Stocks stay strong on Jupiter-Neptune conjunction

Stocks resumed their winning ways last week on favourable GDP and consumer data. Markets in New York rose 3% as the Dow closed Friday at 8500 and the S&P at 919. Mumbai added another 5% as the Sensex ended the week at 14,625 and the Nifty at 4448. While this positive outcome did not come as a complete surprise given the Jupiter-Neptune conjunction on May 27 coincided with a potentially strong Mars activation, I had thought there might be a little more profit taking. We can take some solace in the fact that the ebb and flow of the market seemed to follow the planetary forecast as early and midweek declines occurred roughly near the Mars aspect and markets recovered strongly by week's end as Venus approached its aspect with Mercury.

This week may be more challenging since the malefic aspects appear to outnumber the benefic ones. Early in the week, Venus (2 Aries) will occupy the same place Mars did last week and thus increases the likelihood of a release of bullish energy contained in the Jupiter-Neptune conjunction. It should be noted, however, that Jupiter is now moving past Neptune so the bullish effect of these planets of hopeful optimism may be slipping. Just how fast the power drains from this synergistic combination is uncertain, but we can wonder aloud here if the whole is no longer greater than the sum of its parts. By midweek we will see the malefics come to the fore as Mars squares Rahu and to make matters worse, this will be within range of Pluto's degree. These planets often symbolize excessive or even out of control energy that one finds in athletic competitions and violent or military conflicts. While it doesn't always correspond to bearishness, it probabilistically inclines the market to decline. (!) The end of the week also does not favour the bulls since the Sun squares Saturn. As we saw in April, these passing Saturn aspects don't always manifest when they "should" in terms of exactitude, but given the possible diminishing effect of Jupiter and Neptune now, it may be helpful to be aware of the extra negative potential here even if we don't act on it.

Jupiter stations on June 15 so that may coincide with a significant turning point since after that date, it will again be moving towards Neptune. If this recent two month rally can be attributed in part to the Jupiter-Neptune applying conjunction, then it's very possible that stocks will rise once Jupiter is again moving towards Neptune after the 15th. That said, Jupiter is not going to drift too far away from Neptune in terms of longitudinal arc (just 37 minutes), so we may be guilty of hair-splitting here. Nonetheless, the applying-separating dynamic is one of the few somewhat consistent principles of astrology. It's not a fool proof Newtonian law, but it works more times than it doesn't. In the world of astrology, that's about as good as it gets.

NY stocks steady; Mumbai takes flight

Last week's market action reminds us of the importance of applying current transit positions to the relevant natal charts. Same transits -- very different results. In New York, markets were mostly unchanged as the Dow closed at 8277 and the S&P at 887. In Mumbai, a totally different story as stocks went into orbit on Monday after the surprisingly large election win by the Congress-led UPA which was announced over the weekend. Stocks rose 15% for the week with the Nifty finishing at 4238 and the Sensex at 13,887. The neutral New York outcome was largely in keeping with expectations although the gains arrived a little early with the Sun-Mercury conjunction at 3 Taurus. This was close enough to trigger the benefic energy contained in the Jupiter-Neptune conjunction (2 Aquarius) and take markets higher, if only briefly after which the bears moved in the rest of the week. Mumbai took flight because the very same transit alignment was activating some extremely favourable natal placements in the NSE and Sensex charts. For more details on how this may have unfolded, please see the Mumbai's Magnificent Monday page on my website.

This week features a couple of interesting aspects. Jupiter moves into exact conjunction with Neptune on Wednesday. While this is one of the key sources of bullish energy in these past two months, I'm less convinced that the exact conjunction can generate more gains. That's because slow moving planets usually require activation from past moving planets, as we saw from the Sun-Mercury conjunction last week. The Moon forms a trine aspect to this conjunction late Monday, so that could boost some world markets (US markets will be closed for Memorial Day) On Tuesday and Wednesday, we have another potential triggering planets as Mars (2 Aries) will move into an exact aspect with the Jupiter-Neptune conjunction. Unlike Mercury, Mars is a malefic planet so that increases the possibility that net effect may actually be negative. By Friday, Mercury will move into a close harmonic aspect with Venus so that may well provide some food for the bulls. So we have a very mixed picture this week with a real question about market direction. With the bearish Sun-Saturn square due next week, I'm inclined to think that US stocks will continue this phase of consolidation and retracement here. Indian stocks are perhaps somewhat better candidates for profit taking.

Mumbai's Magnificent Monday propels stocks 17%

Stocks in Mumbai soared a record 17% in Monday's session as investors poured into equities on the heels of the stunning victory by the pro-market Congress Party in the election. The Nifty surpassed 4300 while the Sensex jumped above 14,000. While I have been generally bullish on Indian stocks for the spring period, I completely missed this explosive rally both in terms of its exact timing and its unprecedented scope. It is a humbling experience to be confronted with one's errors is such a stark fashion. Days such as these are difficult reminders of the limits of my own knowledge as a financial astrologer.

The fact that I had been forecasting a brief but significant correction here makes this doubly awkward. Nevertheless, there were some clues that we might see some extra strength in this period. For example, the National Stock Exchange of India chart(NSE) shows a very positive pattern involving the secondary progressed and transit charts. Progressed charts are a staple in Western astrology and they form part of my toolkit as an integrative neo-Vedic astrologer. Here we can see that progressed Sun is closely conjunct progressed Jupiter at 1 Scorpio. This is perhaps one of the most positive contacts imaginable but since progressions are quite slow moving (the Sun moves just one degree per year), it can be difficult to know when the positive energy will be manifest. When I looked at this pattern, I assumed that it represented the current bull phase which I had forecast to extend into the summer, perhaps into July or August.

But look at the transits to those progressed positions. Jupiter (1 Aquarius), Uranus (1 Pisces), Neptune/Chiron (2 Aquarius) all form harmonically significant aspects to that progressed Sun-Jupiter conjunction. There is some debate among astrologers whether transits to progressed planets have the same power as transits to natal positions. I think this chart is makes a good case that they are significant since they highlight the progression. My mistake was that I didn't place enough importance on them and focused too much on the trees instead of the forest. The Sun-Mercury transit conjunction today at 3 Taurus was the immediate trigger for these other contacts between slow moving planets and the progressions. While it might possibly have triggered a similar rise when either one transited 1 Taurus, thus setting up a stronger resonance with all the other planets at 1 degree, the conjunction at 3 Taurus combined their energies and was still within range.

There were also clues of the rise in the Indian independence chart. The second house in national horoscopes represent income and money and this chart has Uranus placed there at 2 degrees of sidereal Gemini. Uranus is a planet of sudden or explosive energy and when placed in the second house is can symbolize many ups and downs in the economy. Since the stock market is associated with trading and volatile movements, Uranus in the second house can be seen as representing the stock market also. As an added source of energy, we can see that Uranus is closely conjunct the Part of Fortune (or Punya Saham), a highly sensitive point in the horoscope that often responds to transit hits.

The current conjunction between Jupiter, Chiron and Neptune at 1-3 Aquarius formed a very close favourable trine aspect with this Uranus and thus created a situation where sudden (Uranus) gains (Jupiter) were more likely. As before, the transiting Sun-Mercury conjunction at 3 Taurus served as a trigger in this chart due to its two degree conjunction with the natal Rahu and its close proximity to the ascendant (7 Taurus). While I did not predict such an outcome from looking at this chart, the Jupiter to Uranus was nonetheless indicative of economic strength and increased the probability of stock market gains.

I would expect the optimism may continue until Mercury moves through 1 Taurus around midweek, although much of the energy has obviously been released already.

Stocks slide in advance of Saturn station

Stocks in New York pulled back off their highs last week as the likely prospect of the GM bankruptcy took a little wind out of the rally's sails. Overall the market lost 4% on lower volume as the Dow ended Friday at 8268 while the S&P stood at 882. Mumbai diverged from global patterns somewhat as
Friday's gain pushed the market up 2% for the week. After repeatedly coming up against resistance at 3700, the Nifty closed at 3671 and the Sensex at 12,173. The Mercury-Mars-Saturn alignment did largely coincide with the early week slump although the timing of it was less than mathematical. With the larger losses confined to Monday and Wednesday, this midweek negative pattern did not quite release its energy like clockwork, but the correlation was still suggestive of a bearish exclamation point against the recent bullish backdrop. Some strength returned to the market late week as the Sun moved into Taurus and formed a plausibly positive pattern with Jupiter, Uranus and Neptune. Reflecting the ongoing strength of the Indian market, this produced a significant gain Friday whereas in New York Thursday's modest rise was followed by a tepid rise Friday morning. The rally failed by noon, however, as traders took profits ahead of the weekend and took the market lower into the close.

This week offers a mixed bag of short term planetary influences. On Monday, the Sun conjoins retrograde Mercury in early sidereal Taurus, while the Moon is in Aquarius opposite Saturn. The Moon-Saturn contact is a marginally negative pattern, while the Sun-Mercury combination is quite variable but can increase the size of a move, depending on which way the market is leaning. The Sun's influence on Mercury can be seen as negative since the Sun is a nominally malefic planet in the Vedic schema, and yet the Taurus placement is supported by virtue of the strength of dispositor Venus which is currently exalted in Pisces. But Venus is in an awkward quincunx aspect with Saturn, so that may make things more difficult. Of course, the outcomes of this pattern will vary depending on the relevant natal chart contacts. In Mumbai, a big rally is expected on the heels of a convincing election victory by the pro-market Congress party. Clearly, the Indian market has been outperforming most other world markets because the Jupiter-Neptune conjunction has been placed at a more positive place relative to the natal chart compared with US markets. In the Sensex chart, for example. the Jupiter-Neptune conjunction occurs just three degrees from the ascendant. In New York, however, I would not be surprised to see some more weakness early on in the week as some natal support seems lacking. But Mercury will continue its retrograde path and form an apparently positive pattern with Jupiter, Uranus, and Neptune midweek. Actually, Mercury will be in the same place (1 Taurus) that Sun occupied last Thursday and Friday when the market saw some strength. So some kind of gains are possible then. Later in the week may not be so favourable as the Sun comes under the aspect of Rahu. This isn't necessarily a bad aspect, but it opens up more uncertainty, and that may be problematic for investors seeking out long positions.

What is so interesting about the current alignment of planets in the sky right now is how exaggerated and overdetermined they all appear to be. There is a remarkably rare pattern that features a Jupiter-Neptune conjunction (2 Aquarius) that is taking place in near exact harmonic aspect with Uranus (2 Pisces). And if we want to throw in Chiron that is also at 2 Aquarius, we have an extremely infrequent pattern of bullish planets. It is no coincidence that we've seen the market rally as strongly as we have. But now May has seen Mercury turn retrograde and Saturn make its direct station, two decidedly negative influences which may force the market to pause before moving higher, at least in the US. This rare confluence of sharply good and bad factors has made prediction more difficult than usual (and it's never straightfoward), as the astrologer is confronted with equations for which there is no definitive solution, only interpretation and speculation.

Market extends rally despite Mercury Rx

Stocks stayed in rally mode last week as the bank stress test results proved to be largely a non-event amidst a backdrop of promising economic data. In New York, stocks moved up to within a few percent of their January highs, as the Dow ended 4% to the good at 8574 while the S&P stood at 929. In Mumbai, equities continued to trade above their 200-day moving average and gained over 4% as the Nifty stood at 3620 and the Sensex at 11,876. The early week gains came off as expected on the bullish Venus-Ketu-Pluto configuration but the start of the Mercury retrograde cycle did not mark a significant sell off. While Mercury retrograde is normally a bearish influence, it does not function like a malefic aspect and therefore acts as a more general influence. So while I highlighted Mercury's bearish potential last week, I was not convinced that it would have enough negative energy to counteract the Jupiter-Neptune conjunction that has fueled much of this huge run-up in the past two months. The optimism (Jupiter) and hope and idealism (Neptune) embodied in these planets has allowed a growing number of investors to look past the negatives in the economy and the long term implications of the various bailout packages and focus on the "green shoots" and hints that financial stabilization is just around the corner.

This week features another potentially negative influence for the markets as Mercury, Mars, and Saturn form a potentially tense multi-planet aspect on Tuesday or Wednesday. Any contact between Mercury and either malefic, Mars or Saturn, has the potential to move markets lower and the co-presence of both malefics with Mercury is definitely worth paying attention to. However, these aspects are not full strength aspects so we need to be skeptical about their bearish potential. In addition, Friday's entry of the Sun in sidereal Taurus may well prop up the market further since it forms a multi-planet alignment with Jupiter, Uranus, and Neptune. So even if we see some midweek selling, the end of week may see the bulls return in force. Likewise, I think there's a good chance crude will continue its winning ways, and gold also likely to stay strong here.

Saturday will see Saturn change direction from retrograde to direct so that may be a better indication of an impending reversal in the market. Readers will remember that the six-week rally off the November lows culminated in the first week of January, just a few days after Saturn changed direction and began its current retrograde cycle. Another instance of this phenomenon of planetary stations and market reversals occurred on October 11, 2007 when Mercury began its retrograde cycle, just days after world stock markets peaked. Similarly, in mid-May 2008, markets began a major down leg just one week before Mercury turned retrograde. While timing is often somewhat inexact, changes in direction of the planets can often correlate to changes in the direction of the market.

Week of May 4 - 8

After slumping early in the week, markets edged a little higher last week on some positive earnings news and the prospect of more economic 'green shoots'. In New York, stocks approached their February highs as the Dow closed at 8212 and the S&P at 877. Indian stocks were mostly unchanged last week, and did not participate in some of the late week advance due to a Thursday and Friday closing. Bullishly staying above their 200-day moving average, the Nifty finished Wednesday's session at 3473 and the Sensex at 11,403. The early week declines were very much expected in light of the malefic alignment of Mars-Ketu-Pluto, although the bearishness was fairly mild. The bounce later in the week coincided with Jupiter's ingress into sidereal Aquarius and the approach of Venus to the Ketu-Pluto configuration which was noted in last week's forecast.

This week's action may also be somewhat mixed at best as the early part of the week seems more positive as the Venus aspect comes exact on Monday. While some pullback is likely on either Tuesday or Wednesday, the latter part of the week may see the bears assert themselves more forcefully as Mercury turns retrograde on Thursday morning. Interestingly, the results of the banking stress test will be released on the same day. While we should be aware that Mercury may not exert its influence immediately, this coincidence would tend to indicate some second thoughts by some investors. Mercury's influence is a very important potential ingredient for any significant correction in this recent rally. There is no guarantee that Mercury's backwards cycle (May 7 -31) will push the market lower, but it definitely inclines the market to second guessing, non-committal sideways movement, and outright bearishness.

As we've seen over the past seven weeks, the approaching Jupiter-Neptune conjunction has created a very powerful reservoir of optimism and hope that has helped to move markets higher by 30% in a very short time. It will require a significant amount of negative planetary energy to offset this bullish alignment. Retrograde Mercury, even if it is afflicted by Rahu as it is this week, may not be enough in itself to force a major correction. For that reason, we may have to wait for some of that excess Saturn energy to seep into the collective consciousness once it turns direct on May 16.