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

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

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

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

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

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

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

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.