincided with Neptune's direct station just as it was opposite Mars. I had expected some significant downside around this aspect as this was likely to highlight confusion and uncertainty. Up to that point, the Italian government under Berlusconi had not yet agreed to the austerity package as bond yields spiked beyond the crucial threshold of 7%. Somewhat unexpectedly, US market did manage to rise early in the week ahead of this Neptune station. The late week was more positive as we saw a rebound on both Thursday and Friday in the US. Indian markets missed much of the Wednesday sell-off and therefore played catch up on Friday.

Well if Neptune is all about confusion, then Saturn brings austerity. As the leaders of Greece and Italy took firm steps to address their debt burdens, we might suggest they were reflecting the Saturnian principles: long-term progress only comes through appropriate restraint and ultimate social harmony requires a measure of control and order. It is no surprise that these efforts should come just as Saturn is about to leave sidereal Virgo and enter Libra. As Saturn changes signs its energies may manifest more readily. This often translates into lower prices as caution and pessimism win out over spending and risk. On this occasion, however, we may also see the acceptance of austerity as generating a kind of Saturn-driven rally. Austerity was deemed necessary by market players, and Greece and Italy made their promise. Everybody is happy. Well, at least for now.

This week features a couple of potentially powerful aspects. First, Saturn enters sidereal Libra on Monday. This is generally a bearish influence although this energy need not always express itself through financial markets. Since Saturn only changes signs once every 2.5 years, we should pay attention to any fundamental changes in intermarket dynamics that may develop in the coming days weeks. Will bonds prices continue to be inversely related to stocks? Will gold maintain its value as a flight to safety play? Perhaps more immediately, we also get a triple conjunction of Mercury, Venus and Rahu on Monday. Mercury and Venus are mostly positive planets but their association with unpredictable Rahu (North Lunar Node) is cause for some concern. While Rahu can sometimes create unrealistic desires that fuel buying sprees (read: gains), it is more commonly connected with uncertainty and sudden events. While this would tend towards a negative outcome early in the week, more generally we can also say that this pattern will increase the size of the move in either direction. Mars then forms an apparently bullish aspect with Jupiter by Wednesday so this may produce more optimism. The Sun enters sidereal Scorpio on Thursday where it will form a minor aspect with Saturn. On the face of it, this combination looks bad, although I'm not sure it will push down stocks that much. Friday's Moon-Mars conjunction is more likely to boost sentiment given both are on the receiving end of Jupiter's aspect. With the eclipse period just around the corner (Solar: Nov 25; Lunar: Dec 10), we may still be in a preliminary phase here before the main feature begins.

Italian situation prompts sell-off

2011-11-09T20:25:00.003-05:00

We finally saw some downside today as Italian bond yields pushed above the danger zone threshold of 7%. Beyond this level, Italy cannot service its debt and would run the risk of default.

The Mars-Neptune opposition finally weighed in on the day that Neptune was stationary in the sky and was therefore most powerful. Well, better late than never. I thought we would get this downside earlier in the week.

Chiron is due to also station and turn direct on Friday while exactly opposite Mars. That looks like another nasty combination. Moreover, Mars will enter the tropical sign of Virgo on Friday. The close aspect with Uranus will only serve to amplify its effects.

The trend looks down for the week although I would not be surprised to see Thursday finish higher in the US.

Stocks fall on EU soap opera; Mars-Neptune peaks this week

2011-11-05T12:49:00.004-04:00

Investors were not amused by the latest Greek attempt to turn the ongoing EU debt drama into a sitcom ("Everybody Hates Papandreou") as stocks stumbled on most world markets. In New York, the Dow lost more than 2% closing at 11,983 while the S&P500 finished at 1253. Indian markets also followed the down trend as the Sensex slipped more than 1% closing at 17,562 with the Nifty ending the week at 5284. Overall, this outcome was in keeping with my expectations. With Jupiter moving into the background here, we did see less optimism and more of a focus on Saturnian austerity as markets contemplated the implications of a possible disorderly Greek default. As expected, the early week period saw the largest declines as Mars entered sidereal Leo. Some significant recovery began midweek as Mercury conjoined Venus and formed an alignment with risk-taking Uranus. Friday also largely fit with the forecast as most global markets were lower.

Whatever its economic merits, the EU bailout plan is now confronting the rather difficult political realities surrounding austerity. Greek PM Papandreou has won a confidence vote and will remain in power through some new coalition and has promised not to call a referendum on the EFSF. Meanwhile, Italy is now coming under more scrutiny as the bond market is now questioning its ability to adhere to the austerity measures requested by the plan. Italian government bonds saw a spike in yields last week despite reassurances from PM Berlusconi that all was well. Berlusconi may well on the verge of resigning. While economics may be neatly theoretical, politics is messy and more uncertain. All this austerity talk is very much a reflection of Saturn's rising influence at the moment as it prepares to enter the sign of Libra on November 14. Politicians are looking for ways to persuade their electorates to accept less. That is the way of Saturn -- it removes what is no longer needed no matter if you are ready to accept the loss or not. Standards of living are just beginning to fall throughout the developed world as the financial meltdown which started in 2007 continues to work its way through the system.

In addition, there is a significant amount of confusion in the air at the moment. Can the new Greek coalition government actually work and will the Greek people accept the new plan? Will Berlusconi survive the current crisis and what role does the IMF "monitoring" play in Italy? There are a lot of unknowns at the moment. It is therefore not surprising that Neptune should be more prominent. Neptune symbolizes confusion and vagueness, which can sometimes morph into outright deceit. Neptune is now concluding its retrograde cycle and is especially powerful right now as it is stationary in the fifth degree of sidereal Aquarius. It reverses direction and resumes forward motion on Wednesday November 9. We may see more Neptunian confusion this week since it will be opposed by malefic Mars. This is definitely a bad time to try to form any lasting arrangements.

Mars exactly opposes Neptune on Monday so we might expect more downside impact then. Nonetheless, the aspect is still within range for most of the week so the fallout may manifest at any time throughout the week. In addition, Saturn forms a minor aspect with Mercury and Venus on Tuesday so that suggests the first half of the week could be more negative. Gains are perhaps more likely on Thursday or Friday, although Mercury and Venus are moving towards their conjunction with unpredictable Rahu at that time.

Stocks cheer EU deal on Jupiter-Pluto

2011-10-29T12:03:00.005-04:00

Investors broke out the champagne last week as the EU finally got a deal done to address the debt crisis in Greece. The Dow rose by 4% closing at 12,231 while the S&P500 finished the week at 1285. Indian markets were even stronger as the RBI was more favourable. The Sensex jumped 6% closing at 17,804 while the Nifty ended the week at 5360.

While I thought we might see more volatility from the Mars and Saturn aspects, this bullish result did not come as surprise given the completion of the Jupiter-Pluto aspect. I had noted that Friday's very tight alignment between the Sun, Jupiter and Pluto could be bullish. The deal was actually announced early on Thursday just one day before the exact 120 degree aspect between Jupiter and Pluto. Some of the negative Mars and Saturn influences did manifest more modestly in Tuesday's down session in the US. Overall, this huge October rally has fit quite well with the Jupiter-Pluto aspect.

EU leaders reflected the energy of the Jupiter-Pluto aspect quite appropriately as prosperity (Jupiter) was pursued through large organizations and the exercise of political power (Pluto). While investors cheered the $1.4 Trillion agreement, some economists have already suggested that the deal does not contain enough specifics and will not be sufficient. I suspect that these critical voices will grow louder in the days to come as the optimistic energy from Jupiter-Pluto begins to diminish. The aspect is now separating and is losing its power. Just when the stock market will also lose confidence in the Euro and the Eurozone remains to be seen. Saturn is due to make a cameo appearance in November through its entry into sidereal Libra on the 14th. Saturn is said to be exalted in Libra and hence its more positive qualities may be more in evidence. Nonetheless, Saturn is still Saturn so even if we suddenly recognize the need for austerity once again, sentiment is perhaps somewhat more likely to head south. If the markets may be in a partying mood now, there is a real risk of nasty hangover sooner rather than later.

We will get our first test of the post-Jupiter-Pluto period this week. Given the rise that accompanied this aspect, we should now expect a reduction in optimism. As an added negative, Mars enters Leo on Monday. There is often some fallout whenever Mars changes signs so this perhaps tilts outcomes towards declines. On the other hand, Mercury is approaching its conjunction with Venus this week. This is usually a bullish combination. And we can see that this pairing forms potentially positive aspects with Neptune on Monday and Uranus on Wednesday and Thursday. So that offers up the real possibility of some upside this week also. The end of the week may be more prone to selling as Friday's Moon-Mars opposition could reflect some anxiety and frayed nerves. So there is some planetary evidence for both positive and negative outcomes here.

Stocks edge higher on EU hopes; Jupiter-Pluto culmintes this week

2011-10-22T10:43:00.002-04:00

US stocks moved higher on hopes that an effective Eurozone bailout plan would be announced in the coming days. Despite some choppiness, the Dow gained more than 1% closing at 11,808 while the S&P500 finished at 1238. Indian shares fared worse, however, as concerns about inflation and a possible rate hike took prices lower. The Sensex lost 2% closing at 16,785 while the Nifty ended the week at 5049.

The generally upbeat mood of most global markets was an apt reflection of the ongoing Jupiter-Pluto influence. Jupiter usually boosts confidence whenever it is in aspect with a slow moving outer planet. Through its aspect to Pluto, Jupiter's influence suggests efficient organization directed towards prosperity and wealth. That is very much the case as European officials are working intensely to stave off a banking crisis that threatens the global financial system. As Saturn has receded into the background here, the emphasis has shifted away from austerity towards more borrowing and money printing as a solution to pressing problems. It is unclear how effective this approach will be in the long run. As we saw with the Fed's QE1 and QE2 efforts, some stimulative measures can show positive results in the short term, although the jury is still out on whether these plans did anything other than temporarily lift financial markets and create inflation. In the present case, the EU has the added problem of trying to coordinate the interests of different countries, especially Germany and France. This makes the challenge that much more difficult.

With the Jupiter-Pluto aspect becoming exact this week on Friday, we can see there is an appropriate planetary signature for a significant EU deal. The culmination of the aspect seems likely to reflect an agreement that can address the current debt problem. Just how the market will react is another matter. As market watchers know investors often "sell the news", meaning that run-ups in prices before the fact often trigger a sell-off once the news is announced. This could happen this time around even if the deal is regarded as comprehensive and successful.

In addition, we have a fairly tense alignment involving Mars, Saturn, Mercury and Venus this week. This is likely to create more volatility than we have seen recently, although the presence of the positive Sun-Jupiter aspect complicates the picture somewhat. The completion of the Jupiter-Pluto aspect suggests that we are very close to the maximum positive effect of this aspect as the odds of a sell-off increase here. Wednesday's New Moon is one possible candidate of a significant market turning point, as is Friday's exact alignment between the Sun, Jupiter and Pluto. Once this Jupiter-Pluto aspect begins to separate after this week, the market will become more susceptible to declines. And with Saturn entering sidereal Libra in November, optimism may again be in shorter supply for a time.

Stocks surge on EU hopes; Jupiter-Pluto rules

2011-10-15T12:34:00.002-04:00

As the Occupy Wall Street protests gather momentum around the world, we are poised for yet another round of bank bailouts as the Eurozone took additional steps to contain their crisis last week. This latest round of bank bailouts are likely to further increase resentment towards the financial elite as the average person has seen very little benefit from the many billions of taxpayer Dollars and Euros deployed to solve this problem. Despite the protests, the EU made all the right noises to convince investors that the problem was fixable as stocks extended their rebound for the second straight week. In New York, the Dow climbed 5% closing at 11,644 while the S&P500 finished the week near a key resistance level at 1224. It was much the same story in Mumbai as the Sensex jumped 800 points closing at 17,082 with the Nifty ending the week at 5132.

All this new-found optimism is more evidence that Jupiter is in control of sentiment at the moment as the recessionary gloom of Saturn in now in full retreat. I thought we might have seen more downside from Tuesday's Full Moon and Sun-Saturn conjunction on Thursday. While both of these days did buck the bullish trend with either flat or negative closes, the pullback was quite modest and was easily offset by the positive aspects in play. Monday's surge coincided nicely with Mercury's ingress into sidereal Libra. While the extent of these gains were a little unexpected, they were not that surprising either as I had noted that October was likely to have a bullish bias due to the Jupiter-Pluto aspect which is exact on October 28.

The re-emergence of Jupiter this month fits well with the promise of more bailouts to bankrupt countries and bankrupt banks. While Jupiter is traditionally seen as the planet of optimism and wisdom, its aspect with Pluto this month modifies this somewhat. Since Pluto represents power and large organizations, its association with Jupiter reflects this coordinated program to solve the current crisis through borrowing and inflating a stagnant economy. Just how effective this initiative will be is hard to say. Saturn is due to strengthen in the coming weeks and this is likely to shine a more unforgiving light onto the latest attempts to solve the debt crisis. Saturn's entry into sidereal Libra in November will likely tilt collective sentiment back towards recession, austerity and pessimism. This time around, however, Saturn's prominence will be paralleled with Jupiter as it forms tight aspects with Uranus and Neptune over the next three months. This could set up a make or break scenario where Saturn's presence in the larger planetary alignment could completely scuttle all rescue plans or it could deliver the necessary dose of realism which provides for a lasting solution.

This week begins with Monday's Mercury-Jupiter aspect. Jupiter has been a reliable source of optimism lately so there is little reason to expect this outcome to be any different. The Sun enters sidereal Libra on Tuesday. While the Sun is debilitated in Libra, this blemish may well be offset by the aspect it will receive from Jupiter. Between those two measurements, we could well see further gains early in the week. Once the Mercury-Jupiter aspect begins to separate, however, some sober second thoughts are likely to creep into the equation by midweek. Generally, the second half of the week may be somewhat shakier than the first half. Of course, the Jupiter-Pluto aspect is still gathering strength here so that may serve to mitigate the size of declines.

ECB rescue plan buoys stocks; Full Moon on Tuesday

2011-10-08T01:32:00.002-04:00

The European Central Bank threw a life preserver to the crumbling European banking system last week in an effort to stave off the looming crisis. The ECB embarked on its own quantitative easing program as a way to loosen credit and restore confidence in the debt-ridden Eurozone. Markets in the US and Europe applauded the plan as stocks rallied off their lows early Tuesday. In New York, the Dow gained 2% on the week closing at 11,103 while the S&P500 finished at 1155. Indian stocks fared worse, however, as the Sensex lost 1% on the week closing at 16,232 and the Nifty at 4888.

While I thought we could see some optimism on Tuesday as Venus entered sidereal Libra, I did not expect the huge reversal rally to begin and last for much of the week in US markets. For the most part, the Mercury-Saturn aspect played a relatively minor role as it dragged down sentiment in India. The late week Venus-Neptune aspect was perhaps the appropriate bookend on the rally as prices peaked in the US Friday morning and then trended lower. India got a full measure of this second injection of bullish Venus energy as it rebounded Friday after a holiday closing.

Last week's rally suggests that Saturn's bearish energy is on the wane here as it separates from its aspect with Ketu (South Lunar Node). This aspect was exact on September 23 and has been slowly separating ever since. It is still within 2 degrees but separating aspects tend to lose their power fairly quickly. The US market bottomed on Tuesday morning less than two weeks after this exact aspect. Less Saturn usually means higher prices so perhaps that could mean stocks rally a bit here. Jupiter may also be stepping into the breach as it approaches its aspect with Pluto in late October. So not only do we have less Saturn to contend with, but we have more Jupiter as well. That offers a reasonable planetary framework for more upside, other factors notwithstanding.

This week is another opportunity to see what Saturn has left in the tank as the Sun conjoins the gloomy ringed planet on Thursday. The Full Moon on Tuesday with Saturn in close attendance does not look very favourable to stocks as pessimism will likely carry the day. The Sun is in aspect with Ketu on Sunday and Monday so that is another problematic influence, especially on governments and gold which are symbolized by the Sun. On the plus side, Monday's ingress of Mercury into Libra could inject a measure of optimism into the proceedings. On Thursday, there is an apparently pleasant configuration of the Moon, Venus, and Jupiter which ought to encourage some investors. Friday's Mars-Rahu is another aspect with nasty potential that will likely undermine any rally attempts. There is a sense here that these good aspects may get squeezed out by the bad aspects this week.

Recession now "inevitable"; stocks struggle on Saturn-Ketu aspect

2011-10-01T11:53:00.005-04:00

It seems we are on the verge of a new recession. (Did the last one ever actually end?) The highly reliable ECRI report this week showed a continuation of the trend of declining economic activity that began in May. The report maintains that a recession is now inevitable and there is nothing the US government can do to stop it. As the reflection of all available data, the stock market appears to confirm this pessimistic expectation. After another rally attempt early in the week, the market slipped again with a major retreat on Friday. While the Dow ended a little higher closing at 10,913 the broader S&P500 index fell modestly to 1131. Indian markets fared somewhat better as the Sensex rose 2% closing at 16,453 with the Nifty finishing at 4943.

This bearish outcome was in keeping with our forecast as the second half of the week did not look favourable given the strong Saturn influence. As I have noted, the ongoing Saturn-Ketu aspect was likely to have a depressive effect on the markets. While we have not yet seen huge drops, stocks have been struggling. I was also correct in calling for some early week gains on the Sun-Mercury-Uranus alignment as markets rallied strongly across Monday and Tuesday. Wednesday's Mars aspect to the Sun-Mercury conjunction abruptly reversed this up trend and took stocks lower.

The gloomy atmosphere is more palpable now as not even Germany's approval of the Greek bailout funding was enough to lift the mood. A new recession will entail more job losses, less consumer spending and continued pressure on government balance sheets as revenues will fall and spending will increase. Cutbacks and austerity programs will not be popular when unemployment is rising. But none of this comes as any surprise to us as the powerful Saturn-Ketu aspect was likely a harbinger of a leaner outlook that focused on constraint and limits rather than expansion and growth. By itself, Saturn symbolizes losses, pessimism and debt. Ketu's association with renunciation only tends to exaggerate these tendencies. Ketu's influence on Saturn here may well correspond with the re-ordering (Ketu) of debt (Saturn) in Greece through its eventual default. Over the next few months, Saturn will move into aspect with Jupiter, Uranus, and Neptune. While these three other planets work well together and usually correlate with growth scenarios as we saw in 2009 and 2010, Saturn has the power to convert the planets it associates with to the dark side. For this reason, the medium term outlook has an increased downside risk.

This week will feature another dose of Saturnian discipline as the Mercury-Saturn conjunction is exact on Thursday. This is likely to weaken stocks around midweek. Some upside is possible before the conjunction, however, as Venus may be strengthening. Venus enters sidereal Libra on Tuesday so that could spur some buying in the early week. Similarly, Venus makes an appearance on Friday as it approaches its aspect with Neptune.

Twist and sell: stocks plunge after Fed on Saturn-Ketu aspect

2011-09-24T11:30:00.005-04:00

Twist and sell is more like it. Markets tanked worldwide last week as Fed Chair Ben Bernanke took away the Fed's punch bowl of easy money. Instead of the much hoped for QE3 stimulus, the Fed offered up a more fiscally prudent Operation Twist where short term bonds were exchanged for long term notes as a way of keeping interest rates low. This was bad news for stocks and commodities which had come to rely on the inflationary policies of the Federal Reserve. When all was said and done, Dow declined 6% closing at 10,771 while the S&P500 finished at 1136. In Mumbai, the Sensex was down 4% closing at 16,162 with the Nifty ending the week at 4867. Oil and gold also sold off up to 10% as the minimalist Fed program and prospect of another recession undermined their value as inflation hedges.

This bearish outcome was very much in keeping with expectations as I thought that the exact Saturn-Ketu aspect would enforce caution and austerity on the market. Saturn is all about restraint and conservative action so there was not much chance that Bernanke would announce QE3. It was therefore not surprising that the market declined on this aspect. Monday was also lower on Mercury's passing alignment to the Saturn-Ketu aspect. The late week Mars-Uranus aspect acted as a trigger for the release of the reservoir of pessimism and disappointment that often accompanies Saturn transits. For the past several months, I had noted the likelihood of a major decline around this aspect at this time, so it was heartening to see how well financial astrology can work. Since it is very much a probabilistic science, not all aspects will play out as expected, but knowing the relevant planetary influences can provide an additional level of insight.

Although the Saturn-Ketu aspect is now separating, we will likely remain under the influence of bearish Saturn this week. Actually the early week offers some possibility of some upside as the Sun-Mercury-Uranus pattern could boost risk taking. But Tuesday's New Moon may also be a critical turning point as the Mars aspect to the Sun-Mercury conjunction appears to ramp up agitation and frustration going into midweek . The Venus-Saturn conjunction on Thursday may well bring more downside. The high number of aspects this week would appear to increase the size and speed of price movements. Given the number of malefic planets involved (Mars, Saturn, Ketu), the most likely outcome is for more steep declines. Just where and when this will all end is hard to say. The bullish Jupiter-Pluto aspect in the second half of October may provide some relief for beleaguered financial markets.

EU affirms support for Greece; Saturn-Ketu suggests caution

2011-09-17T12:20:00.004-04:00

Stocks rose last week as European leaders again re-affirmed their commitment to Greece and assured investors it would not default. Private commercial banks were also aided by a coordinated effort by central banks to inject more liquidity into the system so that credit flows would not dry up. It's all part of the ongoing Eurozone saga that is seemingly without end. A crisis emerges, a remedy is offered, calm is restored for a while then a new crisis pops up somewhere else. Rinse and repeat until bankruptcy and/or hyperinflation. In New York, the Dow rallied more than 4% closing at 11,509 while the S&P500 finished at 1216. Indian stocks fared less well, however, although the Sensex did manage a modest gain closing at 16,933 and the Nifty at 5084.

This bullish result was largely in keeping with expectations as I thought the Mercury-Jupiter aspect would likely lift sentiment into Thursday. The negative effect of Monday's entry of Venus into the sign of Virgo also seemed to manifest as expected as Mumbai was significantly lower. The effect had waned somewhat by the time US markets opened as the morning was lower but then reversed in the afternoon. It's also worth noting that this Monday low and reversal occurred on the Full Moon just as the lunar cycle would predict. While some of the enthusiasm had dissipated by Friday;s Mars aspect, the trend remained in place.

This week shapes up to be less hopeful and uplifting however as Saturn appears to take over for Jupiter. The aspect between Saturn and Ketu (South Lunar Node) is exact at the end of the week so this is likely to cast some kind of shadow on the market. Interestingly, there will be a much-anticipated announcement by Fed Chair Bernanke on Wednesday after the FOMC meeting. Many investors are hoping for bold new plans from Bernanke that will stimulate a stagnating US economy. If the Fed delivers something big, then the market could rally further. However, if the Fed is more cautious in its approach, then there is a greater chance for disappointment and declines. Since Saturn is all about austerity and constraint, it seems more likely that Bernanke will remain fairly cautious here. As a result there is a greater chance for declines this week, especially after Wednesday's announcement. We can also see that Monday's Mercury-Saturn-Ketu alignment looks generally bearish. Friday's Mars-Uranus aspect also looks bearish. In between, we could see some positive sentiment as a result of a passing Venus-Jupiter aspect.

EU troubles take Euro and stocks lower; Mercury-Jupiter offers some hope

2011-09-10T11:42:00.003-04:00

It was a bad week for Europe. A member of the European Central Bank resigned for undisclosed reasons, while new rumours swirled of a Greek default that prompted Germany to plan contingencies in the event of any ensuing financial crisis. The market reflected a growing faithlessness as credit default swaps between major private commercial banks soared to new highs and the Euro broke below the 1.40 level to a new 6-month low. Not surprisingly, global stock markets didn't like the sound of any of this and retreated late in the week after posting gains earlier in the week. In New York, the Dow lost 2% closing at 10,992 while the S&P500 finished at 1154. Indian markets fared somewhat better as the BSE Sensex edged slightly higher to 16,866 while the Nifty ended the week at 5059.

This week unfolded largely as expected as I thought we would see some late week selling on the Mercury-Neptune aspect and Mars' entry into sidereal Cancer. We saw declines on both Thursday and Friday when these key influences were in play. As expected, the early week proved to be somewhat more bullish as Mercury's entry in Leo on Monday may have lifted sentiment. This was perhaps more in evident in Mumbai, as buyers did not appear in New York until Wednesday's session.

The situation in Europe looks like it will rankle markets for a while longer until some satisfactory solution is found for the debt crisis. As I have noted, the Euro chart is very troubled these days. While the German court decision was essentially a non-event last week, it is not at all clear sailing for Europe. I continue to believe that the Euro will fall much further in the months ahead and this should be a drag on stock prices. This should enhance the appeal of the US Dollar as safe haven. As a result, gold and other commodities are likely to come under more selling pressure in the weeks to come.

We may be witnessing the beginning of the end of the Euro as cracks are deepening between the core members (Germany, France) and the less solvent periphery (Greece, Portugal, Spain, Italy). From an astrological perspective, this apparent crumbling of a previously solid edifice is in keeping with the symbolism of the dominant planets in the sky -- Saturn and Ketu (South Lunar Node). Saturn represents structure, order and tradition. When on its best behaviour, Ketu is more of a spiritual influence that can engender feelings of union with the whole and self-revelation. But this energy does not translate well into the mundane world of business and finance. As a result, Ketu is more often associated with notions of re-organization and change. When these two energies align, they can describe situations where structures and organizations have to make major adjustments. A period of painful instability and change is common. The aspect is exact on September 23 but due to the relatively slow velocity of both planets, we can consider them to be in aspect for the next few weeks.

This week hay hinge on the bullish potential of a Mercury-Jupiter aspect that is exact on Wednesday and early Thursday. Both of these planets are positive influences, and previous aspects involving Jupiter have produced solid gains in recent weeks around the time of its retrograde station on Aug 30. But Jupiter may be losing some of its power as it picks up speed, so the upside could be fairly limited here. Venus enters sidereal Virgo over the weekend, so that is a background negative influence that may exert some influence over Monday's session. The late week looks more vulnerable to declines as Mars forms an aspect with Neptune on Thursday and Friday.

Rallying towards Eurogeddon?; Mercury-Neptune on Thursday

2011-09-03T13:06:00.002-04:00

Stocks mounted an impressive rally early last week as investors parsed the economic data from a half-full perspective. US stocks rose into midweek but eventually sold off on the disappointing jobs report that showed employment growth is stagnant. The Dow ended flat for the week closing at 11,240 while the S&P500 finished at 1173. It was a rosier picture in India, however, as the bulls prevailed in all three trading sessions in the holiday-shortened week. The Sensex surged 6% to 16,821 and the Nifty climbed to 5040.

The early week optimism was very much in keeping with my expectations as we saw some noteworthy Jupiter influences in the mix. Monday's Venus-Jupiter aspect combined the energies of two positive planets and produced an impressively positive result. Jupiter also stationed and turned retrograde early on Tuesday and this may have provided an additional boost for sentiment. As it happened, the lion's share of the gains this week did occur in this two-day window. Optimism waned after Wednesday, however, just in time for the Mars-Rahu aspect on Thursday and Friday. While I had been equivocal about the net effect of this aspect, I did sound a note of caution about any Mars aspect. This turned out to be correct as US and European markets declined more than 3%.

While this relief rally began to take root with the helping hand of Jupiter, more alarm bells are ringing in Europe as the banking crisis is again threatening to get out of control. Greek bond yields are again rising to stratospheric levels reflecting growing concern that Greece will be unable to repay its debts. There has also been a sharp rise in the amount of funds that international central banks have deposited with the US Federal Reserve. Normally, excess funds are deposited with private commercial banks in Europe such as Paribas and Societe Generale. But there is growing anxiety that many private European banks are on the verge of insolvency and so many institutions and central banks have decided to bypass them altogether. It seems that we are edging closer to a Eurogeddon scenario where the monetary union needs to be reshuffled or broken up completely. To make matters more interesting, the German High Court will hand down its decision on Wednesday on the constitutionality of German participation with the new European bailout fund (EFSF). Needless to say, if the court rules against the Merkel government, it would likely put stress on the Euro and on stock markets worldwide. The European Central Bank may then be compelled to reduce interest rates in order to stanch the bleeding. Even if the Eurozone manages to dodge this latest bullet, the problems there look protracted and there is no easy solution in sight. The horoscope of the Euro is heavily afflicted in the months ahead so we should assume the situation to worsen before it gets better.

The only unambiguous planetary influences this week appear to be on the negative side, although we may continue to bask in Jupiter's lingering near-stationary glow for a little while longer. Mercury enters Leo on Monday which may offer additional support to stocks. This is not usually a hugely positive influence, but given the wide aspect from Jupiter, it may keep investors in buying mode. But my attention this week is focused on the effects of the Mercury-Neptune opposition late on Wednesday and into Thursday. This looks bearish for stocks.

It's worth remembering that much of the decline in the first week of August and the US debt ceiling debate also occurred when Mercury was opposition to Neptune. That alignment was significant worse, however, since Mercury was close to a retrograde station and hence was moving more slowly. But the aspect this week revisits that energy of confusion and disappointment, if only briefly. Given that it occurs so close after the German legal decision, we should be alert to a possible negative outcome on that front. The Sun is also in minor aspect with Saturn on that day, so that could be a bad day for governments (Sun). Friday presents more of a puzzle. Mars enters sidereal Cancer on that day in the US and this is often a bearish influence. But Mercury will enter tropical Virgo on the same day and this is often a bullish influence. I would tend to favour the negative Mars energy here, but the picture is fairly complex. In any event, the late week could be troublesome.

Fed delays decision; Mercury-Rahu creates uncertainty midweek

2011-08-27T10:46:00.004-04:00

So stimulus if necessary, but not necessarily stimulus. US Stocks staged an impressive rebound last week as Friday's speech from Fed Chair Bernanke put off any decision on further quantitative easing (QE3) until September. This deferred decision was good enough for markets as the Dow climbed 4% closing at 11,284 while the S&P500 finished the week at 1176. The picture was more bearish in Mumbai, however, the Sensex made new lows for the year closing at 15,848. The Nifty ended the week at 4747.

This outcome was disappointing as I had expected more across the board selling on the late week Mars-Saturn aspect. While Thursday was lower when the aspect was exact, the size of the decline was more modest than expected. Indian markets were more directly affected by this bearish combination, however, due to a close affliction in the BSE natal chart. We also saw some significant gains on most global markets in the early week period from the Sun-Venus-Neptune pattern. The Sun-Neptune opposition coincided quite closely with the precipitous drop in gold on Tuesday and Wednesday just as the Sun was entering tropical Virgo.

So while bearish Saturn still seems to be the dominant energy these days, we saw a glimpse of Jupiter's optimistic nature last week ahead of its retrograde station on August 30. It is not unusual for planets to express themselves more fully around the time of their direct and retrograde stations, especially a slow moving and powerful planet like Jupiter. Bernanke's tentative approach to the Fed's next move was perhaps an appropriate manifestation of this competing energy of both Saturn and Jupiter. A weaker Jupiter might have precluded any further easing, but on this occasion we got a kind of stalemate between the need to expand and the need to constrain. Interestingly, the next Fed meeting will occur on September 20-21, just a few days before the Saturn-Ketu aspect. This suggests that optimism may be in short supply and there could be a limited appetite for more easing as Saturn's preference for austerity is more in evidence. The interaction with Ketu suggests some kind of fundamental or structural reordering may be in the air. This could result either from new and unusual moves the Fed makes, or perhaps from the reaction to its announcement. What would happen if the Fed threw another stimulus party but nobody came?

This week looks like a mixed bag. Jupiter's retrograde station on Monday and Tuesday could be a mostly positive influence here. A bullish Venus-Jupiter aspect early in the week gives way to another dubious looking aspect between Mercury and Rahu by Wednesday. The end of the week offers up a dog's breakfast of aspects as the bullish Sun-Jupiter aspect occurs simultaneously to a nasty Mars-Rahu aspect. These could conceivably cancel each other out, but the presence of Mars is cause for some concern here.

Transits for Monday, August 29, 2011 9.30 a.m. New York

A slow motion crash?: markets fall with Saturn

2011-08-20T14:16:00.005-04:00

They say that when you're in a car accident, everything slows down. You become acutely aware that it's going to happen, and your senses heighten to take in the details as it all unfolds. These days the stock market appears to be involved in its own version of a slow motion accident. Stocks fell for the fourth straight week last week as the meeting between Merkel and Sarkozy produced little in the way of tangible solutions for the European debt crisis. In New York, the Dow fell more than 4% closing at 10,817 while the S&P500 finished the week at 1123. It was a similar story in Mumbai as the BSE-Sensex lost 4% closing at 16,141 with the Nifty ended the week below the 5K level for the first time since 2010 at 4845. While the extent of the late week declines were a little surprising, I was correct in my forecast for gains around the early week triple conjunction of Sun, Mercury and Venus. Most markets rose into Wednesday around this bullish alignment, but once the planets began to separate and weaken, the selling resumed. As I noted in last week's post, the Rahu aspect to Mercury created more the potential for more uncertainty and opened the door to unexpected and sudden developments.

With fear and anxiety rising over the renewed possibility of a recession, the declines have for the most part been fairly orderly. The 500 point daily swings in the Dow notwithstanding, we have not a proper crash yet, as the correction has been marked by a series of down days with the usual number of rebound up days sprinkled in to keep people guessing. The absence of any big news shock-type crash event has allowed the decline to inflict its damage piece meal. Most investors have largely stayed in the market hoping that this gradual decline will eventually turn around.

But as I have been suggesting for a while, the planets do not favour a reversal higher any time soon. Saturn the pessimist is very much in control here as it comes under the dual influences of Mars and Ketu. Both Mars and Ketu are considered negative and tend to bring out the worst in Saturn, i.e. excessive fear and caution. The Mars-Saturn aspect has been gathering energy over the past few weeks and may well peak this week as the exact aspect occurs on Thursday, August 25. The Saturn-Ketu aspect isn't due to be exact until September 23 so there is some reason to expect that the current negative outlook won't change significantly in the near term. Nonetheless, the first (slim) chance for a reversal will occur after Thursday.

What's doubly problematic for the markets right here is that Mercury, the planet of trading and commerce, ends its retrograde cycle on Friday. Its direct station at 24 Cancer therefore still falls under the influence of Rahu at 26 Scorpio. This increases the possibility of more unexpected movements in the markets and is generally a negative influence, especially given the Mars-Saturn square aspect. Coincidentally, Fed Chair Ben Bernanke will make his annual speech from Jackson Hole on Friday morning -- just hours after the exact Mars-Saturn aspect and hours before the Mercury direct station. The proximity of these events increases the odds that his speech will move markets significantly, although the direction is somewhat less clear. We can see some positive aspects in play that day such as the Sun-Venus aspects to Uranus and Pluto. However, the Mars-Saturn square is about as bad as it gets. But since it will be separating from its exact aspect at the time Bernanke is speaking, it is possible it will have less negative impact. Bernanke is expected to announce some kind of new policy to help the flagging US economy but it is unclear just what he has in mind. Since expansionary Jupiter turns retrograde on August 30, it seems more likely that Bernanke will offer some new program to increase liquidity and credit availability. However, it seems less likely that any new program will have the same positive market effect as last year's QE2 announcement.

The bottom line is this Mars-Saturn aspect could well produce more downside this week. It also increases the possibility of some larger, crash-type moves. I'm not saying a crash is probable, but the presence of these difficult aspects increases the odds of a crash from the usual 1 in 1000 to something quite a bit higher, like 1 in 4. That's no where near probable (50%+), of course, but it is something to consider. Perhaps 2011 will be remembered as the slow motion crash.

Mars panics markets after debt downgrade; triple conjunction offers relief

2011-08-13T12:23:00.002-04:00

Markets suffered from a bout of temporary insanity (or perhaps schizophrenia?) last week following the US debt downgrade as investors sought out safer places to put their money. After gyrating more than 500 points in both directions on four consecutive days, the Dow was only 2% lower for the week closing at 11,269 while the S&P finished at 1178. Indian markets were less volatile although the Sensex still lost more than 2% overall closing at 16,839 with the Nifty ending the week at 5072.

All the panic and turmoil was very much in keeping with expectations as I anticipated that the Mars alignment with Uranus and Pluto would be negative. While we did not see any obvious manifestations of literal violence, the market did move violently as the unpredictable and powerful energy of the Mars affliction took its toll. I thought we would see most of the damage in the first half of the week and that was indeed the case in the US, Europe and Asia as Tuesday marked the low, at least on an intraday basis. Once the Mars alignment began separating after Wednesday, there was a gradual lessening of volatility and trading volume as prices rose into Friday.

While we can correlate the gradual strengthening of Saturn in recent weeks with the return of pessimism and caution, the US debt downgrade may also be seen in terms of the Uranus-Pluto square aspect. As I have written previously, the Uranus-Pluto square is the ultimate celestial prime mover these days as these two distant planets will remain in aspect until 2013. This aspect is mostly negative because it erodes stability and is often correlated with long term structural changes in the economy and society. This loss of stability therefore increases uncertainty and as we know, markets do not like uncertainty. As a result, the Uranus-Pluto aspect is usually negative for the value of riskier assets like stocks and positive for safe havens like gold, bonds, and certain unimpeachable currencies. The passing Mars alignment to this destabilizing Uranus-Pluto aspect last week was a significant release of this powerful energy for change and disruption. The US debt downgrade to AA+ by S&P is emblematic of this fundamental change, as the world's leading economy is no longer as strong as it once was. The debt downgrade may ultimately mark a key historic turning point in the eventual decline of the US from its previously unchallenged status as world superpower. Such epochal changes are typical of Uranus-Pluto aspects as old orders stagnate and decline while new structures and organizations rise to fill the vacuum.

This week looks calmer and even rather positive. There is a triple conjunction of Sun, Venus and retrograde Mercury that occurs in the last degree of Cancer on Tuesday/Wednesday. This is likely to generate more optimism and help to boost prices. The presence of the aspect from Rahu (North Lunar Node) is somewhat of a wild card, however. Rahu can distort and confuse the issue so this can reverse the polarity of a planet from positive to negative or exaggerate its effects. I think exaggeration is more likely this week as a dose of unsustainable Rahuvian enthusiasm could take over. The insanity continues in a different form. No matter how positive the news may be here, the planets suggest that the longer term prospects for economic recovery do not look very promising.

Stocks plunge on Mercury-Neptune; US debt downgrade previews Mars alignment this week

2011-08-06T11:59:00.005-04:00

The tumultuous events in the markets last week reminded me of Karl Marx's description of capitalism: "All that is solid melts into air." Financial stability evaporated last week in the aftermath of the US debt ceiling deal and the spreading debt contagion in the Eurozone. What was remarkable was the speed at which safe, reliable assumptions about future growth seemed to disappear as investors got a harsh reality check. In New York, the Dow lost more than 6% closing at 11,444 while the S&P finished the week at 1199. The damage was less severe in Indian markets as the BSE-Sensex lost 4% closing at 17,305 with the Nifty ended the week at 5211.

As expected, the Mercury-Neptune opposition did coincide with significant fallout from the US debt deal. To make matters worse, Mercury stationed and turned retrograde on Tuesday so this amped up the strength of this affliction and Mars joined the alignment on Thursday, the day the Dow tumbled 500 points. Score one for astrology. While I had been unsure if the US would make the Aug 2 deadline, I was fairly certain that the market would react badly, which it did. Some of those mitigating Jupiter aspects only offered passing relief to the rising fear as Monday's Sun-Jupiter aspect delivered gains in Asia as well as a positive open in New York. These gains were the result of the immediate sense of relief from the signing of the debt ceiling deal. But it was all Mercury-Neptune after that as disillusion and dismay ruled the roost. Now that the US is compelled to follow a more austere regime of government spending, who is left to stimulate a stagnating economy that seems to be on the verge of a double dip recession? Well, no one it seems and therein lies the root of the sell-off. With Obama's hands tied and Fed Chair Bernanke also seemingly "out of bullets" despite new rumours of a possible QE3, markets are beginning to realize that the past two years was based entirely on "free" borrowed money which has not created a solid foundation for a sustainable bull market.

While I was surprised by the intensity of the decline, I noted in last week's forecast that the planets for early August looked quite bad and that one couldn't "rule out any negative or disappointing scenarios" for the next two weeks. We have a truckload of disappointment and negativity now, especially since Standard and Poor's has downgraded US debt to AA+ for the first time in its history. This sets up the likelihood of more downside this week as investors try to adapt to the new glass half-empty reality.

If last week's Mercury-Neptune was the first shoe to drop, this week's potent Mars-Uranus-Pluto alignment will the second. More like a boot perhaps. This is a very nasty pattern that can manifest as situations of shock and violence that are extremely disruptive. The debt downgrade is likely the partial result of this pattern as Mars slowly moves into position in the celestial cockpit. I have noted in previous forecasts how we are entering an extended period of upset and reorganization from the Uranus-Pluto square aspect. This aspect between these slow moving planets began earlier this year and will last into 2012 and 2013. It is likely to reshape the economic and political landscape much as it did the last time around. The previous Uranus-Pluto square occurred in 1931-1932 at the height of the depression and the beginning of Nazi Germany and FDR's New Deal in the US. Fast-moving Mars is currently activating this pattern so we should expect more chaos and uncertainty this week. I would not rule out a crash here, although governments may intervened to mitigate the damage so they may be able to prevent worst case scenarios. The alignment is closest on Tuesday and Wednesday so the first half of the week is perhaps more dangerous than the second half. I would expect some rebound to occur by Thursday and especially Friday on the Sun-Venus-Uranus pattern.

Washington fiddles as markets burn; Mercury-Neptune confounds debt efforts

2011-07-30T11:41:00.003-04:00

Transits for Wednesday August 3, 2011 9.30 a.m. New York

Markets did not take kindly to the protracted US debt ceiling negotiations as the risk of a default loomed larger with the approach of the August 2 deadline. Stocks in New York fell more than 4% with the Dow closing at 12,143 and the S&P500 finishing the week at 1292. It was a similar story in Mumbai as the RBI's surprise fifty-point rate hike on Tuesday only added to anxiety levels. The BSE-Sensex lost more than 2% closing at 18,197 with the Nifty ending the week at 5482. I thought the chances were high for early week decline on the entry of Mars into sidereal Gemini and that corresponded with Tuesday's significant losses. However, my expectation for a late week recovery was wide of the mark as markets remained on edge as the debt drama entered its final act. While I had expected some disappointment and confusion over these debt ceiling negotiations, I thought we would see them closer to the deadline. However, the problems inherent in the critical Mercury-Neptune opposition have manifested somewhat earlier here.

As I have noted previously, the poignant coincidence of Mercury turning retrograde while in close opposition to Neptune exactly on the August 2 deadline is already delivering its karmic payload in the form of all the confusion surrounding the debt talks. Not only is it unclear if a deal will get done in time, but no one is really certain how binding the deadline actually is. Some commentators have suggested that Obama could extend it a few days in order for both sides to hammer out the details. Others have suggested the government won't run out of money for another week or two. And even if a deal is struck, US debt may still suffer a credit downgrade anyway by one of the rating agencies. In the end, it's all about preserving a good credit rating so that the US can continue to borrow money at low interest rates. Anything that jeopardizes confidence in the ability of the US to repay its loans will result in higher rates which will hurt the economy. The stock market is also likely to take a negative view of higher interest rates.

Mercury's retrograde station this week -- due near midnight EDT on Tuesday -- heightens the negative effect of its aspect with Neptune. Since Neptune is no friend to clear logical thinking, we should expect more fallout from these negotiations as uncertainty and unproductive analysis is likely to persist for much of the week. Could the US actually default here? While I had not seriously considered the possibility, I have noted that this Mercury-Neptune aspect did boost the possibility of such an outcome. A more likely outcome is some kind of confused interregnum where somehow the key players buy extra time to work out a deal. This may or may not be before the August 2 deadline. The planets look pretty bad over the next couple of weeks so I would not rule out any negative or disappointing scenarios.

With Mercury turning retrograde late Tuesday/early Wednesday, we could easily see more downside in stocks. That said, there are a couple of Jupiter aspects that could give a temporary lift to sentiment. The Sun forms a square aspect with Jupiter on Monday and into Tuesday while Venus does likewise on Thursday and into Friday. The presence of this influence offers some possibility for gains, although it is unclear to what extent the gains will apply to stocks. Perhaps commodities like gold and oil will be more directly influenced by these bullish aspects.

Stocks rise on EU bailout; US debt deal uncertain

2011-07-23T14:15:00.002-04:00

Stocks generally moved higher last week as the EU attempted to arrest the ongoing debt contagion by agreeing to a second Greek bailout. In New York, the Dow was ahead by almost 2% closing at 12,681 while the S&P500 finished at 1345. Indian markets followed suit as the BSE-Sensex moved above a key resistance level closing at 18,722 and the Nifty finished at 5633. Not surprisingly, Monday's Mercury-Rahu aspect turned out to be bearish across the board. Buyers came back on Tuesday as the market reversed higher near the entry of Mercury into Leo. This was largely in keeping with expectations as I thought the midweek would be more positive. Sentiment continued to stay mostly strong all the way into Friday, however, as the potential trouble from the Mars-Ketu conjunction did not manifest until after markets had closed for the week, i.e. Boehner suddenly ended debt talks with Obama and the Norway attacks.

The US debt ceiling talks appear to be going right down to the wire as Republican Speaker John Boehner walked away from negotiations with President Obama late Friday. If a deal is not reached by the August 2 deadline, the US will default on its debt since it could no longer borrow enough money to cover its expenses. Nobody really expects this to happen, but what is unknown is the kind of deal that will be struck and who will gain political advantage. The political posturing is likely more important here as both parties are vying to make their case for the 2012 election cycle.

Since neither Jupiter nor Saturn are especially dominant in the sky right now, it seems unlikely that the Republicans will get their way and force large spending cuts. Such austerity measures are more symbolic of a strong Saturn but we don't seem to have that here as Saturn is moving forward at its normal speed through sidereal Virgo and is not forming any significant aspects with other planets. This suggests that either a compromise short term solution will be found or Obama's preference for a blend of cuts and increased taxes will carry the day. Obama's chart looks quite stressed at the moment so it seems unlikely that he will win his version of the deal in the coming days. Of course, the other problem with this debt ceiling deadline is that Mercury will turn retrograde on the same day. It's a peculiar coincidence that suggests that the deal may not be final or some of the details may be disputed after the fact by one of the parties.

This week sees Mars enter sidereal Gemini on Monday and Tuesday. This excess of Mars energy can be a disruptive influence which may increase the odds of declines early in the week. But the mood is likely to turn positive by midweek as the Sun forms a alignment with Uranus and Pluto on Wednesday and Thursday. The late week period also features a supportive configuration involving Mercury, Venus and Neptune. So while we could see some downside in the first half of the week, the chances are fairly good that the subsequent rebound will more than make for it.

Stocks decline on Venus-Saturn; Sun and Mercury to change signs

2011-07-16T11:59:00.001-04:00

Despite Ben Bernanke's best efforts to talk up the market by keeping the door open for a possible QE3, markets drifted lower this past week as the world seems increasingly mired in debt quicksand. The more it struggles to escape through bailouts and austerity programs, the deeper it sinks. In New York, the Dow tumbled lost about 2% closing at 12,479 while the S&P500 finished at 1316. It was much the same story in Mumbai as the BSE-Sensex fell back below technical support levels closing at 18,561 with the Nifty finishing at 5581. Amidst all this uncertainty, gold reached a new all-time high closing at $1590.

This bearish result was in keeping with expectations given the influence of aspects involving malefics Mars and Saturn. Monday's decline fit nicely with the Mercury-Mars aspect while Tuesday's loss reflected the Venus-Saturn aspect with a good dose of Moon-Mars that bumped up the arrival time by a day. The midweek rally attempt on the Moon-Venus aspect fell short, however, and weakness returned in time for Friday.

All the talk this week was about debt and how to avoid its worst consequences. The news out of Europe suggested that current debt levels in Ireland and Italy were unsustainable as bond yields shot up to reflect the increased risk of default in these over-leveraged economies. The bond vigilantes are back in force and they smell blood. In the US, the debate over the debt ceiling reached a new level of urgency as there appears to be no deal on the horizon yet with the August 2 deadline fast approaching. Both parties agree on the need for some austerity measures and significant government spending cuts, but Obama and the Democrats want to raise taxes also and thereby bridge the budget gap from both sides. A major agreement to cut spending in the long term looks more unlikely now, as both parties may have to content themselves with a short term fix. Whether financial markets will be satisfied with such a band-aid solution remains to be seen, although the Moody's downgrade threat of US credit rating from AAA would suggest there could be some negative fallout. A minor deal would likely send bond yields higher as it would increase the risk of default as well as increase future supply. Of course, failure to make any kind of deal would trigger a US default and generate even nastier consequences in the bond market. This would likely increase volatility in the stock market with potential short term gains, closely followed by declines as investors would realize that the whole financial house of cards would be one step closer to collapse.

In astrological terms, all this talk about debt and austerity is very Saturnian. After two years of Jupiter's faith in a Keynesian future of borrowing and spending, the return of Saturn's "less is more" approach has marked a discernible shift in tone. There is a growing realization that Jupiter-driven stimulus measures cannot solve our current economic problems alone. Saturn reminds us that sometimes the best solutions are ones where we pare back to essentials and discard what is no longer needed. Saturn's solutions tend to be harsh, not unlike purging the system of toxins. Although they can be unpleasant, they can be effective in the long run. However, Saturn is not fully in command of the sky at the moment as Jupiter still exerts some influence. This suggests that bailouts and the Keynesian spending approach will likely retain some appeal for governments such as the EU alongside the demand for greater responsibility and austerity.

The more immediate concern for the US government, however, is whether they can get a deal before the deadline. While the planets look somewhat cooperative over the next week or two, I do note that the August 2 deadline corresponds with the beginning of the Mercury retrograde cycle. This is not a indication of a successful action that relieves anxiety and resolves a problem. It reminds me of the situation on November 7, 2000 when Mercury turned retrograde right on election night in the US. That produced the famous hanging chad recount between Bush and Gore that went all the way to the Supreme Court. The election was ultimately decided more than a month later. What's worse is that Mercury will be opposite Neptune at the time it turns retrograde. Mercury-Neptune combinations speak to confusion and deception and lead to eventual disappointment. Perhaps there will be a deal but we could see some buyer's regret once the deadline passes, as one side recognizes they've been had. It seems a little implausible to expect there to be no deal at all, although the difficult planets at this time do increase the odds of this scenario as well. It seems more likely that the market will be disappointed with whatever transpires up to and including August 2.

This week is more of a mixed bag. The early week Mercury-Rahu aspect could go either way, although it's always hard to put much trust in Rahu. Mercury enters Leo on Wednesday so that may suggest some upside is more likely. The Sun's entry into sidereal Cancer this week could signal a change in direction, especially for the gold market. A reversal lower in gold would therefore be somewhat more likely. I will be paying close attention to the late week period as Mars approaches its conjunction with Ketu (south lunar node). This is a potentially explosive pairing that could spark some hard selling, although the exact conjunction will only occur after the close on Friday in New York. This may mute its effects.

Stocks rise again with Jupiter; Venus-Saturn this week

2011-07-09T14:37:00.001-04:00

Stocks ended higher last week as improved corporate earnings kept the
summer rally going for another week. Despite Friday's decline on the
disappointing jobs report, the Dow added 75 points for the week closing
at 12,657 while the S&P500 finished at 1343. Indian stocks also rose as
the Sensex broke above some important technical resistance and ended the
week at 18,858 while the Nifty closed at 5660.

This bullish outcome was not unexpected as I thought that Jupiter's
optimism would carry the day. The early week gains in Mumbai coincided
quite closely with Monday's Venus and Jupiter aspects, even if they were
fairly modest. As expected, the midweek Mars-Saturn aspect tempered
Jupiter's bullishness and we saw some mild selling occur in most global
markets. Once that negative influence had passed, Jupiter took over
again and stocks and commodities moved higher on Thursday's Venus-Uranus
aspect. And as often happens, we got a reversal just as the powerful
Jupiter-Pluto aspect peaked on Friday.

With all of the main medium term Jupiter aspects now out of the way for
a while, one wonders where stocks are headed to next. The easy gains
are likely behind us now as bulls will be harder pressed to find other
sources of planetary fuel. They may well be running on fumes for a
while. And yet Saturn doesn't appear to be offering much to the bears
here either in the way of aspects, so we could see some aimless
wandering for the key indexes.

This week offers up some decent bear food in the form of Saturn's square
aspect to Venus. This makes its tightest angle on Tuesday/Wednesday,
although I would expect the Moon's position opposite Mars on Tuesday
makes that day somewhat more negative. The early week also features a
Mercury-Mars aspect that is iffy at best so it's hard to imagine stocks
making much more headway here. There could be a bias towards caution
this week that generates some selling. Of course, we should see some up
days along the way too, although they are likely to be offset by
Saturn's influence.

Stocks take flight on Jupiter; New Moon/eclipse cycle tested again

2011-07-02T12:24:00.002-04:00

Jumping Jupiter! Stocks soared last week as investor confidence was restored following Greece's approval of the EU's austerity program. The biggest gains were in New York as the Dow climbed 5% closing at 12,582 while the S&P500 finished at 1339. Indian stocks also rose by almost 3% as the Sensex briefly touched 19K before settling at 18,782. The Nifty closed above a key technical resistance level of 5600 ending the week at 5627.

While I had expected some upside on the strong Jupiter aspects, I did not expect the move to be so forceful. It was an impressive manifestation of Jupiter's bullish energy as its more powerful aspects with Uranus and Pluto aligned nicely with its aspect with the faster-moving Mars. All this Jupiter energy translated into a big relief rally as stocks bounced off their recent lows. What was more perplexing, however, was the failure of Friday's solar eclipse to generate any selling pressure. Indian markets pulled back modestly on Friday, but US markets continued to run higher. It was a sobering reminder of the limits of my astrological knowledge, and perhaps the epistemological limits of astrology itself.

While the eclipse may not have exactly coincided with a decline, it is still a phenomena worthy of our attention. Recently, US markets have tended to make highs near the New Moon, and then fall into the period of the Full Moon. Eclipses are a special type of New Moon where the orbits of the Moon and Earth intersect sufficiently for the Moon to cast a shadow upon the Earth. The May 2 high occurred right on the day of the New Moon, while the lower high on June 1 also fell within one day of a New Moon and solar eclipse. If stocks begin to fall this week in the wake of the eclipse, then the pattern will have repeated once again. I'm not sure we have seen a high, since this New Moon cycle is only one of several that affects the markets. But it nonetheless increases the odds somewhat that a reversal lower is imminent.

One reason why this New Moon/eclipse reversal may not quite fit with that pattern is that Jupiter still looks quite strong. It will form its exact trine aspect with Pluto on Friday July 8 and then begin to weaken once again. This suggests there will be a significant amount of bullish buying power available for this week so that may reduce the probability of an immediate post-eclipse decline.

But astrology is nothing else if not a multi-headed hydra, and there are always other influences to consider. Wednesday's Mars-Saturn aspect, although technically a "minor" one, is a potential source of bearishness. This could depress sentiment in the midweek period, especially since Monday and perhaps Tuesday appear to be fairly positive with the Mercury-Jupiter aspect. The end of the week offers the bulls another opportunity to take the reins as Venus moves into alignment with Uranus and Jupiter. So while those short-term aspects look mixed to positive this week, we will still have to wait and see if the New Moon cycle will assert itself once again. I'm not holding my breath on that, but Jupiter's bullish influence may well be fading after this week.

Stocks attempt rebound; solar eclipse due Friday

2011-06-25T11:46:00.002-04:00

Stocks attempted to rebound from their recent lows last week as falling oil prices and the adoption of a new austerity program in Greece gave some reason to cheer. In New York, the rebound didn't quite take as the Dow ended slightly lower on the week closing at 11,934 while the S&P500 finished at 1268. Indian stocks fared better, however, as the BSE-Sensex rose by 2% closing at 18,240 with the Nifty ending the week at 5471. I had expected more weakness early in the week on the Mercury-Saturn aspect. India caught the full force of this influence as stocks declined sharply on Monday. World markets then reversed and we saw some gains in US markets over the next couple of days. Interestingly, the late week bullishness I was expecting from the Sun-Jupiter combo only showed up in Mumbai as Thursday and Friday posted impressive performances as the markets there rallied off support. US markets were a very different story, however, as growth anxiety pushed stocks back to their support levels.

All this talk of austerity and bailouts for Greece is getting a little old, and one wonders if the market may have already discounted a default. The Euro is showing signs of more weakness here but has yet to break below 1.40. I would have thought we might have seen more in the way of constructive policy pronouncements and subsequent cheer leading by this point as Saturn's influence should be beginning to recede. No such luck, although at least markets have stopped falling for the time being. In the current environment, that is at least something.

It may well be that the negative Saturn mood will come to the fore once again this week in the form of Friday's solar eclipse. The eclipse takes place in the early afternoon in India (before sunrise in NYC) and could correspond with another shock of volatility. Eclipses can be destabilizing events at the best of times but this one has the added bonus of occurring in a tight square with Saturn. That could amp up the bearish mood considerably at the end of the week.

Before that time, there are some fairly decent aspects that could bring gains. Mars with Jupiter on Monday, Venus with Mercury, and somewhat more precariously, Venus with Ketu on Tuesday and Wednesday.

Saturn seems reluctant to give up its recent high profile so maybe this eclipse will be its last kick at the can for a while. Just how much damage it will do is an open question, however.

Stocks shaky on lunar eclipse; Jupiter may offer hope

2011-06-18T13:03:00.001-04:00

Fears of a possible Greek default raised volatility last week, even if the EU eventually cobbled together another bailout package to delay the inevitable collapse of that Mediterranean nation. In New York, the Dow made new lows Wednesday but rallied by Friday closing slightly higher on the week at 12,004 while the S&P500 finished at 1271. Indian stocks were more negative, however, as the RBI boosted interest rates again to deal with its intractable inflation problem. The Sensex lost more than 2% closing at 17,870 while the Nifty ended the week at 5366.

As expected, last Wednesday's lunar eclipse did shake things up as stocks and commodities like oil and gold fell sharply at midweek. The downgrade of Greek debt, coupled with Asian central bank tightening created a pessimistic mood throughout financial markets. While the Mercury-Jupiter aspect did deliver some rebound by Friday, this rise did not occur in Mumbai where caution over domestic inflation prevailed. There is a growing sense that there will be no quick fixes for the world's economic woes. The Fed has signaled it won't launch QE3, most likely because it's between a rock and a hard place at the moment. A new round of stimulus would sink the Dollar and likely boost interest rates on Treasuries as buyers of US debt would likely demand a greater risk premium. Of course, by doing nothing, the Fed is allowing the economy to sink or swim. But high unemployment, falling house prices, and a burgeoning government debt are all acting like very heavy millstones.

It's all very Saturnian of course as the ringed planet infuses its distinct brand of gloom and fear into our collective psyche. After completing its retrograde cycle last Monday, Saturn is now moving forward, albeit very slowly. Reversals in planetary direction can often mark changes in market direction, especially when other evidence supports. Wednesday's eclipse could definitely qualify in that regard, although we still have one more to go on July 1. Eclipse periods tend to be more volatile than normal periods, and occur every six months lasting from between two to four weeks. This one began on June 1 and will last until July 1. Eclipses can coincide with reversals and declines, especially when the eclipses are afflicted by malefic planets. Saturn is considered malefic and it likely made this recent eclipse more negative. The upcoming solar eclipse on July 1 will also be quite Saturnian since Saturn will exactly square the Sun/Moon conjunction. This does not necessarily mean the market will keep falling until July 1 or beyond, however, It does mean that it increases the likelihood of more uncertainty and pessimism around that date. Whether or not it shapes the larger trend and invites a larger reversal higher depends on other factors and their relative influences.

This week looks like a mixed bag as Mercury is squared by Saturn on Tuesday. There is also an alignment of Sun, Mars and Neptune on Tuesday and Wednesday that could correspond to some additional anxiety. I would therefore expect the first half of the week to be more bearish, with a chance of a nasty decline. On the other side of the cosmic ledger, we can see that Jupiter may be increasing its profile here. Jupiter tends to be bullish in its effects and its approaching aspect with Uranus will be highlighted by its contact with the Sun on Friday. That should increase the odds of some kind gain towards the end of the week. Where the market ends up overall is harder to say, although it is possible we could finish close to current levels.

Stocks fall into Saturn-Pluto; Lunar eclipse due Wednesday

2011-06-11T13:46:00.002-04:00

Stocks slumped again last week as the Fed Chair Ben Bernanke ruled out any additional stimulus plan (QE3?) for the foreseeable future. In other words, the buffet is closed and there will be no more free lunch. In New York, the Dow lost almost 2% closing at 11,951 while the S&P500 finished the week at 1270. In keeping with recent trends, Indian stocks fared somewhat better, however, as the Sensex slipped by less than 1% closing at 18,268 while the Nifty ended the week at 5485. While the early week period looked a little shaky with the Mercury-Saturn aspect, I thought we would have more of a bounce later on as the Jupiter-Neptune aspect tightened. As it turned out, only Thursday got the benefit of the Jupiter bounce in the US market. Friday's decline corresponded fairly closely with the approaching bearish Mars-Rahu aspect.

So this is still very much a Saturnian market. Saturn's portfolio of pessimism, loss, and recession is very much front and centre here as fears about inflation have been pushed into the background. This plausibly reflects the current planetary geometry quite well as inflationary and growth-oriented Jupiter lost some influence in the wake of its early May aspect with Rahu. In its place, Saturn has strengthened as it prepares to reverse its direction and square Pluto this week. As we know, a slow Saturn is a powerful Saturn. And a powerful Saturn tends to focus public attention more on the intractability of the Eurozone debt crisis, the flagging US recovery, and the unsustainability of emerging market expansion in countries like India and China.

This week could bring some important new developments that shift financial thinking in significant ways. Saturn ends its 4-month long retrograde cycle on Sunday night and forms its tightest aspect with Pluto at that time. This is generally a difficult combination, although Saturn's change in direction from backwards to forwards can mark an analogous change in sentiment. However, there are a number of difficult aspects in the mix here that suggests more downside in the near term. Mercury conjoins Ketu on Monday while Mars forms an aspect with Mercury on Tuesday. Of course, Wednesday has a big asterisk beside it because the lunar eclipse occurs in the afternoon just after the end of the trading in the US. There is a lot of celestial traffic here and it should produce some noteworthy moves both in the markets and perhaps also on an institutional and policy level. Eclipses are all about interruption of the status quo so trend reversals are somewhat more likely at this time. The late week period features some short term Mercury aspects that seem fairly benign so perhaps that increases the likelihood of gains by Friday.

Stocks fall with Saturn and eclipse; Jupiter stronger this week

2011-06-04T15:30:00.002-04:00

US stocks staged a significant retreat last week as disappointing employment data suggested that the recovery may be in trouble. In New York, the Dow fell by more than 2% closing at 12,151 while the S&P500 finished at 1300, just above a critical technical support level. This bearish outcome seemed to reflect the planetary energies fairly well as the midweek Sun-Saturn aspect and solar eclipse coincided with Wednesday's big drop. I had been uncertain about Friday given the Neptune retrograde station but that decline was not a surprise. Indian stocks fared better, however, as they benefited from more early week upside which US markets missed due to the Memorial Day holiday. Despite two losing sessions at the end of the week, the Sensex rose by almost 1% to 18,376 with the Nifty settling at 5516.

The glass is looking half empty here as concerns grow that all the stimulus measures from the US Federal Reserve over the past two years are no longer working as advertised. But if QE1 and QE2 aren't enough, then surely this makes another round of stimulus more likely in the form of QE3? Well, one should never discount a government's desire to print more money to get out of jam, but there may be less tolerance for such a move now.

It turns out that all that "free" money really isn't free at all and comes with a price. The US debt has ballooned to $14 trillion and counting, the Dollar has plunged, and commodities like oil and gold have risen sharply. This has created an inflationary environment all around the world which has wreaked havoc in many emerging markets. It now also threatens to overtake the US economy as the implications of Bernanke's currency devaluation scheme are becoming more apparent. There is more talk that the US is running out of policy options and may simply have to face the music, even if it means rising unemployment, more falling house prices, and little or no growth for the near term. All this negativity is very much in keeping with strengthening Saturn as debt, recession and economic pessimism now predominate the discussion. I tend to think that Saturn could well remain in control up until the conclusion of its retrograde cycle on June 13 when it forms a square aspect with Pluto.

For all the gloomy Saturn influence, we could see more Jupiter this week as it forms an aspect with Neptune. While Neptune does have a bearish side, its aspects with Jupiter tend to be more bullish. Upside is perhaps even more likely in the second half of the week as Venus joins the alignment. Ahead of that time, however, Saturn will again be front and centre as its aspect with Mercury on Tuesday could indicate shakier markets in the early part of the week.

Stocks retreat on Mars-Saturn; Neptune turns retrograde on Friday

2011-05-28T13:13:00.002-04:00

Stocks edged lower last week as uncertainty over the strength of global recovery continued to weigh on sentiment. In New York, the Dow rebounded at the end of the week but still closed slightly lower at 12,441 with the S&P500 finishing at 1331. Indian stocks followed a similar script as a late week rally wasn't enough to erase previous losses. The BSE-Sensex closed a little lower at 18,266 with the Nifty ending the week at 5476. As expected, we did see declines coincide with the alignment of Mercury, Venus, Mars and Saturn in the first half of the week. Monday's decline was larger as Venus conjoined Mars while in difficult aspect with bearish Saturn. However, I thought we might have had a little more downside on Wednesday's exact Mars-Saturn aspect. As it happened, Indian stocks were lower on Wednesday but the mood changed by the time US markets opened as New York reversed and began to rally off its lows.

Some disappointing US economic data last week saw a broad-based selloff in the Dollar as investors priced in another delay in an interest rate hike, perhaps to 2012. There is increasing chatter among commentators that further weakness in the US will force Bernanke to cobble together yet another stimulus package to keep the sinking ship that is the US economy afloat for another few months. As QE2 winds down at the end of June, rumours of QE3 may become a more important factor in the market dynamic in the weeks and months ahead. As a rule, such stimulus programs are associated with expansionary Jupiter since they aim to boost demand and invigorate economic activity. With Jupiter still taking a backseat to Saturn these days, it seems somewhat unlikely that any hint or formal announcement of QE3 will be immediately forthcoming. Saturn is moving very slowly ahead of its direct station on June 13, so the main focus is likely to remain on Saturn-type issues such as debt, slowdown and general pessimism. After that time, we may see more Jupiterian energy prevail as Jupiter forms a succession of putatively bullish aspects with Neptune, Uranus and Pluto in June and July before it makes its retrograde station at the end of August. This latter time frame is therefore a more likely window when we could see the announcement of some kind of additional Fed stimulus.

This week we may see a bit of everything. The early week again seems bearish as Monday's Mercury-Rahu aspect is quickly followed by a Sun-Saturn pattern on Tuesday and Wednesday. Wednesday is also noteworthy because there will be a solar eclipse at 17 degrees of sidereal Taurus on that day. This is likely to reflect an increase in caution in many markets including stocks and commodities. A minor contact between Mercury and Jupiter on Thursday offers some hope for a rebound, however. Friday may be the most interesting and unpredictable day of all. That is the day that Neptune turns retrograde. What's interesting about this retrograde station is that it will occur while in a tense square aspect with Mercury. This is normally a bearish combination. The complicating factor is that Neptune is sitting very close to its aspect with bullish Jupiter. For this reason, the retrograde station could end up being a positive influence, even with the dubious input from Mercury. While the final outcome is somewhat uncertain, it does suggest that a larger than normal price move is more likely on Friday.

Stocks slip on Mercury-Mars; Saturn in focus this week

2011-05-21T13:22:00.002-04:00

Stocks trended lower last week as renewed worries over Greece offset positive earnings reports. In New York, the Dow fell less than 1% closing at 12,512 while the S&P500 ended the week at 1333. It was much the same story in Mumbai as the Sensex lost 200 points closing at 18,326 with the Nifty finishing the week at 5486. I thought we might have seen more early week upside on the Sun-Jupiter and Mercury-Venus-Neptune alignments but it seems that the market is still working through the after effects of that Jupiter-Rahu aspect from early May. In addition, a shadow Saturn aspect to this alignment generated more caution than I had anticipated. We finally got a reversal higher midweek as Mercury and Venus teamed up with Uranus. As expected, Friday's Mercury-Mars conjunction was bearish, although this only manifested later in the day in Europe and the US, after Indian markets had closed.

Not surprisingly, we saw more developments in the Eurozone debt problem as Fitch downgraded Greece's debt another two notches while Germany showed greater reluctance to cut blank cheques for their spendthrift southerly neighbours. This appears to be conforming to the strengthening of Saturn here as the focus shifts from speculation and inflation (Jupiter-Rahu) to debt and recession (Saturn). Saturn symbolizes caution and pessimism so it tends to be associated with economic contraction and declining prices. In that sense, it is the necessary antidote to inflation. In other words, Saturn is deflationary in its effects. When Saturn is strong and afflicted, prices tend to fall. Saturn tends to strengthen around close aspects with other planets and when its velocity is reduced near its stations. Saturn is due to station next on June 13 when it ends its retrograde cycle and return to its normal forward motion. At that time, it will form a fairly close square aspect with Pluto. So on that basis, it is tempting to think that the markets will stay weak until that time.

This week will be an important test of this approaching Saturn energy. Early in the week, there will be a triple conjunction of Mercury, Venus and Mars. Mars is a potential troublemaker here so that may increase in the chances of lower prices. But Saturn will also form a close 150 degree aspect to this triumvirate so is another potentially bearish influence. If we do get a decline into midweek, then that will provide additional evidence that Saturn is strengthening and would boost the odds for a larger correction that lasts into that mid-June station.

Stocks flat after Jupiter-Rahu; Sun-Jupiter this week

2011-05-14T12:47:00.001-04:00

Stocks were mostly unchanged last week as renewed concerns over Greece were offset by improving economic data. In New York, the Dow edged lower closing at 12,595 while the S&P500 finished the week at 1337. Mumbai was similarly indecisive as the Sensex ended pretty close to where it started at 18,531 and the Nifty following suit at 5544. While it wasn't very exciting, the end result was not hugely unexpected. I was not wrong in thinking there could be more upside leading into Wednesday's triple conjunction of Mercury, Venus and Jupiter. Most global markets rose in the first half of the week as the positive influence from these planets overshadowed any potential bearishness from the aspect with Rahu. Significantly, this affected most asset classes including oil, gold and silver as commodities also rallied back from the previous week's sell-off. Indian markets did not participate in the early week rise perhaps because of the more negative implications of rising oil prices. As expected, stocks and commodities were mostly bearish in the aftermath of the triple conjunction as the US Dollar gained more ground.

Now that the Jupiter-Rahu aspect is behind us, we may well wonder what lies ahead. This aspect has highlighted the dangers of excessive speculation and we have seen commodities decline sharply in recent weeks. Its growing separation suggests that the unwinding of the "risk trade" out of commodities may become less important here. While the gradual reduction in the negative Rahu influence may free up Jupiter to become more optimistic and bullish, we should also be watching for the possible increase in Saturn's influence. Saturn will end its retrograde cycle on June 13 as it returns to normal forward motion in the sky. At this time, Saturn will also form a fairly close square aspect with Pluto. Saturn-Pluto aspects are often negative in their effects as pessimism over economic growth prospects can take over. Saturn also represents debts and losses so it is possible that the problem of indebtedness may become more pronounced. Worries over Greece and the Eurozone have re-surfaced in the past week and this may well foreshadow more concerns in the weeks ahead.

This week actually features some positive aspects, especially in the early part of the week. Monday's Sun-Jupiter aspect is complemented by a very nice Mercury-Venus-Neptune aspect which should increase the likelihood of gains in the first half of the week. Wednesday's Mercury-Venus-Uranus alignment should add another layer of optimism to the proceedings. Of course, the market could still decline in spite of these bullish short term aspects as we are in the shadowy, leeward side of the Jupiter-Rahu aspect. Nonetheless, declines may be further delayed until the short term picture becomes more difficult. The end of the week is perhaps a better example of this tense energy as Mercury catches up with Mars while in aspect to Pluto.

Stocks get caught in commodity selloff; triple conjunction due this week

2011-05-07T14:37:00.003-04:00

Financial markets went into spasm last week as the speculative commodities trade came to a crashing halt. The Humpty-Dumpty world of gold, silver and crude oil all came tumbling back down to earth with a thud against a backdrop of central bank tightening in Asia, a dollar recovery in the US and the possibility of Greece leaving the Eurozone, not to mention the US assassination of Osama Bin Laden. Stocks did not escape the turmoil as equities succumbed to inflation fears and poorer than expected US economic data. In New York, the Dow closed down more than 1% at 12,638 while the S&P500 ended the week at 1340. Indian stocks also declined by more than 3% as the Sensex closed at 18,518 and the Nifty finished at 5551.

All this turbulence appears to be an adequate reflection of the slow-moving Jupiter-Rahu aspect which finally comes exact on May 7. As I have noted over the past several weeks, the approach of the Jupiter-Rahu aspect has the potential to disrupt the financial landscape in fundamental ways. Specifically, the focus of this aspect centered around notions of speculation and growth expectations. Jupiter symbolizes growth and optimism but Rahu often creates a distorting or unsustainable greed effect so it is quite fitting that this speculative froth would have be taken out of the market at this time. Silver has fallen 30% in the span of a single week while crude oil has declined by 10%. It is possible that we could be at the beginning of a major sea change in assumptions as the long-struggling US Dollar may have turned the corner now as it rose 2% for the week. Once the Dollar gets back on its feet, it will likely fuel further exiting of the "risk trade" in commodities and likely in stocks as well.

Another reason why we could be witnessing a shift in the prevailing trends is that Saturn is now backing up into a square aspect with Pluto. The aspect will still be four degrees away from exact so it may not be as powerful as it might be, but it could well provide another source of Saturnian caution for the market in the weeks ahead. Once Saturn returns to direct motion on June 13, this aspect will begin to separate and eventually weaken.

Since Jupiter makes its exact with Rahu this week, it would be tempting to think that it's all downhill from here. It very well could be, although there may be sources of bullish sentiment in the mix also. Of critical importance will be the triple conjunction of Mercury, Venus and Jupiter on Wednesday May 11. These are three normally bullish planets that should generate some buying in and around their exact alignment. As a general rule of thumb, sentiment usually rises before the aspect is exact. The complicating factor here is that this bullish triple conjunction will occur under the shadowy aspect of Rahu. That may increase the likelihood of a quick reversal lower at any point in the proceedings and could seriously undermine rally attempts. In any event, it promises to be an active and interesting week.

Jupiter-Rahu fuels inflation and speculation

2011-04-30T12:52:00.002-04:00

US Stocks rose last week as investors cheered Fed Chair Ben Bernanke's restated commitment to the zero interest rate policy for the foreseeable future. In New York, the Dow gained more than 2%
closing at 12,810 while the S&P500 finished at 1363. Bernanke's comments also prompted gains in inflation hedges as such gold, silver and oil. It was a different story in India's already inflation-ravaged economy as the Sensex lost more than 2% closing at 19,135 while the Nifty ended the week at 5749.

As expected, we did see some decline on Monday's Mercury-Saturn opposition aspect. The US market rebounded after that as the bullish Sun-Venus-Pluto pattern coincided with gains that lasted for the rest of the week. The gains were largely a response to the pro-inflationary stance of the Fed, as most asset classes gained ground against a falling dollar. The Indian market fared less well, however, since the Fed policy would likely increase inflationary pressures that are already threatening the domestic economy. Interestingly, Friday's gains in crude and gold coincided with the Moon's entry into sidereal Pisces. I suggested last week that this transit might well coincide with gains in crude as it would enhance the strength of the five planets (Uranus, Mars, Mercury, Venus, Jupiter) that already occupy this constellation.

The recent gains in most asset classes is very much in keeping with the speculative nature of the approaching Jupiter-Rahu aspect. Jupiter's tendency towards expansion and growth is exaggerated by Rahu's penchant for distortion and disruption. The combination of these influences can result in greed and speculative excess that are commonly found in bubbles and manias. It is therefore no surprise that we see gold reaching new all-time highs every week and silver going parabolic. One of the features of Rahu, however, is that while it can generate gains, these are often unsustainable in the long term. Once the Jupiter-Rahu aspect begins to separate on May 7 (or May 13 depending on which measurement of Rahu/NN one uses), we will need to watch for signs of a trend reversal. There is an increased likelihood that this aspect may bring about changes in the financial landscape. Nothing is guaranteed obviously, but it is a combination that has the power to change the status quo.

This week begins with a potentially tricky aspect between Mars and Rahu. Since Mars is also entering sidereal Aries on Tuesday, this could increase the probability of some downside in the early week. This may be strong enough to manifest in most markets. But we could see a return to the pro-inflation bullishness after that, as the approaching conjunction between Venus and Mercury is likely to bring some gains into midweek, and perhaps later. Friday looks somewhat less positive, however, as the Moon conjoins Ketu/SN.

Stocks rise with Sun-Venus; more gains possible this week with Pluto

2011-04-23T13:55:00.003-04:00

Stocks rebounded across the board last week as positive corporate earnings offset Monday's surprise US debt warning. In New York, the Dow climbed more than 1% closing at 12,505 while the S&P500 finished at 1337. In Mumbai, the indices also recovered after Monday's decline as the BSE-Sensex added about 1% on the week closing at 19,626. After trading as low as 5725 early in the week, the Nifty ended the week at 5884. With the further weakness in the US Dollar, gold hit new all-time highs last week trading above $1500 and crude oil futures once again moved above $110.

This outcome was more or less in line with expectations as the Mercury-Mars-Saturn alignment on Monday and Tuesday was likely to induce more selling. Monday was lower but the market generally reversed higher by Tuesday resulting in perhaps a somewhat abbreviated negative influence from these planets. The midweek gains correlated quite closely with the bullish Sun-Venus-Neptune pattern as investors pushed up prices through to the end of the week.

One wonders how long Bernanke will let the Dollar fall. While a low Dollar helps to make exports cheaper and boosts job growth, all that imported oil the US relies upon for its energy needs is becoming a burden on the economy. $5 a gallon gasoline is going to reduce discretionary consumer spending and this will tend to reduce economic growth. Eventually, something will have to give. Either the Fed defends the Dollar and lets the stock market fall, or the Dollar is permitted to devalue indefinitely which will drive up inflation and reduce growth. Jupiter moves into alignment with Rahu in early May so that may well reflect some changes (Rahu) in growth outlook (Jupiter).

This week begins in the immediate aftermath of a Mercury-Saturn opposition. Mercury actually turns direct on Saturday, but it will still be just one degree from its exact aspect from bearish Saturn. So it is possible this could be a drag on sentiment, especially in Indian markets. But more upside looks fairly likely going into midweek as the Sun and Venus will align with Pluto. This is likely to boost most asset classes. The end of the week is somewhat fuzzier, however. Stocks may be more mixed, with oil perhaps more likely to rise as the Moon enters watery Pisces on Friday.

Stocks drift lower; Mercury-Mars-Saturn this week

2011-04-16T13:21:00.003-04:00

Stocks edged lower last week as inflation fears and unimpressive corporate earnings weighed on markets. In New York, the Dow rallied late in the week but still ended lower closing at 12,341 while the S&P500 finished at 1319. In Mumbai, the Sensex reversed after Wednesday's gain and closed lower at 19,386 while the Nifty finished at 5824. I thought we might see more early week upside on the Mercury-Jupiter conjunction but we only saw some gains arrive on Wednesday. Friday's Sun-Rahu aspect was more of a toss-up and this coincided with a decline in India, although the US market continued to rise.

Inflation remains an ongoing concern here as oil and gold are both seen as hedges against rising prices and a falling US Dollar. Both phenomena are at least partially due to the Fed's QE2 policy which comes to an end on June 30. The debate now is whether the economy and the market are strong enough to stand on their own two feet once this policy ends. While the jury is out on that question, it does seem reasonable to assume that once the injection of Fed cash ends, there will be less inflationary pressure around the world. This will tend to moderate or lower asset prices including stocks, oil and gold. However, it seems unlikely that prices will simply begin to fall the day after QE2 ends. Markets typically don't work that way. It seems more likely that we could get some adjustment in asset prices before the end of the Fed's buy back program. We have seen some correction already, especially in emerging markets like India, although oil and gold are still riding high. As Jupiter approaches its aspect with Rahu in early May we could see a new dynamic enter the market. Rahu tends to disrupt the status quo so its association with Jupiter (wealth, finances, growth) may interrupt the prevailing trend. Rahu can also symbolize speculation and greed, so it's possible that some markets will continue to rise until the aspect is exact.

This week begins with a difficult alignment of Mercury, Mars and Saturn. Mars opposes Saturn on Monday while Mars conjoins Mercury on Tuesday. Since the bearish planets (Mars, Saturn) outnumber bullish Mercury, there is a greater likelihood of declines this week, especially in the early going. The late week period offers somewhat more positive outcomes as the Sun and Venus form aspects to Neptune.

Stocks flat on Sun-Jupiter; Mercury-Jupiter upcoming

2011-04-09T12:14:00.002-04:00

Stocks were mostly unchanged last week as optimism from improved corporate earnings was offset by concern over rising oil prices and the stalemate in Libya. After pushing to new highs for the year midweek, the Dow settled at 12,380 while the S&P500 finished at 1328. It was a similar story in Mumbai as Indian stocks pushed higher early in the week only to lose the momentum by week's end. The BSE-Sensex closed at 19,451 with the Nifty ending at 5842.

This flat result was not wholly unexpected as I noted we would see both positive and negative aspects in play. The cluster of planets in the Sun-Jupiter-Saturn alignment made outcomes more difficult to predict. US markets peaked with Wednesday's Sun-Jupiter conjunction while India peaked Monday, albeit with some intraday rally attempts in midweek that failed to hold. (Wednesday actually marked the intraweek high.) I thought we might see more downside early on around the Mars-Uranus conjunction but aspect passed uneventfully. It is interesting to note that many world markets made some significant highs last week around this alignment. In the case of the Dow, it made a new high for 2011 while India's Sensex pushed to a new high in this post-correction rebound. Whether these highs will hold for any length of time remains to be seen, but given the importance of the planets involved in this alignment, it adds just a little more evidence to the bearish view that more downside may be around the corner. Market reversals will sometimes occur near multi-planet alignments not unlike what we saw last week.

This week begins with a conjunction of Mercury and Jupiter. Since both planets are considered positive influences, the most likely outcome is a rise. The conjunction is exact on Monday, although it is possible that the positive influence may not be felt until the Moon enters Cancer on Tuesday and Wednesday. The Moon may be strengthened by the aspect it receives from Jupiter at this time. Indian markets are closed Tuesday and Thursday, so that may complicate matters somewhat. The Sun leaves the friendly confines of sidereal Pisces late Wednesday and enters Aries. The Sun's transit of Pisces (March 15 - April 13) has been quite beneficial for the market this time around due to the presence of Jupiter, Mercury and Mars in Pisces. This has created a hub of positive energy which has correlated fairly closely with rising prices. Once the Sun enters Aries, some of this positive influence may be lost.

The other thing worth noting is that the Sun will also be in aspect with Rahu (North Lunar Node) at the end of the week. Rahu is a more unpredictable planet so this aspect may increase the likelihood of declines. While gains are still possible under this combination, it is not a reliably bullish factor.

Stocks rise with Venus; Sun joins Jupiter-Saturn

2011-04-02T12:43:00.002-04:00

Stocks extended their rebound last week as investors chose to look beyond the Middle East and focus on improving growth prospects. In New York, the Dow was up over 1% closing at 12,376 while the S&P500 finished the week at 1332. While we did see some early week declines around the Mars-Ketu aspect, the pullback was most modest than expected. The midweek Moon-Venus conjunction also corresponded fairly well with the midweek gains. Investors were even more upbeat in India as the Sensex rose 3% closing at 19,420 and the Nifty ending the week at 5826. There was no downside at all in the early week, however, as the Mars-Ketu aspect failed to correlate with any selling.

While most markets have rallied back from recent lows, stocks still appear to be trapped in a corrective phase, especially in emerging markets such as India. This is broadly in keeping with the bearish influence of the Jupiter-Saturn opposition. As this influence is now gradually weakening, the next major aspect on the horizon is the Jupiter-Rahu aspect in early May. If Jupiter symbolizes optimism and growth, Rahu is associated with distortions and excessive acquisitiveness. Rahu (North Lunar Node) is considered a natural malefic that can cause problems of indulgence and excess, such as in speculation. While it is sometimes linked to an expansion, this is often unstable and is subject to sudden collapse. Often, the influence of Rahu brings negative consequences. In February 2009, Jupiter conjoined Rahu in Capricorn just as stocks were falling rapidly toward their eventual low in early March. While other factors no doubt also played a role in that decline -- the tight Saturn-Uranus opposition quickly comes to mind -- the close proximity of Jupiter to Rahu is noteworthy. We will have an roughly analogous situation in early May so that warrants close observation.

This week will see the Sun act as a potential triggering planet to the Jupiter-Saturn aspect as it aspects Saturn on Monday and then conjoins Jupiter on Wednesday. In addition, Mars conjoins Uranus on Sunday/Monday so that may increase energy levels and trading volumes. It also may make the early week period more susceptible to declines. The close alignment of the Sun, Jupiter, and Saturn makes the timing of the effects of specific aspects somewhat more uncertain, however. Nonetheless, the second half of the week would therefore be more positive given the Sun-Jupiter conjunction and the approach of the Sun towards retrograde Mercury.

Markets rise on Sun-Uranus; Mars-Ketu due Tuesday

2011-03-26T13:47:00.003-04:00

Stocks rebounded forcefully last week as fears about Japan lessened and US growth prospects continued to show signs of improvement. In New York, the Dow climbed more than 2% closing at 12,220 while the S&P500 ended the week at 1313. Indian markets were even more bullish, as the BSE-Sensex soared 5% closing at 18,815 with the Nifty finishing at 5654. This bullish outcome was perhaps a reflection of Monday's Sun-Uranus conjunction which I had suggested was a fairly positive influence in the early going. I had been more unsure about the rest of the week, however, given the unreliability of the midweek Venus-Ketu aspect and the mix of energies at the end of the week.

This recent rise in stocks is perhaps somewhat anomalous with the close opposition aspect between Jupiter and Saturn, now just one degree from exact. As a general rule, closer aspects are more powerful in their effects and if this aspect is mostly negative, then stocks should tend to decline around the date of their exact aspect, which is March 28-29 in this case. While that is likely true, it is important to note that both Jupiter and Saturn are slow moving planets and usually require faster-moving triggering planets to release their energy. We didn't have a triggering 3rd planet last week, so that was one reason why the markets recovered. So even though the aspect will begin to separate and therefore weaken after Monday, its mostly bearish energy can be released for days or even weeks afterwards if we get the right triggering planets involved in the alignment. This appears to be the case now as we have a series of transits involving fast-moving inner planets (Sun, Mercury, Venus, Mars) that will all conjoin Jupiter in the month of April. It promises to be a fascinating time.

It's also worth noting that planetary energies for good or ill will not always manifest clearly in the market. Negative energy such as what we see with Saturn aspects can sometimes show up in the form of a war, or natural disaster that may not have any obvious economic implications. The 2004 tsunami in the Indian Ocean was an example of this type of event that occurred near a negative planetary alignment of Saturn and Pluto and yet did not have any effect on the market. All of which is to say that there is still a lot we don't know about the relationship between the motions of the planets and life on Earth. Astrology's empirical foundation is fragmentary at best (not unlike economics perhaps!), and this is why it exists in a rather isolated, dark corner safely away from the mainstream.

This may be quite an interesting week. Not only will we see the exact Jupiter-Saturn opposition late on Monday (GMT), but we will also have a square aspect between Mars and Ketu (South Lunar Node) in the first half of the week. Mars aspects with the nodes can be quite lively and energetic and often correlate with quick action and sudden changes. Since both planets are considered natural malefics, there is a somewhat higher possibility for declines here. And given the Jupiter-Saturn encounter, we can't rule out some major "volatility", as they euphemistically say in the business media. This Mars-Ketu aspect doesn't quite qualify as a "trigger" since it will not aspect Jupiter-Saturn, but it may act as a kind of pseudo-trigger. Mercury turns retrograde late Wednesday (GMT) in fairly close aspect to Rahu. This may be a mostly neutral influence, although the Rahu influence here suggests an overload or distortion of information. In some instances, this could be a good thing but it should be treated with caution. At the same time, the Moon conjoins Venus and Neptune on Wednesday and Thursday, so that may exert a mildly calming effect. Friday's Mars-Neptune aspect seems more negative, especially since the Moon will be in the proximity of Mars later in the day in the US.

Markets fall on Japan fears; Jupiter approaches Saturn

2011-03-19T14:19:00.002-04:00

Japan's nuclear crisis delivered another blow to the markets last week as investors pondered the implications of a disruption of the global supply chain. In New York, the Dow broke below the 12K level falling almost 2% to 11,858 while the S&P500 finished at 1279. It was much the same result in India as another RBI rate hike added to the inflation anxiety with the BSE-Sensex slipping 2% to 17,878 while the Nifty ended the week at 5373.

This negative outcome was very much in keeping with my bearish general expectation ahead of the Jupiter-Saturn opposition aspect. However, some of the intraweek moves did not perform quite as anticipated, even if I suggested a higher level of ambiguity here. The early week Mars-Saturn aspect was bearish as expected in the US, although India ended flat over Monday and Tuesday. More interesting was the outcome of the midweek Mercury-Jupiter conjunction. Usually this is a bullish influence, although I noted that the proximity of Saturn's aspect might mitigate of those effects. Well, Saturn not only mitigated them, it basically reversed them as US stocks fell into Wednesday. Indian markets appeared to adhere more closely to the negative effects of Fridays' Mercury-Saturn aspect as this activated a key pattern in the natal horoscope of the BSE.

So far, the Jupiter-Saturn aspect appears to be fulfilling its bearish promise as we prepare for the exact opposition on March 28-29. As I have noted, these two giants of the solar system usually make news whenever they come together by aspect. As symbolic opposites, they represent the extremes of optimism/pessimism, expansion/contraction and gain/loss. While their energies some sometimes be constructively combined when they are favourably placed or aspected by benefic planets, they tend to be somewhat incompatible. While one might think they are roughly equal in strength, in practice Saturn tends to carry the day. That's because as a more distant planet, it moves more slowly. In astrology, the general maxim is: the slower the planet, the greater the strength. This is perhaps a sobering reminder of the nature of the human experience: the strongest of the visible planets symbolizes structure, pessimism, and loss! Thanks, I needed that.

This week presents another mixed bag of aspects starting with Monday's Sun-Uranus conjunction. Uranus' risk-seeking outlook often manifests as gains on aspects like this, although the upside may not last long as the conjunction is exact before the start of trading in New York (although after the close in Mumbai). The Venus-Ketu/SN aspect may exert an influence on proceedings starting on Wednesday and lasting into Thursday. This is often a negative influence, although it is somewhat unreliable in that respect. Due to natal chart hits, Indian markets may be feel its effects more than the US. The end of the week is quite mixed as Venus heads towards its conjunction with Neptune. This is quite a bullish influence, especially for gold and oil, but it may well pan out to include most asset classes. However, it is exact only on Saturday so Asian markets may be less likely to feel it. But potentially offsetting influence here is that Mars enters sidereal Pisces on Friday and that can be a bearish influence. Given that mix of energies, I would not rule out any outcome.

Stocks fall on growth concerns; Mercury-Jupiter this week

2011-03-12T12:41:00.002-05:00

Stocks slipped again last week as new data out of China suggested slowing economic growth in an increasingly inflationary environment. This double whammy was too much for New York to bear as the Dow fell more than 1% closing at 12,044 while the S&P500 finished at 1304. It was much the same story in Mumbai as Indian stocks declined on the prospect of continued high oil prices. The BSE-Sensex tumbled almost 2% closing at 18,174 while the Nifty ended the week at 5445. This outcome was not wholly unexpected as I noted the likelihood of declines on Monday's Sun-Saturn aspect and at the end of the week. Most global markets fell on Monday and again towards the end of the week. I also corrected noted the probability of gains in the midweek period around the Mercury-Uranus conjunction. I thought we might see a little more offsetting upside on this conjunction that we got, but Tuesday and Wednesday were nonetheless mostly higher across the board. Of course, my medium term expectations were pretty bearish here in any event as we approach the Jupiter-Saturn opposition on March 28-29.

It's interesting to see how the discussion about inflation has evolved in recent weeks. Back when Jupiter (optimism, expansion) was in fairly close conjunction with Uranus (risk, change), we saw rising inflation in the emerging economies like India and China but the potential downside risks seemed fairly minimal as growth was expected to continued at a brisk clip. That optimism began to waver after the exact conjunction in early January as India's market began to decline in earnest. Clearly, more investors were realizing that inflation could be a big problem that could hamper growth in the future. But US and European markets continued to climb as inflation was less of a problem in those recession-ravaged economies. It was only with the ongoing Middle East crisis and the spike in the price of oil that inflation became a concern in developed countries. This was a reflection of the weakening of Jupiter's optimism as it began to separate from risk-seeking Uranus and approach cautious and pessimistic Saturn. The notion of good, or at least, benign inflation is now being replaced by bad inflation. Now that Jupiter is moving close to Saturn's aspect, worries about growth are increasing, the Eurozone debt problem is back on the table and the glass is very much half-empty. In other words, Jupiter's rosy outlook is getting schooled by Saturn's sobriety. This is a similar planetary set up to May 2010 when the last Jupiter-Saturn opposition coincided quite closely with the stock market correction and the Flash Crash.

This week features a high number of aspects, both bullish and bearish. Monday begins with the key Mars aspect to Saturn. This is a full strength 8th house or quincunx aspect that definitely has the potential to pack a punch, especially in India. In this instance, however, Venus will also be part of this three-planet alignment, so that may moderate some of the difficulties here. Nonetheless, I would be surprised to see anything other than a decline on Monday. US markets may fare somewhat better, if only because the aspect is exact at the open and will begin to weaken thereafter. The midweek period looks more positive as Mercury conjoins Jupiter on Tuesday and Wednesday. Both of these planets are considered bullish influences, so their combination here is likely to produce some significant upward thrust. Even here though the presence of Saturn's aspect suggests a potential mitigation of the inherent positive energy of Mercury-Jupiter. The late week period looks more negative again as Mercury lines up exactly opposite Saturn on Friday. Mercury-Saturn aspects usually correspond with pessimism and disappointing economic news so it is quite possible that any midweek gains may come under threat.

Stocks rise with Venus; Mercury-Uranus this week

2011-03-05T13:37:00.001-05:00

US Stocks were mostly unchanged last week as the market digested the implications of the February jobs report against a backdrop of an emerging civil war in Libya. Although the Dow did enjoy some midweek gains, Friday's selloff left it only marginally higher than last week at 12,169 while the S&P500 finished at 1321. Indian stocks fared much better rising 4% as the balanced approach of the latest Union Budget was warmly received. The Sensex closed at 18,840 while the Nifty ended the week at 5538. Gold and oil continued to benefit from the Libya crisis as gold made new highs over $1420 and oil ended the week over $100 for the first time since 2008.

In last week's post, I had suggested that the early week Venus-Uranus-Neptune aspect would likely tilt the market towards the bulls, especially in India. This was certainly the case in Mumbai as Monday was higher and then Tuesday saw the Sensex soar 600 points. US markets were less reactive to this Venus influence although stocks did rise on Monday. Tuesday's selloff in New York anticipated the bearish midweek Mercury-Saturn aspect. I had also suggested that the late week period would generally be weaker on Friday's New Moon. While India was merely flat on Friday, US markets sold off fairly significantly as the over-hyped jobs report disappointed many investors.

As I have noted previously, the current geopolitical turmoil in the Middle East is an appropriate reflection of the Rahu-Uranus square aspect that became exact as the end of last week. This volatile pairing of Rahu (greed, deception) and Uranus (change, freedom) has been drawing closer to its exact aspect over the past few weeks. This is perhaps one astrological factor behind the recent instability in financial markets and the soaring price of oil. But now that the aspect will begin to separate, we should look for a possible shift in this dynamic. Of course, the weakening of this Rahu-Uranus aspect does not necessarily mean that we can quickly move back to the status quo ante. Rather, it seems more likely that markets will move into a new phase. The initial shock phase is therefore likely winding down and we may be entering the next period of adjustment.

I continue to underline the importance of the approaching Jupiter-Saturn opposition on March 28-29. As in economics perhaps, there are no guarantees in astrology. Where human behaviour is the object of analysis, there can only be probabilities in the best of times. And yet we know that the interaction of these two giants of the solar system often brings about significant market moves. Sometimes these aspects correspond with approximate low points, as happened in May 2010 after the Flash Crash. In other situations, it may correspond with a trend reversal lower as Saturn's pessimism finally asserts itself over the enthusiastic entreaties of Jupiter. And still other situations will see very few immediate effects. In most cases, however, this coming together of positive and negative influences has major implications for human psychology and hence for stock prices.

While we move one step closer to the Jupiter-Saturn opposition -- now just separated by 6 degrees -- there is the prospect for more gains on the midweek conjunction of Mercury and Uranus.
Mercury (trading, commerce) and Uranus (risk, speed) are usually a bullish combination, especially in the day or two leading up to the conjunction. On this occasion, there is likely to be an increase in urgency and perhaps volatility also due to the co-presence of the Rahu aspect. While the week could well begin bearishly (perhaps more likely in India), the midweek period could well see stocks more higher. The late week period would seem to be less positive for stocks, even if this translates into further gains for oil and gold.

Stocks fall on Mars-Ketu; Venus may provide relief

2011-02-26T13:16:00.001-05:00

Stocks tumbled on most global markets last week as rising oil prices from the Libyan crisis heightened fears of inflation. In New York, the Dow fell 2% to 12,130 and the S&P500 finished at 1319. This was the largest weekly decline for US markets since November. Indian markets also declined as the BSE-Sensex lost 3% to 17,700 while the Nifty closed at 5303. This bearish outcome was very much in keeping with expectations as I noted that last week's Mercury-Mars-Neptune-Ketu alignment could be quite potent and increase the likelihood of steep sell-offs. Somewhat anomalously, the Indian market rose on Monday on the Mercury-Mars conjunction but it was mostly downhill after that as the Mars-Ketu aspect became dominant. Friday's recovery also closely followed last week's forecast as the bullish combination of Sun-Mercury-Jupiter coincided with a return to optimism.

The ongoing crisis in Libya is the immediate market mover at the moment as Gaddafi's regime appears to be on its last legs. A protracted civil war is still possible, however, so it is unclear just how negative this worse case scenario would be for the market. From an astrological perspective, this rise in protest and civil disruption appears to be linked to the current Rahu-Uranus aspect. Rahu (the North Lunar Node) symbolizes the interruption of the status quo while Uranus represents the drive for freedom and independence. While both planets are related to change and instability, Uranus is more closely associated with rebellion and revolution. The Rahu-Uranus aspect becomes exact on March 4 so there is some reason to expect the situation may be resolve fairly soon. The larger protest movement across the Middle East may be traced back to the solar eclipse on January 4th which was visible throughout the region. This eclipse horoscope was quite afflicted as the Sun and Moon were conjunct violent Mars and in a difficult square aspect with destructive Saturn.

This week likely begins on a more optimistic note as Venus will be in aspect with Uranus and Neptune on Monday and Tuesday. Needless to say, Venus is a much happier planet than Mars, so that increases the likelihood of stability and the prospect of rising stocks. India's Union Budget is also slated for release on Monday, so the positive planets would tend to suggest a favourable reception. The good vibes may wane somewhat as the week progresses as Wednesday's Mercury-Saturn aspect would increase the possibility for midweek declines. Friday's New Moon may also reflect a negative mood as it occurs in fairly close aspect with Saturn. With these two contrary influences in play, it's harder to call the overall direction of the market this week.

Markets rise on Sun-Neptune; Mars-Ketu poised to disrupt

2011-02-19T12:17:00.003-05:00

Stocks in New York inched higher yet again last week as more positive earnings reports kept the QE2 rally intact. The Dow closed up 1% to close at 12,391 while the S&P500 finished at 1343. This bullish outcome was not unexpected given the Sun-Neptune conjunction that was exact on Thursday. This was a favourable pairing that corresponded fairly closely with larger up days. I had expected a little more in the way of downside due to the Saturn aspects on Monday and Friday, but the result was unimpressive as Monday-Tuesday was only mildly negative while Friday was actually an up day on the Dow, although broader indexes like the NYSE Composite were mostly flat.

Indian markets staged an impressive rebound last week as bargain hunters moved in and bought banking and metal shares. Despite a fairly sharp decline Friday, the BSE Sensex climbed almost 3% to 18,211 while the Nifty ended the week at 5458. While I thought the early week might be somewhat bearish, the overall strength of the market was not unexpected given the favourable placement of the Sun with Neptune. Friday's sell-off was a reminder of the continuing power of Saturn as its aspect with Venus saw a loss of optimism. Indian markets are attempting to rally after a severe correction and may also be buoyed by the fact they are in pre-budget mode as the government releases its Union Budget on 28 February. On the day of the budget, there will be an alignment of Jupiter and Pluto which will reflect bold and assertive plans to deal with pressing financial problems such as inflation. While this combination seems quite bullish, it also may ultimately be inflationary in the long run. We will have to see how that shakes out.

As reports of the economic recovery increasingly fill the US media, one wonders when this positive feedback loop will come to a stop. The good news continues to bring new money into the market as more fund managers put the recession behind them, and yet there is an irony here that poses a risk to the rally: if the economy recovers too quickly, the Fed may be forced to wind down its QE2 stimulus measures ahead of schedule. Fears of inflation are lurking in the background here so too much growth could cause the Fed to hit the brakes and withdraw the liquidity from the market. This would likely be problematic for stocks. With the Jupiter-Saturn opposition aspect coming up at the end of March, it would seem that we are getting closer to a more pessimistic view of the economy. This may or may not reflect new economic data. Since the market is all about perceptions, Saturn's growing influence may mean that we are simply shifting towards a 'glass half-empty' outlook.

This week promises to be very interesting as Mercury and Mars are in conjunction with Neptune and all three are in aspect with Ketu, the South Lunar Node. Mars-Neptune combinations generally reflect difficulty and the nodal influence from Ketu has the potential to both magnify and distort market behaviour. Since the aspects are closest in early and midweek, markets may be more vulnerable to declines then. (N.B. US markets are closed for a holiday Monday) Some markets may be subject to steep sell-offs here. The late week period appears to be somewhat positive as Mercury conjoins the Sun and both move into alignment with Jupiter on Friday.

US stocks climb; India continues to languish

2011-02-13T11:06:00.002-05:00

US Stocks climbed higher last week buoyed by a peaceful resolution of
the crisis in Egypt. The Dow finished more than 1% to the good closing
at 12,273 while the S&P500 ended the week at 1329. I had expected some
upside to manifest on the midweek Venus-Pluto conjunction, and we saw
significant gains on Monday, Tuesday and Friday. The absence of any
downside on Monday's Sun-Mars conjunction was a little puzzling,
although US markets have largely been immune to many otherwise negative
planetary influences.

It was quite a different story in Mumbai as Indian markets continued to
slide last week losing more than 1%. Inflation fears are running
rampant and that is prompting many investors to turn cautious. The
Sensex ended Friday at 17,728 while the Nifty finished at 5310. Indian
stocks have been falling through much 2011 due to a powerful Saturn
affliction to the horoscope of the BSE. Since this Saturn affliction
will last for most of the year, stocks will probably have a difficult
time of it.

Over the coming weeks, bearish Saturn will oppose bullish Jupiter in the
sky. Encounters between these two giants of the solar system often
occur near major turning points in the market. The previous opposition
in May 2010 coincided fairly closely with a market correction and an
intermediate low on most global markets. Trine aspects have similarly
corresponded with significant lows as occurred in January and November
2008. While there are few certainties in financial astrology, these
Jupiter-Saturn combinations do have a tendency to bring down prices near
their exact aspects. The date of this exact opposition is March 29.

For all its potential significance in foretelling prices, the
Jupiter-Saturn aspect is perhaps less reliable in highlighting when a
correction may begin. That requires consideration of other factors,
along with an assessment of the horoscopes of major stock exchanges. It
nonetheless seems that we are getting very close to a decline.

This week looks somewhat mixed as Monday begins with a Mercury-Saturn
trine aspect. Saturn aspects tend to be bearish, although the aspect
may be more strongly felt in Asian markets. On a more bullish note, the
Sun conjoins Neptune by midweek so that may well lift sentiment across
the board. Saturn steps back into the limelight by Friday as it forms a
tense square aspect with Venus. This increases the likelihood of
declines towards the end of the week.

US Stocks rise on Mercury-Venus; Sun-Mars to conclude

2011-02-05T14:27:00.002-05:00

US stocks resumed their ascent last week as worries over Egypt were pushed aside in favour of improved corporate earnings. The Dow gained more than 2% to close at 12,092 while the S&P500 finished at 1310. Indian stocks fared less well, however, as the selloff continued in earnest on growing fears that domestic inflation may be out of control and could require a series a punishing rate hikes. The Sensex declined 2% to close at 18,008 while the Nifty ended the week at 5395.

I had expected some probable upside on the early and midweek Mercury-Venus aspect and we did in fact see US and European equities chalk up impressive gains on Tuesday along with smaller gains on most other days. Indian markets have been severely lagging however and did not experience any lift until Wednesday and Thursday's positive sessions. Most commodities also saw rising prices on these bullish planetary patterns. I had also suspected some significant downside was possible near the Sun-Mars conjunction late in the week. While US stocks were temporarily immune to this bearish combination, Indian stocks were not as Mumbai declined more than 2% on Friday. Commodity markets such as oil and gold also followed this negative Sun-Mars cue and sold off on Friday.

Perhaps the real news last week was the rising yields in the bond market. Both 10-year and 30-year treasuries saw yields breakout above a technical resistance level as they appear to be heading substantially higher. What is strange is that Ben Bernanke's QE2 program was designed to lower bond yields in order to support the housing market recovery and keep mortgage rates down. Clearly that isn't happening as bond buyers are now demanding a higher premium as compensation for perceived inflation risk. So while the US stock market is not very worried about the long term implications of the Fed's unapologetic exercise in money printing, the bond market now is. If rates continue to rise, it will eventually put pressure on stocks as investors will choose to park their money in high-yielding treasuries. The QE2 inflationary bubble is already wreaking havoc in China and on the Shanghai Stock Exchange and now appears to be in the process of bursting in Mumbai. But the US may have to play catch up in that respect. Let's see if Ben Bernanke's BBQE2 chickens ever come home to roost.

This week will begin with a possible hangover from the Sun-Mars conjunction that was exact over the weekend. Its aspect with Saturn is still just one degree from exact on Monday so it is quite possible this could produce some skittishness, especially in New York. At the same time, a more optimistic Venus-Jupiter aspect could subsume some of the gloom. Venus will retain a starring role this week as it moves into conjunction with pecuniary Pluto by Wednesday. This ought to increase the appetite for buying and boost the appeal of many risk assets such as stocks and commodities like gold and oil. The late week period looks less positive, however, as there are no obvious sources of planetary strength.

Markets fall after Saturn turns retrograde

2011-01-29T17:51:00.002-05:00

Has the worm finally turned in the US stock market? The current wave of civil unrest in Egypt shook investors out of their QE2-induced complacency as the Dow broke its eight-week winning streak declining by less than 1% to 11,823 with the S&P500 closing at 1276. Indian markets fared worse, however, as inflation worries and the prospect of further rate hikes continued to weigh on investors. The BSE Sensex tumbled more than 3% to 18,395 and the Nifty ended the week at 5512.

This bearish outcome was more or less in keeping with expectations as last Wednesday's Saturn retrograde station may have helped usher in a new, more cautious investor mindset. I had thought we might have seen more midweek downside to go along with the tense Mercury-Saturn aspect, but that appeared only to manifest in more vulnerable markets such as India, China and commodities (gold, oil) all sold off significantly. This is perhaps understandable since these more speculative markets have been the biggest beneficiaries of the easy money Fed policy that has pumped up asset prices. With Saturn extra-strong here as it stands still in the sky, it may coincide with a less tolerant mood towards free spending, inflation and risk-taking -- all of which were the hallmarks of the recent Jupiter-Uranus fueled rally.

Saturn's penchant for restraint and austerity was reflected in news last week that the Standard and Poor's rating agency warned that a US downgrade may not be far off. This debt warning came in the aftermath of Obama's SOTU speech where precious little attention was paid to reducing the massive US debt. The US government is playing a risky game here as it is betting that bond markets will target other more spendthrift governments first before it has to face the music. As if to put an exclamation point on Saturn's renewed influence, Moody's downgraded Japan's debt rating as that country may soon face its own "high noon" with the bond vigilantes as its debt burden becomes unmanageable in the face of demographic stagnation.

As Saturn is now begins its backward retrograde journey through sidereal Virgo, it is due to encounter its arch-rival Jupiter in an opposition aspect on March 29. The last Jupiter-Saturn opposition occurred on May 22, 2010 in the midst of the correction that followed the May 6 flash crash. While history does not repeat itself exactly, this combination tends to be bearish and suggests a more stringent and cautious atmosphere may prevail in the market for the coming weeks. We can also expect some more unexpected events along the lines of these escalating Middle East protests as Rahu (greed, disruption of status quo) will form a square aspect with Uranus (risk, independence) on March 5. Between Saturn's pessimism and this unpredictable Uranian quality, it should prove to be a very eventful time.

The highlight this week is the Sun-Mars conjunction on Friday, February 4. These two fiery planets combine about once every two years but this time around they will be in close trine aspect to Saturn. The closest aspect actually occurs over the following weekend, but they could be close enough to produce some effects during the trading week. Since all three planets are considered malefic, this is definitely an alignment that "bears" close attention! Ahead of that, however, Mercury and Venus will combine their more positive energies in a configuration with Uranus and Neptune that hints at some early or midweek strength. This will likely apply to most world equity markets as well as commodities such as gold and oil.

Markets mixed ahead of Saturn retrograde station

2011-01-22T11:59:00.001-05:00

Stocks were mixed last week as more positive earnings reports took the edge off a possible rate hike in China. In New York, the Dow was higher for the eighth week in a row closing with a 1% gain to 11,871, although the broader averages such as the S&P500 lost about 1% to close at 1283. In Mumbai, the BSE-Sensex finished with a gain of less than 1% to 19,007 while the Nifty ended the week at 5696. Meanwhile, gold continued to languish as it lost another 1%.

This outcome was mostly in keeping with expectations as the bulk of the gains coincided with the early week aspects involving the Sun, Uranus and, of course, Jupiter. Tuesday was the most positive day of the week, just ahead of the Sun-Jupiter aspect. As expected, gold also rallied modestly on this alignment. Sentiment turned more negative on Wednesday, however, as irascible Mars combined with disruptive Ketu as most global markets sold off and were generally weaker through the end of the week.

As Jupiter moves away from Uranus, we may be witnessing a change in attitude towards risk and inflation. While much of the recent rally in stocks and commodities has been fueled by the conjunction of these two planets, it has also contributed to rising inflation throughout much of Asia. As optimism and risk-appetite wanes with Jupiter losing some of its power, we could see a new approach to inflation as emerging economies try to grapple with the fallout to the Fed's easy money QE2 program. Perhaps this will take the form of raising interest rates in China and India more than expected. This would send a message that inflation is a serious problem and the government is willing to sacrifice some measure of economic growth in order to secure a more stable price regime. Alternatively, it may also translate into a more cautious reaction by investors to central bank moves, whatever they may be.

This week Saturn turns retrograde so we could well see more evidence of a new approach to risk and growth. What's especially interesting here is that India's central bank meets on Tuesday and will likely announce new measures to tackle the problem including some kind of rate hike. Saturn actually turns retrograde on Wednesday, although there may be some manifestation of Saturn's penchant for caution and pessimism before then. What makes this Saturn retrograde station more problematic is that Mercury will be in close square aspect. This increases the likelihood of a mood of disappointment, perhaps coming from poor economic data. This is quite a similar planetary alignment as occurred in mid-January 2010 that coincided with the beginning of a significant decline across most world markets. At that time, it was Mercury that was turning retrograde and it formed a tense square aspect with forward-moving Saturn. We shall see how reliable this usually bearish pattern is this time. There is a greater likelihood for some kind of gains later in the week, especially on Friday as the Moon joins Venus in sidereal Scorpio.

US Stocks rise with Jupiter; Saturn waits in the wings

2011-01-15T11:36:00.002-05:00

US Stocks defied gravity for another week as investors cheered positive earnings reports and more upbeat government data. The Dow rose 1% to close at 11,787 while the S&P500 finished the week at 1293. As expected, the bullish effects of Jupiter proved to be a durable influence on markets as its early week aspect with Mercury put stocks an solid footing. Not even the more ambiguous Mars-Jupiter aspect late in the week could upset the mood as Friday's session ended with a respectable gain.

It was a very different outcome in Mumbai, however, as inflation worries continue to undermine sentiment. New December data suggested that inflation was worsening and that increased the likelihood of a rate hike from the RBI. As a result, the Sensex lost another 4% last week to close at 18,860 while the Nifty ended Friday at 5654. India's market may have bucked the otherwise bullish global trend due to specific afflictions to the Sun in the BSE 1875 horoscope.

On the surface, it may appear that little has changed in this post-eclipse period. US and European stocks have extended the rally and taken prices to new highs. And yet a number of more speculative markets have fallen since the first week of January. Many emerging markets like India and China have fallen while a number of commodities have also been subject to declines, gold being the most noteworthy. While it is possible to regard the eclipse and the Jupiter-Uranus conjunction as non-events, I still see them as important sign posts due to the worsening of sentiment in these other markets. This is perhaps the thin edge of the wedge as the downside of the Fed's QE2 policy may be on the verge of coming home to roost. The Fed's plan to buy up treasuries has encouraged a flow of 'hot money' into riskier currencies and asset classes. This is creating serious inflation problems in Asia and they are now being forced to come to terms with it by raising rates and choking off excessive growth. Eventually, the lowered demand out of China and India will likely reduce economic activity in the US and Europe, but for now, investors are choosing to ignore this possibility. Perhaps they will be reminded of the risks of Bernanke's excessive liquidity by Saturn's retrograde cycle which begins on January 26.

This week holds the promise of another mostly positive beginning as the Sun forms aspects with Uranus, Neptune on Monday, and then with Jupiter by Wednesday. This is likely to produce some buying for at least one or two days, especially in markets which have been bearish like India's. Gold may also benefit from this Jupiterian influence on the Sun. With US markets closed for the MLK holiday on Monday, however, some of this upside may be more muted there. The midweek Mars-Ketu aspect may nullify some of this enthusiasm so it is quite possible that optimism may fizzle with sellers prevailing into Thursday as the Moon opposes Mars. In other words, there is a good chance we will see more upside before any profit taking. But as Saturn slowly grinds to a halt in the sky ahead of its retrograde station, there is also an increased risk of more negativity here. Saturn is waiting in the wings for its moment on the stage.

Gold falls after eclipse; Mercury-Jupiter this week

2011-01-08T12:42:00.001-05:00

Stocks in New York edged higher for another week as better than expected manufacturing data fueled hopes for a sustainable recovery. The Dow gained 1% to close at 11,674 while the S&P500 ended the week at 1271. Not surprisingly, the biggest rise came from Monday's Venus-Jupiter aspect with the market gradually weakening after that. The combination of Tuesdays' solar eclipse and Jupiter-Uranus conjunction had little immediate effect on equities, although it did send commodities such as gold and oil down sharply. Gold lost more than 3% for the week and finished below $1370. As expected, the late week Sun-Saturn aspect did exert a drag on sentiment as we saw modest declines on both days.

It was a more dramatic story in Mumbai, however, as Tuesday's eclipse appeared to divide the trend with gains on Monday's Venus-Jupiter aspect and then losses prevailing thereafter. The Sensex closed below the 20 K level at 19,691 with the Nifty finishing at 5904. Friday's sizable decline coincided closely with the Sun-Saturn aspect as this pairing often marks a loss of confidence and rise in pessimism.

So while most global stock markets appeared to have shrugged off the solar eclipse and the culmination of the Jupiter-Uranus conjunction, we may have seen a possible turn in commodities as they moved lower across the board last week. Whether or not they remain weak in the days and weeks to come is an open question. With Jupiter's optimism now in shorter supply, it may be harder for commodities to make speculative gains in this post-eclipse and post Jupiter-Uranus environment. The other additional factor to consider is, of course, Saturn. If Jupiter is the gas pedal, Saturn acts as the brake. The markets may have lost some of Jupiter's gas here in January but Saturn is due to put on the brakes. Saturn begins its retrograde cycle on January 26 and it promises to be a significant period owing to the concurrent bad aspect with Mercury. Remember that Saturn began its retrograde cycle in May 2010 while in bad aspect with Venus and then Jupiter -- just as the market was undergoing a major correction. While nothing is certain, it definitely is a pattern that warrants further watching.

This week features some minor aspects involving the Jupiter-Uranus conjunction so that tilts the table towards gains. The early week is perhaps more positive in that respect as Mercury is in square aspect with Uranus and Jupiter on Monday and Tuesday. Mars then takes the reins for the rest of the week as it aspects this bullish planetary duo. Mars is a more unpredictable factor than Mercury, however, so the probability of late week gains is somewhat lessened and indeed losses are also quite possible. Perhaps "mixed" is the word that best sums up the situation.

Jupiter conjoins Uranus; Solar Eclipse due on Tuesday

2011-01-01T12:39:00.002-05:00

US Stocks tread water in the last week of 2010 as economic data supplied mixed signals in quiet holiday trading. The Dow was unchanged at 11,577 while the S&P500 ended the week at 1257. Indian stocks fared somewhat better as the Sensex rebounded after early weakness and closed 2% higher at 20,509 with the Nifty finishing the year at 6134. I thought we might see more downside from the Mars-Saturn square but there was only a very mild hiccup in Mumbai, although Chinese equities did appear to suffer early in the week. The late week period was generally more bullish on the Moon-Venus conjunction, although not all global markets participated and the US in particular stayed mostly flat.

The continued market effervescence is perhaps more in keeping with the approaching Jupiter-Uranus conjunction. These two planets have been bullish dance partners in sidereal Pisces since mid-2010 as they have rarely been more than a few degrees away from each other. The optimism of Jupiter and the risk-seeking of Uranus have combined to fuel the substantial rally in the second half of the year. Once the conjunction culminates exactly on Tuesday, January 4, this bullish pairing will not conjoin again until 2024. Obviously, their distinctly bullish energies will interact much sooner than that through aspecting (e.g. early 2012), but another protracted period of conjunction will be a long time coming.

Curiously, a solar eclipse at 19 degrees of sidereal Sagittarius is also slated for 3.50 a.m. EST on Tuesday. This is an intriguing coincidence of phenomena which increases the possibility of major new developments, including the prospect for major trend changes in the days to come. Eclipses are famous for stirring things up and interrupting the status quo, so we will have to see what kind of effects may manifest here.

The week will also feature a number of close planetary aspects. Benefic Venus is aspected by Jupiter early in the week so that generally boosts confidence and encourages buying. But Mercury and Mars are also in fairly tight aspect through much of the midweek period so that may let some air out of the balloon, especially after the eclipse has passed. The Sun is in a partial strength square aspect with Saturn on Thursday and Friday and that should also be seen as a negative influence on sentiment. Sun-Saturn aspects often have a special relevance for gold, and prices often fall near their aspects.

Markets drift higher; Mars-Saturn this week

2010-12-24T22:40:00.002-05:00

Stocks edged higher last week as retail and housing numbers continued to show improvement and boosted hopes for the recovery. In New York, the Dow rose about 1% to close at 11,573 while the S&P500 finished the holiday-shortened week at 1256. It was much the same story in Mumbai as the Sensex added modest gains before closing at 20,073 with the Nifty standing at 6011 at the end of Friday's session. The universe unfolded more or less as expected as the early week Mercury-Jupiter-Uranus aspect pushed stocks a little higher ahead of the Christmas break. Predictably, some of the enthusiasm faded by week's end as Venus was damaged by bearish Saturn. Indian stocks also gained ground early in the week but failed to get above some important resistance, although they did manage a modest gain on Friday.

Tuesday's lunar eclipse garnered a lot of media attention, mostly because it happened to coincide with the winter solstice for the first time since 1638. I'm not sure this means anything special, although it may be more significant that the eclipse occurred when Mercury was in square aspect to Jupiter and Uranus. This bullish trio of planets can lift sentiment but the eclipse would almost seem to negate or even reverse that influence since eclipses are celestial mechanisms of interruption where the status quo breaks down.

The next eclipse in the current pairing arrives on January 4, 2011, just as Jupiter is in exact conjunction with Uranus. It's quite a coincidence to be sure, and greatly increases the chances for some big changes in our economic assumptions such as how risk is assessed and how future earnings are calculated. Jupiter (optimism) and Uranus (risk) have been in close proximity for the past four months and that has been a major reason for the sustained rally from the summer lows. Once Jupiter separates Uranus, the stage will be set for a dissolution of that bullish, confident energy. While it could take place gradually over several weeks, the fact that an eclipse occurs at the same time may increase the likelihood of a sudden shift in sentiment or revision in thinking. January promises to be a very interesting time indeed.

This week will feature a square aspect between Mars and Saturn. Both of these planets are considered natural malefics so that greatly increases the probability of declines. The aspect is closest on Tuesday so perhaps that early to midweek period will be the focus of negativity. The late week period may be somewhat more positive as the Mars-Saturn aspect separates while the Moon conjoins Venus on Thursday and Friday.

Stocks edge higher; lunar eclipse due on Tuesday

2010-12-18T12:53:00.001-05:00

Stocks edged higher last week as the Fed reaffirmed its commitment to stimulate the economy by any means necessary. The Dow closed at new highs for the year at 11,491 while the S&P500 finished at 1243. It was much the same result in Mumbai as markets rose almost 2% with the Sensex closing at 19,864 and the Nifty at 5948. While I thought we might see more downside on the Mercury-Mars conjunction early in the week, we can't be overly surprised that markets continue to rally here on the approach of the Jupiter-Uranus conjunction. The midweek aspect between the Sun and Jupiter-Uranus manifested a little early as stocks generally rose through Tuesday. The same was true for gold as it once again traded above $1400 in Tuesday's session before turning lower for the rest of the week.

So the optimism of Jupiter continues to operate in a bullish syncopation with the risk-orientation of Uranus. It is tempting to think the good times will continue all the way to their exact conjunction on January 4 2011. After all, that is in keeping with standard astrological thinking as conjunctions are most strongly felt right at the point of exactitude. But even here it is important to note that conjunctions sometimes do not act exactly as advertised. Some conjunctions peak earlier than expected due to the presence of other factors, while the effect of others last well after they are exact, as we saw with the previous Jupiter-Uranus conjunction on September 15. This not only sparked the rally off the late August bottom, but the rally continued well into November. This was perhaps due to the fact that although past exact, the retrograde motion of both planets meant that they would continue to be in close proximity (less than 3 degrees) to each other for over three months. But once the faster moving Jupiter passes Uranus on January 4, there will be no future conjunctions until 2024. So that is an argument perhaps that the upcoming conjunction may not behave as bullishly as the last one did.

As always, other facts have to be considered. One such factor is the impending eclipse period, which begins with a lunar eclipse on Tuesday, December 21. Eclipses generally occur in pairs and the accompanying solar eclipse is slated for January 4 2011. That is certainly an intriguing coincidence given that this second eclipse will fall on the same day as the Jupiter-Uranus conjunction. Eclipses are generally seen as destabilizing events which can change market direction and upset the status quo. Just as the light of the Sun is blocked or interrupted in a solar eclipse, so are prevailing trends "interrupted" by solar eclipses. That is one reason why earthquakes and volcanoes tend to cluster around eclipse periods -- there is an upset in the Earth's status quo.

Readers may recall that the previous two eclipse series were closely implicated in market reversals. In January 2010, the market topped in the US on January 19, just four days after a solar eclipse, and then tumbled more than 10% over the next three weeks. The solar eclipse followed a preceding lunar eclipse which had occurred on Dec 29. The next eclipse period happened very close to the US market bottom on July 2, as a lunar eclipse occurred on June 26 and this was followed by a solar eclipse on July 11. In light of the tendency of eclipses to reverse trends, there is additional reason to think that the current rally and underlying optimism surrounding the market may be "interrupted" quite soon. The fact that the solar eclipse falls on the same day as the completion of the Jupiter-Uranus conjunction only adds to the likelihood that changes are afoot.

Besides Tuesday's lunar eclipse, this week will see Mercury forming aspects with Uranus and Jupiter. Since all three of these planets are nominally positive energies, there is some reason to expect more upside, presumably earlier in the week when the aspects are closest. After Tuesday, however, the positive effects of these aspects will likely wane and caution may soon move in on the Venus-Saturn aspect later in the week. Sentiment is likely to get even more cautions and perhaps downright tense in the week after Christmas as Mars squares Saturn.

US Stocks drift higher on Jupiter-Uranus; Mercury runs gauntlet this week

2010-12-11T13:25:00.002-05:00

Stocks in New York drifted higher last week as favorable economic data supported the belief that the recovery is 'just around the corner'. The Dow was slightly higher at 11,410 while the S&P500 fared somewhat better closing at 1240, its highest level since 2008. Indian stocks were lower, however, as domestic inflation concerns and the outbreak of more financial scandals sent investors to the exits. The BSE Sensex tumbled more than 2% to 19,508 with the Nifty finishing at 5857. Meanwhile, gold fell back below $1400 last week as currency worries were put on the back burner. I had pointed out the probable negative effect of the early week Sun-Saturn aspect and all markets were generally weaker at that time, although Mumbai continued to fall through Thursday, possibly due to natal afflictions. Gold's decline arrived more or less on schedule with this aspect as prices tumbled more than 2%.

As most global markets inch higher here, we may well be seeing the "glass half-full" thinking that comes with Jupiter-Uranus conjunctions. Now that Jupiter is only two degrees away from Uranus, most markets are choosing to not "fight the Fed" and just get on board with all the cheap money Bernanke is injecting into the financial system, regardless of the downstream consequences. Jupiter's confidence and optimism is combining with Uranus' love of excitement and risk-taking to create something of a monster that has lost its sense of caution and fear. Well, it's all fun and games until someone loses an eye. The exuberance of Jupiter with Uranus may be seen as an astrological equivalent of a bubble. Even as more commentators openly question how long this game of musical chairs can go on, the bubble continues to be inflated. When will it pop? One possible answer might lie in the date of its exact conjunction on January 3, 2011. Once conjunctions are exact, they begin to lose energy as the planets separate. This is a general rule of thumb, however, as other influences must also be factored into the overall equation. Certainly, we are getting pretty close to that point where the balloon cannot expand any further without popping.

This week we will see the immediate effects of the bearish quadruple conjunction of Mercury, Mars, Rahu and Pluto. While this alignment has not been very negative in the US, it has had more impact in Asian markets where the negative effects of the inflation of Jupiter-Uranus is in full view. Mercury may be the key planet to watch here as it symbolizes trading and information flows. Now in its retrograde cycle until Dec 30, Mercury will conjoin Mars and Pluto early in the week with its closest pass on Tuesday. Around the same time, however, we will have a more bullish Sun-Jupiter aspect that is likely to boost confidence. Its effects are perhaps more likely to arrive midweek. Gold may be benefited in particular by this Sun-Jupiter aspect. The late week period looks mixed as Mercury suffers from its contact with Rahu on Thursday but the Sun teams up with Uranus which could spark more speculative interest.

Stocks rise on Mercury-Venus

2010-12-04T16:11:00.003-05:00

Despite another disappointing US employment report that, stocks rebounded last week as the European debt crisis showed signs of coming under control. In New York, the Dow gained 3% on the week closing at 11,382 while the S&P500 finished at 1224. It was a similar tale in Mumbai as the BSE Sensex rose 4% closing at 19,966 and the Nifty at 5992. Last week, I had noted the unreliability of Monday's Mars-Jupiter aspect. This combination was often bullish due to its symbolism of excessive risk but it seemed less conducive to gains in the current climate. While we saw gains in Asia on this aspect, much of the rest of the world was modestly lower. The midweek pairing of Mercury and Venus delivered gains more or less as expected across the board as Wednesday saw prices climb sharply. The end of the week saw an ebbing of enthusiasm, although it was nowhere near as negative as the aspects would have suggested. The proximity of Mercury with Rahu and the Mars-Uranus square seemed to portend bigger moves than what we got. Since Mercury is slowing down in advance of its retrograde cycle which begins this Friday, some of the confusion and uncertainty from this Mercury-Rahu conjunction could conceivably be protracted over several days.

The world is awash in debt these days with stimulus plans, bailouts, and of course the Fed's QE2 program of quantitative easing. The aim of all these market interventions is to restore confidence, boost demand and economic activity, and avoid losses that would otherwise result if the market was left to its own devices. These are all understandable and commendable actions and yet with each new bailout comes an increased risk of inflation and debt default. Inflation occurs because too much money is being printed relative to the amount of value produced by an economy. In an attempt to restore economic confidence in indebted companies and countries, there is a risk that inflation will devalue fiat currencies and paper money. This is the main reason why the price of gold has been rising, as it once again closed above $1400 last week, and why money has been pouring into stocks of late. With the likelihood of currency debasement down the road -- as this risk-loving Jupiter-Uranus thinking goes -- it makes more sense to be invested in the stock market. But the risk of default is also growing as the amount of outstanding debt continues to mount. As a reflection of this increasing supply of debt, yields on debt are starting to rise all over the world. This is even happening with US Treasuries despite the Fed's buy back program. If bond yields continue to rise, it will begin to set off alarm bells as the debt will become too expensive to service. The danger here is that if yields continue to rise it could start chain reaction of ever-greater borrowing to pay the interest, higher inflation, devalued currency, and ultimately economic collapse. Bailouts are often necessary, but they are not risk-free.

This week begins with Jupiter entering Pisces (actually on Sunday), a Sun-Saturn aspect and a Uranus direct station. Jupiter entering a new sign is usually a bullish indication and it is now just two degrees away from Uranus. While their exact conjunction is still four weeks away, this is background influence is bullish, albeit somewhat diffuse. However, Sun-Saturn aspects usually sap confidence so this is often a difficult influence in the short term. Gold is also susceptible here since the Sun is its planetary significator. With Uranus returning to forward motion this week, there is a greater chance for sudden developments which may change some prevailing trends. When Uranus last changed its direction on July 5, the market had formed an important low just 3 days before. The midweek period features a Venus-Pluto aspect which will eventually blend into a Mercury-Venus aspect by the end of the week. These are usually positive influences. However, Friday's close Mars-Rahu conjunction is not a bullish combination and increases the chances for uncontrolled bursts of energy, irritation and hostility. The formation of the quadruple conjunction of Rahu (distortion, greed), Pluto (power,control), Mercury (communication), and Mars (action, urgency) over the next week or two is an unusual and awkward blending of energies that does not promote stability in either the financial markets or in the geopolitical sphere.

Markets slide under more Rahu-Pluto fallout

2010-11-27T12:47:00.003-05:00

Stocks moved lower last week over Eurozone debt worries and geopolitical uncertainty in the Korean peninsula. In New York, the Dow lost about 1% during Thanksgiving week closing at 11,092 while the S&P500 finished at 1189. Indian stocks suffered deeper losses as the housing loan scandal merely added to the headwinds. The Sensex lost more than 2% to 19,136 as the Nifty closed at 5751. The fairly gloomy mood here was more or less in keeping with my expectations for more uncertainty and pessimism from the recent Rahu-Pluto conjunction. The early week was fairly bearish in the US and this roughly correlated with the aftermath of the Mercury-Mars conjunction. The midweek Mercury-Jupiter aspect delivered the goods on time as most world markets rallied strongly on Wednesday's improving job picture. And as expected, the late week saw an increase in caution as the Sun was in aspect to Pluto.

November is thus far shaping up to be quite a negative month as the Rahu-Pluto conjunction continues to dominate the proceedings. Rahu's penchant for narrow self-interest and distortion is expressed through the lens of Pluto's desire for power and control over large scale structures. The circumstances surrounding the EU bailout of Ireland last week perhaps speaks to this influence as the political implications of the proposed austerity package is coming under much scrutiny. While austerity may be necessary to restore confidence of the bond market, more citizens are asking why it is necessary that average people are having to foot the bill for mistakes made by privately-owned banks. In other words, if gains are private, then why are losses socialized? It will be interesting to see how this discourse of fairness plays out as Rahu and Pluto are joined by Mercury and Mars over the coming weeks. I would expect some kind of peaking or resolution of these power-related issues by mid-December.

This week begins with a close square of Mars and Jupiter. Recent experience suggests that the combination of Mars' energy with the optimism of Jupiter tends to increase risk appetite and take prices higher. That may well be the case here, although the general situation seems less favourable than it has been previously. On Tuesday and Wednesday there will be a minor aspect between benefics Mercury and Venus which could boost sentiment, at least temporarily. But the cloud hanging over the market is still the approach of Mercury and Mars to that dangerous Rahu-Pluto combination. Mercury will conjoin Rahu on Friday just as Mars squares Uranus. Since both of these aspects are negative influences, the late week period looks much more uncertain.

QE2 fuels inflation fears; Rahu-Pluto haunts markets

2010-11-20T13:39:00.002-05:00

US Stocks were mostly flat last week on offsetting signals from China's bank tightening and Ireland's acceptance of the EU's bailout package. After briefly dipping below the 11K level, the Dow closed at 11,203 while the S&P finished at 1199. Indian shares fared worse as inflationary fears and tighter credit markets in Asia persuaded more investors to take profits. The BSE Sensex closed down 3% at 19,585 while the Nifty ended the week at 5890.

It was an interesting week in astrological terms as Monday's bullish Sun-Jupiter aspect did push up prices in Mumbai but optimism faded around noon in New York. Stocks then began to drift lower in the afternoon and continuing through the day Tuesday and into Wednesday. I had expected some significant downward pressure on prices going into the midweek Mercury-Saturn aspect and that was more or less what happened. As expected, Thursday was higher as risk appetite increased on the Sun-Uranus aspect. I was puzzled about what Friday might bring given the twin direct stations of Venus and Jupiter. While normally bullish, the coincidence of the nasty Mercury-Mars conjunction definitely took the shine off those benefic planets. Mumbai was sharply lower owing to some specific afflictions in the key natal charts while New York ended mostly flat as the early pessimism faded into equanimity.

The Fed continues to come under fire for QE2 and the inflationary pressures it has created in many emerging markets now awash in hot money. This is in keeping with the symbolism of the Rahu-Pluto conjunction that emphasizes the notion of power exercised by large organizations in the service of narrow and greedy self-interest. Not exactly a ringing endorsement of humanity's better impulses, but then again these are two malefic planets that are associated with some of the more base human qualities. While the exact conjunction of Rahu (the North Lunar Node) and Pluto occurred back on November 9, the slow velocity of these planets could mean a lingering influence into December. The quadruple conjunction involving Mercury and Mars in the second week of December may well mark a significant manifestation in this assertive and difficult energy.

This week will begin with the aftermath of the Mercury-Mars conjunction. On the face of it, this is bearish combination although since it is separating, it may not have a lot of negativity left in the tank. By midweek, we could see a rebound in sentiment as Mercury approaches its aspect with bullish Jupiter. This is perhaps not unexpected given the usual positive bias around the US Thanksgiving period. After Mercury loses Jupiter's glow later in the week, there may be a return to uncertainty, especially in Asian markets.

Stocks tumble on Rahu-Pluto; Venus, Jupiter turn direct

2010-11-14T11:25:00.002-05:00

Stocks moved lower last week on concerns that China's inflation problem
would force its central bank to raise interest rates and thus choke off
growth. In New York, the Dow closed 2% lower at 11,192 while the
S&P500 finished at 1199. Indian stocks suffered even larger losses as
the Sensex had its worst week since May falling 4% to 20,156 with the
Nifty closing at 6071. This negative outcome was largely in keeping
with expectations as the ongoing Rahu-Pluto conjunction is highlighting
international tensions around trade and currency. The midweek aspect
between Mercury and Rahu seemed to act as a kind of trigger for the slow
moving Rahu and Pluto and this was perhaps exacerbated by the approach
of the stressful Saturn-Mars aspect on Friday.

It is interesting to see how the growing tensions around the Fed's QE2
stimulus plan and the resulting destabilization of world currencies can
be seen through astrological patterns. Rahu (thoughtless self-interest,
greed) and Pluto (power, large organizations) conjoined exactly on
November 9 just as the G20 were about to meet in South Korea to fashion
some kind of an agreement over currency and trade. No agreement was
reached as export-oriented nations continue to be hurt by the
appreciation of their own currencies. The US wants to create jobs as a
lower Dollar will boost exports, but this is bad news for its trading
partners which are seeing a loss of its export markets as its goods
become more expensive. In keeping with the symbolism of greedy Rahu and
assertive Pluto, this appears to be a time where narrow national
self-interest is being laid bare for all to see.

But the upcoming stations of Venus and Jupiter this week offer some kind
of hope for an end to the impasse. Both Venus and Jupiter end their
retrograde cycles on Friday and will resume their normal forward motion
in the sky. Since both are considered naturally benefic (and bullish)
planets, there is some reason to expect some kind of reconciliation or
agreement is possible. Whether such an agreement will be good for
stocks remains to be seen, however, since a coordinated plan to bolster
the US Dollar would likely lessen risk appetite and make stocks less
attractive.

Ahead of Friday's possible trend reversal, there is an unusually dense
mixture of positive and negative aspects this week. Monday will feature
both the completion of the bearish Mars-Saturn aspect and the start of a
supportive Sun-Jupiter aspect. This suggests the possibility of higher
volatility with gains quickly following upon losses. By Wednesday,
Mercury falls under the influence of pessimistic Saturn so that is may
somewhat increase the likelihood of declines. Thursday's Sun-Uranus
aspect may make risk more attractive and thus tend to boost prices. The
week concludes with "The Venus and Jupiter Show". While these planetary
reversals would appear to be bullish, they occur at the same time as
Mercury conjoins Mars. Since Mars is usually a negative influence,
there is still the possibility that things may not proceed according to
plan. So that is something of a wild card influence on the situation.
The end of the week looks interesting to say the least, with an
increased likelihood of a large price move.

Markets cheer QE2 ahead of Rahu-Pluto conjunction

2010-11-06T12:42:00.003-04:00

Transits for Monday November 8, 2010

Stocks rose sharply last week as Fed Chair Ben Bernanke announced the much-anticipated QE2 stimulus measures designed to boost the listless US economy. In New York, the Dow rallied to new highs for the year and closed at 11,444 while the S&P500 finished at 1225. Indian stocks likewise took a shine to Bernanke's freshly minted rescue package as the Sensex closed at an all-time high of 21,004 with the Nifty coming in at 6312. I thought we might see more downside on midweek Mars-Ketu aspect but the late week Mercury-Jupiter appears to have trumped all other influences. As a result, Wednesday's weakness was quite mild and didn't last long. Monday's Venus-Pluto aspect produced significant gains in Mumbai while Thursday's Mercury-Jupiter aspect sent stocks soaring. Neither of these up moves was especially surprising, although with Ketu's influence largely invisible here, the market rose overall.

An aspect worth watching this week is the conjunction between Rahu and Pluto which is exact on Tuesday. Rahu symbolizes speculation and greed and is considered a malefic planet. It is also connected with situations that break with the status quo and cause uncertainty. Pluto is also a nominally malefic planet and represents power and control, especially as it pertains to large organizations. It is possible that we could see further rally attempts with this intensification of greed, but it seems like a fairly precarious set up. With the G20 meeting in South Korea this coming weekend, one wonders if some significant changes are afoot. Some member nations have expressed frustration with the Fed's stimulus measures since they are devaluing the US Dollar and thus forcing up the value of their own currencies. This is creating problems by fueling inflation and making their exports more expensive. If there was a major change to the current currency regime, it could throw a wrench into the recent stock market rally since much of it has been driven by a falling US Dollar. The combination of Rahu and Pluto certainty has the power to effect such a change, although its full force may take some time to be released. The early December quadruple conjunction of Mercury, Mars, Rahu and Pluto is perhaps the most obvious potential configuration in that respect.

The week begins with a fleeting Mercury-Venus aspect that may boost sentiment and spur some more buying. By midweek, Mercury will form an alignment with Rahu and Pluto and this may correspond with distorted communication and confusion. These conditions would therefore seem to encourage greater caution and lower prices. At the same time, we can see that Mars is gradually coming under the influence of Saturn's full strength sextile aspect, so this may be another drag on sentiment as we move through the week. This aspect is not exact until next Monday the 15th but it will bear close watching.

"A government that robs Peter to pay Paul can always depend on the support of Paul. "
-- George Bernard Shaw

Markets mostly flat ahead of Fed meeting and Mars-Ketu

2010-10-30T12:42:00.003-04:00

US Stocks were mostly flat last week as offsetting economic data was enough to maintain the holding pattern ahead of the midterm elections and this week's crucial Fed meeting. The Dow finished slightly lower at 11,118 while the S&P500 remained stuck at 1183. Indian markets fared somewhat worse as the Sensex closed less than 1% lower at 20,032 and the Nifty at 6017. While I thought the heavy planetary traffic might create a little more movement last week, the outcome was not unexpected. Monday's gain coincided nicely with the Mercury-Venus conjunction, while the midweek Sun-Ketu aspect also fit well with Wednesday's decline, even if prices rebounded somewhat by the close. Thursday was also higher as expected on the Sun-Venus conjunction although most of the gains occurred at the open.

This week could see a significant break from the recent narrow trading range as the Fed meets on Tuesday and Wednesday and will likely announce the scope of its latest round of stimulus measures, so-called QE2. As far as stocks are concerned, bigger is better so any amount of treasury buy backs in excess of $1 Trillion will likely spark some buying. This seems unlikely, however, as Fed bankers have been hinting that QE2 will likely be smaller, perhaps closer to $500 Billion. Since this number has largely been discounted already by the market, it could possibly spark a "sell the news" reaction. Interestingly, the Reserve Bank of India also meets on Tuesday so that will be another important piece of information for the market to consider. The consensus view is for a modest 25 point hike as the RBI tries to tame inflationary pressures.

In astrological terms, the early week has a decent chance for gains as Venus, Mars and Pluto form an alignment on Monday. Tuesday and Wednesday look more uncertain as Mars forms a close aspect with Ketu, the South Lunar Node. Mars-Ketu aspects are very unpredictable and are often connected with fast-changing circumstances. Since these are both considered negative planets, there is a greater likelihood that markets will selloff midweek, perhaps in reaction to either the US midterm elections or the Fed announcement. The possibility of a major reaction to the news is boosted somewhat by the fact that Ketu is involved in a close opposition to Pluto. While this opposition will become exact early next week on Nov 9, some of that energy may be released through this Mars aspect here. The end of the week looks somewhat more stable as Thursday's Mercury-Jupiter brings together two positive planets.

"Doubt is not a pleasant state but certainty is a ridiculous one." -- Voltaire

Markets tread water; Venus meets Ketu this week

2010-10-23T12:45:00.003-04:00

Transits for Monday October 25, 2010

Stocks mostly treaded water for another week as positive earnings reports offset the fallout from China's unexpected interest rate hike. In New York, the Dow briefly traded at levels last seen in near its April high before closing at 11,132 while the S&P500 finished at 1183. The Indian market was also mostly unchanged despite growing worries over the fast rising Rupee. After trading below 20,000 midweek, the Sensex ended the week at 20,165 with the Nifty closing at 6066. While I thought we might see more downside towards the end of the week on the Mars-Neptune aspect, prices adhered fairly closely to the storyline described by the key aspects, at least in the US. I had expected some upside from the Sun-Jupiter aspect on Monday and the Mars-Jupiter aspect on Wednesday and we did indeed see broadly based gains on both those days. (In Mumbai, however, the effects from the Mars-Jupiter aspect lagged somewhat as the 2% gain arrived on Thursday.) Tuesday's decline was quite steep and roughly corresponded to the difficult Venus-Saturn aspect, although I did not have an inkling that the selloff would be as large as it was.

As Fed Chair Ben Bernanke continues to promise endless stimulus through the purchasing of US treasuries, market sentiment has remained quite positive. Much of the rally since September has been driven by the assumption of another round of quantitative easing (so-called QE2) which will likely be announced sooner rather than later. With the next Fed meeting slated for November 3, it's worth reflecting on the possible outcomes of any announcements. Ketu (aka the South Lunar Node) will be in aspect with Mars on that day and this may well capture the jittery market mood then. Mars-Ketu combinations are usually found in situations that release a lot of energy in a short time and are sometimes found in accidents, violence, and other unpleasant circumstances. While Mars-Ketu contacts are not always connected with "negative" events, both planets are considered malefic by nature and there could be an urgency there that is incompatible with smooth or routinized behaviour. At very least, we know that trading volumes will likely rise sharply around that time.

This week will see an unusual blending of positive and negative forces as there will be two Venus conjunctions along with a strengthening of Ketu (South Node). Mercury conjoins retrograde Venus on Monday and when these two benefic planets combine there is usually a lift in the mood that accompanies higher prices. At the same time, however, this conjunction will occur in fairly close aspect to Ketu. Ketu can be a disruptive influence which undermines the status quo and generates surprising outcomes. This could either act as a mirror that flips the expected outcome from positive to negative or it may act as a magnifier that actually intensifies positive outcomes. A more clearly problematic set up occurs midweek on the Sun-Ketu aspect as confidence may ebb as government and leadership is called into question. On Thursday, there is a second Venus conjunction, this time with the Sun. This is also usually a favourable alignment of planets that boosts happiness although again, the presence of weird Ketu confuses matters somewhat. If nothing else, the impact of these two Venus conjunctions will probably be exaggerated in either direction, so larger price moves are more likely.

Quote of the week: "Coming events cast their shadows forward." – Goethe

Stocks stay firm after Venus retrograde

2010-10-16T20:29:00.002-04:00

US stocks edged higher last week on the hope that the Federal Reserve
would undertake a new round of stimulus measures to revive the flagging
economy. Despite the the deepening of concern over the foreclosure
scandal that implicates many large banks, the Dow closed slightly higher
at 11,062 and the S&P500 finished the week at 1176. It was a somewhat
different story in India, however, as investors took profits on worries
the rising Rupee might undermine exports and outsourcing. The BSE
Sensex lost 1% to close at 20,2125 and the Nifty ended Friday's session
at 6062. This was our first glimpse at the possible effects of the
Venus retrograde period (Oct 7 - Nov 18) and the results were a little
underwhelming. A change in direction in Venus might have corresponded
with the rally coming to an end and prices moving lower. It's harder to
make that argument now since prices have generally drifted higher,
albeit not by much. Last week's Mars aspects on Monday and Friday saw
some weakness, especially in India, although the early week period was
fairly strong. The midweek Venus-Uranus aspect did correlate nicely
with Wednesday's big gain.

This rally that began in September is largely rooted in the assumption
that Ben Bernanke will continue to pump liquidity into the system in
order to stave off a deflationary spiral. With interest rates near
zero, stocks become a very attractive investment, especially as the US
Dollar is on the verge of turning into a Third World currency. This
belief in the power of cheap, risk-free government money to paper over
any economic shortcomings might be linked to the recent Jupiter-Uranus
conjunction that was exact in September. Jupiter symbolizes expansion
and wealth, while Uranus embodies the notion of risk and excitement.
Together, these planets increase the appetite for risk and may well
reflect the market's infatuation with the Fed's intention to "pump it
up", regardless of the consequences. While this conjunction is now
separating and therefore weakening, there seems to be a continued
reservoir of belief in this 'glass as half-full' approach. The
retrograde motion of Venus offered the possibility that the current
approach to shopping, buying and the valuation process may be undergoing
some kind of change or review.

This week has an unusually high number of close aspects involving both
Jupiter and Saturn. On the face of it, it would seem that the optimists
may claim bragging rights as Monday's Sun-Jupiter aspect inclines
towards the bullish camp. Wednesday's Mars-Jupiter aspect appears to
support wise (Jupiter) actions (Mars) and in the past often coincides
with gains. In between these configurations is more of a mixed picture,
however, as Venus is in aspect with Saturn in the midweek and
afterwards. The Mars-Neptune square late on Friday also seems more
negative as actions may lose their focus or be subordinated by hidden or
deceptive means. And with Mars simultaneously in a harmonic aspect with
Saturn here, the late week period could be significantly negative.

"The only principle that does not inhibit progress is: anything goes".
-- Paul Feyerabend

US Stocks rise into Venus retrograde

2010-10-09T12:53:00.003-04:00

Despite another bad employment report, stocks moved higher last week on the likelihood of further Fed stimulus measures. The Dow rose 2% on the week to close at 11,006 while the S&P500 finished at 1165. It was a different story in Mumbai as Indian stocks lost 1% as the Sensex ended the week at 20,250 and the Nifty at 6103. Gold also surged to new highs near $1350 as more investors abandoned the US Dollar in favour of safer havens. I thought the early week conjunction between Venus and Mars would generate some skittishness and we did see stocks fall on Monday and into Tuesday in Asia when the aspect was exact. As noted last week, the midweek Sun-Venus aspect also appeared to correlate quite well with the big rise on Tuesday in the US and Wednesday in India. The late week period tilted towards the negative with the approach of Friday's Venus retrograde station. I had wondered if Friday might be significant in some way, either with a major move or perhaps in hindsight through the marking of a high point. For US markets, Friday was quite positive as a key technical resistance level was broken to the upside. Of course, it remains to be seen if this will mark any kind of high point here.

This week we will get our first look at the quality of the six-week Venus retrograde cycle. In addition, the planet Mars will figure prominently in the sky as it forms aspects with the Sun and Mercury. Owing to its often excessive nature, Mars is usually a negative influence so that stacks the deck somewhat towards the negative. A minor Sun-Mars aspect occurs on Monday while the late week features a Mercury-Mars aspect. As a rough rule of thumb, Mercury-Mars aspects are often more damaging. In between these Martian power plays, the midweek aspect between Venus and Uranus may offer some relief, so that could boost sentiment on either Tuesday or Wednesday.

The gold rally is taking on a life of its own over the past month as the US Dollar is being unceremoniously dumped around the world. With the US Federal Reserve promising to stimulate the economy without limit, there is a growing risk of inflation and Dollar devaluation. The growing currency instability is not a positive sign for long term global financial prospects as the falling Dollar is causing severe problems for export-driven economies. The main beneficiary of the falling Dollar has been gold as prices have risen 20% over the summer. In astrological terms, part of the reason for the run-up was likely the Jupiter-Uranus conjunction which encouraged speculative activity. Now that that aspect is losing steam here, we may wonder how much higher gold can go in the short term. Venus may also be relevant to the gold story here since it is symbolic of luxuries. On the face of it, retrograde Venus may not be very good for gold, although the fact that the cycle will take place in the sidereal Libra may lessen the damage that would otherwise be forthcoming.

"People always say that time changes things, but you actually have to change them yourself." -- Andy Warhol

Stocks flat ahead of Venus retrograde; Mars strengthens

2010-10-02T13:33:00.001-04:00

Stocks took a breather from their recent rally last week as mixed economic signals lessened the appetite for risk. The Dow Jones Industrial Average ended down slightly for the week at 10,829 while the S&P500 closed at 1146. Indian stocks fared better, however, as they extended their impressive winning streak for another week with the Sensex gaining 2% at 20,445 with the Nifty finishing at 6143. While the US market was more tentative last week, I thought we might get more bearishness on the Saturn-Ketu square aspect. Friday's positive performance across the board also seemed anomalous given the apparently negative Sun-Saturn conjunction that day. Sometimes these aspects act as reversal points rather than simple market correlates although the latter view is somewhat more common. Moreover, the ability of these planets to move sentiment is also contingent on any forthcoming alignments. With the retrograde cycle of Venus beginning on Friday, October 8, we have to wonder if the whole Saturn-for-Jupiter hand off scenario could be forestalled until then.

Not only will we have the beginning of the Venus retrograde cycle this week, but it is important to note that Venus will be in close conjunction with Mars. Given the red planet's reputation for nastiness, this could have a onerous effect on Venusian activities such as spending, buying and enjoying luxuries. Mars is an active energy so it may well increase trade volume here, and there is an unreliable, erratic quality to Mars that could take things off the rails. The combination of these two measurements therefore increases the likelihood of price declines through the week. The Venus-Mars conjunction is exact on Sunday, so that could inflict damage on Monday's market. We can spot a passing Sun-Venus aspect on Tuesday and Wednesday that could inject some optimism in the equation. The late week period will center around the end of the forward motion of Venus on Friday and the commencement of its backward journey through sidereal Libra that lasts until November 18. It's worth noting that the last Venus retrograde cycle occurred at an important reversal in the market in March 2009. At that time, Venus began its retrograde cycle on March 7, just one day after the stock market reached its lowest point in the market meltdown that began in 2008. While these reversals in planetary direction do not always correlate with changes in market directions, they nonetheless increase the likelihood of such a shift in sentiment especially if coming after an established trend has been in a place for a while as we have now.

Friday also has the distinction of a Mercury-Saturn conjunction. As the planet of trading and commerce, Mercury's contacts with pessimistic Saturn often translate into selloffs as news of reduced economic activity may tilt the mood toward caution. Conjunctions are somewhat less negative than other aspects, however, so we will have to see how this plays out. But the fact that it is coming the same day as the Venus retrograde increases the potential for something significant to occur, either at the time or in hindsight.

"One may understand the cosmos, but never the ego; the self is more distant than any star." --G.K. Chesterton

Jupiter boosts stocks; Saturn prepares for Ketu

2010-09-25T14:24:00.002-04:00

The September rally took another step higher last week as positive housing and manufacturing data persuaded more investors to buy in. The Dow Jones Industrial Average rose 2% to close at 10,860 while the S&P500 finished at 1148. It was much the same story in Mumbai, as Indian equities continued their torrid pace with the Sensex again reaching the 20,000 plateau for the first time since January 2008. The Sensex closed Friday at 20,045 and the Nifty ended at 6018. Not to be outdone, gold futures touched $1300 an ounce and made a new all-time high. The Jupiter-Uranus conjunction is the gift that keeps on giving as the last weekend's conjunction is still overflowing with sunny optimism and an appetite for risk-taking. The early week gains arrived more or less on schedule as Tuesday's Sun-Jupiter aspect produced the expected gains. On Tuesday, Fed Chair Ben Bernanke reaffirmed his commitment for further stimulus measures to prevent a deflationary spiral from taking hold in the event of further sluggishness in the US economy. While the market had risen into his afternoon announcement, stocks embarked on a modest selloff afterwards and this down trend continued into Thursday. Friday's gains provided further evidence of the strength of Jupiter here despite the fact the conjunction is now separating.

This week offers another opportunity for a change in the trend as Saturn is thrust into the spotlight through its square aspect with Ketu, the South Lunar Node. As the planetary maestro of pessimism, Saturn's relative strength in the sky is an important indicator of where sentiment is tilting. When Saturn is prominent through the formation of significant angles with other planets, then the odds of a decline increase. When Saturn is tucked away into the background, then optimism has a better chance to flourish. The Saturn-Ketu aspect this week combines two clearly negative energies so caution and fear are more likely to manifest. That said, these two slow moving planets sometimes require a third planet to release their karmic payload. On paper, the role of that third planet may well be assumed by the Sun as it conjoins Saturn in sidereal Virgo on Friday. So the end of the week could be significant in terms of marking a trend change. To make things more interesting, Friday will be the first day of October and the first day of the fourth quarter. With the possibility of end of quarter window dressing, the new quarter may kick off with a bang. It will bear close watching.

"Man only likes to count his troubles, but he does not count his joys." -- Fyodor Dostoyevsky

Stocks running on Jupiter; Saturn waits its turn

2010-09-18T15:17:00.004-04:00

Stocks moved mostly higher last week as growth prospects in emerging economies lifted sentiment. In New York, the Dow was higher by more than 1% closing at 10,606 while the S&P500 finished at 1125. In Mumbai, the atmosphere was almost euphoric as India continued to attract interest from foreign institutions. The Sensex jumped another 4% to close at 19,594 as the Nifty ended the week at 5884. Gold also made new all-time highs closing near $1280. Market sentiment appears to be flourishing under the protective umbrella of the Jupiter-Uranus conjunction as stocks have rallied off their late August lows. While I expected this pairing would act as a sort of insurance policy against any major declines, its ability to block out most other influences has been a little surprising. What was less surprising, however, was the early week strength that coincided with the Mars-Jupiter aspect. If the market was set to rise, this seemed like the combination to do it. However, we didn't get much negativity afterwards despite more aspect activity involving bearish Saturn.

So when it all this Jupiterian optimism going to end? Next week will offer more clues to that question since we will be in the post-conjunction phase of the Jupiter-Uranus aspect. As a rule of thumb, planetary aspects begin to lose their power only after they are exact and begin to separate. Today, September 18, Jupiter exactly conjoins Uranus. By next week, it will slowly begin to move away from Uranus and thereby begin the process through which its energy begins to fade. Well, that's the theory anyway. There are many exceptions here, but it is nonetheless worth considering. And while Jupiter's optimism may be waning, gloomy Saturn maybe ready to assume a larger role. While the aspects with fast-moving Mercury and Venus did not deliver much in the way of caution, Saturn gets another opportunity to strut its stuff thought its square aspect with Ketu -- aka the South Lunar Node. The aspect is exact on September 27 and is perhaps a more reliably bearish influence since Ketu is considered a malefic planet, just as Saturn is. by contrast, both Mercury and Venus are both considered benefic influences. In this case, then, malefic planet + malefic planet = a very negative result! Just when the effects of this aspect will be felt is a little unclear since these distant, slow moving planets often require triggers from faster moving planets.

This week promises to be quite eventful. Not only will we get our first glimpse of what a post-Jupiter-Uranus world feels like, but the Sun will aspect this conjunction on Monday and Tuesday. On paper, this is a very bullish alignment that ought to increase risk appetite and put investors in a buying mood. At the same time, there is a sense that this aspect could act as a final cherry on top of the this recent run-up, since after this aspect is out of the way, there won't be much else Jupiter can do for an encore. This sense of finality is reinforced since Saturn-Ketu looms just two degrees out of range waiting to assume center stage. To add to the excitement, there is also a tight Venus-Ketu aspect in the early part of the week that may distort buying patterns in some way. Fed Chair Ben Bernanke is due to speak Tuesday, so the fate of the markets may well hinge on his comments. If he offers new stimulus measures to boost the sagging economy, there is a chance for a sudden rally. But with Venus harmed by Ketu's aspect, I wonder how long that buying opportunity may last. Days, hours, or even just minutes? There is an instability here that would seem to incompatible with a durable rally, both in the economy and the stock market. Tuesday should be very interesting indeed. I would not be surprised with any outcome, but I do think the market is quite vulnerable here.

"In practice, randomness is fundamentally incomplete information."
-- Nassim Nicholas Taleb

Stocks rise on Venus-Jupiter; Mercury turns direct this week

2010-09-11T16:29:00.001-04:00

Stocks edged higher in the US last week despite government reports indicating the recovery would be slower than expected. After putting in a losing day Tuesday, stocks rebounded and closed slightly higher for the week with the Dow standing at 10,462 and the S&P500 at 1109. In Mumbai, buyers came out in force as the Sensex rose more than 3% before closing at 18,799 while the Nifty finished at 5640. The continued optimism in the market was not surprising given the alignment of Venus, Jupiter and Uranus that was at its closest on Tuesday and Wednesday. Since both Venus and Jupiter are benefic planets, a rise was the most likely outcome here although there were locally unique expressions of this bullish energy. Most of the rise in Indian markets arrived on Monday while the US rallied more strongly on Wednesday. Interestingly, we saw very little evidence later in the week of the approaching aspect between Mercury and Saturn. Normally, this combination would tend to depress sentiment.

As the market mood remains relatively buoyant, we have to look no further than the Jupiter-Uranus conjunction for its source. Once these two planets exactly conjoin on September 18, however, this optimism may begin to wane as Jupiter starts to move away. A weaker and less prominent Jupiter could mean that gains will be harder to come by in the near term. At the same time, bearish Saturn may be strengthening as it is in aspect with both Mercury and Venus this week and then it forms a square aspect with the Moon's Nodes, Rahu and Ketu, on September 27. A stronger Saturn often translates into a falling stock market, although there are some exceptions to that notion. Nonetheless, the simultaneous weakening of Jupiter and strengthening of Saturn would appear to limit the upside here.

This week we have the somewhat unusual phenomenon of two planets reversing their directions with days of each other. Mercury ends its retrograde cycle on Sunday while Pluto ends its retrograde cycle on Tuesday. Reversals in planetary direction can sometimes reflect reversals in market trends, so we should be aware that there is an increased possibility of a change in the prevailing mood. At the same time, aspects are usually more reliable indicators of sentiment, even if their influence may be fairly brief. On that score, we can see a close aspect between Mars, Jupiter and Uranus early in the week (especially Monday) that could mimic some of last week's rise. The difference here, however, is that Mercury is sitting very close to an aspect with Saturn through the whole week. I thought some of this caution might enter the equation last week but it seems we may have to wait until this week. The aspect isn't exact until Wednesday, though, so perhaps the midweek period is a more probable window for it. Later in the week, we get another dose of Saturn as Venus moves into aspect. Even against the backdrop of Jupiter-Uranus optimism, all this Saturn should find a negative expression in the markets sometime this week.

"All money is a matter of belief." --Adam Smith

Stocks rise as Venus enters Libra; Mars follows this week

2010-09-04T16:51:00.002-04:00

Some mildly encouraging US economic data made the glass look half-full again last week as investors pushed stocks higher. After early weakness, the Dow gained more than 3% to close at 10,447 while the S&P500 ended the week at 1104. In Mumbai, the Sensex added 1% closing at 18,221 with the Nifty finishing at 5479. In last week's post, I noted how the entry of Venus into sidereal Libra on Wednesday would tend to be positive for the stock market. Venus, the planet of shopping, can more readily deliver its positive energy when in the conducive environment of Libra. Wednesday saw stocks around the world rise with the Dow gaining almost 3% in a single day. It was an intriguing reminder just how neatly these sidereal ingresses can work. Unfortunately, they don't always work this way (alas, astrology is rarely simple), and hence I was tentative about the prospect for gains last week given the range of factors, both positive and negative.

After bouncing off a key support level early on, stocks appear to have embarked on a new up trend as we enter September. The month of August was quite bearish for the market as stocks in the US fell up to 7%. What is interesting here is the correlation with the planet Venus and its transit of sidereal Virgo. It entered Virgo on August 1 and completed its transit of this sign on September 1 when it then entered Libra. As I pointed out in my July 31 update, Venus typically does not do well in Virgo where it is said to be debilitated and this may constrict spending and act as a depressive factor upon stocks. So that's a nice correlation of a very negative outcome (-7%) with a debilitated Venus. Even more provocative is the fact that the market made an interim high within a few days of the entry of Venus into Virgo and it made a low on the last day that Venus was in Virgo. Of course, this is only one data point and can still be written off as coincidence, particularly given the other bearish aspects I have noted through last month. I'm certainly not so blinded by the stars to I can't acknowledge that coincidences do happen, not everything is meaningful and that some things are simply random noise. Still, it's interesting.

We will see the effects of another ingress this week as Mars follows Venus into sidereal Libra on Monday. Whereas Venus is a benefic planet that generally lifts prices, Mars is a malefic planet that should be considered a negative influence. There are a couple of complicating factors here, however, that may undermine the transparency of the effects of Mars. First, US markets are closed for Labor Day Monday, so other markets may be the ones to experience any effects. Second, and more importantly, Venus forms a minor aspect with both Uranus and then Jupiter early in the week. Two out of these three planets are benefics and in such a situation, Uranus often acts as a booster rocket that generates optimism that leads to more buying and rising prices. So these two forces are somewhat at odds with each other -- Monday's Mars ingress and then Tuesday and Wednesday's Venus-Jupiter-Uranus alignment. Perhaps the market will simply take their cues sequentially with weakness evident on Monday but recovery into midweek. Astrology rarely operates to simply, but it may be useful to think heuristically here. Later in the week, Mercury slows down ahead of the culmination of its retrograde cycle on Sunday and will form a fairly close aspect with Saturn. Saturn usually does not blend well with Mercury so this may coincide with greater caution.

In the background, of course, Jupiter is inching closer to its conjunction with Uranus and is now just one degree away. This bullish planetary combination comes exact on September 18 so that will tend to keep any down moves from going too far and may act as a reservoir of optimism in the event of any passing rallies.

"Theory helps us to bear our ignorance of facts." -- George Santayana

Stocks slide on Mercury retrograde; Venus enters Libra this week

2010-08-28T18:10:00.002-04:00

Financial markets continued to look shaky last week as poor US housing data provided more evidence that the recovery may have stalled. Despite Friday's post-Bernanke rally, the Dow nonetheless closed down for the week at 10,150 while the S&P500 finished at 1064. Indian markets finally broke their winning streak and moved lower by more than 2% as the Sensex ended Friday's session at 17,998 with the Nifty closing at 5408. This latest weakness in the markets was perhaps a reflection of the Mercury retrograde cycle that began on August 20. Last week, I suggested that Mercury retrograde periods can be an added burden on sentiment which is often incompatible with higher prices. In addition, there were several difficult planetary combinations that would tend increase anxiety and take stocks lower. Interestingly, I had specified Thursday as a possible down day since there were two pairings that did not look favourable that day -- Mercury-Mars and Sun-Saturn. Thursday was lower in Europe and the US but India actually put in a positive performance. This is a reminder that there is always a margin of error in astrology, especially when dealing with global markets separated by many time zones. Sure enough, the Indian market then experienced a stronger selloff one day later on Friday while the US market rebounded after Bernanke's 10 a.m. promise to prevent deflation by any means necessary.

Like most complex knowledge systems, one of astrology's greatest challenges lies in trying to combine a high number of variables into one coherent picture. Nine planets, twelve signs, a dozen different aspects, 27 nakshatras, and so on -- that makes for millions of potential outcomes. And to make matters that much more intricate, there is comparatively little empirical evidence for the likely effects of each of these factors, much less what may happen when they occur simultaneously. This means a lot of astrological forecasting has to rely on deductive thinking from untested assumptions and theories about the potential effects of various planets and their interactions. Given this epistemological minefield, probabilistic thinking is a best case scenario and even that limited approach may come up short more often than we would care to admit.

The current situation is perhaps typical of many planetary setups that can best be described as "mixed". On one hand, the Mercury retrograde period extends to September 12 and may correlate with negative sentiment and repeating what has already been encountered i.e. retracing previous trends whether up or down, but often down. But Jupiter is fast approaching its conjunction with Uranus (exact September 18) and these two planets ought to increase risk taking and optimism for investment. Perhaps the result may be short term moves in both directions that ends in a sideways market.

This week we will get the effects of the second week of Mercury retrograde while Venus enters sidereal Libra on Wednesday. Venus tends to do better in the sign of Libra so we may see a greater focus on spending and the enjoyment of money. From a purely deductive perspective, this should be seen a positive factor for stocks, although it is only one out of many factors. By Friday, the Sun will conjoin Mercury while in close aspect with shadowy Rahu. This is an unusual combination of planets that suggests greater uncertainty and increases the potential for major moves. Rahu (North Lunar Node) is considered a malefic planet by nature, although it can sometimes have the opposite effect when circumstances support it. Given the close proximity of Mars to Venus, and the various Saturn aspects that are still in play, we may not have enough favourable energies to entice a positive result from Rahu. We shall see.

"It is vain to do with more what can be done with fewer." -- William of Occam

US Stocks fall on Venus-Mars; Mercury retrograde begins

2010-08-21T19:35:00.001-04:00

US Stocks trended lower last week as more bad jobs numbers suggested the recovery was more talk than reality. The Dow fell about 1% for the week and closed at 10,213 while the S&P500 finished at 1071. As has been the case recently, Indian stocks were able to sidestep most of the trouble as the Sensex closed at two-year highs at 18,401 with the Nifty ended the week at 5530. Considering how many bad planets were in play last week, this outcome actually wasn't too negative. I thought Monday's Mars-Rahu aspect might correspond with more selling but Asia was only down modestly and New York recovered after the open. The midweek gains appeared to fit neatly with the Venus-Rahu aspect as Rahu's devil-may-care attitude loosened the purse strings for Venus. As expected, sentiment turned sour by the end of the week as impressionable Venus kept the bad company of Mars. US and European markets fell sharply after Wednesday while India confined its bearishness to Friday only, the day of the exact Venus-Mars conjunction.

Mercury turned retrograde on Friday afternoon and this is yet a potentially disruptive element to the already dense planetary picture. Mercury's retrograde cycle will last from August 20 to September 12. As the planet of commerce and trading, Mercury naturally figures prominently in financial astrology. When it is afflicted by Saturn, stocks generally fall. When it is in aspect with benefics like Jupiter and Venus, stocks usually rise. When it changes its direction and begins to move backward from our perspective on Earth, sentiment often undergoes a shift. This is perhaps less reliable as an indicator of market direction and is better understood as a background influence. Astrological lore says that new business is best avoided during Mercury's retrograde periods, since its outcome will often be unexpected and unwanted. That is why astrologers usually recommend going back over old business to tie up any loose ends, or review already existing work. It's generally sensible advice in any event, but in market terms it can sometimes mean that the market will go over or "retrace" over previous territory. For example, if the market has been rising, then it may go lower in order to revisit its previous levels. In my experience, Mercury retrograde cycles are much less reliable than aspects for predicting outcomes. That said, we ignore Mercury's condition at our peril since it is such a crucial planet for business and commerce. And I would note that the previous correction during April and May corresponded fairly well to the Mercury retrograde cycle of April 18 - May 12. Again, nothing is ever perfect in astrology (or in life for that matter), but there does seem to be something there worth paying attention to.

So the retrograde Mercury cycle adds another burden to the markets this week. The Sun forms a minor aspect with Mars on Monday that could generate an unproductive level of energy that could be too much for the market. Some positive aspects are available going into midweek, however, so short-lived gains may still occur. The Sun aspects Jupiter on Tuesday, as does Mercury and Venus. These could well carry over into Wednesday. Later in the week, the picture appears to darken as Mercury teams up with irascible Mars (esp Thurs) while the Sun tries to make nice with pessimistic Saturn.

"A jug fills drop by drop." -- Buddha

Dow slides with weak Venus; Jupiter-Saturn this week

2010-08-14T14:06:00.002-04:00

Stocks slumped on most world markets last week amidst growing fears of a double dip recession in the US. The Dow broke below key technical support levels to close more than 3% lower at 10,303 and the S&P ended the week at 1079. Indian stocks resisted the down trend as the Sensex closed slightly higher for the week at 18,167 with the Nifty at 5452. This negative turn certainly comes as no surprise as I had noted the weakened condition of Venus in Virgo caught between a rock and hard place, aka the malefics Mars and Saturn. Fed Chair Ben Bernanke also dutifully played out his cosmic role as he announced further stimulus measures to kick start the sagging economy. The early week alignment between Venus, Jupiter and Pluto signaled some kind of need for increased spending, regardless of the consequences. Indeed, Monday's gains more or less corresponded with the Venus-Jupiter aspect while things began to unravel shortly after the aspect had passed.

So it seems that there are growing signs that the current skein of planetary aspects may finally be exerting some effects here. There is a sense that the economy isn't right and is not on the path to recovery anytime soon. More observers are noting the inability or unwillingness for government to address economic problems head-on. Europe's problems also appear poised to return to the front burner here as bond yields are once again rising for peripheral countries such as Greece and Spain. This is an indication that sovereign debt loads may becoming too large for most market participants to accept.

This week continues the parade of potentially notable aspects. Saturn exactly opposes Jupiter on Monday. This confrontational meeting between the celestial bearers of optimism and pessimism often corresponds to significant market moves. The last time they were in aspect in May, the market was in a serious down trend. Of course, the usual caveats apply. Like economics, astrology lacks infallible axiomatic knowledge and instead takes note of probabilities and tendencies, both empirical and symbolic. So what we do know is that Jupiter-Saturn aspects is an energy that does not necessarily favor expansion or risk taking. The early week period has the added feature of a tight square aspect between Mars and Rahu (North Lunar Node) that often represents a sudden or powerful release of force or energy. When it occurs alongside other tense patterns, it is often associated with negative situations and suggests higher volatility and sudden moves. Later in the week, Venus will finally catch up to Mars as they will conjoin near Friday's close of trading in New York A strong Venus often coincides with buying and gains, but when it comes in contact with malefics like Mars, its harmonious nature is compromised. Since Venus is already in a weakened state due to its transit of Virgo, this seems to be another negative astrological input.

"Prediction is very difficult, especially if it's about the future." -- Niels Bohr

Lingering Jupiter-Pluto holds up stocks; Venus keeping bad company this week

2010-08-07T14:56:00.003-04:00

Neither Mars nor Saturn could stop the melt up last week as stocks extended their rally on more better-than-bad economic data. In New York, stocks climbed another 2% with the Dow closing at 10,653 and the S&P at 1121. In Mumbai, the Sensex again traded near its highs for the year, closing at 18,143 as the Nifty finished the week at 5439. Despite the plethora of apparently troublesome aspects in the sky, financial markets are holding there own here. In the past two weeks, we've seen the often negative influences of Saturn-Uranus and Mars-Saturn come and go with barely any reaction from the markets. Does this negate the notion of any major financial problems from this rare alignment of outer planets? Or more to the point, should we simply dispense with all this astrology nonsense altogether and get with the program?

While I'm hopelessly biased, I would say "no" to both suggestions. Last week, I suggested that the bullish effects of Jupiter may be tested this week given the Mars-Saturn conjunction and the entry of Venus into sidereal Virgo. While Jupiter is separating from its positive aspect with Pluto and hence losing energy, this is a slow process since the separation is taking place at a rate of just one arc minute per day. Clearly, there is still a fair bit of Jupiter's optimism lingering here. And there is another complicating factor. This huge traffic jam of planets has blurred the immediate effects of individual planets and aspects. The Mars-Saturn-Uranus alignment on July 31 might typically generate more instability and fear but in the present circumstance, Jupiter is just a few degrees away from Uranus. Since it is a calming and edifying influence, Jupiter's close proximity may have delayed or transformed some of the the nastiness contained in the various Saturn aspects. In this case, I wonder if we will have to wait for Jupiter's opposition aspect with Saturn on August 16 to see just what kind of karma this unusual and monumental alignment is packing.

While the entry of Venus in sidereal Virgo did not spell any trouble early in the week, the midweek Mars-Jupiter aspect did correspond fairly closely with continued enthusiasm for stocks. Dips were bought, and prices generally stayed firm through Wednesday. The later week action also seemed to find a celestial correlate as the more bearish Mercury-Rahu aspect may have produced some modest declines in both New York and Mumbai.

This week we will see Venus aspect Jupiter-Pluto on Monday and into Tuesday. Any transits to this powerful Jupiter-Pluto aspect have closely coincided with gains so that seems a likely outcome here. It's especially interesting that this aspect will roughly concide with the FOMC meeting on Tuesday where Fed Chair Ben Bernanke will update his assessment of the US economy. There is some speculation that he might announce new stimulus measures to jump start a flagging recovery. This combination of planets would tend to support that notion since together they symbolize spending and expansionary thinking. On a more cautionary note, however, Venus will be further weakened this week. Not only is it debilitated in its transit of Virgo, but now it will be "hemmed in" between malefics Mars and Saturn. This makes it that much more unable to deliver its positive blessings. Later in the week, Venus will move very close to Mars, just as Mars forms an aspect with Rahu. This is an unfortunate combination of planets that will upset confidence and reduce comfort levels with the status quo. Neither contact is exact until next week, but this may not be the best time to split hairs.

"Doubt grows with knowledge." -- Johann Wolfgang von Goethe

Stocks slip after Saturn-Uranus aspect; Venus enters Virgo this week

2010-07-31T16:45:00.002-04:00

Stocks took a breather last week from their July rally as the flow of upbeat economic news was countered by more signs the economy is slowing as US GDP numbers missed estimates. Despite some gains early in the week, the Dow relented and ended mostly flat closing at 10,465 with the S&P leveling off at 1101. Indian stocks eased off their recent highs as the Sensex fell more than 1% to close at 17,868 and the Nifty finished at 5367. The inability of stocks to push higher here was not surprising given the apparent passing of the baton from Jupiter to Saturn. Last week, I noted how the Saturn-Uranus opposition on Monday April 26 may mark a shift in the overall planetary energy. After all, the previous market top had occurred on April 26 and coincided with another Saturn-Uranus opposition. Did this phenomenon repeat its uncanny delimiting of the end of a rally and initiating a new, more negative phase? As always, time will tell, but last week's action has so far conformed to this expectation since the interim highs were put in within just one trading day of that aspect -- Friday in Mumbai and Tuesday in New York. Prices largely retreated afterwards as New York failed to push above key technical resistance levels.

So now we've had Saturn stare down Uranus. Now what? Has Jupiter really run out of gas and is no longer in a position to produce optimism that can push prices higher? Jupiter's proximity to Uranus is one important factor that could help support prices in the wake of the Saturn-Uranus opposition. And yet since Pluto is also now increasingly in the mix, there may simply be too much stressful energy available that would be conducive to buying. The problem for the markets is that Jupiter's aspect with Pluto is now separating and therefore it is losing energy. Since this was one of the engines of the July rally, this could be a worrisome development. And now Saturn appears to dominate the list of major aspects for the next few weeks. Mars conjoins Saturn today (July 31) and then Venus conjoins Saturn on August 8, Saturn opposes Jupiter on August 16 and Saturn squares Pluto on August 21. That's a lot of Saturn and given the high number of hard aspects involved in the near term, it seems unlikely the markets will be able to proceed in an orderly, predictable and especially positive way. Large swings may be more likely as a result of these aspects with the caution increasingly becoming the lowest common denominator.

Venus enters sidereal Virgo this week so that is another brick in the wall of worry that the market has to contend with. Venus is debilitated in Virgo so its usual free spending, happy-go-lucky self cannot fully express itself when it transits this sign. The presence of malefics Mars and Saturn in Virgo only compounds this problem and could well make spending and risk taking more problematic. As an added twist, Venus is coming up to its retrograde cycle that begins in October, so it is slowing down now. This means it will spend more time in its weakened state in Virgo and will transit in a close conjunction with Mars for several weeks. While this ongoing Venus-Mars combination may be suitable for courtship and athletic endeavours, it seems less favourable for investing. Mars aligns with the Jupiter-Pluto aspect midweek so that may spark some impulse buying although it is likely to be misconceived in some way and ultimately wasteful. Later in the week, Mercury is aspected by shadowy Rahu so that is likely to disrupt communication and normal patterns of commerce and trading.

"On the road from the City of Skepticism, I had to pass through the Valley of Ambiguity." -- Adam Smith

Stocks rise as Jupiter turns retrograde; Saturn-Uranus this week

2010-07-24T14:58:00.003-04:00

Stocks climbed another rung up the ladder last week as positive earnings news persuaded more buyers to allay their fears and enter the fray. By the time all was said and done, the Dow gained more than 3% to close at 10,424 while the S&P finished at 1102. Sentiment was similarly bullish in Mumbai as the Sensex hit a new high for the year before closing at 18,130. The Nifty ended the week at 5449. This positive outcome was unsurprising given the twin influences of Jupiter and Venus last week. Jupiter's tight aspect with Pluto is still dominating the sky, all the more so perhaps because it stationed and began its retrograde cycle on Friday. And as expected, the midweek Venus-Rahu aspect roughly corresponded with higher prices as Venus (money, consumption) was teamed up with speculative Rahu (desires).

Now we're in the thick of the planetary jungle. There are an unusually high number of close planetary aspects this week which may correspond to new directions and solutions, as well as contributing to a more intense atmosphere. Jupiter's optimism appears to be receding into the underbrush here since it has embarked on its retrograde journey on July 23. Saturn will oppose Uranus on Monday, so this may signal a new dynamic or pattern into the marketplace. Their previous opposition aspect occurred on April 26 and coincided exactly with the top of the US market for 2010. To make things even more interesting, there is an alignment between Mercury (commerce), Mars (action), and Neptune (imagination, deception). This trio does not seem especially conducive for more risk taking. In fact, it may coincide with some kind of disappointment, perhaps from a plan that goes wrong. Mars is set to conjoin Saturn on Saturday July 31 so that is another potentially powerful combination of malefic energies that bears careful scrutiny. We may be on the cusp of something fairly important here, and not just for the markets.

Finally, I should note that the current planetary configuration conforms to a bearish pattern isolated in the research of Thomas Rieder in his book, Astrological Warnings and the Stock Market. Using the historical price record of US stocks, Rieder showed that if Mars was in conjunction to a slow moving outer planet (Jupiter on out) while in hard aspect (90 and 180 degrees) to one other outer planet, stocks would then fall significantly about 70% of the time. Here we have Mars conjunct Saturn while in opposition to Uranus and Jupiter and square to Pluto. Rieder's model only required one aspected planet, but we currently have three. It's hard to say if that increases the likelihood or the scope of the expected decline.

"Always first draw fresh breath after outbursts of vanity and complacency." -- Franz Kafka

Venus charms markets; Mars enters Virgo this week

2010-07-17T16:00:00.001-04:00

After a promising start to the week, disappointing Q2 earnings from heavyweights like Google and Bank of America pushed stocks lower by Friday's close. The Dow closed down 1% for the week at 10,097 while the S&P finished at 1064. The story was somewhat better in Mumbai as Indian stocks continued to defy gravity hitting new highs for the year midweek. The Sensex ended Friday up almost 1% at 17,955 with the Nifty closing at 5393. As expected, Venus came through for investors in the earlier part of the week as its minor aspect with the Jupiter-Pluto aspect focused some positive energy that boosted sentiment. We saw gains accrue on most global markets into Wednesday when luxurious Venus was forming a close angle with optimistic Jupiter -- a very sweet combination indeed. Once Venus took her leave, doubts about the recovery returned as bad earnings reports and consumer numbers put a damper on the bulls' glee club. Last week I noted that the entry of the Sun into sidereal Cancer on Friday might "introduce a new dynamic into the mix". Did it ever! After previously topping out around 10,400 midweek, the Dow plunged almost 3% on Friday.

We're currently residing in a sort of planetary antechamber now awaiting the main event to unfold at the end of July. Jupiter begins its retrograde cycle on July 23, then it forms its exact square aspect with Pluto on July 25, while Saturn opposes Uranus for the last time on July 26 and Mars conjoins Saturn on July 31. Planetary calendars don't get much busier than that.

This week Mars enters sidereal Virgo on Tuesday ahead of its conjunction with Saturn. As we saw with the Sun's ingress into Cancer last week, sign changes can bring about significant market developments. Mars is a malefic planet and its surplus of energy can sometimes correspond with urgent or sudden situations that require quick reactions. The emphasis here is on action, so we could see increased volatility early in the week. Virgo is a sign that is associated with analysis and logical systems so the simultaneous occupation of this sign by Mars and Saturn suggests that rational adherence to formal knowledge systems may suffer increased stress in the days and weeks ahead. (N.B. Mars will remain in Virgo until September 6 while slow moving Saturn loiters for a full two years.) We can also spot a close aspect between Venus and unpredictable Rahu going into midweek that might increase speculative activity. Rahu is often a negative influence on stocks due to increased uncertainty but its combination with Venus, the eternal shopper, could convince some people to buy something they don't really want or need.

"Life is a school of probability." -- Walter Bagehot

Stocks rise after Uranus station; Jupiter-Pluto this week

2010-07-10T14:08:00.003-04:00

Stocks rebounded worldwide last week as we got a let up in the stream of bad economic data and investors went bargain hunting. In New York, the Dow gained more than 5% before closing at 10,197 and the S&P finished the week at 1077. In Mumbai, gains were somewhat more muted as the Sensex climbed 2% to close at 17,833 and the Nifty ended Friday at 5352. Last week, I had written about the potential for "reversals of fortune" and "changes in plan" around the Uranus retrograde station on July 5 and the Solar Eclipse on July 11. As it happened, the recent losing streak may have come to a temporary halt around the 5th and the Uranus station as most markets bounced higher after the long holiday weekend in the US.

Now that Uranus is moving backward it is approaching its final opposition aspect with Saturn due for July 26. While it is possible we could see some negative fallout from this aspect ahead of that date, recent evidence would tend to suggest that stresses and disruptions arising from this clash are more likely to appear after the aspect is exact, i.e after July 26. The rise in prices in the wake of this Uranus station is perhaps testimony to its inherent symbolism towards freedom, independence and risk taking. A stronger Uranus will therefore often translate into higher stock prices since risk will feel more appropriate to the investment community. This prevailing sentiment may shift once Uranus again encounters the full force of Saturn's conservative and pessimistic nature in late July.

In the meantime, we can spot another intriguing pairing of slower moving planets in the square aspect between Jupiter and Pluto. Due to Jupiter's slower than normal motion in the month ahead of its retrograde station on July 23, this aspect seems to offer some help to investors since Jupiter's optimism is connected with Pluto's drive for power and large organizations. Perhaps we see significant attempts to solve major financial challenges facing the economy in the coming weeks. And yet given the backdrop of the Saturn-Uranus aspect, one wonders how successful such efforts might be.

Of particular note this week is an early week alignment between Venus, the planet of happiness, and the Jupiter-Pluto square. While Pluto is often malefic, this meeting involving two benefics tilts the scales towards the positive. The Sun enters sidereal Cancer late in the week so that may introduce a new dynamic into the mix.

Chaos is inherent in all compounded things. Strive on for diligence. -- Buddha

Ketu punishes markets; Uranus Rx and solar eclipse dead ahead

2010-07-03T14:44:00.002-04:00

Gloom pervaded most world markets last week as the economic data coming out of the US continued to disappoint. There were more long faces on Wall Street as US stocks fell another 5% with the Dow closing under 10,000 at 9686 while the S&P ended the week at 1022. Indian markets were more steadfast against this bearish onslaught and ended only modestly lower as the Sensex closed at 17,460 and the Nifty at 5237. This negative outcome was unsurprising given the dominance of ascetic Ketu (South Lunar Node) in the sky last week. As I noted last week, spiritual ascetics like Ketu do not take much of an interest in money, and when they do, they can be dismissive of its importance. While Monday's Sun-Mercury conjunction did offer a short-lived boost to sentiment, especially in Asia where stocks managed a decent gain, the rest of the week was more decidedly bearish as US markets fell for five straight days. Both the Sun and Mercury had conjunctions with crazy, mad Ketu last week so that was the immediate cause for the rush to the exits.

More generally, we can see how the approach of the next Saturn-Uranus opposition is starting to take its toll on the market mood as US markets seem to have entered a new and more dangerous phase of this current correction that began in late April. Indian markets have largely been spared the bloodletting so far, although that can't continue indefinitely. Certainly, the economic fundamentals in India are stronger than the US economy and therein lies part of the explanation for their different paths. Astrologically, the natal horoscopes of the Indian stock exchanges are proving to be stronger in the face of these bearish transits. Natal charts are unique and so each entity -- whether a person, stock exchange, or corporation -- will be influenced in different ways by the same transits.

This week looks no less eventful as the Saturn-Uranus opposition is again highlighted by the retrograde station of Uranus on Monday, the 5th. As the planet of freedom and independence, there may be an even greater uneasiness in global sentiment as the restlessness of Uranus confronts the harsh reality of Saturn's unyielding structures. Volatility is likely to rise as investors may seek to reorganize and rebalance their portfolios in the face of new realities. There is a hectic or even occasionally frantic quality at work here that could manifest as sudden reversals of fortune, and unexpected changes in plan. To make things even more interesting, there is a total solar eclipse on Sunday July 11. Like planetary stations, eclipses also function as times of greater intensity and that are marked by interruptions of the status quo. Reversals are also more common near eclipses so if we have seen a down trend prevail leading into an eclipse, then the tables may turn around the eclipse date. Interesting times to be sure.

Markets sputter as Mercury enters Gemini

2010-06-26T14:39:00.003-04:00

More dark days in the market last week as the disappointing economic data coming out of the US is conjuring up images of a Recession 2.0. In New York, the Dow slid almost 3% to close at 10,143 while the S&P finished at a meager 1076. As has been the case recently, Indian stocks fared somewhat better as the Sensex was little changed on the week at 17,574 and the Nifty at 5269. I had expected some upside in the early going on the Sun-Jupiter-Uranus pattern and we did get it although it was excruciatingly fleeting: Monday closed higher in Mumbai but we only saw significant intraday gains in New York which faded away by the close. I wondered if Mercury's entry into Gemini on Tuesday might would tilt the game in favour of the bears and that seems to have largely come to pass. US markets fell on all days this week with the exception of Friday's flat performance, while Mumbai was significantly lower Thursday and Friday. It's worth noting that the bearish Mercury-Saturn aspect that I mentioned last week did deliver its gloom on schedule as Thursday saw a down day in most global markets.

Mercury and the Sun continue their transits through the minefield of sidereal Gemini this week. While the worst of Saturn's aspect is now behind them, they still have to contend with Ketu, the planetary equivalent of a ornery curmudgeon who hates money. Ketu, (a.k.a. the South Lunar Node) is known as a planet of renunciation and spirituality in Vedic lore. Since it is more inclined towards otherworldly pursuits, it often takes a dim view of such mundane matters as speculation and profit. In most cases, this is a bearish influence but we should note that Ketu is also known for its unpredictable quality, like a holy man who buys lotto tickets just to challenge stereotypes. Before the midweek encounter with Ketu, we will see a Sun-Mercury conjunction in Gemini. Since Mercury rules Gemini, this ought to generate some enthusiasm for trading and presumably give a Burroughsian shot in the arm to prices.

At the same time, however, Mars will be in aspect with Rahu which may create an unstable environment in some way. By itself, the Mars-Rahu suggests an excess of energy that one finds in accidents and disputes. In the context of the market, it could translate simply in terms of high trading volumes and a rapid cycling of porfolios. With Sun-Mercury providing some positive cover, one would be forgiven to think that optimism will prevail. In the current cosmic climate of Saturn-Uranus oppositions and such, that is not a certainty. And all of this comes on the heels of today's (June 26) partial lunar eclipse at 10 degrees of Sagittarius. Now that we're into eclipse season -- the solar eclipse arrives on July 11 -- we should look for an increase in intensity of both actions and their consequences.

"Maturity of mind is the capacity to endure uncertainty." --John Finley
.

Jupiter-Uranus to the rescue again?

2010-06-19T14:57:00.002-04:00

Stocks continued to rebound last week as Europe showed hints of stabilizing with bond yields stepping back from the brink. In New York, the Dow closed almost 3% higher at 10,450 while the S&P finished at 1117. Mumbai also continued its winning ways as the Sensex ended the week at 17,570 with the Nifty at 5262. Gold also made news as it climbed to a new all-time high of $1260. Overall, the bulls took the reigns and took the key indexes over their 200 day moving averages, a key technical indicator. While I expected some upside last week, I thought it might be confined more to the early week and the Venus-Jupiter-Uranus alignment. Certainly, that did lift markets here but I overestimated the negative effects of the Sun's entry into Gemini later in the week. Markets were mostly flat after Tuesday, so while gains were harder to come by, the selling has yet to materialize.

It's important to note that the Sun will transit sidereal Gemini for the next four weeks until July 16. I believe that this will mean that rallies will tend to be shorter and selloffs steeper during the duration of this transit. Again, my reasoning here is based on very basic astrology: Saturn at 4 degrees of Virgo casts its full strength square aspect to Gemini and while Ketu (South Lunar Node) currently sits near the middle of the sign at 18 degrees of Gemini. This is a double dose of potential bearishness that is likely to act as a drag on optimism. Besides the powerful aspects involving slow moving planets (Saturn to Neptune; Saturn to Uranus, etc), the upcoming Gemini transit of the Sun and then Mercury demands close attention.

This week will see the Sun form square aspects to the Jupiter-Uranus conjunction early in the week. The Sun will first aspect Uranus on Monday, and then follow suit with Jupiter on Tuesday and into Wednesday. While square aspects are not the most positive angles, this trio of planets work quite well together so we should expect buyers to outnumber sellers and hence prices should rise. Mercury enters Gemini on Tuesday so that may complicate matters somewhat, although any negative fallout from this ingress may take a few days to appear. Mercury comes under the aspect of Saturn on Thursday so that increases the likelihood of a decline near that day.

All this increasingly feels like the calm before the storm.

"Life was always a matter of waiting for the right moment to act." -- Paulo Coelho

Jupiter-Uranus saves markets

2010-06-12T22:54:00.003-04:00

Markets teetered near their recent lows before bouncing higher last week as Euro concerns moved to the back burner on more hopeful economic data. In New York, the Dow climbed back over the 10k level and ended almost 3% higher at 10,211 with the S&P coming in at 1091. The situation was a little less rosy in Mumbai, however, as markets edged lower with the Sensex finishing at 17,064 and the Nifty at 5119. US markets survived a near-death experience on Tuesday as the key indexes flirted with recent May low, a violation of which would have likely sparked near panic selling. Astrologically, this coincided with the high-energy alignment of Mars with the Jupiter-Uranus conjunction. The move by Venus into Cancer introduced a measure of optimism midweek which got a further boost Thursday and Friday when Mercury joined the party with Jupiter-Uranus. While we are currently trapped in the vice-like grip of some very heavy and portentous planets, I did expect some relief rally here so it was nice to see that come to fruition.

Meanwhile, the nightmarish never-ending oil spill in the Gulf is reaching a point that it may be affecting overall US market sentiment. Revised leak rates and more dire predictions of environmental damage are contributing to the overall gloomy mood on Wall Street, even if there may be relatively little direct impact on the economy as a whole. As we know, the markets are driven by sentiment in all its glorious "animal spirits" irrationality, and this is where understanding planetary influences can become so helpful for gaining extra insight. So while there may an increase of entrepreneurial enthusiasm from the Jupiter-Uranus conjunction here, it is important to note that Jupiter is now separating from Uranus, so this effect may be prone to weakening in the days to come. Furthermore, Saturn will begin to replace Jupiter as the primary interface for Uranus. It was Saturn and Uranus that started this latest negative phase in the market back on April 26 when it last formed its opposition aspect. Yes, folks, its coming back for yet another return engagement. In other words, we cannot expect too much smooth sailing anytime soon.

This week begins with a text book instance of favorable planets. Venus, the planet of love, luxury and enjoyment, will come under the aspect of Jupiter-Uranus on Monday and Tuesday. Since Jupiter is the very embodiment of bullish optimism, one would tend to think a positive result would be likely. Of course, all the background influences are looking unsettled at best, so we should not become too complacent even with bullish patterns. On Tuesday, the Sun enters sidereal Gemini. This may result in more sober thinking (hint: this is a euphemism for gloom) since the Sun will come under the aspect of plodding, deliberative Saturn. Later in the week Mercury, the planet of commerce and communication, forms an aspect with Ketu, the planet of sacrifice and renunciation. Not a good combination for financial markets I should think.

"Caution is the eldest child of wisdom" - Victor Hugo

Mars does damage; hopes now pinned on Jupiter-Uranus

2010-06-05T16:06:00.001-04:00

Another week of fear and loathing in the financial world amidst a sea of less than cheery news. Hungary's potential for default pushed the Euro below 1.20 for the first time since 2006, a US employment report that showed precious little in the way of new jobs, and the never-ending oil Gulf spill threatens to put the entire US eastern seaboard in a choke hold. After gamely pushing back to its 200-day moving average on Thursday, Friday's jobs report sent the Dow below 10,000 closing at 9931 down more than 2% on the week. In Mumbai, the picture was somewhat rosier since Indian markets were largely spared Friday's carnage. The Sensex closed at 17,177 while the Nifty finished at a respectable 5135. Mars over-fulfilled its role as the planetary villain last week as the Mars-Saturn aspect coincided with Tuesday's decline worldwide. The Mars-Neptune opposition manifested a little later than expected (but still right on time), as Friday's selloff occurred when Mars (4 Leo 41) was almost exactly opposite Neptune (4 Aquarius 47).

Of course, these Mars aspects have become extremely potent here because the planets being aspected (Saturn, Neptune) are involved with larger and more clearly negative celestial alignments. It is critically important to recognize that these aspects are going to hang around for while and will create more tension and anxiety in financial markets for much of 2010. For example, Saturn and Uranus are in close opposition aspect until late July. Saturn and Neptune will form a quincunx aspect until the beginning of July. And by the time August rolls around, Pluto will join in and square Saturn. All told, this sequence of aspects this year is among the very the worst imaginable.

This week begins with Mars aspecting the conjunction of Jupiter and Uranus. This looks like a very energetic and intense combination that suggests major moves are possible. Jupiter and Uranus are often seen as optimistic and risk-taking planets but against the larger backdrop of all that Saturn energy, it will interesting to see how these divergent impulses play out. Mars is not an energy that is easily integrated into an already tense environment although Jupiter can be a very forgiving planet. Later in the week, Venus enters Cancer and Mercury will move in sync with Jupiter and Uranus which suggests that despite the gathering gloom, the cup may actually be half full -- if only for a short while.

Mars runs Saturn-Neptune gauntlet early; Jupiter-Uranus await

2010-05-29T14:37:00.001-04:00

After a near death experience early in the week, stocks regained their footing later on as some improved economic data and soothing words about Europe from the Chinese government induced buyers to part with their money. For all the volatility, stocks in New York closed mostly unchanged as the Dow closed at 10,136 and the S&P at 1089. Indian markets fared somewhat better as shares added more than 2% as the Sensex ended Friday's session at 16,863 while the Nifty finished at 5066.

The approach of the twin stations of gloomy Saturn (May 30) and sickly Neptune (May 31) did not disappoint as our prediction for more market mayhem and intensity was more or less realized. Tuesday's plunge revisited levels last seen in February and thereby became a basis for a fledgling low volume rally into the end of the week. While current prices are still perilously close to the 200 day moving average, there may be a ray of hope emerging on the sense that the markets may have dodged a bullet -- at least for now.

Mars will be a key player in the planetary soup this week as it forms a minor aspect with Saturn and Neptune early in the week. Mars is often a bitter taste, especially when combined with malefics such as Saturn and Neptune. This appears to be a destabilizing influence that will reflect some kind of dysfunctional quality in the economy. This does not seem like a positive combination at all. Towards the end of the week, Mars will leave the negativity behind and move towards Uranus and Jupiter. This is an entirely different sort of cosmic picture where risk, action and restlessness will be the watchwords. In fact, the trio of Mars, Jupiter and Uranus would seem to be the perfect planetary profile of "the speculator".

Not looking good

2010-05-24T23:55:00.003-04:00

A pretty grim day as Monday's go. S&P got as far as 1090 again but just faded away at the close. No melt up, no short squeeze, no break above the 200 DMA. Bulls have got to be sweating now.

We just took another step closer to another major down move.

We may see another rally attempt to 1100 on the S&P before it falls apart.

Euro haunts markets; Saturn-Neptune still looms

2010-05-22T21:33:00.003-04:00

Transits for May 24, 2010 9.30 a.m. New York

It felt like 2008 all over again last week as markets teetered over mounting fears surrounding the Euro and the Eurozone economies. As volatility spiked in New York, stocks fell more than 4% for the week with the Dow closing at 10,193 and the S&P at 1087. The sell-off also took hold in Mumbai as the Sensex closed down 3% to 16,445 and the Nifty at 4931. The market looks to have broken down here as psychology has undergone a fundamental shift. This is very much in keeping with the extremely tense and powerful alignment of planets that marks the sky at the present time. While I thought we might have seen more gains later in the week -- only Friday's session was higher in the US -- the overriding pessimism out there was not surprising as we approached the extremely nasty Saturn direct station on May 30.

Interestingly, the Euro did manage to rebound, although it was mostly fueled on the belief that the European Central Bank had begun to intervene in the market and was buying up unwanted Euros. As the turbulence has grown, even gold has fallen out of favour as investors are wary of another deflationary spiral like we saw in 2008. Gold's weakness is very much a reflection of the recent weakening of the planet Venus. Its parabolic run-up occurred while Venus was transiting sidereal Taurus, a sign that Venus is said to rule and do well in. It left Taurus and entered Gemini on May 14 -- the very same day of its all time high at $1250 on the futures contract. Gemini is a less favourable sign for Venus and it has been in retreat ever since that date. The prospect of Mars entering Leo on Wednesday this week may deliver another blow to gold. Leo is a sign with a strong affinity for gold and when it is connected with a malefic planet like Mars, it may make it even more vulnerable to declines.

Market analysts point to the breakdown of the 200-day moving average last week as a technical sign that we may have entered new territory here. Whenever the key stock indexes are above this moving average, the market is said to enjoy positive momentum as most people believe it to be a bullish condition. But when prices fall below this line, gloom descends and investors become more fearful. What is interesting is that this new and dangerous situation is very much reflected in the stars. The twin stations of Saturn and Neptune on the 30th and 31st are quite unusual and, when combined with their tense aspects to Uranus and Jupiter, quite portentous of difficult events and outcomes. All told, the next two weeks or so could be quite intense.

US falls 4%; breaks support

2010-05-20T17:53:00.003-04:00

Markets are looking pretty grim right now as major indexes have closed below their 200 day moving averages.

While I had expected some kind of major fallout in May from the current planetary alignment, I didn't expect we would fall quite this far this fast.

The twin stations of Saturn on May 30 and Neptune on May 31 are looming quite large right now. As Mars enters into the Big Alignment around the same time in early June, we could be that far away from a bottom. But just where that will be is unclear. Those February lows are fast approaching.

By prepared for more extreme bearishness over the next six months.

Stocks unable to escape shadow of Eurozone

2010-05-15T13:26:00.002-04:00

Despite the EU's munificent $1 Trillion bailout package, markets ended the week with another bad case of the shakes. For all the reassuring talk and seemingly endless supplies of paper money, a growing number of investors are not convinced that the high debts levels in Europe are compatible with economic growth. Nonetheless, stocks did finish higher on the week as the Dow climbed 2% to close at 10,620 while the S&P finished at 1135. A similar story unfolded in Mumbai as equities ended higher on the week but left a bad taste in the mouth. As of Friday, the Sensex stood at 16,996 with the Nifty at 5093. While I thought we would see some supporting sentiment form after the flash crash, I thought much of it would follow Wednesday's Mercury direct station closer to the exact aspect between the Sun and Venus. As a probabilistic enterprise grappling with the vicissitudes of the human condition, the only thing we can say about astrology is that it is about as scientific as economics. As I noted last week, the growing influence of Jupiter over the second half of May could well buttress stocks somewhat in the face of an otherwise harsh planetary environment.

To be sure, this correction has found a close correlation with the planetary geometry in the current sky. Most global equity markets formed a top on April 26, the same day as Saturn (4 Virgo) formed an exact opposition angle with Uranus (4 Pisces). These incompatible energies have manifested in struggles over austerity and regulation (Saturn) at odds with the desire for risk and freedom (Uranus). As troublesome Neptune (4 Aquarius) joined this extremely rare alignment in May, the market has undergone a significant correction which threatens to bring the recovery rally of the past 13 months to a screeching halt. These are very powerful planets that can signal not only changes in investor mood, but can serve to disrupt and ultimately reorganize some of our most fundamental human institutions. The current Saturn-Uranus-Neptune configuration is just the most recent phase in the much more complex planetary pattern that will unfold from 2008 to 2013. Just to give some indication of the kind of significant economic and societal changes that might be in store, we have not seen an alignment of this many outer planets since the early 1930s.

This week features the transits of the Sun and Venus into the thicket of the Big Alignment on Monday and Tuesday. This is likely to coincide with at least another down day, although we should note that the tell-tale Saturn aspect only occurs on Tuesday as the more comforting Jupiter aspects to Venus and the Sun hit exactly on Monday. Given the close degree proximity of Jupiter (2 Pisces) to Saturn (4 Virgo), these transit effects may become blurred as the market gyrates in both directions in the early part of the week. After Venus and the Sun escape from Saturn, they will have the opportunity to form aspects with Uranus and Neptune starting on Wednesday. These appear to be much more risk-positive influences that we often associate with rising stocks. Jupiter's tightening aspect to Saturn could bring further relief here although that picture may not last as Saturn ends its retrograde cycle and turns direct on May 30.

Gold goes to new high

2010-05-11T18:56:00.002-04:00

Gold hit a record high today of over $1230. Not surprising given the aspect between both significators Sun and Venus. It looks very much like gold will go towards the 1270-1300 area by mid-May and that mega alignment. After that, gold is likely to lose some of its shine.

As expected, markets fell Tuesday even with the intraday gain towards the 50 day moving average. The SPX held up above 1150 though suggesting some underlying strength. Tomorrow is another question mark, however, as Mercury returns to direct motion once again.

Stocks surge on EU bailout plan

2010-05-10T21:56:00.003-04:00

Well, that was different. US stocks gained over4% today on the massive $1 Trillion EU bailout plan. India was up 3% and Europe went as high as 7%. It was a breathtaking rally to be sure.

I had been fairly bullish about this week but I never would have thought we could climb back this far, this fast. Clearly there is a lot more than the Sun-Venus aspect driving this rally. Jupiter in sidereal Pisces would certainly help in that respect, especially as it moves towards its conjunction with Uranus. That conjunction doesn't occur until early June so that could definitely provide some support in the near term.

I would expect a little pullback here (Tuesday?) before it goes higher. I have my doubts that SPX 1150 will hold.

Flash crash halts Wall Street rally

2010-05-08T22:35:00.002-04:00

The party on Wall Street came to (flash) crashing halt last week as stocks sank 6% on fears that the European sovereign debt problem may not be solved by the Greece bailout. Out the nowhere on Thursday, the Dow plunged almost 1000 points by mid-afternoon below the 10,000 level, albeit recovering somewhat by the close to end the week at 10,380. Mumbai was also down by 5% on the week as the Sensex finished at 16,679 and the Nifty closing at 5018.

It was a strange and tumultuous week to be sure as investors were left wondering if they had returned to the financial storm they thought they had left behind in 2008. This outcome was pretty much in line with expectations given the raft of aspects involving malefic planets. Last week I had warned about the possible effects of the Sun-Mars square aspect, especially since it would feed into the larger, more powerful aspects of the Saturn-Uranus-Neptune alignment. And so I wrote: "This appears to be a tense combination of fiery energy that may coincide with sudden or instinctive reactions". The Sun-Mars aspect therefore acted as a trigger for the Saturn-Uranus opposition which was exact back on April 27th. All that conflicting energy between Saturnian control and restriction and Uranian freedom and rebellion created an situation without easy resolution. While the Saturn-Uranus-Neptune alignment has altered the financial terrain here, this does not mean that the downturn will unfold imminently. It may take several more months and the next (and final) Saturn-Uranus opposition aspect in July to move the situation to the next level of crisis.

Now it seems that no amount of Saturnian discipline and austerity can solve the situation in Greece or indeed in other Club Med economies such as Portugal and Spain. The debts levels may simply be too high relative to the amount of revenue those economies are capable of generating. Risky assets are taking the hit as investors seek to protect their capital from any possible downdraft in the future by moving them to safe havens like US Dollars, US Treasuries, and gold. As I have been suggesting since 2008, the financial crisis didn't end in 2009, it was merely put on hold through massive infusions of liquidity (i.e. money to you and me) from central banks such as the Federal Reserve. The reduction of interest rates to zero has made borrowing pain-free once again so the bubble has re-inflated all over again. Why would Ben Bernanke think you could fix the first bubble with another bubble? All it will do is delay the inevitable flushing of bad debt out of the system.

The stock rally of the past 13 months has been predicated on easy money. Now it is dawning on people that all that bad debt from the sub-prime housing crisis in 2008 didn't simply go away. It merely re-appeared like a shape-shifter as sovereign debt in the guise of numerous government bailouts to prevent bankruptcies. So now we are finally waking up the reality that these heavy government debt levels are not sustainable either and Greece is currently the weak link in the chain.

This week will see Mercury change direction as its retrograde cycle comes to an end on Wednesday. It will station at 8 Aries in fairly close quincunx (150 degree) aspect with Saturn (4 Virgo). This is not a good angle for these planets so more weakness seems possible ahead of this direction reversal. More positively, the Sun has moved away from the Mars influence and will form a supportive aspect with Venus towards week end so some recovery seems more likely. With Jupiter approaching Uranus over the next few weeks, we may see some of the extreme negativity mitigated somewhat. Looking down the road, there are two large alignments that warrant our attention. The first one May 18-20 will involve the Sun, Venus, Jupiter, Saturn, Uranus and Neptune and looks more benevolent than last week's combination. The second one arrives on June 2-4 and will feature Mars in aspect with Jupiter, Saturn, Uranus and Neptune. As we saw last week, Mars is often a harsh influence, so this alignment may prove more difficult.

Sun-Mars square to rachet up tension

2010-05-02T10:09:00.001-04:00

Stocks slumped last week on renewed worries over European sovereign debt and the possibility of criminal charges against Goldman Sachs. In New York, the Dow closed down 2% to 11,008 while the S&P finished at 1186. In Mumbai, equities also lost ground as the Sensex finished at 17,558 and the Nifty at 5278. As the planetary drama between Saturn, Uranus and Neptune played out last week, markets responded negatively as Tuesday's exact Saturn-Uranus opposition coincided with a major decline in US markets. This manifested on Wednesday in Asia and effectively bumped the more bullish sentiment implied in the Wednesday's Sun-Mercury conjunction to later in the week. The good vibes then lasted until Friday in Asia but US markets turned lower again on more Goldman Sachs developments as Neptune joined the party in force. With the Sun's condition boosted by the passing Mercury, gold climbed to $1179.

The current Saturn-Uranus-Neptune alignment is quite rare and has the capacity to produce some major structural changes in the world. We can see this is happening already as there is widespread recognition of the need for greater government regulation of the financial industry. Capitalism itself may be undergoing a kind of overhaul in the aftermath of the 2008 meltdown. Thus far, however, these three planets have not generated much in the way of market reaction. Saturn and Uranus may have sparked the initial crisis in 2008 on their first opposition aspect in this series, but subsequent aspects have been less momentous. Last week's decline was potentially significant in that it may have marked a kind of turning point but we will have to wait for events to verify that claim.

The highlight this week will likely be the Sun-Mars square that is exact on Tuesday. The Moon may act as a catalyst here when it forms a t-square with Sun and Mars on Wednesday. This appears to be a tense combination of fiery energy that may coincide with sudden or instinctive reactions to undesirable or even violent events. While it is conceivable the market could rise in this outburst of frenetic activity, the more likely outcome would appear to be greater anxiety. To make matters worse, the Sun and Mars will form minor aspect with malefics Saturn and Rahu. Jupiter entered sidereal Pisces over the weekend so that could provide some kind of temporary boost to the overall equation but it seems unlikely to radically alter the dynamics. Jupiter's approach to Uranus over the next few weeks will be interesting to watch since it could shore up excessive pessimism from Saturn's aspects. Alternatively, Jupiter may simply serve to hasten and clarify the larger changes reflected in the Saturn-Uranus aspect.

Saturn-Uranus oppostion on Tuesday

2010-04-25T11:13:00.001-04:00

Transits for Monday, April 26, 2010 9.30 a.m. New York

Stocks drifted higher last week as positive earnings reports gave hope that the economic recovery would continue. In New York, the Dow closed at its highest level for the year at 11,204 while the S&P finished at 1217. In Mumbai, gains were more modest as the Sensex ended Friday below its 2010 highs at 17,694 with the Nifty closing at 5304. Gold futures also rebounded last week closing at $1157. Last week, I had cautioned about Monday's alignment of the Sun, Saturn, Uranus, and Neptune and this did in fact correlate with a decline of 1% in Asia and Europe. However, once the fast moving Sun had passed its exact aspect with Saturn early on Monday morning (EDT), the tense bearish influence diminished and US markets ended higher. The entry of Venus into sidereal Taurus (the bull!) on Tuesday also appeared to correspond with a boost in prices as Asian markets generally reversed higher while US markets continued their winning ways into Friday. Interestingly, the approach of Friday's aspect between Venus and Saturn saw prices rally even further. While this was somewhat counterintuitive, it nonetheless offered evidence that Venus was now in a stronger position to engage with the troublesome energy of Saturn.

The highlight this week is the exact opposition aspect between Saturn (4 Virgo) and Uranus (4 Pisces) on Tuesday. Saturn symbolizes control, discipline, caution and fear and its energy often does not blend well with the more libertarian and rebellious urges of Uranus. In some instances, this aspect can underline internal structural conflicts in the world such as what we are now seeing with Goldman Sachs. Regulatory agencies such as the SEC assume a Saturnian role of enforcer that seek to limit the freedom of Goldman Sachs who are represented by Uranus. With Neptune (4 Aquarius) also forming an important leg in this alignment, there will also be some element of deception and illusion. The fraud charges against Goldman Sachs are emblematic of this Neptunian energy and suggests that the role of deception will be an ongoing theme in any future reordering of the financial industry. With Jupiter soon to conjoin Uranus in June, we could see legal and judicial issues to play a larger role in the weeks to come.

As if to punctuate the the importance of the Saturn-Uranus opposition, a powerful Full Moon occurs on Wednesday in Aries. This pattern is made more noteworthy due to the close conjunct of the Sun with retrograde Mercury. This is often a bullish pattern for increasing risk appetite such as stocks and commodities, although it is likely to be short lived. Ahead of the Full Moon, Mercury will form a difficult square aspect with Mars early on Monday morning (IST) that could cast a pallor over the market. At the other end of the spectrum, there is a nominally positive mix of planets late on Friday between the Moon, Mercury, and Venus.

Given the continuing strength of stocks, we should pay close attention to the possibility that the exact Saturn-Uranus opposition this week will form an interim peak in prices.

Goldman Sachs and the Saturn-Uranus-Neptune alignment

2010-04-18T11:19:00.003-04:00

A potential trend changer emerged last week with the fraud charges against financial giant, Goldman Sachs. Stocks in New York tumbled over 1% as the story surfaced, although the were unchanged on the week with the Dow closing at 11,018 and the S&P at 1192. Indian stocks lost almost 2% on interest rate worries as the Nifty closed at 5262 and the Sensex at 17,591. It seems as though the short term positives like the late week Venus-Jupiter aspect was overruled by the medium term influences. As I noted last week, the culmination of the long-standing Uranus-Neptune aspect on Tuesday and the Sun's entry into sidereal Aries on Wednesday may both be interpreted as increasing negative sentiment. While neither of these influences is amenable to precise predictions, they nonetheless add weight to the bearish case. Of course, back here on Earth the SEC attack on Goldman Sachs may well serve a similar purpose as Wall Street's "business as usual" model comes under threat and markets react accordingly.

This week begins with a planetary alignment of considerable heft as the Sun (5 Aries) , Saturn (5 Virgo), Uranus (4 Pisces) and Neptune (4 Aquarius) are all situated around 4 or 5 degrees of their respective signs. Saturn's presence in any multi-planet aspect needs to be watched carefully, as the planet of caution and restraint is often implicated in declines. The combination of the Sun with Saturn in this instance may reflect intransigence and inhibitions involving government and large firms. Uranus here suggests a frustrated desire for freedom and lack of regulation (= Wall St) while Neptune may represent the deceit employed by Goldman Sachs on an unsuspecting public. While Venus enters the more friendly confines of sidereal Taurus on Tuesday, it, too, will form a pattern with Saturn, Uranus and Neptune by week's end. While this is unlikely to have the same effects as the Sun's Monday alignment, it could still see tensions increase as the appetite for risk wanes.

The Saturn-Uranus opposition becomes exact next week on Tuesday, April 27. Last week, I suggested that this combination of incompatible planets often creates troubles, especially where the markets are concerned. Outcomes may vary due to other factors, such as the conditions of Saturn's sign dispositor. I mentioned last week that since Saturn was in Virgo, the condition of its ruler, Mercury, was heightened in its importance. Mercury is currently in a tense 6th house relationship with Saturn, so that is one reason to expect the current Saturn-Uranus aspect to correspond with lower prices on the markets and with an increase in general mayhem in the world. The eruption of the Icelandic volcano that has interrupted air travel across Europe is perhaps a reflection of this difficult aspect.

But Neptune (4 Aquarius) is also present in this alignment and that only ratchets up the potential for damage especially since it sits exactly 6 houses away from Saturn. In Vedic astrology, 6 is not a fortunate number so we are more likely to experience some uncomfortable Neptunian consequences from this aspect. In its negative iteration, Neptune governs illusion and deception so those themes are likely to become more prominent over the coming weeks. Certainly the Goldman Sachs' fraud episode can be seen as having a Neptunian component so it seems that this issue will not be resolved quickly or easily.