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

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

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

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

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

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

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

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.