Bernake's Fed: born under bad stars

The stock market is looking pretty fragile these days.  While it is chasing recent highs, stocks seem increasingly reliant on central bank easing rather than fundamentals based on actual economic growth.  Much of this summer rally has occurred on the assumption that QE3 or its European equivalent are not far off.  Last week's Fed minutes and Ben Bernanke's letter to the House Oversight Committee reiterated his commitment to more easing in order to boost the slumping US economy.  Some of Bernanke's talk should be assumed to be mere jawboning which all central bankers engage in.  But if stocks rally into the next Fed meeting on 13 September, then that puts a lot of pressure on Bernanke to actually come through with a tangible announcement for more stimulus. If he does not, then the market would likely decline sharply.  Even if the Fed does announce some action, there is a possibility that the market could sell off anyway as in "buy the rumour, sell the news".  This is perhaps more likely if the program comes up short of expectations in terms of size and scope.

We can get a deeper glimpse into the inner workings of the Fed by looking at the horoscope of the Bernanke's tenure.  He was installed as Fed Chair at 2 p.m on 31 January 2006.  This natal chart should reflect some basic qualities of his time as Fed Chair.  We should also be able to see some trends and events by examining transits against the natal chart.  The natal chart itself says a lot about the Bernanke Fed.  The US has suffered its worst recession since the 1930s during his term.  In fact, Bernanke is very closely identified with the recession since economic activity began to decline just a year after he was appointed Fed Chair.  We can see this recession quite clearly through the nasty opposition of Saturn to the Sun, Mercury and Neptune.  Saturn is very much the planet of recession as it symbolizes restraint, pessimism and loss.  It is placed in the 2nd house of wealth.  Ouch!  Its aspect to the Sun suggests a loss of vitality and confidence.  Even more damaging is its aspect to Mercury.  Mercury is the planet of commerce and it is doubly important in this chart since it rules the ascendant, Gemini.  To top if off, Mercury is placed in a harmful dusthana house, the 8th.  So there is really quite a bit of negative Saturn energy that flows through the whole chart.  Obviously, Bernanke's legacy will be his reaction to the recession.

Interestingly, we can see hints of Bernanke's strategy of "quantitative easing" or QE.  Quantitative easing is a form of economic stimulus whereby central banks buy debt which enables other market participants (banks, institutions, private investors) to boost economic activity through other more direct wealth-producing areas.  By entering into the debt market, interest rates are kept low and thereby make credit cheaper for prospective borrowers, and hence this should increase economic growth. But in order to buy debt, the Fed has to spend money it does not actually have.  It therefore "invents" the money and moves the debt onto its own balance sheet to be repaid at a later date.  The Mars-Jupiter opposition in the Bernanke installation chart is a perfect reflection of this spend first and ask questions later approach.  Mars represents willful action while Jupiter symbolizes wealth and value.  When there are in more harmonious aspect with each other, it suggests a prudent spending of money toward a specific goal.  But in a more difficult opposition aspect, it often means out of control or wasteful spending.  And just to extend the analogy one step further, Jupiter is closely square Neptune, the planet of illusion and dreams.  It is perhaps no coincidence that Professor Bernanke has written several academic papers arguing the theoretical case of quantitative easing as a solution to economic slowdown.

The trouble is we don't actually know if this strategy can work since it's never been tried before.  A growing number of analysts believe that quantitative easing has limited returns and may no longer have a positive effect on the economy as the debt burden grows.  A common criticism is that QE produces inflation and debases currency, in this case, the US Dollar.  Inflation has indeed spiked in various countries (e.g. India) after the Fed began its QE program in 2009 as investment money sought out higher rates of return in other jurisdictions.   US core inflation remains largely under control although commodity prices have risen substantially.   Elevated gasoline and food prices at home and abroad are a direct consequence of the Fed's QE policies.  So perhaps that Jupiter-Neptune-Mars pattern in this chart does contain some of the keys to the Bernanke tenure at the Fed.  The themes are clear enough: the huge debt burden through spending (Mars-Jupiter), the fixation on an idea of recovery through inflation  (Jupiter-Neptune), and the reliance on a theoretical idea of quantitative easing that remains largely untested in the real world (Neptune). 

This chart is also useful for seeing the various twists and turns in financial markets and the wider economy.  We can see that the meltdown in 2008 occurred when Saturn transited through Leo.  Thus Saturn would have aspected the Moon (depression), while Rahu (distortion) conjoined Mercury (commerce).  Both are very damaging transits.   The recovery began in 2009 just as transiting Jupiter entered the 9th house and therefore conjoined the Moon (expansion, happiness) and aspected the Ascendant (growth).

All eyes are on the upcoming FOMC meeting on 13 September.  Perhaps not surprisingly, we can see that there are a number of close transit hits occurring at that time.  At the broadest level, this reflects the importance of the announcement.  The close Jupiter-Mercury aspect is a very positive influence and could be seen as a possible indication of more expansionary policies.  While I am still fairly skeptical about the near term prospects for QE3, this Jupiter aspect is one piece of evidence that some kind of easing will take place.  It may also reflect the general public approval of the Fed move.  But we can also see that Saturn is highlighted at this time.  Transiting Venus is exactly conjunct Saturn on this day, and forms a larger alignment with Uranus and Pluto.  All three planets are at 13 degrees of their respective signs. Venus-Saturn aspects tend to be more difficult and often provide an outlet for Saturn's more cautious energy.  Perhaps we have equal measures of expansionary Jupiter with cautious Saturn.  Again, one can interpret these planets in a number of ways, although this does suggest a kind of balance in the Fed action.  Perhaps the easing program will be quite small.  I would also note that Saturn and Rahu are close to the degree of the Ascendant in this chart in September.  This is a more negative influence and suggests that Bernanke may become fairly stressed while these two malefic planets are in aspect to the Ascendant.  I don't want to make too much of it, however, since the Ascendant is dependent on an exact "birth" time and I am uncertain about the accuracy of the 2 p.m. installation.

Looking ahead, we can see that the next major transit hits will occur in early 2013.  Saturn will station in exact square to Sun while Ketu (SN) conjoins Mars.  This is a double whammy that is likely to mirror some very difficult developments at the Fed.  This could represent another phase of the ongoing economic crisis that may force the Fed to react quickly.    It is also possible that this could correspond with the end of Bernanke's tenure.  Mitt Romney is on record saying he will fire Bernanke if he becomes president.  These transits occur in January and February, just at the time when the new president would assume office.  While I don't think Romney will win the presidency, it is an intriguing interpretation of these difficult transits. 

But back to today's markets.  US stocks ended their winning streak last week on worries of slowing growth in China and Europe.  The losses were quite mild, however, as the Dow slipped less than 1% closing at 13,157 while the S&P 500 finished at 1411.  Indian stocks fared better on hopes of further central bank easing.  The Sensex rose less than 1% closing at 17,783 while the Nifty ended the week at 5386.   The week unfolded more or less as expected as the early week Venus-Jupiter aspect coincided closely with gains on most world markets.  As expected, the late week period was more bearish on the Mars-Rahu aspect. 

The planets this week argue for more upside as the Sun forms an alignment with Uranus and Pluto on Wednesday and Thursday.  Ahead of this pattern, there is a greater chance of some declines perhaps, although they may be fairly muted.

Apple hits all-time high ahead of iPhone 5 release

It was a fairly quiet week in the markets as trading volumes ebbed during the summer holiday season.  In New York, stocks gained for the 6th straight week as corporate earnings continued to suggest a positive outlook.  The Dow edged higher by 1% closing at 13,275 while the S&P 500 finished at 1418.  Apple shares hit a new all-time high at $648, as the market anticipated the release of the iPhone 5.  Indian markets were also bullish as investors responded to better than expected inflation data.  The Sensex climbed 2% closing at 17,691 while the Nifty ended the week at 5366.   I thought we might have seen more volatility around the early week Mars ingress into Libra and the Mars-Saturn conjunction on Wednesday.  At least the Venus aspect with Uranus and Pluto did appear to correlate fairly closely with the mid and late week gains on most global markets.

It seems that Saturn has been on its best behaviour in the early stages of its transit of sidereal Libra.  According to traditional astrological theory, Saturn is said to be exalted in this sign and hence it may be somewhat less likely to manifest its negative energy and pessimism.  That has been the case thus far, and even its conjunction with troublesome Mars has not interrupted the current stability in financial markets. The basic idea here is that planets will tend to correlate with negative market moods when they are under pressure by malefic planets.  While Saturn may have a somewhat stronger constitution here by virtue of its exalted position in Libra, it is still a potentially dangerous planet which can undergo rapid changes in its nature. Saturn's changing condition should be our focus in the coming weeks as it moves into aspect with Rahu, the North Lunar Node.

Apple's new highs provide a good illustration of the usefulness of the IPO horoscope.  Apple was first traded on the Nasdaq on December, 12, 1980 at 10 a.m.  The resulting chart is very powerful. The ruler of the 1st house, Saturn, is tightly conjunct benefic Jupiter in the 9th house of good fortune and higher knowledge.  Venus, symbolizing money and beauty is closely conjunct the Midheaven (10th house cusp) suggesting significant price appreciation over time.  The stellium of planets in the 11th house of gains is also a big plus for the stock, especially since Uranus, the planet most associated with technology and innovation, it tightly conjunct Venus and the Midheaven.  Apple is a technology company that is known for its attention to design and aesthetics, an area that is ruled by Venus.

But while the natal chart is very powerful, Apple has still had its share of ups and downs.  It almost went bankrupt in the 90s before Steve Jobs was called back to save the company.   The worst time was in 1996 when the stock price bottomed at $3.  Interestingly, Apple's bad times occurred during the Rahu dasha period.   Dashas are unique to Vedic astrology and provide a special window on the larger trends of a company.  When a company is running a dasha period of a malefic planet such as Rahu and it is poorly placed in the horoscope, then we should expect problems.  In Apple's case, the Rahu period began in 1986 and ended in 2004.  Rahu is more of a negative influence since it is closely aspected by the 8th house aspect of malefic Mars and Mars sits in the 12th house of loss.  That is a difficult energy to handle even in the best of times. The 1996 low point of near-bankruptcy occurred during the Rahu-Ketu period.  Ketu is another natural malefic that often correlates with problems.  Towards the end of the Rahu dasha period in 2003, Apple suffered through another bear market in its stock as the price fell back to $7 after rallying towards $30 in during the dot com bubble of the late 90s.  But in 2004, everything appeared to change as the Jupiter dasha period began.  Jupiter is a pretty reliable indicator of growth and this was definitely the case with Apple. Even though Jupiter is closely conjunct malefic Saturn in Virgo in the horoscope, its placement in the 9th house appears to have offset other negative influences.  The favourable placement of its dispositor, Mercury, in the 11th house of gains is another reason why the Jupiter period has been so positive for Apple stock.

The all-time high in the stock has occurred in the current Jupiter-Venus period.  This is pretty much what one would expect since Venus is perhaps the most fortunate planet and it is very nicely placed in the horoscope near the Midheaven with Uranus.  The Venus minor period began in March 2012 and will last until 2015.  This suggests that Apple stock will likely remain quite strong.  Of course, dashas are not everything and Apple will still be subject to a range of good and bad transits.   Currently, transiting Jupiter is aspecting all those nice 11th house planets in Scorpio -- Uranus, Mercury, Sun and Neptune.  So that is another source of strength for this stock.  One would think, however, that the Uranus-Pluto square will have to create some problems over the next few months since it is tightly aspecting the Jupiter-Saturn conjunction. 

The planets this week offer a mixed picture.  There are a couple of positive looking transits in the early part of the week that could push stocks higher.  Monday's Venus-Jupiter aspect will be closely followed by the Mercury-Jupiter aspect on Tuesday and Wednesday.  Wednesday therefore becomes a potential dividing line as the Mars-Saturn conjunction will be joined by the Moon.  The Moon could act as an immediate trigger for some negativity or it may act as a cosmic marker for a possible reversal point.  I would note that the late week has some fairly nasty looking aspects including Mars-Rahu on Friday and a Sun-Neptune opposition on Thursday and Friday.

Bad is good: stocks rise on easing hopes

Financial markets engaged in a bit of economic schadenfreude last week as stocks rose against a backdrop of weaker than expected data coming out of China.  The weak industrial production and export numbers meant that a slowdown was more likely in China and around the world.  But in our current upside down world, slowing growth increases the likelihood of more money printing by the Fed and the ECB in the form of QE3.  In this way, bad numbers can actually be good for the market.  Since 2009, investors have come to rely on the interventions of central banks to inject liquidity into the system and thus free up the amount of capital available for loans and economic expansion.  While this bit of counterintuitive logic may seem a bit perverse in the long run (i.e. let's borrow even more money to solve our debt problem!), the short run is all most markets care about at the moment.  And the short run fear is that global growth may be stalling and a new recession could be just around the corner. Therefore, markets are responding favourably to any means to prop up asset values, no matter what the long term consequences may be. 

In New York, the Dow rose about 1% on the week closing at 13,207 while the S&P 500 finished at 1405.  Indian markets were also higher as the Sensex added 2% closing at 17,557 while the Nifty ended the week at 5320.  This bullish outcome was in keeping with expectations as the Mercury-Venus-Neptune alignment was exact midweek.  The Mercury-Venus pairing is usually bullish anyway and the Neptune influence only added to the stability of the up trend.

Stocks have been quite resilient in August thus far, despite the move of Saturn into sidereal Libra.  I had thought we might have seen more downside by now but so far, only Saturn's more responsible side has manifested.  Like all planets, Saturn has different symbolisms, some positive and some negative.  When Saturn is favourably disposed, it can support responsible behaviour and slow and methodical growth.  Perhaps that absence of any easing last week from the ECB and the Fed was a reflection of this upstanding side of Saturn.  But stocks have not been filled with the usual amount of Saturnian pessimism.  One possible explanation is that Saturn is actually considered "exalted" in the sign of Libra and hence it will tend to produce more positive outcomes.  I don't quite believe this exalted status of Saturn is enough to deny its inherently pessimistic nature indefinitely, but it is one possible reason why markets have remained afloat in the early stages of its transit of Libra. 

When Saturn comes under more pressure, we will see how strong its exalted state really is.  This week will be an important test in that respect as Mars conjoins Saturn on Wednesday the 15th.  Mars and Saturn are the two most malefic planets of the solar system so there combination here is definitely one to watch.  Mars could start off the proceedings as early as Tuesday as it enters Libra.  Such Mars ingresses often tend to be bearish.  I would also note, however, that Venus forms a potentially positive alignment starting on Wednesday and lasting until Friday. So there could be some moves higher around this Venus energy, especially if the market has fallen beforehand.  It should be quite an interesting week.

Draghi talk boosts stocks but will Saturn have the last word?

US markets moved higher last week as ECB President Mario Draghi reiterated his unwavering support for the Euro.  Investors took this as a sign that more stimulus would be forthcoming from the European Central Bank and pushed stocks higher as the Dow rose 2% closing above 13,000 for the first time since May.  The Dow closed at 13,075 while the S&P 500 finished the week at 1385.  It was a somewhat different story on Indian markets as a weaker than normal monsoon fueled inflation worries and made a rate cut more unlikely.  The Sensex lost 2% closing at 16,839 while the Nifty ended the week at 5099.   The late week gains arrived later than expected as I thought the midweek Mercury-Jupiter aspect would act as a magnet for optimism.  As it turned out, however, the aspect marked a shift away from the early week pessimism.  Stocks rose sharply after Dragi's remarks on Thursday.

While markets may have felt the warm embrace from Draghi's reassuring words, there is still a big difference between words and action.  Stocks may rally for a couple of days from such central banker jawboning, but any kind of sustainable push higher will likely require new policy initiatives.  The ECB is scheduled to meet on Thursday this week so it is possible that some new plans will be announced.  Actually, this week will have central bankers firmly in the spotlight as the US Federal Reserve will release its latest policy statement on Wednesday while the Reserve Bank of India is slated to do the same on Tuesday. 

It is quite appropriate then that we should see Saturn front and center this week as it changes signs and enters sidereal Libra on Thursday.  While Saturn is said to be exalted in Libra, I think our more pressing concern lies with the ingress itself.  All other things being equal, Saturn sign ingresses tend to be bearish for the markets since they represent a surplus of its caution and pessimism.  Just how this Saturn energy is likely to manifest this week is not completely clear, however.  On the face of it, a strong Saturn would tend to suggest that more stimulus is unlikely.  This may mean that the Fed and the RBI do not announce any new rate cuts or easing measures.  The ECB is in a somewhat different situation.  While it could announce easing, it may also have some new policies it could enact to mitigate the current banking and debt crisis.  It is conceivable that these needn't be directly tied to easing and money printing.  Nonetheless, the prominence of Saturn this week does suggest an increase in caution and that is probably incompatible with a major new stimulus measure. 

Jupiter is better seen as the planet of easing and stimulus.  It was prominent in most if not all of the major stimulus announcements in 2009, 2010 and 2011.  Currently, it is moving away from its aspects to Uranus and Pluto.  These aspects have helped to boost most global markets in the month of July but now it seems their effect may be diminishing as the aspects separate. 

What is particularly intriguing this week is that we have a replay of mid-May when both Venus and Saturn changed signs within a couple of days of each other.  While stocks moved higher for a day or two around this rare simultaneous double ingress on 14-15 May, stocks generally declined both before and after.  This time around Venus will enter Gemini on Tuesday two days before Saturn enters Libra.  Unlike the situation in May, Venus will not be stationing here so that may weaken its effects somewhat.  Venus sign changes are generally a more positive phenomena, so it is not unreasonable to expect some gains in the early week period.   As Venus moves deeper into Gemini, optimism is more likely to fade as Saturn assumes are greater role in the proceedings.

China avoids hard landing; Saturn to enter Libra

China came to the rescue of most global markets last week after Friday's GDP data came in near expectations at 7.6% suggesting only a mild slowdown.  Some investors had feared a more disruptive hard landing scenario in which a steeper decline in economic activity would have negatively affected the global economy.  Markets had been trending lower ahead of the release of the data.  In New York, the Dow closed largely unchanged at 12,777 while the S&P 500 finished at 1356.  Indian markets fared worse, however, as new IIP data came in stronger than expected and dampened rate cut hopes.  The Sensex lost almost 2% closing at 17,213 while the Nifty ended the week at 5227.

This mixed result was not unexpected as I had been fairly neutral about last week.  The nasty Mars-Ketu aspect in the early week did produce some significant downside, especially on US and European markets.  I thought we would see some kind of recovery starting midweek around the Mercury-Venus aspect.  As it happened, this finally arrived on Friday but made up for the preceding days' losses.

While China avoided the worst case scenario, Friday's rally assumed that the weakening growth data would nonetheless still require more stimulus from the Chinese government.  In that sense, the stock market is still as addicted to central bank interventions as ever.  A recent study has suggested that without the Fed's quantitative easing measures over the past three years, the market would be 50% lower (i.e. Dow at 6500) .  The problem for stimulus-addicted investors in this US election year is that the Federal Reserve cannot be seen to be partisan.  A new round of QE would likely boost the stock market and this could therefore improve Obama's re-election chances.  Republicans have increased their criticism of the Fed and Ben Bernanke in recent months for debasing the dollar and creating inflation.  If Romney happens to win the election, there will be many in the Republican party who will call for Bernanke's removal as Fed Chair.  Bernanke's ouster would be all but certain if he decided to launch QE3 in the next month or two before the election and then Romney won anyway.  Therefore, Bernanke therefore needs to tread very carefully this summer and avoid sparking more opposition. 

The astrological case for QE3 is far from clear. A significant round of stimulus would tend to require many Jupiter aspects as that planet rules expansion. The printing of money in order to stimulate the economy is very much a Jupiter-type of activity. We had major Jupiter aspects from 2009 to 2011 when Jupiter formed prolonged angles with Neptune, Uranus and Chiron for months on end on several different occasions.  This is not the case now.  This would tend to argue against another major round of QE, although it may not preclude smaller, less intrusive measures.   The next major Jupiter aspect is not due to occur until early 2013 when Jupiter forms a close aspect with Uranus.  That may be a better bet for the next major easing from the Fed, or from other central banks. It is possible that China's central bank could act before then, but it may not be large enough to spark a major rally.  Jupiter is in aspect with Uranus and Pluto this week, so that might suggest a somewhat greater likelihood of some kind of expansionary activity taking place.

This week looks like it could bring some interesting developments.  There is powerful alignment of planets through much of the week that could move markets significantly.  The ongoing Uranus-Pluto square aspect is joined by both Mars and Jupiter this week.  The last time the Uranus-Pluto aspect was activated by a third planet was after the EU summit on June 29 when the market rallied strongly.  This occurred as the Sun lined up in a t-square with those two distant planets.  This time around Mars will assume the role of the Sun, and form another t-square.  Mars is more of a negative influence than the Sun, however,  so there is less reason to expect gains, at least in the early going.  Of course, Mars has the capacity to take the markets lower so that is definitely a possibility at some point.  However, the presence of Jupiter in the mix would seem to be more positive.  It forms a close aspect with Uranus later in the week which tends to correspond with gains. 

But even if we do happen to see some upside here, the clock would appear to be ticking on the market as Saturn approaches its entry into sidereal Libra on August 1.  This is usually a bearish influence.  Previous Saturn sign changes have corresponded closely with declines.  Saturn first went into Libra last November when the market dropped more than 10%.  As it moved backward through its retrograde cycle, it then entered Virgo in May and the market declined again.  Saturn's re-entry into Libra here is definitely not something to be taken lightly.

Bad US jobs report links Obama to "zombie economy"

No matter how skilled a politician he may be, this week's poor jobs report has forced President Obama back on his heels.  Friday's weak US employment report showed only 80,000 new jobs were created in June, far below the +200K from earlier in the year.  The unemployment rate remained unchanged at a stubbornly high 8.2%.   The disappointing performance gave more ammunition to Republican Mitt Romney as a sign that Obama's interventionist Keynesian-style policies aren't working.  Things are getting so bad that some US media outlets are now started to refer to the "zombie economy" which is effectively dead.  If that term gains traction, it would be very difficult for Obama to overcome the label and win in November.  While I am fairly pessimistic about the prospects for the economy, I do think Obama will prevail in the election.  That suggests there may be other factors involved in his victory over Romney.

There was more bad economic news as we had no less than three different attempts to stimulate the flagging global economy as central banks in China and Europe both cut their interest rates, while the Bank of England undertook a new round of quantitative easing.  Markets were less than enthused by these developments as the Dow fell almost 1% on the week closing at 12,772 while the S&P 500 finished at 1354.  Indian stocks fared better as investors anticipated an RBI rate cut later in the month.  The Sensex enjoyed modest gains closing at 17,521 while the Nifty ended the week at 5316.  While the week may have ended badly, stocks did make new highs along the way.  This positive result was in keeping with expectations as I thought that the midweek Venus and Mercury aspects would produce gains.






Clearly, the global economy remains as fragile as ever.  The sense of relief from the recent European bank bailout is fading fast as Spanish bond yields have crept back up to that critical 7% level.  The Euro is hitting new lows as it is trading below 1.23 against the US Dollar. China's rate cut was the second in less than a month and signals a growing risk of recession.  All of this uncertainty does seem like an appropriate reflection of the dominant planetary aspects that are active at this time.  The Jupiter aspect to the Uranus-Pluto square offers some prospects for gains in the short term but this will be a fairly quick alignment which may not correspond with a major move higher in the stock market. At the same time, Saturn is soon to re-enter the sign of sidereal Libra.  These Saturn ingresses are usually bearish and this could easily offset whatever positive energy may result from Jupiter's aspect.  As I see it, the more powerful Uranus-Pluto aspect undermines the possibility for any significant economic recovery any time soon.  This aspect just had its first exact aspect in June and will likely haunt the economy for the next two or three years.  We could see some solutions offered, but they are likely to be temporary.  Perhaps the US will follow in the footsteps of Japan and its "lost decades".  Like Japan after its stock market crash in 1990, the US is attempting to stimulate the economy through additional government spending.  While this will likely prevent a worst case depression scenario, growth may remain low for many years to come. 

This week looks like we could see more treading of water.  First off, there is a fairly nasty looking Mars aspect with Ketu, the south lunar node. This could manifest at any time in the first half of the week, although there is an argument to be made for Monday given the Moon's opposition to Mars at that time.  However, Mercury will be in aspect with Venus in midweek and after so that seems likely to correspond with some upside.  Jupiter also moves one step closer to its aspect with Pluto and Uranus so that adds to the bullish side somewhat.  Friday's session is more of a question mark since the Sun approaches its square aspect with bearish Saturn.  The aspect won't be exact but it may still disrupt the mood.  Gold may also suffer at week's end as a result of this Saturn influence on the Sun.

Merkel blinks at EU summit; markets rally

Europe backed away from the abyss yet again as Friday's EU summit produced another bailout to solve its ongoing debt crisis.  Germany's Angela Merkel is widely seen as the loser in this struggle between southern debtors and northern creditors as Germany accepted the demands of Italy, Spain and France to share their debt burden.  Now the European Central Bank will be able to buy Spanish and Italian bonds as a mean to keep a lid of interest rates.  The ECB will also oversee an EU-wide banking regulatory agency in order to stem the banking crisis.  Spain's teetering banks will receive an injection of €120 Billion directly from the European Stabilization Mechanism (ESM), which is the latest incarnation of the EU's bailout fund.

Global markets cheered the news as the US stocks rose sharply and posted a 2% gain on the week.  After a mostly negative week, the Dow closed at 12,880 while the S&P 500 finished at 1362.  Indian stocks also shook off the doldrums as the Sensex climbed more than 2% closing at 17,429.  The Nifty broke above resistance and ended the week at 5278.  From an astrological perspective, the summit deal was a very appropriate reflection of the Uranus-Pluto aspect.  While I thought we might have seen a little more disruption and uncertainty in the run up to the deal, I did expect some kind of resolution to the crisis last week.  The twin stations of Venus and Saturn are often associated with market reversals so we did see an interim bottom in US and European markets.  And as I noted in last week's post, the Uranus-Pluto square aspect was indicative of some kind of fundamental disruption with the status quo and pointed to some major changes ahead.  As it happened, we did see the beginnings of a new EU emerge as a result of this summit, as the member states have forged an agreement towards closer integration.  The EU did not just throw more money at their problems but rather created a new banking regulator to ensure sounder lending practices in the future.  Also, Germany finally agreed to allow the buying of Eurozone debt by the ECB.  This had been a major sticking point since the Germans did not want to let their indebted members off the hook without strict austerity.  The EU may now be slowing evolving beyond a simple currency union into a more tightly knit economic and political federation.

Despite Germany's dominant position in the EU, it is widely seen to have caved into the demands of the other members in the interest of long term viability of the Eurozone.  Perhaps it was no coincidence that Germany also lost to Italy in the semi-finals of the European football tournament on the same day that the EU summit deal was struck. These patterns of fortune and luck tend to operate on many levels, perhaps as a reflection of planetary movements.  For her part, Angela Merkel is in a difficult spot these days as Saturn is stationing in close aspect to her Sun.  This can be an oppressive influence which lasts for many weeks due to the slower than normal motion of Saturn around its retrograde cycle.   Saturn transits to the Sun can erode self-confidence and drain the vitality of a person to take the initiative.  Merkel may well have simply lacked the fortitude to assert herself in the face of a more organized opposition from France, Italy and Spain.  From an outcomes perspective, Sun-Saturn transits tend to simply deny the wishes of a person and force them to accept less than they wanted.  It is a tough transit for everyone, even powerful leaders of large countries.  The fact that Merkel's Sun is tightly conjunct Uranus and square Neptune probably makes Saturn's influence that much more oppressive since more planets are involved with the transit affliction.

We can also see her probable frustration during this summit through the exact Mars square transit to her natal Mars.  This is usually a tough influence to handle and often correlates with unworkable situations, anger, and victimization by others.  It has been reported that Hollande (France), Monti (Italy) and Rajoy (Spain) essentially ganged up on Merkel and held the Germans hostage to their demands for debt sharing. With that strong Mars and Saturn influence in Merkel's chart, it was quite likely that their efforts would be successful.  Saturn's continuing slow velocity for the next month or two suggests that Saturn will continue to exercise a negative influence on Merkel over the summer. I would be particularly concerned of the effects on her when Mars and Saturn conjunct on or around 15 August.  This conjunction will form a very close square aspect to her Sun so she is more likely to confront intense and challenging situations around that time.

This week looks like we could see some follow through to Friday's rally.  Saturn's negative influence is receding here a bit as it moves forward while Venus will form aspects to Uranus and Pluto by midweek.  Mercury will join that favourable alignment on Tuesday and Wednesday so that is another potential source of optimism.  The early week conjunction of Jupiter with Ketu (South Lunar Node) may be somewhat unsettling, however, so that could correlate with some profit taking, perhaps on Monday.  Wednesday's US holiday closing suggests that gains may be more likely to occur on Tuesday or Thursday.