Apple falls 10% after earnings

Investors continued to see the glass as half-full last week as stocks climbed for their fourth straight week.   US stocks pushed to their highest level since 2007 as the Dow rose 1% to 13,896.   Indian stocks were only marginally higher, however, as the Sensex added 70 points closing at 20,103.  The week unfolded more or less as expected as the two Jupiter aspects did coincide with some upside at the beginning and end of the week.  The midweek Mars-Rahu aspect coincided with some weakness, although this manifested more clearly in Mumbai than in New York. 

One highlight last week was the release of the fourth quarter earnings from Apple.  While the tech giant reported record earnings, the sales were not quite was the market was hoping for and forward guidance was more cautious.  Apple stock plunged 10% on Thursday as a result.  Apple has lost more 30% of its value since its high of $702 on September 21 the day of the release of the long-awaited iPhone 5.   It has been in a sharp down trend ever since and now stands at $440.
 

We can see how these recent moves in Apple may have coincided with planetary patterns in the sky.  Using the IPO of Apple (12 December 1980), we can see that the all-time high occurred when the chart was largely free from affliction and reflected considerable strength.  Jupiter was transiting the benefic 5th house in Taurus and therefore aspected most of the planets in the chart at once -- the Sun, Mercury, Neptune in Scorpio, Jupiter and Saturn in Virgo and the Moon and Ketu in Capricorn in the Ascendant.  While none of the Jupiter aspects are super close, there was likely a cumulative effect of having so many key points in a chart under the influence of benefic Jupiter, the planet of optimism and expansion.   In addition, we can see that Rahu, the North Lunar Node, was exactly conjunct Uranus, the planet of sudden change and exuberance.  Uranus is well placed in the 11th house of gains so the Rahu effect would likely have allowed optimism to get carried away.  Rahu's influence is sometimes difficult to predict since it can make a good chart better and a bad chart worse.  In that sense, Rahu tends to magnify the prevailing effects in a horoscope.  Since this all-time chart was so overwhelmingly positive, it is not surprising that we should see Rahu acting a kind of catalyst and amplifier for Uranus in the house of gains and income.



Fast forward four months to the present and we can see what has changed.  Jupiter is still in Taurus but it has moved back to 12 degrees.  It is therefore forming a wider aspect with the key planets of the Sun and Moon and hence its positive effects would be somewhat lessened in this position.   And we can see that transiting Rahu has moved a few degrees and is now closely conjunct Venus.  Rahu is famous for its short-lived benefits and this definitely seems to be the case here.  Its conjunction with Rahu brought sudden riches but now it is expressing its more negative side with Venus.  The natal Venus-Uranus conjunction therefore is acting reciprocally as one would expect:  Uranus absorbed all of the positive energy away of Venus so now there isn't much left for the Rahu conjunction.   But the biggest difference here is that Saturn is about to station at 17 degrees of Libra in February.  This forms close aspects with Mercury and the nodes, Rahu and Ketu.   The Saturn station is very powerful and its 30 degree aspect with Mercury is just a few minutes from exact and hence very strong.  Mercury is therefore highly afflicted by Saturn, even if the aspect is not considered full strength by Vedic rules.  We can also see other afflictions in the mix on the day that Apple stock fell sharply.  Mars was square Rahu that day and it picked up the natal Venus almost exactly.   Transiting Venus was in the 12th house of loss just past its conjunction with malefic Mars. 

It is unclear when Apple can rebound from the current decline.  Saturn will remain in a powerful aspect with Mercury and natal Rahu for several more weeks so that could depress the stock further.  Over time,  Jupiter will again aspect all those of planets and hence it may improve sentiment over the next few months perhaps peaking in May.  After that, the next Saturn station in July could coincide with another move lower since it will form partial but exact aspects with both the Sun and Moon.   It is quite possible that Apple may hit new lows for the year at that time.

Looking ahead to this week in the markets, there are a range of short term aspects that could move sentiment.  The entry of Venus into Capricorn on Monday is a reasonably bullish influence for the early part of the week.  However, Wednesday's Sun-Saturn aspect and Friday's Mercury-Rahu aspect do not look favourable.  Even though Jupiter comes to a dead stop on Wednesday and should therefore have more upside to bestow upon investors, these bearish aspects may put a dent in the recent rally.

 


 

US Stocks rise on good earnings

Stocks rose in the US last week on positive earnings outlooks and more favourable economic data.  The Dow climbed less than 1% closing at 13,488.    Indian stocks dipped a bit as the Sensex finished the week at 19,663. The week unfolded more or less as expected as the early week Mars-Saturn aspect coincided closely with losses, although they were fairly modest.  Gains were more forthcoming later in the week and appeared to correspond with Thursday's Moon-Venus conjunction, although Indian stocks resisted this more general up trend.

With the debt ceiling debate looming in February, the Obama White House officially ruled out the possibility that it might mint a $1 Trillion coin as a means of avoiding the negotiations with House Republicans.  The proposal had been floated by some observers sympathetic to Obama as a way of raising the debt limit without having to go through the usual procedure of seeking approval from Congress.   So the debate and possible financial uncertainty may still lie in the near future.  The last such debate caused a significant decline in the stock market in the summer of 2011 as the Republicans were threatening to push the US to default on its debt obligations.  

 

The USA horoscope suggests there there may well be some significant tension in February, although it is unclear if this will be surrounding the debt ceiling.  The Mars-Neptune conjunction lines up very closely with the natal Moon in this chart and points to situations of animosity and conflict with a dose of confusion and possible deceit thrown in for good measure.   While one can imagine that this planetary pattern could correlate with some uncertainty in the stock market, it does not seem like a long-lasting situation.  There is a relative absence of slow moving transits in play here.  If it was going to be a serious stalemate along the lines that we saw in 2011, one would expect more participation from Saturn or the nodes, Rahu and Ketu.  But we don't see that here.   We do have that opposition aspect from Pluto to Jupiter.   That combination suggests power plays and manipulation but Jupiter is more closely symbolic of the judicial branch rather than the executive or legislative branches of government so I'm not convinced we will see a major problem emerge over the debt ceiling.  It's still but the afflictions in the USA chart don't look particularly grievous.

This week offers a range of planetary aspects, both good and bad.  Monday starts off with a fairly positive looking arrangement between the Moon, Venus and Jupiter, with Uranus and Chiron thrown in for good measure.  However, the Sun comes under the exact aspect of Ketu and that could cause some problems.  It still looks positive overall although we may put an asterisk beside it.  By midweek, Venus conjoins Pluto and this could well produce more gains.  Here again, Ketu is a complicating factor as it is due to aspect Mercury so may introduce some turbulence.  The late week may be less positive as the Sun conjoins Mercury on Thursday and Friday.

Market cheers Obama's fiscal cliff deal

US Stocks moved sharply higher last week as investors breathed a sigh of relief in the wake of the 11th-hour fiscal cliff deal.  The Dow jumped 4% on the week and closed at 13,435.  Optimism was somewhat more muted in Mumbai as the Sensex added 2% to start the year finishing the week at 19,784.   Alas, the negative implications of the Sun-Saturn aspect did not play out as expected as lawmakers in Washington did manage to come to an agreement.  While the deal was very much a minimal sort of agreement that did nothing to address the US fiscal sustainability, it was enough to satisfy markets as the worst effects of the fiscal cliff were averted for the time being.   As expected, the late week Mars-Jupiter aspect did appear to magnify the price moves as I thought it might, although these were very much in a positive direction.

It seems clear that the bullish influence of Jupiter is dominant now as it approaches its aspect with Uranus and its direct station on 30 January.   Bearish Saturn is still in close aspect with Pluto but this is a slower moving and less prominent influence.   The Saturn aspect began in December and will likely continue into March and thus has a wider window of manifestation.  The Jupiter aspect will be shorter lived and suggests there could be more positive energy to come in January. 

President Barack Obama is certainly benefiting from this positive Jupiter energy as the Great Benefic approaches a fairly close conjunction with his Moon at 10 Taurus.   Obama was widely seen as the winner in the fiscal cliff negotiations, even if there was no grand bargain that solved all of America's fiscal woes.  However, once Jupiter stations at 12 Taurus and begins to move forward again, Obama may encounter more difficulties.  We can see that Saturn may have more of a say in his chart in February as it stations retrograde in fairly close square aspect to his Sun.   The period around 7 February stands out as one possible trouble spot as Mars will conjoin Neptune and Mercury in the sky and form a tense looking square aspect with Obama's Moon.  This looks like a time of conflict and possible deception or confusion.  While this may be related to any number of issues, it is no secret that the Republicans are planning to put up a bigger fight with the debt ceiling debate that is due in February.  Republicans will demand more spending cuts in order to balance the books, while Obama and the Democrats will be reluctant to do so for fear of weakening the economy.

Saturn is due to turn retrograde on 16 February so Obama's fortunes may begin to improve after that date since Saturn will begin to move away from its aspect to the Sun.  On balance, February looks like it will be more challenging to Obama and this may reflect political tensions with the GOP over the budget.   While it is difficult to say if these tensions will have implications for financial markets, it is nonetheless worthwhile to keep them in mind. 

The transit picture this week is dominated by a Mars-Saturn aspect that is exact on Monday.   This is not a classic square aspect by Vedic reckoning, but it may still correlate with some heightened anxieties and may thus signal some market weakness.   Venus appears to be strengthening later in the week so that may increase the chances for some gains at that time.