Markets drift higher; Mars-Saturn this week

Stocks edged higher last week as retail and housing numbers continued to show improvement and boosted hopes for the recovery. In New York, the Dow rose about 1% to close at 11,573 while the S&P500 finished the holiday-shortened week at 1256. It was much the same story in Mumbai as the Sensex added modest gains before closing at 20,073 with the Nifty standing at 6011 at the end of Friday's session. The universe unfolded more or less as expected as the early week Mercury-Jupiter-Uranus aspect pushed stocks a little higher ahead of the Christmas break. Predictably, some of the enthusiasm faded by week's end as Venus was damaged by bearish Saturn. Indian stocks also gained ground early in the week but failed to get above some important resistance, although they did manage a modest gain on Friday.

Tuesday's lunar eclipse garnered a lot of media attention, mostly because it happened to coincide with the winter solstice for the first time since 1638. I'm not sure this means anything special, although it may be more significant that the eclipse occurred when Mercury was in square aspect to Jupiter and Uranus. This bullish trio of planets can lift sentiment but the eclipse would almost seem to negate or even reverse that influence since eclipses are celestial mechanisms of interruption where the status quo breaks down.

The next eclipse in the current pairing arrives on January 4, 2011, just as Jupiter is in exact conjunction with Uranus. It's quite a coincidence to be sure, and greatly increases the chances for some big changes in our economic assumptions such as how risk is assessed and how future earnings are calculated. Jupiter (optimism) and Uranus (risk) have been in close proximity for the past four months and that has been a major reason for the sustained rally from the summer lows. Once Jupiter separates Uranus, the stage will be set for a dissolution of that bullish, confident energy. While it could take place gradually over several weeks, the fact that an eclipse occurs at the same time may increase the likelihood of a sudden shift in sentiment or revision in thinking. January promises to be a very interesting time indeed.

This week will feature a square aspect between Mars and Saturn. Both of these planets are considered natural malefics so that greatly increases the probability of declines. The aspect is closest on Tuesday so perhaps that early to midweek period will be the focus of negativity. The late week period may be somewhat more positive as the Mars-Saturn aspect separates while the Moon conjoins Venus on Thursday and Friday.

Stocks edge higher; lunar eclipse due on Tuesday

Stocks edged higher last week as the Fed reaffirmed its commitment to stimulate the economy by any means necessary. The Dow closed at new highs for the year at 11,491 while the S&P500 finished at 1243. It was much the same result in Mumbai as markets rose almost 2% with the Sensex closing at 19,864 and the Nifty at 5948. While I thought we might see more downside on the Mercury-Mars conjunction early in the week, we can't be overly surprised that markets continue to rally here on the approach of the Jupiter-Uranus conjunction. The midweek aspect between the Sun and Jupiter-Uranus manifested a little early as stocks generally rose through Tuesday. The same was true for gold as it once again traded above $1400 in Tuesday's session before turning lower for the rest of the week.

So the optimism of Jupiter continues to operate in a bullish syncopation with the risk-orientation of Uranus. It is tempting to think the good times will continue all the way to their exact conjunction on January 4 2011. After all, that is in keeping with standard astrological thinking as conjunctions are most strongly felt right at the point of exactitude. But even here it is important to note that conjunctions sometimes do not act exactly as advertised. Some conjunctions peak earlier than expected due to the presence of other factors, while the effect of others last well after they are exact, as we saw with the previous Jupiter-Uranus conjunction on September 15. This not only sparked the rally off the late August bottom, but the rally continued well into November. This was perhaps due to the fact that although past exact, the retrograde motion of both planets meant that they would continue to be in close proximity (less than 3 degrees) to each other for over three months. But once the faster moving Jupiter passes Uranus on January 4, there will be no future conjunctions until 2024. So that is an argument perhaps that the upcoming conjunction may not behave as bullishly as the last one did.

As always, other facts have to be considered. One such factor is the impending eclipse period, which begins with a lunar eclipse on Tuesday, December 21. Eclipses generally occur in pairs and the accompanying solar eclipse is slated for January 4 2011. That is certainly an intriguing coincidence given that this second eclipse will fall on the same day as the Jupiter-Uranus conjunction. Eclipses are generally seen as destabilizing events which can change market direction and upset the status quo. Just as the light of the Sun is blocked or interrupted in a solar eclipse, so are prevailing trends "interrupted" by solar eclipses. That is one reason why earthquakes and volcanoes tend to cluster around eclipse periods -- there is an upset in the Earth's status quo.

Readers may recall that the previous two eclipse series were closely implicated in market reversals. In January 2010, the market topped in the US on January 19, just four days after a solar eclipse, and then tumbled more than 10% over the next three weeks. The solar eclipse followed a preceding lunar eclipse which had occurred on Dec 29. The next eclipse period happened very close to the US market bottom on July 2, as a lunar eclipse occurred on June 26 and this was followed by a solar eclipse on July 11. In light of the tendency of eclipses to reverse trends, there is additional reason to think that the current rally and underlying optimism surrounding the market may be "interrupted" quite soon. The fact that the solar eclipse falls on the same day as the completion of the Jupiter-Uranus conjunction only adds to the likelihood that changes are afoot.

Besides Tuesday's lunar eclipse, this week will see Mercury forming aspects with Uranus and Jupiter. Since all three of these planets are nominally positive energies, there is some reason to expect more upside, presumably earlier in the week when the aspects are closest. After Tuesday, however, the positive effects of these aspects will likely wane and caution may soon move in on the Venus-Saturn aspect later in the week. Sentiment is likely to get even more cautions and perhaps downright tense in the week after Christmas as Mars squares Saturn.

US Stocks drift higher on Jupiter-Uranus; Mercury runs gauntlet this week

Stocks in New York drifted higher last week as favorable economic data supported the belief that the recovery is 'just around the corner'. The Dow was slightly higher at 11,410 while the S&P500 fared somewhat better closing at 1240, its highest level since 2008. Indian stocks were lower, however, as domestic inflation concerns and the outbreak of more financial scandals sent investors to the exits. The BSE Sensex tumbled more than 2% to 19,508 with the Nifty finishing at 5857. Meanwhile, gold fell back below $1400 last week as currency worries were put on the back burner. I had pointed out the probable negative effect of the early week Sun-Saturn aspect and all markets were generally weaker at that time, although Mumbai continued to fall through Thursday, possibly due to natal afflictions. Gold's decline arrived more or less on schedule with this aspect as prices tumbled more than 2%.

As most global markets inch higher here, we may well be seeing the "glass half-full" thinking that comes with Jupiter-Uranus conjunctions. Now that Jupiter is only two degrees away from Uranus, most markets are choosing to not "fight the Fed" and just get on board with all the cheap money Bernanke is injecting into the financial system, regardless of the downstream consequences. Jupiter's confidence and optimism is combining with Uranus' love of excitement and risk-taking to create something of a monster that has lost its sense of caution and fear. Well, it's all fun and games until someone loses an eye. The exuberance of Jupiter with Uranus may be seen as an astrological equivalent of a bubble. Even as more commentators openly question how long this game of musical chairs can go on, the bubble continues to be inflated. When will it pop? One possible answer might lie in the date of its exact conjunction on January 3, 2011. Once conjunctions are exact, they begin to lose energy as the planets separate. This is a general rule of thumb, however, as other influences must also be factored into the overall equation. Certainly, we are getting pretty close to that point where the balloon cannot expand any further without popping.

This week we will see the immediate effects of the bearish quadruple conjunction of Mercury, Mars, Rahu and Pluto. While this alignment has not been very negative in the US, it has had more impact in Asian markets where the negative effects of the inflation of Jupiter-Uranus is in full view. Mercury may be the key planet to watch here as it symbolizes trading and information flows. Now in its retrograde cycle until Dec 30, Mercury will conjoin Mars and Pluto early in the week with its closest pass on Tuesday. Around the same time, however, we will have a more bullish Sun-Jupiter aspect that is likely to boost confidence. Its effects are perhaps more likely to arrive midweek. Gold may be benefited in particular by this Sun-Jupiter aspect. The late week period looks mixed as Mercury suffers from its contact with Rahu on Thursday but the Sun teams up with Uranus which could spark more speculative interest.

Stocks rise on Mercury-Venus

Despite another disappointing US employment report that, stocks rebounded last week as the European debt crisis showed signs of coming under control. In New York, the Dow gained 3% on the week closing at 11,382 while the S&P500 finished at 1224. It was a similar tale in Mumbai as the BSE Sensex rose 4% closing at 19,966 and the Nifty at 5992. Last week, I had noted the unreliability of Monday's Mars-Jupiter aspect. This combination was often bullish due to its symbolism of excessive risk but it seemed less conducive to gains in the current climate. While we saw gains in Asia on this aspect, much of the rest of the world was modestly lower. The midweek pairing of Mercury and Venus delivered gains more or less as expected across the board as Wednesday saw prices climb sharply. The end of the week saw an ebbing of enthusiasm, although it was nowhere near as negative as the aspects would have suggested. The proximity of Mercury with Rahu and the Mars-Uranus square seemed to portend bigger moves than what we got. Since Mercury is slowing down in advance of its retrograde cycle which begins this Friday, some of the confusion and uncertainty from this Mercury-Rahu conjunction could conceivably be protracted over several days.

The world is awash in debt these days with stimulus plans, bailouts, and of course the Fed's QE2 program of quantitative easing. The aim of all these market interventions is to restore confidence, boost demand and economic activity, and avoid losses that would otherwise result if the market was left to its own devices. These are all understandable and commendable actions and yet with each new bailout comes an increased risk of inflation and debt default. Inflation occurs because too much money is being printed relative to the amount of value produced by an economy. In an attempt to restore economic confidence in indebted companies and countries, there is a risk that inflation will devalue fiat currencies and paper money. This is the main reason why the price of gold has been rising, as it once again closed above $1400 last week, and why money has been pouring into stocks of late. With the likelihood of currency debasement down the road -- as this risk-loving Jupiter-Uranus thinking goes -- it makes more sense to be invested in the stock market. But the risk of default is also growing as the amount of outstanding debt continues to mount. As a reflection of this increasing supply of debt, yields on debt are starting to rise all over the world. This is even happening with US Treasuries despite the Fed's buy back program. If bond yields continue to rise, it will begin to set off alarm bells as the debt will become too expensive to service. The danger here is that if yields continue to rise it could start chain reaction of ever-greater borrowing to pay the interest, higher inflation, devalued currency, and ultimately economic collapse. Bailouts are often necessary, but they are not risk-free.

This week begins with Jupiter entering Pisces (actually on Sunday), a Sun-Saturn aspect and a Uranus direct station. Jupiter entering a new sign is usually a bullish indication and it is now just two degrees away from Uranus. While their exact conjunction is still four weeks away, this is background influence is bullish, albeit somewhat diffuse. However, Sun-Saturn aspects usually sap confidence so this is often a difficult influence in the short term. Gold is also susceptible here since the Sun is its planetary significator. With Uranus returning to forward motion this week, there is a greater chance for sudden developments which may change some prevailing trends. When Uranus last changed its direction on July 5, the market had formed an important low just 3 days before. The midweek period features a Venus-Pluto aspect which will eventually blend into a Mercury-Venus aspect by the end of the week. These are usually positive influences. However, Friday's close Mars-Rahu conjunction is not a bullish combination and increases the chances for uncontrolled bursts of energy, irritation and hostility. The formation of the quadruple conjunction of Rahu (distortion, greed), Pluto (power,control), Mercury (communication), and Mars (action, urgency) over the next week or two is an unusual and awkward blending of energies that does not promote stability in either the financial markets or in the geopolitical sphere.

Markets slide under more Rahu-Pluto fallout

Stocks moved lower last week over Eurozone debt worries and geopolitical uncertainty in the Korean peninsula. In New York, the Dow lost about 1% during Thanksgiving week closing at 11,092 while the S&P500 finished at 1189. Indian stocks suffered deeper losses as the housing loan scandal merely added to the headwinds. The Sensex lost more than 2% to 19,136 as the Nifty closed at 5751. The fairly gloomy mood here was more or less in keeping with my expectations for more uncertainty and pessimism from the recent Rahu-Pluto conjunction. The early week was fairly bearish in the US and this roughly correlated with the aftermath of the Mercury-Mars conjunction. The midweek Mercury-Jupiter aspect delivered the goods on time as most world markets rallied strongly on Wednesday's improving job picture. And as expected, the late week saw an increase in caution as the Sun was in aspect to Pluto.

November is thus far shaping up to be quite a negative month as the Rahu-Pluto conjunction continues to dominate the proceedings. Rahu's penchant for narrow self-interest and distortion is expressed through the lens of Pluto's desire for power and control over large scale structures. The circumstances surrounding the EU bailout of Ireland last week perhaps speaks to this influence as the political implications of the proposed austerity package is coming under much scrutiny. While austerity may be necessary to restore confidence of the bond market, more citizens are asking why it is necessary that average people are having to foot the bill for mistakes made by privately-owned banks. In other words, if gains are private, then why are losses socialized? It will be interesting to see how this discourse of fairness plays out as Rahu and Pluto are joined by Mercury and Mars over the coming weeks. I would expect some kind of peaking or resolution of these power-related issues by mid-December.

This week begins with a close square of Mars and Jupiter. Recent experience suggests that the combination of Mars' energy with the optimism of Jupiter tends to increase risk appetite and take prices higher. That may well be the case here, although the general situation seems less favourable than it has been previously. On Tuesday and Wednesday there will be a minor aspect between benefics Mercury and Venus which could boost sentiment, at least temporarily. But the cloud hanging over the market is still the approach of Mercury and Mars to that dangerous Rahu-Pluto combination. Mercury will conjoin Rahu on Friday just as Mars squares Uranus. Since both of these aspects are negative influences, the late week period looks much more uncertain.

QE2 fuels inflation fears; Rahu-Pluto haunts markets

US Stocks were mostly flat last week on offsetting signals from China's bank tightening and Ireland's acceptance of the EU's bailout package. After briefly dipping below the 11K level, the Dow closed at 11,203 while the S&P finished at 1199. Indian shares fared worse as inflationary fears and tighter credit markets in Asia persuaded more investors to take profits. The BSE Sensex closed down 3% at 19,585 while the Nifty ended the week at 5890.

It was an interesting week in astrological terms as Monday's bullish Sun-Jupiter aspect did push up prices in Mumbai but optimism faded around noon in New York. Stocks then began to drift lower in the afternoon and continuing through the day Tuesday and into Wednesday. I had expected some significant downward pressure on prices going into the midweek Mercury-Saturn aspect and that was more or less what happened. As expected, Thursday was higher as risk appetite increased on the Sun-Uranus aspect. I was puzzled about what Friday might bring given the twin direct stations of Venus and Jupiter. While normally bullish, the coincidence of the nasty Mercury-Mars conjunction definitely took the shine off those benefic planets. Mumbai was sharply lower owing to some specific afflictions in the key natal charts while New York ended mostly flat as the early pessimism faded into equanimity.

The Fed continues to come under fire for QE2 and the inflationary pressures it has created in many emerging markets now awash in hot money. This is in keeping with the symbolism of the Rahu-Pluto conjunction that emphasizes the notion of power exercised by large organizations in the service of narrow and greedy self-interest. Not exactly a ringing endorsement of humanity's better impulses, but then again these are two malefic planets that are associated with some of the more base human qualities. While the exact conjunction of Rahu (the North Lunar Node) and Pluto occurred back on November 9, the slow velocity of these planets could mean a lingering influence into December. The quadruple conjunction involving Mercury and Mars in the second week of December may well mark a significant manifestation in this assertive and difficult energy.

This week will begin with the aftermath of the Mercury-Mars conjunction. On the face of it, this is bearish combination although since it is separating, it may not have a lot of negativity left in the tank. By midweek, we could see a rebound in sentiment as Mercury approaches its aspect with bullish Jupiter. This is perhaps not unexpected given the usual positive bias around the US Thanksgiving period. After Mercury loses Jupiter's glow later in the week, there may be a return to uncertainty, especially in Asian markets.

Stocks tumble on Rahu-Pluto; Venus, Jupiter turn direct

Stocks moved lower last week on concerns that China's inflation problem
would force its central bank to raise interest rates and thus choke off
growth. In New York, the Dow closed 2% lower at 11,192 while the
S&P500 finished at 1199. Indian stocks suffered even larger losses as
the Sensex had its worst week since May falling 4% to 20,156 with the
Nifty closing at 6071. This negative outcome was largely in keeping
with expectations as the ongoing Rahu-Pluto conjunction is highlighting
international tensions around trade and currency. The midweek aspect
between Mercury and Rahu seemed to act as a kind of trigger for the slow
moving Rahu and Pluto and this was perhaps exacerbated by the approach
of the stressful Saturn-Mars aspect on Friday.

It is interesting to see how the growing tensions around the Fed's QE2
stimulus plan and the resulting destabilization of world currencies can
be seen through astrological patterns. Rahu (thoughtless self-interest,
greed) and Pluto (power, large organizations) conjoined exactly on
November 9 just as the G20 were about to meet in South Korea to fashion
some kind of an agreement over currency and trade. No agreement was
reached as export-oriented nations continue to be hurt by the
appreciation of their own currencies. The US wants to create jobs as a
lower Dollar will boost exports, but this is bad news for its trading
partners which are seeing a loss of its export markets as its goods
become more expensive. In keeping with the symbolism of greedy Rahu and
assertive Pluto, this appears to be a time where narrow national
self-interest is being laid bare for all to see.

But the upcoming stations of Venus and Jupiter this week offer some kind
of hope for an end to the impasse. Both Venus and Jupiter end their
retrograde cycles on Friday and will resume their normal forward motion
in the sky. Since both are considered naturally benefic (and bullish)
planets, there is some reason to expect some kind of reconciliation or
agreement is possible. Whether such an agreement will be good for
stocks remains to be seen, however, since a coordinated plan to bolster
the US Dollar would likely lessen risk appetite and make stocks less
attractive.

Ahead of Friday's possible trend reversal, there is an unusually dense
mixture of positive and negative aspects this week. Monday will feature
both the completion of the bearish Mars-Saturn aspect and the start of a
supportive Sun-Jupiter aspect. This suggests the possibility of higher
volatility with gains quickly following upon losses. By Wednesday,
Mercury falls under the influence of pessimistic Saturn so that is may
somewhat increase the likelihood of declines. Thursday's Sun-Uranus
aspect may make risk more attractive and thus tend to boost prices. The
week concludes with "The Venus and Jupiter Show". While these planetary
reversals would appear to be bullish, they occur at the same time as
Mercury conjoins Mars. Since Mars is usually a negative influence,
there is still the possibility that things may not proceed according to
plan. So that is something of a wild card influence on the situation.
The end of the week looks interesting to say the least, with an
increased likelihood of a large price move.

Markets cheer QE2 ahead of Rahu-Pluto conjunction

Transits for Monday November 8, 2010

Stocks rose sharply last week as Fed Chair Ben Bernanke announced the much-anticipated QE2 stimulus measures designed to boost the listless US economy. In New York, the Dow rallied to new highs for the year and closed at 11,444 while the S&P500 finished at 1225. Indian stocks likewise took a shine to Bernanke's freshly minted rescue package as the Sensex closed at an all-time high of 21,004 with the Nifty coming in at 6312. I thought we might see more downside on midweek Mars-Ketu aspect but the late week Mercury-Jupiter appears to have trumped all other influences. As a result, Wednesday's weakness was quite mild and didn't last long. Monday's Venus-Pluto aspect produced significant gains in Mumbai while Thursday's Mercury-Jupiter aspect sent stocks soaring. Neither of these up moves was especially surprising, although with Ketu's influence largely invisible here, the market rose overall.

An aspect worth watching this week is the conjunction between Rahu and Pluto which is exact on Tuesday. Rahu symbolizes speculation and greed and is considered a malefic planet. It is also connected with situations that break with the status quo and cause uncertainty. Pluto is also a nominally malefic planet and represents power and control, especially as it pertains to large organizations. It is possible that we could see further rally attempts with this intensification of greed, but it seems like a fairly precarious set up. With the G20 meeting in South Korea this coming weekend, one wonders if some significant changes are afoot. Some member nations have expressed frustration with the Fed's stimulus measures since they are devaluing the US Dollar and thus forcing up the value of their own currencies. This is creating problems by fueling inflation and making their exports more expensive. If there was a major change to the current currency regime, it could throw a wrench into the recent stock market rally since much of it has been driven by a falling US Dollar. The combination of Rahu and Pluto certainty has the power to effect such a change, although its full force may take some time to be released. The early December quadruple conjunction of Mercury, Mars, Rahu and Pluto is perhaps the most obvious potential configuration in that respect.

The week begins with a fleeting Mercury-Venus aspect that may boost sentiment and spur some more buying. By midweek, Mercury will form an alignment with Rahu and Pluto and this may correspond with distorted communication and confusion. These conditions would therefore seem to encourage greater caution and lower prices. At the same time, we can see that Mars is gradually coming under the influence of Saturn's full strength sextile aspect, so this may be another drag on sentiment as we move through the week. This aspect is not exact until next Monday the 15th but it will bear close watching.


"A government that robs Peter to pay Paul can always depend on the support of Paul. "
-- George Bernard Shaw

Markets mostly flat ahead of Fed meeting and Mars-Ketu

US Stocks were mostly flat last week as offsetting economic data was enough to maintain the holding pattern ahead of the midterm elections and this week's crucial Fed meeting. The Dow finished slightly lower at 11,118 while the S&P500 remained stuck at 1183. Indian markets fared somewhat worse as the Sensex closed less than 1% lower at 20,032 and the Nifty at 6017. While I thought the heavy planetary traffic might create a little more movement last week, the outcome was not unexpected. Monday's gain coincided nicely with the Mercury-Venus conjunction, while the midweek Sun-Ketu aspect also fit well with Wednesday's decline, even if prices rebounded somewhat by the close. Thursday was also higher as expected on the Sun-Venus conjunction although most of the gains occurred at the open.

This week could see a significant break from the recent narrow trading range as the Fed meets on Tuesday and Wednesday and will likely announce the scope of its latest round of stimulus measures, so-called QE2. As far as stocks are concerned, bigger is better so any amount of treasury buy backs in excess of $1 Trillion will likely spark some buying. This seems unlikely, however, as Fed bankers have been hinting that QE2 will likely be smaller, perhaps closer to $500 Billion. Since this number has largely been discounted already by the market, it could possibly spark a "sell the news" reaction. Interestingly, the Reserve Bank of India also meets on Tuesday so that will be another important piece of information for the market to consider. The consensus view is for a modest 25 point hike as the RBI tries to tame inflationary pressures.

In astrological terms, the early week has a decent chance for gains as Venus, Mars and Pluto form an alignment on Monday. Tuesday and Wednesday look more uncertain as Mars forms a close aspect with Ketu, the South Lunar Node. Mars-Ketu aspects are very unpredictable and are often connected with fast-changing circumstances. Since these are both considered negative planets, there is a greater likelihood that markets will selloff midweek, perhaps in reaction to either the US midterm elections or the Fed announcement. The possibility of a major reaction to the news is boosted somewhat by the fact that Ketu is involved in a close opposition to Pluto. While this opposition will become exact early next week on Nov 9, some of that energy may be released through this Mars aspect here. The end of the week looks somewhat more stable as Thursday's Mercury-Jupiter brings together two positive planets.

"Doubt is not a pleasant state but certainty is a ridiculous one." -- Voltaire

Markets tread water; Venus meets Ketu this week

Transits for Monday October 25, 2010

Stocks mostly treaded water for another week as positive earnings reports offset the fallout from China's unexpected interest rate hike. In New York, the Dow briefly traded at levels last seen in near its April high before closing at 11,132 while the S&P500 finished at 1183. The Indian market was also mostly unchanged despite growing worries over the fast rising Rupee. After trading below 20,000 midweek, the Sensex ended the week at 20,165 with the Nifty closing at 6066. While I thought we might see more downside towards the end of the week on the Mars-Neptune aspect, prices adhered fairly closely to the storyline described by the key aspects, at least in the US. I had expected some upside from the Sun-Jupiter aspect on Monday and the Mars-Jupiter aspect on Wednesday and we did indeed see broadly based gains on both those days. (In Mumbai, however, the effects from the Mars-Jupiter aspect lagged somewhat as the 2% gain arrived on Thursday.) Tuesday's decline was quite steep and roughly corresponded to the difficult Venus-Saturn aspect, although I did not have an inkling that the selloff would be as large as it was.

As Fed Chair Ben Bernanke continues to promise endless stimulus through the purchasing of US treasuries, market sentiment has remained quite positive. Much of the rally since September has been driven by the assumption of another round of quantitative easing (so-called QE2) which will likely be announced sooner rather than later. With the next Fed meeting slated for November 3, it's worth reflecting on the possible outcomes of any announcements. Ketu (aka the South Lunar Node) will be in aspect with Mars on that day and this may well capture the jittery market mood then. Mars-Ketu combinations are usually found in situations that release a lot of energy in a short time and are sometimes found in accidents, violence, and other unpleasant circumstances. While Mars-Ketu contacts are not always connected with "negative" events, both planets are considered malefic by nature and there could be an urgency there that is incompatible with smooth or routinized behaviour. At very least, we know that trading volumes will likely rise sharply around that time.

This week will see an unusual blending of positive and negative forces as there will be two Venus conjunctions along with a strengthening of Ketu (South Node). Mercury conjoins retrograde Venus on Monday and when these two benefic planets combine there is usually a lift in the mood that accompanies higher prices. At the same time, however, this conjunction will occur in fairly close aspect to Ketu. Ketu can be a disruptive influence which undermines the status quo and generates surprising outcomes. This could either act as a mirror that flips the expected outcome from positive to negative or it may act as a magnifier that actually intensifies positive outcomes. A more clearly problematic set up occurs midweek on the Sun-Ketu aspect as confidence may ebb as government and leadership is called into question. On Thursday, there is a second Venus conjunction, this time with the Sun. This is also usually a favourable alignment of planets that boosts happiness although again, the presence of weird Ketu confuses matters somewhat. If nothing else, the impact of these two Venus conjunctions will probably be exaggerated in either direction, so larger price moves are more likely.

Quote of the week: "Coming events cast their shadows forward." – Goethe

Stocks stay firm after Venus retrograde

US stocks edged higher last week on the hope that the Federal Reserve
would undertake a new round of stimulus measures to revive the flagging
economy. Despite the the deepening of concern over the foreclosure
scandal that implicates many large banks, the Dow closed slightly higher
at 11,062 and the S&P500 finished the week at 1176. It was a somewhat
different story in India, however, as investors took profits on worries
the rising Rupee might undermine exports and outsourcing. The BSE
Sensex lost 1% to close at 20,2125 and the Nifty ended Friday's session
at 6062. This was our first glimpse at the possible effects of the
Venus retrograde period (Oct 7 - Nov 18) and the results were a little
underwhelming. A change in direction in Venus might have corresponded
with the rally coming to an end and prices moving lower. It's harder to
make that argument now since prices have generally drifted higher,
albeit not by much. Last week's Mars aspects on Monday and Friday saw
some weakness, especially in India, although the early week period was
fairly strong. The midweek Venus-Uranus aspect did correlate nicely
with Wednesday's big gain.

This rally that began in September is largely rooted in the assumption
that Ben Bernanke will continue to pump liquidity into the system in
order to stave off a deflationary spiral. With interest rates near
zero, stocks become a very attractive investment, especially as the US
Dollar is on the verge of turning into a Third World currency. This
belief in the power of cheap, risk-free government money to paper over
any economic shortcomings might be linked to the recent Jupiter-Uranus
conjunction that was exact in September. Jupiter symbolizes expansion
and wealth, while Uranus embodies the notion of risk and excitement.
Together, these planets increase the appetite for risk and may well
reflect the market's infatuation with the Fed's intention to "pump it
up", regardless of the consequences. While this conjunction is now
separating and therefore weakening, there seems to be a continued
reservoir of belief in this 'glass as half-full' approach. The
retrograde motion of Venus offered the possibility that the current
approach to shopping, buying and the valuation process may be undergoing
some kind of change or review.

This week has an unusually high number of close aspects involving both
Jupiter and Saturn. On the face of it, it would seem that the optimists
may claim bragging rights as Monday's Sun-Jupiter aspect inclines
towards the bullish camp. Wednesday's Mars-Jupiter aspect appears to
support wise (Jupiter) actions (Mars) and in the past often coincides
with gains. In between these configurations is more of a mixed picture,
however, as Venus is in aspect with Saturn in the midweek and
afterwards. The Mars-Neptune square late on Friday also seems more
negative as actions may lose their focus or be subordinated by hidden or
deceptive means. And with Mars simultaneously in a harmonic aspect with
Saturn here, the late week period could be significantly negative.

"The only principle that does not inhibit progress is: anything goes".
-- Paul Feyerabend

US Stocks rise into Venus retrograde

Despite another bad employment report, stocks moved higher last week on the likelihood of further Fed stimulus measures. The Dow rose 2% on the week to close at 11,006 while the S&P500 finished at 1165. It was a different story in Mumbai as Indian stocks lost 1% as the Sensex ended the week at 20,250 and the Nifty at 6103. Gold also surged to new highs near $1350 as more investors abandoned the US Dollar in favour of safer havens. I thought the early week conjunction between Venus and Mars would generate some skittishness and we did see stocks fall on Monday and into Tuesday in Asia when the aspect was exact. As noted last week, the midweek Sun-Venus aspect also appeared to correlate quite well with the big rise on Tuesday in the US and Wednesday in India. The late week period tilted towards the negative with the approach of Friday's Venus retrograde station. I had wondered if Friday might be significant in some way, either with a major move or perhaps in hindsight through the marking of a high point. For US markets, Friday was quite positive as a key technical resistance level was broken to the upside. Of course, it remains to be seen if this will mark any kind of high point here.

This week we will get our first look at the quality of the six-week Venus retrograde cycle. In addition, the planet Mars will figure prominently in the sky as it forms aspects with the Sun and Mercury. Owing to its often excessive nature, Mars is usually a negative influence so that stacks the deck somewhat towards the negative. A minor Sun-Mars aspect occurs on Monday while the late week features a Mercury-Mars aspect. As a rough rule of thumb, Mercury-Mars aspects are often more damaging. In between these Martian power plays, the midweek aspect between Venus and Uranus may offer some relief, so that could boost sentiment on either Tuesday or Wednesday.

The gold rally is taking on a life of its own over the past month as the US Dollar is being unceremoniously dumped around the world. With the US Federal Reserve promising to stimulate the economy without limit, there is a growing risk of inflation and Dollar devaluation. The growing currency instability is not a positive sign for long term global financial prospects as the falling Dollar is causing severe problems for export-driven economies. The main beneficiary of the falling Dollar has been gold as prices have risen 20% over the summer. In astrological terms, part of the reason for the run-up was likely the Jupiter-Uranus conjunction which encouraged speculative activity. Now that that aspect is losing steam here, we may wonder how much higher gold can go in the short term. Venus may also be relevant to the gold story here since it is symbolic of luxuries. On the face of it, retrograde Venus may not be very good for gold, although the fact that the cycle will take place in the sidereal Libra may lessen the damage that would otherwise be forthcoming.

"People always say that time changes things, but you actually have to change them yourself." -- Andy Warhol

Stocks flat ahead of Venus retrograde; Mars strengthens

Stocks took a breather from their recent rally last week as mixed economic signals lessened the appetite for risk. The Dow Jones Industrial Average ended down slightly for the week at 10,829 while the S&P500 closed at 1146. Indian stocks fared better, however, as they extended their impressive winning streak for another week with the Sensex gaining 2% at 20,445 with the Nifty finishing at 6143. While the US market was more tentative last week, I thought we might get more bearishness on the Saturn-Ketu square aspect. Friday's positive performance across the board also seemed anomalous given the apparently negative Sun-Saturn conjunction that day. Sometimes these aspects act as reversal points rather than simple market correlates although the latter view is somewhat more common. Moreover, the ability of these planets to move sentiment is also contingent on any forthcoming alignments. With the retrograde cycle of Venus beginning on Friday, October 8, we have to wonder if the whole Saturn-for-Jupiter hand off scenario could be forestalled until then.

Not only will we have the beginning of the Venus retrograde cycle this week, but it is important to note that Venus will be in close conjunction with Mars. Given the red planet's reputation for nastiness, this could have a onerous effect on Venusian activities such as spending, buying and enjoying luxuries. Mars is an active energy so it may well increase trade volume here, and there is an unreliable, erratic quality to Mars that could take things off the rails. The combination of these two measurements therefore increases the likelihood of price declines through the week. The Venus-Mars conjunction is exact on Sunday, so that could inflict damage on Monday's market. We can spot a passing Sun-Venus aspect on Tuesday and Wednesday that could inject some optimism in the equation. The late week period will center around the end of the forward motion of Venus on Friday and the commencement of its backward journey through sidereal Libra that lasts until November 18. It's worth noting that the last Venus retrograde cycle occurred at an important reversal in the market in March 2009. At that time, Venus began its retrograde cycle on March 7, just one day after the stock market reached its lowest point in the market meltdown that began in 2008. While these reversals in planetary direction do not always correlate with changes in market directions, they nonetheless increase the likelihood of such a shift in sentiment especially if coming after an established trend has been in a place for a while as we have now.

Friday also has the distinction of a Mercury-Saturn conjunction. As the planet of trading and commerce, Mercury's contacts with pessimistic Saturn often translate into selloffs as news of reduced economic activity may tilt the mood toward caution. Conjunctions are somewhat less negative than other aspects, however, so we will have to see how this plays out. But the fact that it is coming the same day as the Venus retrograde increases the potential for something significant to occur, either at the time or in hindsight.

"One may understand the cosmos, but never the ego; the self is more distant than any star." --G.K. Chesterton

Jupiter boosts stocks; Saturn prepares for Ketu

The September rally took another step higher last week as positive housing and manufacturing data persuaded more investors to buy in. The Dow Jones Industrial Average rose 2% to close at 10,860 while the S&P500 finished at 1148. It was much the same story in Mumbai, as Indian equities continued their torrid pace with the Sensex again reaching the 20,000 plateau for the first time since January 2008. The Sensex closed Friday at 20,045 and the Nifty ended at 6018. Not to be outdone, gold futures touched $1300 an ounce and made a new all-time high. The Jupiter-Uranus conjunction is the gift that keeps on giving as the last weekend's conjunction is still overflowing with sunny optimism and an appetite for risk-taking. The early week gains arrived more or less on schedule as Tuesday's Sun-Jupiter aspect produced the expected gains. On Tuesday, Fed Chair Ben Bernanke reaffirmed his commitment for further stimulus measures to prevent a deflationary spiral from taking hold in the event of further sluggishness in the US economy. While the market had risen into his afternoon announcement, stocks embarked on a modest selloff afterwards and this down trend continued into Thursday. Friday's gains provided further evidence of the strength of Jupiter here despite the fact the conjunction is now separating.

This week offers another opportunity for a change in the trend as Saturn is thrust into the spotlight through its square aspect with Ketu, the South Lunar Node. As the planetary maestro of pessimism, Saturn's relative strength in the sky is an important indicator of where sentiment is tilting. When Saturn is prominent through the formation of significant angles with other planets, then the odds of a decline increase. When Saturn is tucked away into the background, then optimism has a better chance to flourish. The Saturn-Ketu aspect this week combines two clearly negative energies so caution and fear are more likely to manifest. That said, these two slow moving planets sometimes require a third planet to release their karmic payload. On paper, the role of that third planet may well be assumed by the Sun as it conjoins Saturn in sidereal Virgo on Friday. So the end of the week could be significant in terms of marking a trend change. To make things more interesting, Friday will be the first day of October and the first day of the fourth quarter. With the possibility of end of quarter window dressing, the new quarter may kick off with a bang. It will bear close watching.



"Man only likes to count his troubles, but he does not count his joys." -- Fyodor Dostoyevsky

Stocks running on Jupiter; Saturn waits its turn

Stocks moved mostly higher last week as growth prospects in emerging economies lifted sentiment. In New York, the Dow was higher by more than 1% closing at 10,606 while the S&P500 finished at 1125. In Mumbai, the atmosphere was almost euphoric as India continued to attract interest from foreign institutions. The Sensex jumped another 4% to close at 19,594 as the Nifty ended the week at 5884. Gold also made new all-time highs closing near $1280. Market sentiment appears to be flourishing under the protective umbrella of the Jupiter-Uranus conjunction as stocks have rallied off their late August lows. While I expected this pairing would act as a sort of insurance policy against any major declines, its ability to block out most other influences has been a little surprising. What was less surprising, however, was the early week strength that coincided with the Mars-Jupiter aspect. If the market was set to rise, this seemed like the combination to do it. However, we didn't get much negativity afterwards despite more aspect activity involving bearish Saturn.

So when it all this Jupiterian optimism going to end? Next week will offer more clues to that question since we will be in the post-conjunction phase of the Jupiter-Uranus aspect. As a rule of thumb, planetary aspects begin to lose their power only after they are exact and begin to separate. Today, September 18, Jupiter exactly conjoins Uranus. By next week, it will slowly begin to move away from Uranus and thereby begin the process through which its energy begins to fade. Well, that's the theory anyway. There are many exceptions here, but it is nonetheless worth considering. And while Jupiter's optimism may be waning, gloomy Saturn maybe ready to assume a larger role. While the aspects with fast-moving Mercury and Venus did not deliver much in the way of caution, Saturn gets another opportunity to strut its stuff thought its square aspect with Ketu -- aka the South Lunar Node. The aspect is exact on September 27 and is perhaps a more reliably bearish influence since Ketu is considered a malefic planet, just as Saturn is. by contrast, both Mercury and Venus are both considered benefic influences. In this case, then, malefic planet + malefic planet = a very negative result! Just when the effects of this aspect will be felt is a little unclear since these distant, slow moving planets often require triggers from faster moving planets.

This week promises to be quite eventful. Not only will we get our first glimpse of what a post-Jupiter-Uranus world feels like, but the Sun will aspect this conjunction on Monday and Tuesday. On paper, this is a very bullish alignment that ought to increase risk appetite and put investors in a buying mood. At the same time, there is a sense that this aspect could act as a final cherry on top of the this recent run-up, since after this aspect is out of the way, there won't be much else Jupiter can do for an encore. This sense of finality is reinforced since Saturn-Ketu looms just two degrees out of range waiting to assume center stage. To add to the excitement, there is also a tight Venus-Ketu aspect in the early part of the week that may distort buying patterns in some way. Fed Chair Ben Bernanke is due to speak Tuesday, so the fate of the markets may well hinge on his comments. If he offers new stimulus measures to boost the sagging economy, there is a chance for a sudden rally. But with Venus harmed by Ketu's aspect, I wonder how long that buying opportunity may last. Days, hours, or even just minutes? There is an instability here that would seem to incompatible with a durable rally, both in the economy and the stock market. Tuesday should be very interesting indeed. I would not be surprised with any outcome, but I do think the market is quite vulnerable here.

"In practice, randomness is fundamentally incomplete information."
-- Nassim Nicholas Taleb

Stocks rise on Venus-Jupiter; Mercury turns direct this week

Stocks edged higher in the US last week despite government reports indicating the recovery would be slower than expected. After putting in a losing day Tuesday, stocks rebounded and closed slightly higher for the week with the Dow standing at 10,462 and the S&P500 at 1109. In Mumbai, buyers came out in force as the Sensex rose more than 3% before closing at 18,799 while the Nifty finished at 5640. The continued optimism in the market was not surprising given the alignment of Venus, Jupiter and Uranus that was at its closest on Tuesday and Wednesday. Since both Venus and Jupiter are benefic planets, a rise was the most likely outcome here although there were locally unique expressions of this bullish energy. Most of the rise in Indian markets arrived on Monday while the US rallied more strongly on Wednesday. Interestingly, we saw very little evidence later in the week of the approaching aspect between Mercury and Saturn. Normally, this combination would tend to depress sentiment.

As the market mood remains relatively buoyant, we have to look no further than the Jupiter-Uranus conjunction for its source. Once these two planets exactly conjoin on September 18, however, this optimism may begin to wane as Jupiter starts to move away. A weaker and less prominent Jupiter could mean that gains will be harder to come by in the near term. At the same time, bearish Saturn may be strengthening as it is in aspect with both Mercury and Venus this week and then it forms a square aspect with the Moon's Nodes, Rahu and Ketu, on September 27. A stronger Saturn often translates into a falling stock market, although there are some exceptions to that notion. Nonetheless, the simultaneous weakening of Jupiter and strengthening of Saturn would appear to limit the upside here.

This week we have the somewhat unusual phenomenon of two planets reversing their directions with days of each other. Mercury ends its retrograde cycle on Sunday while Pluto ends its retrograde cycle on Tuesday. Reversals in planetary direction can sometimes reflect reversals in market trends, so we should be aware that there is an increased possibility of a change in the prevailing mood. At the same time, aspects are usually more reliable indicators of sentiment, even if their influence may be fairly brief. On that score, we can see a close aspect between Mars, Jupiter and Uranus early in the week (especially Monday) that could mimic some of last week's rise. The difference here, however, is that Mercury is sitting very close to an aspect with Saturn through the whole week. I thought some of this caution might enter the equation last week but it seems we may have to wait until this week. The aspect isn't exact until Wednesday, though, so perhaps the midweek period is a more probable window for it. Later in the week, we get another dose of Saturn as Venus moves into aspect. Even against the backdrop of Jupiter-Uranus optimism, all this Saturn should find a negative expression in the markets sometime this week.

"All money is a matter of belief." --Adam Smith

Stocks rise as Venus enters Libra; Mars follows this week

Some mildly encouraging US economic data made the glass look half-full again last week as investors pushed stocks higher. After early weakness, the Dow gained more than 3% to close at 10,447 while the S&P500 ended the week at 1104. In Mumbai, the Sensex added 1% closing at 18,221 with the Nifty finishing at 5479. In last week's post, I noted how the entry of Venus into sidereal Libra on Wednesday would tend to be positive for the stock market. Venus, the planet of shopping, can more readily deliver its positive energy when in the conducive environment of Libra. Wednesday saw stocks around the world rise with the Dow gaining almost 3% in a single day. It was an intriguing reminder just how neatly these sidereal ingresses can work. Unfortunately, they don't always work this way (alas, astrology is rarely simple), and hence I was tentative about the prospect for gains last week given the range of factors, both positive and negative.

After bouncing off a key support level early on, stocks appear to have embarked on a new up trend as we enter September. The month of August was quite bearish for the market as stocks in the US fell up to 7%. What is interesting here is the correlation with the planet Venus and its transit of sidereal Virgo. It entered Virgo on August 1 and completed its transit of this sign on September 1 when it then entered Libra. As I pointed out in my July 31 update, Venus typically does not do well in Virgo where it is said to be debilitated and this may constrict spending and act as a depressive factor upon stocks. So that's a nice correlation of a very negative outcome (-7%) with a debilitated Venus. Even more provocative is the fact that the market made an interim high within a few days of the entry of Venus into Virgo and it made a low on the last day that Venus was in Virgo. Of course, this is only one data point and can still be written off as coincidence, particularly given the other bearish aspects I have noted through last month. I'm certainly not so blinded by the stars to I can't acknowledge that coincidences do happen, not everything is meaningful and that some things are simply random noise. Still, it's interesting.

We will see the effects of another ingress this week as Mars follows Venus into sidereal Libra on Monday. Whereas Venus is a benefic planet that generally lifts prices, Mars is a malefic planet that should be considered a negative influence. There are a couple of complicating factors here, however, that may undermine the transparency of the effects of Mars. First, US markets are closed for Labor Day Monday, so other markets may be the ones to experience any effects. Second, and more importantly, Venus forms a minor aspect with both Uranus and then Jupiter early in the week. Two out of these three planets are benefics and in such a situation, Uranus often acts as a booster rocket that generates optimism that leads to more buying and rising prices. So these two forces are somewhat at odds with each other -- Monday's Mars ingress and then Tuesday and Wednesday's Venus-Jupiter-Uranus alignment. Perhaps the market will simply take their cues sequentially with weakness evident on Monday but recovery into midweek. Astrology rarely operates to simply, but it may be useful to think heuristically here. Later in the week, Mercury slows down ahead of the culmination of its retrograde cycle on Sunday and will form a fairly close aspect with Saturn. Saturn usually does not blend well with Mercury so this may coincide with greater caution.

In the background, of course, Jupiter is inching closer to its conjunction with Uranus and is now just one degree away. This bullish planetary combination comes exact on September 18 so that will tend to keep any down moves from going too far and may act as a reservoir of optimism in the event of any passing rallies.


"Theory helps us to bear our ignorance of facts." -- George Santayana

Stocks slide on Mercury retrograde; Venus enters Libra this week

Financial markets continued to look shaky last week as poor US housing data provided more evidence that the recovery may have stalled. Despite Friday's post-Bernanke rally, the Dow nonetheless closed down for the week at 10,150 while the S&P500 finished at 1064. Indian markets finally broke their winning streak and moved lower by more than 2% as the Sensex ended Friday's session at 17,998 with the Nifty closing at 5408. This latest weakness in the markets was perhaps a reflection of the Mercury retrograde cycle that began on August 20. Last week, I suggested that Mercury retrograde periods can be an added burden on sentiment which is often incompatible with higher prices. In addition, there were several difficult planetary combinations that would tend increase anxiety and take stocks lower. Interestingly, I had specified Thursday as a possible down day since there were two pairings that did not look favourable that day -- Mercury-Mars and Sun-Saturn. Thursday was lower in Europe and the US but India actually put in a positive performance. This is a reminder that there is always a margin of error in astrology, especially when dealing with global markets separated by many time zones. Sure enough, the Indian market then experienced a stronger selloff one day later on Friday while the US market rebounded after Bernanke's 10 a.m. promise to prevent deflation by any means necessary.

Like most complex knowledge systems, one of astrology's greatest challenges lies in trying to combine a high number of variables into one coherent picture. Nine planets, twelve signs, a dozen different aspects, 27 nakshatras, and so on -- that makes for millions of potential outcomes. And to make matters that much more intricate, there is comparatively little empirical evidence for the likely effects of each of these factors, much less what may happen when they occur simultaneously. This means a lot of astrological forecasting has to rely on deductive thinking from untested assumptions and theories about the potential effects of various planets and their interactions. Given this epistemological minefield, probabilistic thinking is a best case scenario and even that limited approach may come up short more often than we would care to admit.

The current situation is perhaps typical of many planetary setups that can best be described as "mixed". On one hand, the Mercury retrograde period extends to September 12 and may correlate with negative sentiment and repeating what has already been encountered i.e. retracing previous trends whether up or down, but often down. But Jupiter is fast approaching its conjunction with Uranus (exact September 18) and these two planets ought to increase risk taking and optimism for investment. Perhaps the result may be short term moves in both directions that ends in a sideways market.

This week we will get the effects of the second week of Mercury retrograde while Venus enters sidereal Libra on Wednesday. Venus tends to do better in the sign of Libra so we may see a greater focus on spending and the enjoyment of money. From a purely deductive perspective, this should be seen a positive factor for stocks, although it is only one out of many factors. By Friday, the Sun will conjoin Mercury while in close aspect with shadowy Rahu. This is an unusual combination of planets that suggests greater uncertainty and increases the potential for major moves. Rahu (North Lunar Node) is considered a malefic planet by nature, although it can sometimes have the opposite effect when circumstances support it. Given the close proximity of Mars to Venus, and the various Saturn aspects that are still in play, we may not have enough favourable energies to entice a positive result from Rahu. We shall see.


"It is vain to do with more what can be done with fewer." -- William of Occam

US Stocks fall on Venus-Mars; Mercury retrograde begins

US Stocks trended lower last week as more bad jobs numbers suggested the recovery was more talk than reality. The Dow fell about 1% for the week and closed at 10,213 while the S&P500 finished at 1071. As has been the case recently, Indian stocks were able to sidestep most of the trouble as the Sensex closed at two-year highs at 18,401 with the Nifty ended the week at 5530. Considering how many bad planets were in play last week, this outcome actually wasn't too negative. I thought Monday's Mars-Rahu aspect might correspond with more selling but Asia was only down modestly and New York recovered after the open. The midweek gains appeared to fit neatly with the Venus-Rahu aspect as Rahu's devil-may-care attitude loosened the purse strings for Venus. As expected, sentiment turned sour by the end of the week as impressionable Venus kept the bad company of Mars. US and European markets fell sharply after Wednesday while India confined its bearishness to Friday only, the day of the exact Venus-Mars conjunction.

Mercury turned retrograde on Friday afternoon and this is yet a potentially disruptive element to the already dense planetary picture. Mercury's retrograde cycle will last from August 20 to September 12. As the planet of commerce and trading, Mercury naturally figures prominently in financial astrology. When it is afflicted by Saturn, stocks generally fall. When it is in aspect with benefics like Jupiter and Venus, stocks usually rise. When it changes its direction and begins to move backward from our perspective on Earth, sentiment often undergoes a shift. This is perhaps less reliable as an indicator of market direction and is better understood as a background influence. Astrological lore says that new business is best avoided during Mercury's retrograde periods, since its outcome will often be unexpected and unwanted. That is why astrologers usually recommend going back over old business to tie up any loose ends, or review already existing work. It's generally sensible advice in any event, but in market terms it can sometimes mean that the market will go over or "retrace" over previous territory. For example, if the market has been rising, then it may go lower in order to revisit its previous levels. In my experience, Mercury retrograde cycles are much less reliable than aspects for predicting outcomes. That said, we ignore Mercury's condition at our peril since it is such a crucial planet for business and commerce. And I would note that the previous correction during April and May corresponded fairly well to the Mercury retrograde cycle of April 18 - May 12. Again, nothing is ever perfect in astrology (or in life for that matter), but there does seem to be something there worth paying attention to.

So the retrograde Mercury cycle adds another burden to the markets this week. The Sun forms a minor aspect with Mars on Monday that could generate an unproductive level of energy that could be too much for the market. Some positive aspects are available going into midweek, however, so short-lived gains may still occur. The Sun aspects Jupiter on Tuesday, as does Mercury and Venus. These could well carry over into Wednesday. Later in the week, the picture appears to darken as Mercury teams up with irascible Mars (esp Thurs) while the Sun tries to make nice with pessimistic Saturn.

"A jug fills drop by drop." -- Buddha

Dow slides with weak Venus; Jupiter-Saturn this week

Stocks slumped on most world markets last week amidst growing fears of a double dip recession in the US. The Dow broke below key technical support levels to close more than 3% lower at 10,303 and the S&P ended the week at 1079. Indian stocks resisted the down trend as the Sensex closed slightly higher for the week at 18,167 with the Nifty at 5452. This negative turn certainly comes as no surprise as I had noted the weakened condition of Venus in Virgo caught between a rock and hard place, aka the malefics Mars and Saturn. Fed Chair Ben Bernanke also dutifully played out his cosmic role as he announced further stimulus measures to kick start the sagging economy. The early week alignment between Venus, Jupiter and Pluto signaled some kind of need for increased spending, regardless of the consequences. Indeed, Monday's gains more or less corresponded with the Venus-Jupiter aspect while things began to unravel shortly after the aspect had passed.

So it seems that there are growing signs that the current skein of planetary aspects may finally be exerting some effects here. There is a sense that the economy isn't right and is not on the path to recovery anytime soon. More observers are noting the inability or unwillingness for government to address economic problems head-on. Europe's problems also appear poised to return to the front burner here as bond yields are once again rising for peripheral countries such as Greece and Spain. This is an indication that sovereign debt loads may becoming too large for most market participants to accept.

This week continues the parade of potentially notable aspects. Saturn exactly opposes Jupiter on Monday. This confrontational meeting between the celestial bearers of optimism and pessimism often corresponds to significant market moves. The last time they were in aspect in May, the market was in a serious down trend. Of course, the usual caveats apply. Like economics, astrology lacks infallible axiomatic knowledge and instead takes note of probabilities and tendencies, both empirical and symbolic. So what we do know is that Jupiter-Saturn aspects is an energy that does not necessarily favor expansion or risk taking. The early week period has the added feature of a tight square aspect between Mars and Rahu (North Lunar Node) that often represents a sudden or powerful release of force or energy. When it occurs alongside other tense patterns, it is often associated with negative situations and suggests higher volatility and sudden moves. Later in the week, Venus will finally catch up to Mars as they will conjoin near Friday's close of trading in New York A strong Venus often coincides with buying and gains, but when it comes in contact with malefics like Mars, its harmonious nature is compromised. Since Venus is already in a weakened state due to its transit of Virgo, this seems to be another negative astrological input.

"Prediction is very difficult, especially if it's about the future." -- Niels Bohr

Lingering Jupiter-Pluto holds up stocks; Venus keeping bad company this week

Neither Mars nor Saturn could stop the melt up last week as stocks extended their rally on more better-than-bad economic data. In New York, stocks climbed another 2% with the Dow closing at 10,653 and the S&P at 1121. In Mumbai, the Sensex again traded near its highs for the year, closing at 18,143 as the Nifty finished the week at 5439. Despite the plethora of apparently troublesome aspects in the sky, financial markets are holding there own here. In the past two weeks, we've seen the often negative influences of Saturn-Uranus and Mars-Saturn come and go with barely any reaction from the markets. Does this negate the notion of any major financial problems from this rare alignment of outer planets? Or more to the point, should we simply dispense with all this astrology nonsense altogether and get with the program?

While I'm hopelessly biased, I would say "no" to both suggestions. Last week, I suggested that the bullish effects of Jupiter may be tested this week given the Mars-Saturn conjunction and the entry of Venus into sidereal Virgo. While Jupiter is separating from its positive aspect with Pluto and hence losing energy, this is a slow process since the separation is taking place at a rate of just one arc minute per day. Clearly, there is still a fair bit of Jupiter's optimism lingering here. And there is another complicating factor. This huge traffic jam of planets has blurred the immediate effects of individual planets and aspects. The Mars-Saturn-Uranus alignment on July 31 might typically generate more instability and fear but in the present circumstance, Jupiter is just a few degrees away from Uranus. Since it is a calming and edifying influence, Jupiter's close proximity may have delayed or transformed some of the the nastiness contained in the various Saturn aspects. In this case, I wonder if we will have to wait for Jupiter's opposition aspect with Saturn on August 16 to see just what kind of karma this unusual and monumental alignment is packing.

While the entry of Venus in sidereal Virgo did not spell any trouble early in the week, the midweek Mars-Jupiter aspect did correspond fairly closely with continued enthusiasm for stocks. Dips were bought, and prices generally stayed firm through Wednesday. The later week action also seemed to find a celestial correlate as the more bearish Mercury-Rahu aspect may have produced some modest declines in both New York and Mumbai.

This week we will see Venus aspect Jupiter-Pluto on Monday and into Tuesday. Any transits to this powerful Jupiter-Pluto aspect have closely coincided with gains so that seems a likely outcome here. It's especially interesting that this aspect will roughly concide with the FOMC meeting on Tuesday where Fed Chair Ben Bernanke will update his assessment of the US economy. There is some speculation that he might announce new stimulus measures to jump start a flagging recovery. This combination of planets would tend to support that notion since together they symbolize spending and expansionary thinking. On a more cautionary note, however, Venus will be further weakened this week. Not only is it debilitated in its transit of Virgo, but now it will be "hemmed in" between malefics Mars and Saturn. This makes it that much more unable to deliver its positive blessings. Later in the week, Venus will move very close to Mars, just as Mars forms an aspect with Rahu. This is an unfortunate combination of planets that will upset confidence and reduce comfort levels with the status quo. Neither contact is exact until next week, but this may not be the best time to split hairs.

"Doubt grows with knowledge." -- Johann Wolfgang von Goethe

Stocks slip after Saturn-Uranus aspect; Venus enters Virgo this week

Stocks took a breather last week from their July rally as the flow of upbeat economic news was countered by more signs the economy is slowing as US GDP numbers missed estimates. Despite some gains early in the week, the Dow relented and ended mostly flat closing at 10,465 with the S&P leveling off at 1101. Indian stocks eased off their recent highs as the Sensex fell more than 1% to close at 17,868 and the Nifty finished at 5367. The inability of stocks to push higher here was not surprising given the apparent passing of the baton from Jupiter to Saturn. Last week, I noted how the Saturn-Uranus opposition on Monday April 26 may mark a shift in the overall planetary energy. After all, the previous market top had occurred on April 26 and coincided with another Saturn-Uranus opposition. Did this phenomenon repeat its uncanny delimiting of the end of a rally and initiating a new, more negative phase? As always, time will tell, but last week's action has so far conformed to this expectation since the interim highs were put in within just one trading day of that aspect -- Friday in Mumbai and Tuesday in New York. Prices largely retreated afterwards as New York failed to push above key technical resistance levels.

So now we've had Saturn stare down Uranus. Now what? Has Jupiter really run out of gas and is no longer in a position to produce optimism that can push prices higher? Jupiter's proximity to Uranus is one important factor that could help support prices in the wake of the Saturn-Uranus opposition. And yet since Pluto is also now increasingly in the mix, there may simply be too much stressful energy available that would be conducive to buying. The problem for the markets is that Jupiter's aspect with Pluto is now separating and therefore it is losing energy. Since this was one of the engines of the July rally, this could be a worrisome development. And now Saturn appears to dominate the list of major aspects for the next few weeks. Mars conjoins Saturn today (July 31) and then Venus conjoins Saturn on August 8, Saturn opposes Jupiter on August 16 and Saturn squares Pluto on August 21. That's a lot of Saturn and given the high number of hard aspects involved in the near term, it seems unlikely the markets will be able to proceed in an orderly, predictable and especially positive way. Large swings may be more likely as a result of these aspects with the caution increasingly becoming the lowest common denominator.

Venus enters sidereal Virgo this week so that is another brick in the wall of worry that the market has to contend with. Venus is debilitated in Virgo so its usual free spending, happy-go-lucky self cannot fully express itself when it transits this sign. The presence of malefics Mars and Saturn in Virgo only compounds this problem and could well make spending and risk taking more problematic. As an added twist, Venus is coming up to its retrograde cycle that begins in October, so it is slowing down now. This means it will spend more time in its weakened state in Virgo and will transit in a close conjunction with Mars for several weeks. While this ongoing Venus-Mars combination may be suitable for courtship and athletic endeavours, it seems less favourable for investing. Mars aligns with the Jupiter-Pluto aspect midweek so that may spark some impulse buying although it is likely to be misconceived in some way and ultimately wasteful. Later in the week, Mercury is aspected by shadowy Rahu so that is likely to disrupt communication and normal patterns of commerce and trading.


"On the road from the City of Skepticism, I had to pass through the Valley of Ambiguity." -- Adam Smith

Stocks rise as Jupiter turns retrograde; Saturn-Uranus this week

Stocks climbed another rung up the ladder last week as positive earnings news persuaded more buyers to allay their fears and enter the fray. By the time all was said and done, the Dow gained more than 3% to close at 10,424 while the S&P finished at 1102. Sentiment was similarly bullish in Mumbai as the Sensex hit a new high for the year before closing at 18,130. The Nifty ended the week at 5449. This positive outcome was unsurprising given the twin influences of Jupiter and Venus last week. Jupiter's tight aspect with Pluto is still dominating the sky, all the more so perhaps because it stationed and began its retrograde cycle on Friday. And as expected, the midweek Venus-Rahu aspect roughly corresponded with higher prices as Venus (money, consumption) was teamed up with speculative Rahu (desires).

Now we're in the thick of the planetary jungle. There are an unusually high number of close planetary aspects this week which may correspond to new directions and solutions, as well as contributing to a more intense atmosphere. Jupiter's optimism appears to be receding into the underbrush here since it has embarked on its retrograde journey on July 23. Saturn will oppose Uranus on Monday, so this may signal a new dynamic or pattern into the marketplace. Their previous opposition aspect occurred on April 26 and coincided exactly with the top of the US market for 2010. To make things even more interesting, there is an alignment between Mercury (commerce), Mars (action), and Neptune (imagination, deception). This trio does not seem especially conducive for more risk taking. In fact, it may coincide with some kind of disappointment, perhaps from a plan that goes wrong. Mars is set to conjoin Saturn on Saturday July 31 so that is another potentially powerful combination of malefic energies that bears careful scrutiny. We may be on the cusp of something fairly important here, and not just for the markets.

Finally, I should note that the current planetary configuration conforms to a bearish pattern isolated in the research of Thomas Rieder in his book, Astrological Warnings and the Stock Market. Using the historical price record of US stocks, Rieder showed that if Mars was in conjunction to a slow moving outer planet (Jupiter on out) while in hard aspect (90 and 180 degrees) to one other outer planet, stocks would then fall significantly about 70% of the time. Here we have Mars conjunct Saturn while in opposition to Uranus and Jupiter and square to Pluto. Rieder's model only required one aspected planet, but we currently have three. It's hard to say if that increases the likelihood or the scope of the expected decline.

"Always first draw fresh breath after outbursts of vanity and complacency." -- Franz Kafka

Venus charms markets; Mars enters Virgo this week

After a promising start to the week, disappointing Q2 earnings from heavyweights like Google and Bank of America pushed stocks lower by Friday's close. The Dow closed down 1% for the week at 10,097 while the S&P finished at 1064. The story was somewhat better in Mumbai as Indian stocks continued to defy gravity hitting new highs for the year midweek. The Sensex ended Friday up almost 1% at 17,955 with the Nifty closing at 5393. As expected, Venus came through for investors in the earlier part of the week as its minor aspect with the Jupiter-Pluto aspect focused some positive energy that boosted sentiment. We saw gains accrue on most global markets into Wednesday when luxurious Venus was forming a close angle with optimistic Jupiter -- a very sweet combination indeed. Once Venus took her leave, doubts about the recovery returned as bad earnings reports and consumer numbers put a damper on the bulls' glee club. Last week I noted that the entry of the Sun into sidereal Cancer on Friday might "introduce a new dynamic into the mix". Did it ever! After previously topping out around 10,400 midweek, the Dow plunged almost 3% on Friday.

We're currently residing in a sort of planetary antechamber now awaiting the main event to unfold at the end of July. Jupiter begins its retrograde cycle on July 23, then it forms its exact square aspect with Pluto on July 25, while Saturn opposes Uranus for the last time on July 26 and Mars conjoins Saturn on July 31. Planetary calendars don't get much busier than that.

This week Mars enters sidereal Virgo on Tuesday ahead of its conjunction with Saturn. As we saw with the Sun's ingress into Cancer last week, sign changes can bring about significant market developments. Mars is a malefic planet and its surplus of energy can sometimes correspond with urgent or sudden situations that require quick reactions. The emphasis here is on action, so we could see increased volatility early in the week. Virgo is a sign that is associated with analysis and logical systems so the simultaneous occupation of this sign by Mars and Saturn suggests that rational adherence to formal knowledge systems may suffer increased stress in the days and weeks ahead. (N.B. Mars will remain in Virgo until September 6 while slow moving Saturn loiters for a full two years.) We can also spot a close aspect between Venus and unpredictable Rahu going into midweek that might increase speculative activity. Rahu is often a negative influence on stocks due to increased uncertainty but its combination with Venus, the eternal shopper, could convince some people to buy something they don't really want or need.

"Life is a school of probability." -- Walter Bagehot

Stocks rise after Uranus station; Jupiter-Pluto this week

Stocks rebounded worldwide last week as we got a let up in the stream of bad economic data and investors went bargain hunting. In New York, the Dow gained more than 5% before closing at 10,197 and the S&P finished the week at 1077. In Mumbai, gains were somewhat more muted as the Sensex climbed 2% to close at 17,833 and the Nifty ended Friday at 5352. Last week, I had written about the potential for "reversals of fortune" and "changes in plan" around the Uranus retrograde station on July 5 and the Solar Eclipse on July 11. As it happened, the recent losing streak may have come to a temporary halt around the 5th and the Uranus station as most markets bounced higher after the long holiday weekend in the US.

Now that Uranus is moving backward it is approaching its final opposition aspect with Saturn due for July 26. While it is possible we could see some negative fallout from this aspect ahead of that date, recent evidence would tend to suggest that stresses and disruptions arising from this clash are more likely to appear after the aspect is exact, i.e after July 26. The rise in prices in the wake of this Uranus station is perhaps testimony to its inherent symbolism towards freedom, independence and risk taking. A stronger Uranus will therefore often translate into higher stock prices since risk will feel more appropriate to the investment community. This prevailing sentiment may shift once Uranus again encounters the full force of Saturn's conservative and pessimistic nature in late July.

In the meantime, we can spot another intriguing pairing of slower moving planets in the square aspect between Jupiter and Pluto. Due to Jupiter's slower than normal motion in the month ahead of its retrograde station on July 23, this aspect seems to offer some help to investors since Jupiter's optimism is connected with Pluto's drive for power and large organizations. Perhaps we see significant attempts to solve major financial challenges facing the economy in the coming weeks. And yet given the backdrop of the Saturn-Uranus aspect, one wonders how successful such efforts might be.

Of particular note this week is an early week alignment between Venus, the planet of happiness, and the Jupiter-Pluto square. While Pluto is often malefic, this meeting involving two benefics tilts the scales towards the positive. The Sun enters sidereal Cancer late in the week so that may introduce a new dynamic into the mix.

Chaos is inherent in all compounded things. Strive on for diligence. -- Buddha