New Year's horoscope 2023

(28 December 2022) Out with the old, in with the new.  As we approach the start of 2023, it is good time to consider the astrological promise of the year ahead.  Although it does not have any specific astronomical importance, experience tells us the New Year’s chart cast for midnight, January 1 can accurately highlight themes that will be important for next 12 months.  For example, New Year’s charts which are largely free from affliction from malefic planets (Mars, Saturn, Rahu/Ketu) can signal years where the world as a whole seems more focused on positive growth and forward development.  However, sometimes the planets in New Year’s charts are marred by bad aspects from the likes of Mars and Saturn.  These afflicted Jan 1 charts can therefore become a warning of upcoming difficulties that are more likely to disrupt the global order.

Given last year’s Moon-Mars conjunction in sidereal Scorpio, for example, I suggested that “military conflict” could become a major concern.   Indeed, the war in Ukraine became a huge problem in 2022 both in terms of human suffering and in terms of economic consequences from surging inflation and widespread energy shortages.  While I was largely off the market in my call for further Covid-related problems, I was more correct is suggesting that the affliction of Mercury could translate into economic hardship.  Specifically, I thought that Mercury’s conjunction with Pluto and aspects with Rahu and Mars could indicate “higher inflation and higher interest rates” along with “slower growth and lower stock market returns in 2022”.  These predictions have largely come to pass as 2022 has brought a major stock market decline in most countries as inflation has forced central banks to hike rates to their highest levels in almost 40 years.

 

Sad to say, however, that Mercury is again involved in a difficult Saturn alignment for 2023. As the planet most closely associated with the economy, Mercury (29 Sagittarius) is retrograde and aligned with Saturn (28 Capricorn) and Neptune (28 Aquarius) on January 1.   As both Saturn and Neptune are unwelcome influences here for Mercury, it seems likely that the global economy will fall into recession during 2023.  Mercury-Saturn alignments are more specifically identified with slowdowns, but the addition of Neptune here makes the overall picture somewhat worse.  Of course, Neptune was front and center in the 2020 New Year’s chart that suggested some kind of epidemic was possible during that year.  Its further involvement in 2023 means that the pandemic could remain an ongoing concern in the New Year, either in terms of new variants or simply by virtue of its economic knock-on effects such as further supply-chain disruptions.  And we should note that Mercury is further afflicted by the 135-degree alignment with Mars (14 Taurus).  While not a full-strength Vedic aspect, the 135-degree alignment translates as a conjunction in the Vedic D-8 ashthamsa chart.  One possible interpretation would be economic setbacks (Mercury) due to war and conflict (Mars).

We can also see a close aspect between Rahu (North Lunar Node — 17 Aries) and the Sun (16 Sagittarius).   Since the Sun symbolizes rulers and government, the Rahu aspect can mean interruption or perhaps a deposing or replacement of a world leader.  The Rahu-Sun aspect is often bad news for governments as well and increases the chances of a change in leaders or at least a major change in policy.

One particularly interesting feature of the chart is the near-exact conjunction of Venus (3 Capricorn 33) with Pluto (3 Capricorn 35).  Venus is a benefic planet and symbolizes women, of course, but also art and anything of value, including money.  Pluto is a more malefic energy and represents power and coercion as well and the general concept of transformation.  One interpretation of the Venus-Pluto conjunction would be ‘female power’, as if there could be a further move towards woman holding positions of power in the world.  But an alternative perspective could be the ‘transformation of value’ such as we see through cryptocurrencies and the possible rise of digital currencies.  Given the recent turmoil in the crypto market, it may be more likely that the Venus-Pluto conjunction could represent the launch of the first major central bank digital currency, for better or worse.

Overall, the New Year’s chart for midnight January 1, 2023 is reason to be realistic about the next 12 months for most of us.  It seems likely there will be more troubles that we need to endure before we can come out the other end of the current difficult period.  While 2024 could well deliver more of the same, there is good reason to hope for better days in 2025.

Weekly Market Forecast

As expected, stocks have generally moved lower in this post-Christmas week.  The Santa Claus rally has yet to appear as 1) Mercury aligns with Mars and Venus and 2) Saturn approaches its alignment with Neptune.  Both of these alignments are bearish influences that have so far negated any bullish seasonality.

And with Mercury due to turn retrograde early tomorrow morning (EST), there seems to be little reason for this down trend to reverse higher in the coming days.

For more details, check out my weekly subscriber newsletter which is published every Sunday.   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

These updates are usually posted midweek.  You can be notified of new posts by following me on Twitter.

Mercury retrograde threatens Santa Claus rally

(21 December 2022) US stocks have rebounded this week as recession fears have receded and traders look forward to a possible year-end Santa Claus rally.  The Santa Claus rally describes the seasonal tendency for stocks to rise in the second half of December, and especially from the first trading day after Christmas until the second day of the New Year.   Buyers this week are therefore anticipating some follow through after Christmas which could carry on into early January.

But how likely is a Santa Claus rally this year?  Certainly, some upside this week was fairly likely given how oversold stocks had become after last week’s sell-off.  And the surge in the Japanese yen after the BOJ shift in its bond policy may also be seen as generally positive for stocks since it undermines the dollar.  The rally in the greenback has been one major reason why liquidity has dried up this year and stocks have trended lower.

And yet the planets do not very bullish next week.  Not only is the worrisome Saturn-Neptune alignment tightening further, but Mercury turns retrograde on Thursday, Dec 29 at 4.31 a.m. EST.  The condition of Mercury, the planet closely associated with matters of trade and commerce, can directly influence the stock market.  As we saw last week, the double affliction of Mercury by malefics Mars and Rahu (North Lunar Node) coincided exactly with a significant late week decline.  When Mercury is weakened or damaged in this way, stocks tend to fall.

The retrograde station of Mercury is another such negative condition that is broadly correlated with declines.  Of course, Mercury isn’t actually stopping and reversing in its orbit; it only appears that way in the sky from our vantage point on Earth.  Nonetheless, this apparent reversal of its motion is often coincident with problems and unexpected developments related to communication and transportation, in addition to temporarily worsening market conditions.

But we should note that not every Mercury retrograde station is equally bearish.  Some Mercury stations are relatively benign, and a few may even be bullish when Mercury aligns with a benefic planet like Jupiter.  But when Mercury aligns with a bearish planet at the time of its station, then the odds for a pullback significantly increase.

This particular Mercury retrograde station on Thursday is an interesting mix of influences.  On one hand, its near exact conjunction with Venus is very bullish and could help support some kind of rally.  But as it happens, Mercury is also aligned with bearish Mars through a 135-degree separation.  While this is not a traditional Vedic aspect, it nonetheless deserves our attention since all three of Mercury, Venus and Mars are conjunct in the 8th divisional chart or Ashtamsha (D-8).  It is tempting to think that the blend of both positive influences (Venus) and negative (Mars) on Mercury could produce a somewhat neutral outlook late next week.  And yet the presence of Mars in the equation increases the overall downside risk since Mars aligns and afflicts both Mercury and Venus.

Given this Mars influence, there is good reason to be skeptical about the prospects for a Santa Claus rally after Christmas.

For more details, check out my weekly subscriber newsletter which is published every Sunday.   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

These updates are usually posted midweek.  You can be notified of new posts by following me on Twitter.

The cost of money rises again as Fed hikes rates by another 50 basis points

US stocks fell today as Fed Chair Jerome Powell hiked rates by 50 basis points and reaffirmed his commitment to raise interest rates even higher in 2023 in order to curb inflation.  Even if investors had bid up stocks after Tuesday’s cooler-than-expected 7.1% CPI print, the Fed’s target for a higher terminal rate next year was seen as hawkish.  While stocks suffered a modest loss today, bond yields and the dollar held mostly steady.

As noted in last week’s post, bond yields look vulnerable to another round of increases, either as a result of strong economic growth or a more hawkish Fed dedicated to taking rates  above 5% next year.  The Saturn-Neptune alignment is pivotal in this respect as forms important alignments with the US Treasuries horoscope which makes higher bond yields more likely in the coming weeks.  In the current environment, higher yields are bad news for stocks as they point towards more expensive credit which will eventually weigh on economic activity.

Stocks are also vulnerable to declines with the approach of the Saturn-Neptune alignment in the coming weeks.  More immediately, there is a possibility of more selling in the wake of the Fed decision.  While the Saturn-Neptune alignment is only two degrees from exact, the extent of its current influence is unclear.  Usually, alignments between slow-moving planets need to be closer to exert a stronger influence on stocks.

Instead, we can look at a fairly bearish set up for the rest of this week as Mercury aligns with Mars and Rahu (North Lunar Node).  More specifically, we can say that Mercury will be aspected by both Mars and Rahu on Thursday and Friday.  Mars (19 Taurus) casts its full-strength 210-degree, 8th house aspect to Mercury (18 Sagittarius), the planet of commerce and trading. Mercury is also at the receiving end of another dose of potentially bearish energy as Rahu (18 Aries) casts its 120-degree aspect within one degree.  While Mars-Mercury aspects tend to be bearish, Rahu-Mercury aspects are a bit more mixed, although with some downside risk.  The fact that these two afflictions to Mercury occur almost simultaneously is a red flag.

But financial astrology demands we look at the whole picture in order to weigh the importance of all the relevant influences.  There is a potentially offsetting influence in play this week given the Sun-Venus/Jupiter-Chiron alignment.  This alignment should be seen having second tier strength, however, since there are no direct aspects involved.  Instead, the alignment is formed through angular separation.

Thus, the angular separation of the Sun and Venus (=13°16) is almost equal to the angular separation of Jupiter and Chiron (=12°22).  Both of these planetary pairs are somewhat bullish and their resonance through equal angular separation suggests some optimism.  However, we should note that the faster-moving Sun-Venus pair (13°) has already moved beyond the 12° Jupiter-Chiron separation.  In fact, the angular separation of these two pairs almost matched exactly earlier in the week when stocks were bullish.  The fact that they are separating now suggests optimism could be diminishing just as the pessimism and anxiety of the Mercury-Mars-Rahu alignment is increasing.  Thursday morning’s Mars-Moon square also looks negative.

Right now, I would be fairly skeptical about the prospects for a year-end Santa Claus rally.

For more details, check out my weekly subscriber newsletter which is published every Sunday.   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

These updates are usually posted midweek.  You can be notified of new posts by following me on Twitter.

Stocks rally after Powell signals slower pace of rate hikes

(30 November 2022) Stocks rallied today after Fed Chair Jerome Powell suggested that current economic circumstances may justify a smaller 50 point rate hike as soon as next FOMC meeting on December 14.  All the major indexes rose sharply on the remarks and the S&P 500 even finished above its 200-day moving average at 4080.  The rally follows some post-Thanksgiving weakness earlier in the week that had resulted from worries that lockdowns and protests in China may extend supply chain disruptions.   Covid-related supply chain disruptions have been one of the main drivers of inflation in recent months.

While the early week declines coincided with several bearish Mars alignments with Saturn, Mercury and Venus, today’s rally was surprising as it appeared to anticipate more favourable late week patterns, such as the Moon and Jupiter conjunction.   In addition, I thought that some early week declines were more likely since the angular separation of Mars-Uranus (=33) matched that of Saturn-Neptune (=33).  Both of these planetary pairs were bearish influences since each contained a bearish planet — Mars and Saturn.

 

One possible explanation for Wednesday’s strong rally is that this angular separation had moved past exact as Saturn’s forward motion had reduced the angular separation to a bit less than 33 degrees.   With both Mars and Uranus moving in slower retrograde motion, their angular separation remained fairly constant at 33 degrees, or 32 degrees 55 minutes, to be exact.  The negative effects of the two planetary pairs therefore diminished once they moved past their point of equal angular separation.

At the same time, we can see two bullish pairings approaching a point of greater resonance.  Jupiter-Chiron (=13 degs 17 mins) is approaching the same angular separation of Sun-Mercury (= 12 degs 11 mins).  Since Mercury is the faster of the two planets, this angular separation is widening every day and will exactly match the angular separation of Jupiter-Chiron on Friday.  While I expected some late week upside on this four-planet alignment, today’s rally arrived a bit ahead of schedule and with considerably more force.

While some follow through to the upside is very possible from this pattern, next week’s Sun-Mars opposition on the Full Moon on Wednesday and Thursday looks more bearish.

For more details, check out my weekly subscriber newsletter which is published every Sunday.   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

These updates are usually posted midweek.  You can be notified of new posts by following me on Twitter.

 

Stocks rally into Thanksgiving and the Jupiter direct station

 

(23 November 2022) US stocks extended their rebound Wednesday as Fed minutes suggested a willingness to slow the pace of interest rate hikes in the face of moderating inflation pressures.  The S&P 500 pushed above the 4000 level to 4027 and came to within a stone’s throw of the 200 day moving average of 4059.  The rally wasn’t too surprising given the bullish seasonality at Thanksgiving and the favourable Mercury-Venus and Sun-Jupiter alignments this week.

How long can this rally last?  The planets are pointing towards a pullback in the days ahead.  Jupiter changes direction today (Nov 23) as it ends its four-month long retrograde cycle. While not usually a decisive influence, the change in direction of a major planet like Jupiter can sometimes signal a trend change in the market.  More important, however, is that Mars is due to align with Saturn early next week.

On the face of it, the Mars-Saturn alignment may not look that bad since it is a seemingly more constructive 120-degree alignment.  Nonetheless, there is good reason to think that sentiment could worsen significantly.  First, the Mars-Saturn alignment at 25 degrees of Taurus and Capricorn, respectively, will recreate the same Mars-Saturn alignment in late September that coincided with significant downside and an interim low.   This time around their directions will be reversed since Mars is now retrograde while Saturn is moving forward.  Previously, Mars was direct and Saturn was retrograde.  So while it’s not exactly the same setup, it’s close enough to warrant our attention.

The other factor to consider is that Mars will oppose both Mercury and Venus next week.  Both of these alignments are bearish, not only because Mars doesn’t blend well with Mercury or Venus, but also because the opposition aspect is usually more difficult.  The fact that Saturn will also be present in the alignment could complicate matters somewhat and introduce the possibility of short term moves in either direction.

 

Additionally, we should note that the equivalent angular separations of key bearish planetary pairings.  As a rule, whenever bearish planetary pairs (i.e. those that include either Mars or Saturn) are separated by the same angular distance as other slow moving planetary pairs, declines become more likely.  Next week, we will have not one but two such bearish pairings as the Mars-Uranus separation will be 33 degrees and this will almost equal both the Uranus-Chiron pairing (34 degrees) and Saturn-Neptune (33 degrees).  The resonance of Mars-Uranus and Saturn-Neptune are particularly bearish since both are negative influences.  While the accompanying chart  is cast for Monday, Nov 28, we should note that the bearish influence will extend throughout the week.

Significantly, there are no potentially offsetting bullish Jupiter pairings, even involving faster-moving planets such as the Sun, Mercury and Venus.  The Jupiter-Neptune separation is 6 degrees while the Jupiter-Chiron separation is 14 degrees.  Neither pairing finds an equivalent separation with the Sun-Mercury (=11), Mercury-Venus (=2) or Sun-Venus (=9).  The absence of any positive planetary pairings therefore increase the odds of some downside next week.

 

For more details, check out my weekly subscriber newsletter which is published every Sunday.   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

These updates are usually posted midweek.  You can be notified of new posts by following me on Twitter.

 

US midterm election outcome still undecided

 

(9 November 2022) The outcome of yesterday’s US midterm elections remains unknown today as many races are still too close to call.  With a near-even split of seats in both the House and the Senate, it may be days or even weeks before we know which party will win control.  US stock markets sold off today on the unexpected uncertainty, after many polls had suggested a Republican “red wave” which failed to materialize.

This unexpected result was perhaps not so very unexpected from an astrological perspective.  In a previous post, I had noted that the midterm election coincided with a lunar eclipse which significantly increased the likelihood of uncertain outcomes.  The disruptive potential of the eclipse was further increased since it occurred at 22 degrees of sidereal Aries and thus exactly conjoined Uranus, the planet of unpredictable and surprising events.  The negative market impact likely derived not from the eclipse itself, however, but from the fact that eclipse highlighted the ongoing Saturn-Uranus square.  As we know, planetary alignments involving Saturn are usually bearish for market sentiment.

So what happens now? In market terms, it is possible we could see further weakness this week as Mercury and the Sun square Saturn, either because of the continued election uncertainty or perhaps from tomorrow’s CPI report in the US.  Politically, there is some chance that Biden and the Democrats could salvage the situation over the weekend.  Biden’s chart is still quite afflicted by the ongoing Saturn-Uranus square and Saturn’s aspect to his natal Mars (19 Libra) and Mercury (28 Libra).  And yet there could be some improvement in his fortunes on Sunday and Monday as Venus and Jupiter align with his Sun-Venus conjunction at 4-5 Scorpio, as well as aspecting his natal Jupiter at 2 Cancer.   On Sunday evening, the Moon will join this alignment and create a “Grand Trine” where each planet is separated by 120 degrees. This is usually a signal for favourable developments.  While it is impossible to know if this will be election related, it nonetheless opens the door to some good news.  One possible scenario would be that the outcome of a key Senate races is finalized on Sunday or early next week that allows Democrats to retain control of that chamber.

 

The other favourable time window for Biden and the Democrats is around Nov 19-20 when the Sun conjoins Biden’s Sun-Venus conjunction.  As an added plus, both Mercury and Venus will conjoin Biden’s Ascendant, although we should note there is still some uncertainty about the accuracy of Biden’s birth time.  Nonetheless, this means that even if Senate control isn’t clear by early next week, the Democrats could get some more positive election-related news in this second favourable time window.

The other thing working in Biden’s favour here is that Jupiter is due to end its retrograde cycle and station direct at 4 degrees of Pisces on Nov 23.  This will form an exact 120 degree aspect to both his Sun-Venus conjunction and his his natal Jupiter and should provide a temporary boost for him at various points during the month of November.  This positive Jupiter influence will likely dissipate after Nov 23 as it begins to separate from the natal Sun and Venus.

The other takeaway from the election is the relatively weaker position of former president Donald Trump.  The failure of the “red wave” of GOP seats was a partial rejection by voters of his more radical platform that questioned US election integrity.  After the defeat of several of his endorsed candidates, his potential candidacy for the 2024 election is now in doubt.  Betting markets now put Florida governor Ron DeSantis as the favourite to be the GOP nominee over Trump for the first time.

We can see some astrological indications for Trump’s disappointing election outcome.  Not only was retrograde Mars conjunct his Sun and opposite his Moon, but Mars is forming a very difficult square alignment with Neptune.  The ongoing Neptune square with his Sun-Moon natal opposition is the major reason why Trump has been on the defensive this year, as he attempts to deflect responsibility for his role in January 6 Capitol riot.  Trump is likely to remain weakened politically into early 2023 at least as the Saturn-Neptune alignment (Dec 2022) and then the Saturn-Pluto alignment (Mar 2023) activate key points in his horoscope.

For more details, check out my weekly subscriber newsletter which is published every Sunday.   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

These updates are usually posted midweek. Be notified of new posts by following me on Twitter

Stocks tumble as Fed raises rates 75 basis points

 

(2 November 2022) US stocks sold off on Wednesday after comments by Fed Chair Jerome Powell effectively took the prospect of a Fed “pause” off the table for the foreseeable future.  While the market had already priced in the 75 basis point hike, Powell’s remarks reiterated his commitment to the 2% inflation target, even if it means a significantly higher terminal interest rate.

While stocks have rebounded fairly strongly off their mid-October lows, it remains to be seen if the low is in and the rally can continue.  As I noted last week, there is some reason to be skeptical about the current rally given the approach of next Tuesday’s lunar eclipse and the array of aspects involving the planet Saturn.  But will these upcoming Saturn alignments with Venus, Mercury and the Sun produce just a brief pullback or could it open the door to a deeper decline?

An additional perspective on this question can be seen in the horoscope of the Federal Reserve.   The Fed’s chart can offers clues about the general condition of financial markets as transit afflictions by Saturn or Rahu and Ketu tend to coincide with periods of instability while harmonious aspects of Jupiter can indicate relative calm.

In my September post about the Fed’s chart, I suggested that the approach of the Saturn station at 24 Capricorn was likely to mark a time of some difficulty for the Fed since it conjoins the 8th house cusp at 25 Capricorn.  According to the principles of Vedic astrology, the 8th house is regarded as the most malefic house in the chart.  Due to its retrograde cycle, Saturn has been within one degree of this sensitive cuspal point for more than two months.

In addition, I noted that Mars would conjoin the 12th house cusp at 25 Taurus in the Fed chart in the final week of September.  If the 8th house is the worst house, the 12th house is the second worst and having another malefic planet like Mars on the 12th cusp would likely reflect more problems for the Fed.   And indeed, stocks did drift lower in late September following the Fed’s FOMC decision to raise rates on Sep 21.

 

What we should note here is that this double-barreled affliction of Saturn and Mars to the 8th and 12th house cusps will actually set up again in late November.  With Saturn now resuming its forward motion after its Oct 23 station, it will tightly conjoin the equal 8th house cusp in the second half of November.  And since Mars turned retrograde on Oct 30, it is also due to return to the 12th house cusp in late November, with Nov 28 as a possible date of its maximum influence.  Of course, we should be aware that even if the planets re-create a previous pattern, we can’t necessarily assume identical outcomes.  In that sense, one doesn’t step into the same planetary ‘river’ twice.

One additional caveat here is that the afflictions to the Fed chart is a more inferential piece of evidence that may not directly reflect market moves.  An affliction to the Fed horoscope could therefore represent some other aspect of Fed policy which markets have already anticipated and discounted.  Perhaps there could be data that shows growth slowing while inflation remains stubbornly high.  This is a worse case scenario for the Fed as it will be forced to make a hard choice about tipping the economy into recession as a direct result of its policies.  And yet one would think that the market would welcome any chance of a pivot towards ending the current cycle of rate hikes.  Nonetheless, theses late November alignments do suggest some reason for caution about financial markets.

 

These updates are posted each week, usually on Tuesday or Wednesday. 

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