New York stocks jumped over 3% today as investors began to feel that the worst of the sub-prime crisis is over. The Dow finished up 391 to 12,654 and the S&P closed up 47 to 1370. This rise was not unexpected, particularly in light of yesterday's modest up day that broke the negative sentiment from last week and the Sun-Mars square. I think we will see at least one more up day this week, possibly two. I think we will move above the 12,750/1380 resistance level and even 13,000/1400 is in reach. Tomorrow opens with the Moon conjunct Rahu so trading should be hectic. There should be a downside bias.
Logic suggests that Bombay ought to follow NY up tomorrow, and yet I see that tr Venus falls under the aspect of natal Mars in the 1875 BSE chart. This introduces some bearishness into the mix that may take hold in the afternoon. Hard to imagine it pushing closing prices lower, but perhaps gains will be less than expected (<4%) Tokyo is up over 13,000 in early trading Wednesday, as per our forecast. Look for more strength through the week.
Like oil and gold, the Euro backed off recent highs and sold off 2 cents back under $1.56. I think it will rise towards the end of the week, although tomorrow may see some treading of water near these levels. $1.58 is looking pretty far away right now.
Oil slumped back to $100, against our expectations. I can see prices firming up tomorrow.
Gold has decided to head south for a while and look for more solid footing before its next run-up. It fell $30 today to about $885, although it is up in early Asian trading. I think some price recovery towards $900 is likely Wednesday as the Moon-Rahu conjunction may cause fears and uncertainty to get the better of some traders.
