Jupiter-Rahu fuels inflation and speculation

US Stocks rose last week as investors cheered Fed Chair Ben Bernanke's restated commitment to the zero interest rate policy for the foreseeable future. In New York, the Dow gained more than 2%
closing at 12,810 while the S&P500 finished at 1363. Bernanke's comments also prompted gains in inflation hedges as such gold, silver and oil. It was a different story in India's already inflation-ravaged economy as the Sensex lost more than 2% closing at 19,135 while the Nifty ended the week at 5749.

As expected, we did see some decline on Monday's Mercury-Saturn opposition aspect. The US market rebounded after that as the bullish Sun-Venus-Pluto pattern coincided with gains that lasted for the rest of the week. The gains were largely a response to the pro-inflationary stance of the Fed, as most asset classes gained ground against a falling dollar. The Indian market fared less well, however, since the Fed policy would likely increase inflationary pressures that are already threatening the domestic economy. Interestingly, Friday's gains in crude and gold coincided with the Moon's entry into sidereal Pisces. I suggested last week that this transit might well coincide with gains in crude as it would enhance the strength of the five planets (Uranus, Mars, Mercury, Venus, Jupiter) that already occupy this constellation.

The recent gains in most asset classes is very much in keeping with the speculative nature of the approaching Jupiter-Rahu aspect. Jupiter's tendency towards expansion and growth is exaggerated by Rahu's penchant for distortion and disruption. The combination of these influences can result in greed and speculative excess that are commonly found in bubbles and manias. It is therefore no surprise that we see gold reaching new all-time highs every week and silver going parabolic. One of the features of Rahu, however, is that while it can generate gains, these are often unsustainable in the long term. Once the Jupiter-Rahu aspect begins to separate on May 7 (or May 13 depending on which measurement of Rahu/NN one uses), we will need to watch for signs of a trend reversal. There is an increased likelihood that this aspect may bring about changes in the financial landscape. Nothing is guaranteed obviously, but it is a combination that has the power to change the status quo.

This week begins with a potentially tricky aspect between Mars and Rahu. Since Mars is also entering sidereal Aries on Tuesday, this could increase the probability of some downside in the early week. This may be strong enough to manifest in most markets. But we could see a return to the pro-inflation bullishness after that, as the approaching conjunction between Venus and Mercury is likely to bring some gains into midweek, and perhaps later. Friday looks somewhat less positive, however, as the Moon conjoins Ketu/SN.

Stocks rise with Sun-Venus; more gains possible this week with Pluto

Stocks rebounded across the board last week as positive corporate earnings offset Monday's surprise US debt warning. In New York, the Dow climbed more than 1% closing at 12,505 while the S&P500 finished at 1337. In Mumbai, the indices also recovered after Monday's decline as the BSE-Sensex added about 1% on the week closing at 19,626. After trading as low as 5725 early in the week, the Nifty ended the week at 5884. With the further weakness in the US Dollar, gold hit new all-time highs last week trading above $1500 and crude oil futures once again moved above $110.

This outcome was more or less in line with expectations as the Mercury-Mars-Saturn alignment on Monday and Tuesday was likely to induce more selling. Monday was lower but the market generally reversed higher by Tuesday resulting in perhaps a somewhat abbreviated negative influence from these planets. The midweek gains correlated quite closely with the bullish Sun-Venus-Neptune pattern as investors pushed up prices through to the end of the week.

One wonders how long Bernanke will let the Dollar fall. While a low Dollar helps to make exports cheaper and boosts job growth, all that imported oil the US relies upon for its energy needs is becoming a burden on the economy. $5 a gallon gasoline is going to reduce discretionary consumer spending and this will tend to reduce economic growth. Eventually, something will have to give. Either the Fed defends the Dollar and lets the stock market fall, or the Dollar is permitted to devalue indefinitely which will drive up inflation and reduce growth. Jupiter moves into alignment with Rahu in early May so that may well reflect some changes (Rahu) in growth outlook (Jupiter).

This week begins in the immediate aftermath of a Mercury-Saturn opposition. Mercury actually turns direct on Saturday, but it will still be just one degree from its exact aspect from bearish Saturn. So it is possible this could be a drag on sentiment, especially in Indian markets. But more upside looks fairly likely going into midweek as the Sun and Venus will align with Pluto. This is likely to boost most asset classes. The end of the week is somewhat fuzzier, however. Stocks may be more mixed, with oil perhaps more likely to rise as the Moon enters watery Pisces on Friday.

Stocks drift lower; Mercury-Mars-Saturn this week

Stocks edged lower last week as inflation fears and unimpressive corporate earnings weighed on markets. In New York, the Dow rallied late in the week but still ended lower closing at 12,341 while the S&P500 finished at 1319. In Mumbai, the Sensex reversed after Wednesday's gain and closed lower at 19,386 while the Nifty finished at 5824. I thought we might see more early week upside on the Mercury-Jupiter conjunction but we only saw some gains arrive on Wednesday. Friday's Sun-Rahu aspect was more of a toss-up and this coincided with a decline in India, although the US market continued to rise.

Inflation remains an ongoing concern here as oil and gold are both seen as hedges against rising prices and a falling US Dollar. Both phenomena are at least partially due to the Fed's QE2 policy which comes to an end on June 30. The debate now is whether the economy and the market are strong enough to stand on their own two feet once this policy ends. While the jury is out on that question, it does seem reasonable to assume that once the injection of Fed cash ends, there will be less inflationary pressure around the world. This will tend to moderate or lower asset prices including stocks, oil and gold. However, it seems unlikely that prices will simply begin to fall the day after QE2 ends. Markets typically don't work that way. It seems more likely that we could get some adjustment in asset prices before the end of the Fed's buy back program. We have seen some correction already, especially in emerging markets like India, although oil and gold are still riding high. As Jupiter approaches its aspect with Rahu in early May we could see a new dynamic enter the market. Rahu tends to disrupt the status quo so its association with Jupiter (wealth, finances, growth) may interrupt the prevailing trend. Rahu can also symbolize speculation and greed, so it's possible that some markets will continue to rise until the aspect is exact.

This week begins with a difficult alignment of Mercury, Mars and Saturn. Mars opposes Saturn on Monday while Mars conjoins Mercury on Tuesday. Since the bearish planets (Mars, Saturn) outnumber bullish Mercury, there is a greater likelihood of declines this week, especially in the early going. The late week period offers somewhat more positive outcomes as the Sun and Venus form aspects to Neptune.

Stocks flat on Sun-Jupiter; Mercury-Jupiter upcoming

Stocks were mostly unchanged last week as optimism from improved corporate earnings was offset by concern over rising oil prices and the stalemate in Libya. After pushing to new highs for the year midweek, the Dow settled at 12,380 while the S&P500 finished at 1328. It was a similar story in Mumbai as Indian stocks pushed higher early in the week only to lose the momentum by week's end. The BSE-Sensex closed at 19,451 with the Nifty ending at 5842.

This flat result was not wholly unexpected as I noted we would see both positive and negative aspects in play. The cluster of planets in the Sun-Jupiter-Saturn alignment made outcomes more difficult to predict. US markets peaked with Wednesday's Sun-Jupiter conjunction while India peaked Monday, albeit with some intraday rally attempts in midweek that failed to hold. (Wednesday actually marked the intraweek high.) I thought we might see more downside early on around the Mars-Uranus conjunction but aspect passed uneventfully. It is interesting to note that many world markets made some significant highs last week around this alignment. In the case of the Dow, it made a new high for 2011 while India's Sensex pushed to a new high in this post-correction rebound. Whether these highs will hold for any length of time remains to be seen, but given the importance of the planets involved in this alignment, it adds just a little more evidence to the bearish view that more downside may be around the corner. Market reversals will sometimes occur near multi-planet alignments not unlike what we saw last week.

This week begins with a conjunction of Mercury and Jupiter. Since both planets are considered positive influences, the most likely outcome is a rise. The conjunction is exact on Monday, although it is possible that the positive influence may not be felt until the Moon enters Cancer on Tuesday and Wednesday. The Moon may be strengthened by the aspect it receives from Jupiter at this time. Indian markets are closed Tuesday and Thursday, so that may complicate matters somewhat. The Sun leaves the friendly confines of sidereal Pisces late Wednesday and enters Aries. The Sun's transit of Pisces (March 15 - April 13) has been quite beneficial for the market this time around due to the presence of Jupiter, Mercury and Mars in Pisces. This has created a hub of positive energy which has correlated fairly closely with rising prices. Once the Sun enters Aries, some of this positive influence may be lost.

The other thing worth noting is that the Sun will also be in aspect with Rahu (North Lunar Node) at the end of the week. Rahu is a more unpredictable planet so this aspect may increase the likelihood of declines. While gains are still possible under this combination, it is not a reliably bullish factor.

Stocks rise with Venus; Sun joins Jupiter-Saturn

Stocks extended their rebound last week as investors chose to look beyond the Middle East and focus on improving growth prospects. In New York, the Dow was up over 1% closing at 12,376 while the S&P500 finished the week at 1332. While we did see some early week declines around the Mars-Ketu aspect, the pullback was most modest than expected. The midweek Moon-Venus conjunction also corresponded fairly well with the midweek gains. Investors were even more upbeat in India as the Sensex rose 3% closing at 19,420 and the Nifty ending the week at 5826. There was no downside at all in the early week, however, as the Mars-Ketu aspect failed to correlate with any selling.

While most markets have rallied back from recent lows, stocks still appear to be trapped in a corrective phase, especially in emerging markets such as India. This is broadly in keeping with the bearish influence of the Jupiter-Saturn opposition. As this influence is now gradually weakening, the next major aspect on the horizon is the Jupiter-Rahu aspect in early May. If Jupiter symbolizes optimism and growth, Rahu is associated with distortions and excessive acquisitiveness. Rahu (North Lunar Node) is considered a natural malefic that can cause problems of indulgence and excess, such as in speculation. While it is sometimes linked to an expansion, this is often unstable and is subject to sudden collapse. Often, the influence of Rahu brings negative consequences. In February 2009, Jupiter conjoined Rahu in Capricorn just as stocks were falling rapidly toward their eventual low in early March. While other factors no doubt also played a role in that decline -- the tight Saturn-Uranus opposition quickly comes to mind -- the close proximity of Jupiter to Rahu is noteworthy. We will have an roughly analogous situation in early May so that warrants close observation.

This week will see the Sun act as a potential triggering planet to the Jupiter-Saturn aspect as it aspects Saturn on Monday and then conjoins Jupiter on Wednesday. In addition, Mars conjoins Uranus on Sunday/Monday so that may increase energy levels and trading volumes. It also may make the early week period more susceptible to declines. The close alignment of the Sun, Jupiter, and Saturn makes the timing of the effects of specific aspects somewhat more uncertain, however. Nonetheless, the second half of the week would therefore be more positive given the Sun-Jupiter conjunction and the approach of the Sun towards retrograde Mercury.