Markets sputter as Mercury enters Gemini

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

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

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

"Maturity of mind is the capacity to endure uncertainty." --John Finley
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Jupiter-Uranus to the rescue again?

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

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

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

All this increasingly feels like the calm before the storm.


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

Jupiter-Uranus saves markets

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

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

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

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

Mars does damage; hopes now pinned on Jupiter-Uranus

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

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

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

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

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

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

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

Not looking good

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

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

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

Euro haunts markets; Saturn-Neptune still looms

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

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

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

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