September arrives with stocks at all-time highs

(7 September 2021) As the summer holiday season yields to the more sobering winds of September, financial markets await a new catalyst.  Buoyed by an accommodative Fed and the prospect of the economic re-opening,  stock markets have moved higher over the past several months with few significant interruptions.  While valuations may be becoming stretched by conventional measures, most investors are reluctant to sell given the absence of any viable alternatives with interest rates pinned near zero. 

And it's hard to blame them.  Inflation may be at its highest level in ten years but that is of little concern for the Fed since it has pre-emptively declared that inflation is "transitory".  Even though the cost of housing and food continues to spiral upwards, Fed Chair Jerome Powell is in no hurry to reduce emergency QE asset purchases, let alone actually raise interest rates.  Powell needs to keep the liquidity taps turned on full if there is to be any chance to reduce unemployment back to its pre-pandemic levels, no matter how high inflation may rise.  Stock markets have mostly accepted this logic and have tagged along for the ride.

The current planetary picture offers some insights into this bull market rally.  Despite a mixed session today following Labor Day, some clear bullish energy is evident in the close Jupiter-Pluto alignment.  This 30-degree alignment has been tightening over the past few weeks and is one important reason why stocks have generally melted higher.  The strength of this bullish pairing has even neutralized most bearish aspects, including the fairly close Saturn-Rahu aspect.  While assessing the relative influence of potentially offsetting aspects is more art than science, a glimpse into the Nasdaq horoscope provides another window on this matter. 






One reason why the Jupiter-Pluto alignment may have outweighed all other potentially offsetting aspects is that it is activating some key points in the Nasdaq chart.  First, transiting Jupiter (0 Aquarius) is conjunct natal Rahu.  This is a very bullish pairing since Jupiter's bullish influence is usually magnified by Rahu (North Lunar Node).   This is even more likely to be the case since natal Rahu is well-placed in the 10th/11th houses in conjunction with the Sun. 

While the lunar nodes (Rahu, Ketu) are considered natural malefics in Vedic astrology, any involvement with Jupiter is more likely to convert them into positive influences.  And this is perhaps more likely to be the case here since Jupiter is aligned with Ketu (South Lunar Node).  This amounts to a double amplification of Jupiter's bullish energy.

Interestingly, transiting Ketu (11 Scorpio) is approaching its conjunction with natal Jupiter (10 Scorpio).  This is another potentially bullish influence that may partially explain the relentless rally in stocks, especially in large cap tech stocks.  While spiritual Ketu is a less reliable bullish influence on prices than materialistic Rahu, the involvement with Jupiter here nonetheless tilts the scales in favor of positive outcomes. 

But the question, of course, is how long will this rally last?  Here the planets offer some useful clues.  First, we know that the ongoing Jupiter-Pluto alignment will peak this Friday, September 10.  Typically, bullish Jupiter alignments tend to lose their bullish energy shortly after this exact peak, often within days.  However, this reversal dynamic can vary significantly depending on other factors. 

Also, we can see that transiting Jupiter will begin to separate from its bullish conjunction with natal Rahu next week as it slips back into Capricorn.  While it will remain in close bullish conjunction, this is likely to be a waning influence in the coming days.  And it is much the same story with transiting Ketu.  Ketu (True Node) will conjoin natal Jupiter late next week but it will begin to separate in subsequent days.  This will likely be another diminishing source of bullish sentiment.  Moreover, we can see that transiting Ketu will conjoin the very malefic 8th house cusp later in September.  This conjunction looks more bearish, especially with Neptune in close proximity.

All three of these bullish Jupiter influences are therefore very close to their peaks.  This suggests that the available bullish energy may become less readily available as we go deeper into September and October.  The carefree days of summer may soon be behind us.  


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

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War in Afghanistan ends with final US withdrawal

(30 Aug 2021) The war in Afghanistan is over.  Today, the US withdrew the last of its troops thus ending the 20-year war against the Taliban at a cost of trillions of dollars and countless thousands of lives.  The chaotic end came after the Biden White House airlifted as many remaining Americans and Afghan allies as possible before the Taliban reasserted their control over the country.  After years of fruitless conflict, the US is back where it started with the fundamentalist Taliban again in charge.

While the defeat is a bitter pill to swallow for Americans, the astrological die may have been cast 20 years ago.  The US launched the war back on October 7, 2001 in retaliation for the 9/11 terror attacks by Al Qaeda.  The chart for that day shows a very difficult planetary configuration.  The first air strikes took place near 9 p.m. local time as the Moon-Saturn conjunction were just over the horizon (1st house) in Taurus.  Since every human undertaking is marked by an inception or birth chart, this war was started with very inauspicious stars indeed since any strong Saturn influence tends to towards frustration, loss and failure. 

Unfortunately, the Moon-Saturn conjunction was only one of several weaknesses in the chart.   For any competitive endeavour, we should look at the condition of the 11th house of gains for insight into its eventual outcome.  Here we see a double affliction.  First, Mars squares the 11th house cusp within just five degrees thus reducing the likelihood of victory.  Second, the ruler of the 11th house, Jupiter (which is ruler of Pisces) is almost exactly aspected by Mars, a natural malefic.  This double Mars affliction to the 11th house made a US win all the more unlikely no matter how long the war dragged on. 

In addition, there are other weaknesses.  Mars, the planet of violence and war, is badly placed in close conjunction with the 8th house cusp representing obstacles and scandal.  This suggested that violent efforts may have been more susceptible to setbacks and thereby not achieve their intended goals.   Other problems concern Venus, the ruler of the chart, which rises in Taurus in the 1st house.  Venus is poorly placed at the very bottom of the chart in Leo and receives a forward square aspect from Saturn. Although the forward square aspect is reduced in strength, it nonetheless is a negative influence on Venus and, thus, on the chart as a whole.

Mercury, the planet of rationality and communication, is closely aspected by Rahu, the planet of disruption and confusion.  Needless to say, despite enjoying a huge advantage in terms of technology and manpower, the US and its allies could not defeat an army of devout and committed Taliban.

The final pullout of US forces highlights the current affliction of the chart ruler, Venus.   As a general rule, whenever the ruler of the 1st house (Lagnesh), is under affliction by bad planets, the entire endeavour comes under pressure.  This was definitely the case this week as Venus came under double affliction by Neptune and Mars.  Neptune, the planet of dissolution and weakness, is a malefic when in hard aspect (90 or 180 degrees) to any other planet.  The slow-moving Neptune has been in a 180-degree opposition aspect to Venus throughout 2021.  This affliction was likely activated by the faster-moving Mars, which formed a conjunction with Venus in recent days.  Thus, both Mars and Neptune were undermining Venus and thereby created the final planetary conditions for the US defeat.  Sad to say, further US problems are possible in Afghanistan when Saturn stations direct in October while conjoining Neptune at 12 degrees of Capricorn. 


Weekly Market Forecast

Stocks are still looking strong in the wake of Fed Chair Jerome Powell's Jackson Hole speech.  Not surprisingly, Powell delivered a dovish speech which suggested that a tapering of QE asset purchases would only begin in November at the earliest, and even then only if economic conditions remained favourable.  As expected, the resulting late week rally coincided with the bullish alignment of Mercury, Jupiter and Pluto. 

The planetary outlook this week looks less positive, however.  Despite a bullish beginning to the week, the rest of the week has rising downside risk on the Mars-Neptune opposition.


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

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Delta variant now threatens US re-opening

 (22 August 2021)  It all looked so promising.  The US was the first country to manufacture an effective Covid vaccine and then successfully administer it to more than half of its population.  By late spring, the economy was re-opening as life showed more signs of returning to normal with restaurants doing a booming business, baseball and hockey stadiums enjoying full attendance and family and friends reuniting after the long, difficult lockdowns of 2020.  But then along came the Delta variant.

The fourth wave of Covid infections are forcing some jurisdictions to impose new restrictions.  Schools are generally open for in-person learning but most students must wear a mask.  No new lockdowns have been announced but more states are now seriously considering the possibility, much to the chagrin of many fed up citizens.  More worrying are the breakthrough infections. While unvaccinated people are more likely to get sick from the Delta variant, many fully vaccinated people are also testing positive and some are falling ill.  New data show that the protective effect of the vaccines is waning so that a third booster dose will be necessary. 

The surprising spread of the Delta variant is the last thing President Joe Biden needs right now.  The current Covid setback is another rolling crisis for the White House to juggle alongside the Afghanistan fiasco.   As I noted in last week's post, Biden's chart is heavily afflicted right now on multiple fronts.  But my interest this week is how the afflictions to his horoscope may shed light on the future course of the pandemic in the US.

According to common astrological practice, the president's chart reflects the fortunes of the entire nation, above and beyond any personal twists of fate.   Since we are concerned about the the course of the pandemic, we should focus on health-related significations the chart.  These are: the first house (the population/body), the first house ruler, the 6th house (health) and the 6th house ruler, as well as the Sun as the general significator for vitality and well-being. 

In Biden's chart Scorpio rises in the 1st house thus Mars is the 1st house ruler.  Aries is placed in the 6th house of health and thus it is also ruled by Mars.  We can therefore hypothesize that the pandemic is more likely to diminish in importance when these chart factors are no longer subject to planetary affliction.  Let's see how that could play out.

Transiting Ketu (12 Scorpio) is in a close conjunction with the Ascendant (1st house cusp) and is one reason why the US is prone to suffering from the virus at this time.  Ketu symbolizes disruption and dissolution so its transits to the 1st house can indicate an instability in the country that could have several causes, including health.  By October (see chart), Ketu (8 Scorpio) will remain in a close conjunction with the Ascendant and thus could indicate ongoing pandemic-related troubles.  

Health is more directly implicated by the affliction of Mars, the 1st and 6th house ruler.  Mars has been afflicted by the square aspect of Saturn for most of 2021 through its retrograde cycle and is the main reason why the pandemic remains a source of concern in the US.  Saturn is due to finally end its retrogradation and station direct on October 10 at 12 Capricorn.  The affliction will remain in place well after that date as Saturn will begin forward motion and will again exactly square Biden's Mars in January 2022.  Therefore, it is very possible the pandemic will remain a significant problem in the US at at least until that date. 

October could be a significant moment in the pandemic as Saturn stations direct while in a close 45-degree alignment with Neptune.  The 45-degree aspect is equivalent to a conjunction in the Ashtamsa D-8 divisional chart, representing serious troubles.   Saturn-Neptune alignments are classic indicators of suffering (Saturn) from illness (Neptune).  The timing of this aspect with the powerful Saturn station suggests that the pandemic could actually worsen in late September and early October.

Therefore, it is possible that the virus could continue to wreak havoc on daily life until early next year.  We should also note that Ketu will conjoin Biden's Sun-Venus conjunction in January 2022 and this could coincide with further weakening of national vitality since the Sun signifies health in a general sense.  The bottom line is there may be several more chapters left to be written in this pandemic before we can truly put it behind us. 


Weekly Market Forecast

Stocks were more volatile last week as the Fed minutes revealed the increased likelihood of a Fed taper later this year.  Stocks dipped in the first half of the week before buyers stepped in in the second half of the week.  This outcome was more or less in keeping with last week's forecast which suggested downside was more likely around the Mercury-Mars conjunction before giving way to the more optimistic Sun-Jupiter conjunction in the second half of the week. 

This week again hints at a mixed market.  With Mercury opposing Neptune in the first half of the week, there is some risk of declines in the coming days.  However, the entry of Mercury into sidereal Virgo late on Wednesday and early on Thursday looks more positive, especially since it aligns with bullish Jupiter and Pluto.    The Mercury's entry into Virgo could also reduce the potential negative effects of the ongoing debilitation of Venus in Virgo since Virgo is ruled by Mercury.  Interestingly, this positive planetary set up occurs around the same time as the much-anticipated Jackson Hole speech by Fed Chair Powell Friday morning.  A positive reaction to the Powell speech seems more likely than not. 


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

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Biden under pressure as Afghanistan falls to the Taliban

(17 August 2021) The US suffered a body blow to its prestige this week after the Taliban defeated the Afghan army and captured the capital, Kabul.  The sudden collapse of the US-sponsored Afghan army marks an ignominious end to the 20-year war that cost $2 Trillion and many thousands of lives on both sides.   While the US had planned a complete withdrawal of its forces this year, the chaotic end of this nation-building exercise has undermined confidence in US foreign policy and its military capability.

For now, the big loser in this debacle seems to be President Joe Biden.  While former President Donald Trump negotiated the withdrawal last year, the Biden White House is responsible for this disastrous end to the US involvement in Afghanistan.   Even worse, there are now thousands of American citizens who have been left behind to fend for themselves against the Taliban.  Another batch of US troops are now being sent to safeguard these remaining citizens and protect the Afghans who have provided ground assistance to the US over the years and are vulnerable to Taliban reprisals.

This unfortunate situation shows up quite clearly in the Joe Biden's horoscope.  There are multiple planetary afflictions in his chart which reflect the seriousness of the current circumstance for his presidency.  The ongoing Saturn-Uranus square is still in close range to his Mars (19 Libra) and denotes the difficult (Saturn) and sudden (Uranus) events involving conflict and the military. 

Uranus stands out a bit more in this respect since it is due to station retrograde on Thursday, Aug 19, at which time is will reverse and approach its exact opposition with Mars due in October.  As we know, stationary planets tend to become stronger so this Uranus-Mars alignment suggests that Biden will likely be scrambling to keep up with unexpected military developments in the coming days and weeks.

Ketu and Neptune are other difficult influences in his chart for the second half of 2021.  Ketu is approaching its conjunction with the Ascendant (10 Scorpio) and can signify disruptive events that force him to quickly adapt to new circumstances.  The Neptune opposition to the MC (= Midheaven, the unequal 10th house cusp) also tends to be challenging as it represents the erosion of status and position.  Neptune often conveys a sense of dissolution or distortion and when it is associated with the 10th house of career, it can weaken an individual's occupational stature.  This is very much the case now as Biden attempts to fend off those who are questioning his competence and abilities. 

With Neptune now retrograde, it will move closer to an exact opposition to the MC over the next 4-6 months. This suggests that Biden's competence will continue to come under scrutiny through the fall and perhaps even into early 2022.  Neptune is due to station direct almost exactly opposite the MC on 1 December 2021. 

In the near term, we should watch for possible effects from the upcoming Mars-Neptune opposition at the end of August and the beginning of September.  This opposition will hit very close to Biden's MC and could signify more unwanted developments in Afghanistan that could further weaken his presidency.  As I noted back in the spring, Biden's horoscope does not look good this year.  These various tense aspects are likely to impact his presidency on several fronts besides Afghanistan. 


Weekly Market Forecast

Stocks are still looking firm here, although today's weak retail sales data sparked a significant sell-off.  I thought we might have seen a bit more volatility last week on the Mars-Ketu square but early week declines were very modest. 

There is the real possibility for more volatility this week.  Mercury conjoins bearish Mars tomorrow and then aligns with unpredictable Uranus late in the week.  The Uranus alignment is a wild card of sorts since it is stationing retrograde on Thursday.  This could magnify its effects on Mercury and Mars somewhat.   However, the Sun aligns with bullish Jupiter during the second half so that may offset some of the potential negativity.  And, of course, Venus continues its often difficult transit of Virgo this week so that could be a further drag on sentiment. 


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

Gold falls 5% after strong US jobs report

(9 August 2021) Judging from the sudden drop in the gold price in the past two sessions, it seems Newton's Third Law of Motion also applies to financial markets: for every action, there is an equal and opposite reaction.  Gold prices have plunged more than 5% since Friday's strong US jobs report as traders factored in an early start to the Fed's taper of QE asset purchases.   A strengthening economy is generally bad news for gold since higher inflation expectations translate into less Fed stimulus and thus a higher US dollar. 

Until recently, gold had been enjoying a bounce since its March lows and had tagged its 200 DMA at $1810.  But the sharp sell-off saw prices retest their March lows at $1675 in overnight trading before recovering in Monday's session to $1726. 

We can see a possible planetary explanation for the decline using the horoscope cast for London on September 12, 1919 at 11.00 a.m.  A quick look reveals sources of both short term and longer term afflictions.  For the short term, transiting Mars (12 Leo) was exactly conjunct the natal Mercury-Saturn conjunction.  This was the likely immediate cause of the sharp two-day decline as Mars usually is a malefic influence. 

That said, the somewhat bullish Venus-Neptune opposition could have mitigated some of today's sell-off as Venus was just past its conjunction with natal Venus at 27 Leo.  This Venus influence may have been one reason why price rebounded sharply from the overnight low of $1675 to $1728 during the day session. 

But the longer term influences also likely had a hand in the proceedings as both Rahu and Saturn are within range of the 8th and 4th house cusps, respectively, as they align fairly closely with the Ascendant at 12 Libra. Both Rahu and Saturn are slow-moving planets which may only exert their influences intermittently, such as when there is a third, faster-moving trigger planet like Mars in the mix.

The outlook for gold seems mixed.  While the Mars effect may be largely on the wane now, both Rahu and Saturn will remain near those sensitive areas in the gold chart for another month or two.  This could make it difficult for gold to stage a significant recovery.  Saturn is due to station direct on October 10 at 12 Capricorn -- exactly atop the 4th house cusp.  Once Saturn begins to move away from this point after October 10, gold may be in a better position to rally. 


Weekly Market Forecast

Stocks remain in their summer melt-up mode here as investors are counting on the Fed to keep the liquidity party going as long as possible.  Of course, the indexes are long overdue for a pullback but no one can be sure when it will come.

This week could see a little spike in volatility as Mars first aspects Ketu (South Lunar Node) and then proceeds to align with Saturn late in the week.  The other potentially significant development this week is that Venus is due to enter sidereal Virgo on Wednesday.   The annual four-week transit of Venus through Virgo, its sign of debilitation, tends to be bearish, although there can be bullish exceptions if Jupiter is strong.  It is worth noting that the day of ingress (Wednesday) needn't be bearish in itself as the effects typically manifest when there are other negative alignments in effect. 


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

China stocks plunge after government tightens regulations

(29 July 2021) Stocks have fallen sharply in China and Hong Kong this week after the government tightened regulations governing education, real estate and technology firms.  The Shanghai Composite Index had fallen by as much as 7% by Wednesday although it managed a modest recovery today.  Bonds and the yuan also sold off as investors rushed to the exits as the CCP sought to assert its ultimate control over the freewheeling private sector.  While many Western stock markets are trading near record highs, China's market peaked in February and has trended lower ever since. 

The decline comes as some analysts have expressed concern about a possible bubble in China's property market as government stimulus and lax lending practices have pushed prices to new highs.   While Beijing has a keen interest in keeping its economy humming along, it may be sacrificing the stock market here in order to push the yuan lower.  A lower yuan makes exports cheaper and would be one way to generate future economic growth.

We can see the contours of this week's sell-off in the horoscope of the Shanghai Stock Exchange (December 19, 1990, 9.30 am).   The Ascendant (13 Capricorn) is under severe stress this week from the conjunction of transiting Saturn and the 120 degree aspect from Rahu (North Lunar Node).  Saturn has been within close range of the Ascendant for several months and is one reason why Chinese stocks have been mostly bearish in 2021. 

Saturn's malefic impact was likely triggered by the approaching opposition aspect of the Sun and Mercury.  Although Saturn is still three degrees from an exact conjunction with the Ascendant, faster-moving planets like the Sun and Mercury typically act as a catalyst for the release of Saturn's bearish potential.  In addition, we can see that the Rahu-Ascendant aspect is within just one degree and therefore also partakes in some of that triggering energy of the Sun this week.  The Mars-Jupiter opposition is an added burden on this chart as it aligns exactly with the natal Mars at 5 Taurus.

Based on this chart, the outlook for Chinese stocks is challenging.  Over the next two months, retrograde Saturn will continue to back into a more exact conjunction with the Ascendant.  Saturn is due to station direct in early October at 12 Capricorn -- just one degree past the Ascendant at 13 Capricorn.  Rahu will also close in on a more precise aspect during August.  Overall, it seems likely that stocks in Shanghai will remain under pressure for some time yet.  The immediate future is mixed as Mercury is due to oppose bearish Saturn early next week which may again negatively activate the Ascendant.  However, the lessening of the Mars affliction suggests some chances for a rebound. 


Market Forecast for week of August 2-6

 US stocks have been mixed so far this week.  While we did see some early week selling, the Fed carefully avoided any surprises yesterday.  I thought we might have seen some downside given today's Mars-Jupiter opposition but so far markets still look mostly bullish.  As I noted in last week's post, however, the negative effects of the Mars-Jupiter opposition are usually extended across several days at least.  Therefore, it would be premature to assess its impact after just one day. 

Next week could see some further volatility, especially early in the week as the Sun and Mercury oppose Saturn.  However, the second half of the week may be more positive as Mercury aligns with Venus.


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

Delta variant complicates outlook ahead of Fed meeting

(22 July 2021) It seems the pandemic is not going to end any time soon.  The spread of the Delta variant in many countries has dampened hopes for a quick re-opening this summer.  More countries are being forced to make difficult choices between re-opening and trying to limit new infections despite increasing numbers of vaccinations.  Since unvaccinated people are vulnerable to infection by the more transmissible Delta variant, hospitals may come under renewed stress in the near term.

The new global increase of infections complicates matters for the Fed as it looks towards its next FOMC meeting on Wednesday, July 28.   The Federal Reserve is keen to address recent inflationary pressures, however "transitory" they may be.   A growing number of Fed governors are looking towards tapering their QE purchases of assets later this year in an attempt to cool off the red hot housing market in the US.  Observers were therefore looking at this upcoming meeting for a possible change in language on tapering, including clues for when tapering may begin. 

However, the new surge of infections in the US, UK and many other countries suggest that re-opening is not a done deal.  While growth may be returning for now, additional lockdowns are possible, along with their attendant suppression of economic activity.  The problem here is that a tighter Fed that is tapering asset purchases may suddenly be out of step with a fourth summer Covid wave that would put the economy on its heels once again. 

Markets are now showing signs of unease with the implications of the Delta variant as volatility has increased in recent days.  The multi-day pullback coincided with the entry of Mars into Leo and its subsequent alignment with Pluto.  The midweek rebound appeared to reflect a more favourable alignment of the Sun, Venus and Jupiter.

But the outlook is quite uncertain next week as Mars is due to oppose Jupiter on Thursday, just one day after the FOMC meeting.  Mars-Jupiter oppositions occur once every two years and tend to be bearish in their effects.  However, it is important to note that possible negative effects may not manifest on the exact day of the opposition but may be spread out in the days prior and (more likely) following the opposition.  The previous Mars-Jupiter opposition occurred on May 5, 2019 and coincided the start of the 7% decline in US stocks.  Before that, Mars opposed Jupiter on Feb 27, 2017.  However, on this occasion stocks went most sideways, both before and after opposition. 

Mars also opposed Jupiter on Jan 1, 2015 and marked the start of a 5% decline in stocks.  Preceding that, Mars opposed Jupiter on Oct 28, 2012 just days before stocks fell 3%.  And before that, the Mars-Jupiter opposition on Aug 4, 2010 coincided with the start of a 7% pullback.

So while the Mars-Jupiter opposition is not always bearish in its effects -- either immediate or proximate -- there is a distinct tendency for pessimism around that time.  As a malefic planet, Mars tends to undermine confidence and optimism, which is represented by Jupiter.  Therefore, the fact that the Mars-Jupiter opposition occurs the day after next week's FOMC meeting suggests a greater probability of a negative market reaction to the Fed decision. 


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

Photo Credit: Deidre Smith/U.S. Navy