NASDAQ leads stocks lower on Facebook fallout

(27 March 2018) Stocks fell hard again today as technology companies were sold on renewed privacy concerns following the Facebook data debacle.   The Nasdaq led the broader markets lower falling 3% to 7008 while the Dow slipped back under 24,000.  The decline comes a day after a sharp rally following the announcement of US-China trade talks.  But it seems that last year's unstoppable Trump rally has been replaced with a new and more volatile market in 2018 that is more sensitive to bad news. 

It seems likely that stocks will revisit their early February lows fairly soon.  Last Friday's decline more or less matched the low on the Dow, while other indexes remained slightly above their Feb 9th bottom.  But can the stock market resume its upward climb once this correction is over?  It's difficult to say definitively using astrology alone since estimating the magnitude of price moves is quite speculative.  Astrology is better suited for highlighting time periods of positive, negative or mixed influences.  In that sense, time is the primary variable in financial astrology. 

So when will stocks rebound?  A look at the horoscope of the tech-heavy Nasdaq stock exchange provides some useful clues.  As I have written in previous market forecasts, the February swoon occurred just as Mars and Saturn had aligned with the Ascendant in this chart.  To be sure, there were many other confirming alignments at other levels in the chart as well as in other financial charts.  But the Mars-Saturn pairing is very bearish when aligned with key points in the chart such as the Sun, Moon or Ascendant. 

Now Saturn (14 Sagittarius) has moved away a few degrees but it remains a potentially negative influence when activated by another planet.  This was the case today as Mars (11 Sagittarius) approached its conjunction while in a close square aspect with the Sun (13 Pisces).   This three-planet alignment is very bearish and will be within range for all of this week.  It is worth remembering that the alignment isn't closely aspecting any sensitive point in the chart at this time.  These transiting alignments can have effects even when they are not aspecting significant natal chart points.  The alignments are often weaker in that instance and that is one reason why stocks rallied yesterday.   There was also a bullish pattern in place both in the current sky and with respect to the natal Nasdaq chart as Venus entered sidereal Aries and approached its conjunction with Uranus.  It also entered the 1st house in the Nasdaq chart and aligned with the South Lunar Node Ketu (0 Leo) in the Nasdaq chart which is usually bullish. 

The other ongoing source of tension in the chart is that the North Lunar Node (Rahu) is closely aspecting Mars (17 Scorpio).  Rahu-Mars alignments tend to be negative since both planets are natural malefics.  Using the Mean Node, Rahu is at 18 Cancer while the True Node is 19 Cancer.  Either way, it's close enough to be effective and is another key reason for this period of renewed pessimism in stocks here in late March.


Forecast

Could stocks soon rally off these levels?  Well, it's certainly possible but the planetary alignments do not look especially bullish in the near term.  The rest of this week may see more up and down trading as bullish Venus conjoins Uranus (exact Wednesday) but the Sun will remain in square aspect with Mars and Saturn.  Moreover, retrograde Mercury (21 Pisces) is now approaching its own difficult alignment with Rahu (18 Cancer).  This will be exact over the weekend but I suspect it is in play already.  It is important to note that the Mercury-Rahu aspect reinforces the negative influence of Mars through the Rahu-Mars aspect.  This is likely to keep stocks under pressure this week and most likely into next week. 

Rahu will remain in aspect with natal Mars next week while Mercury forms a square alignment with Mars and Saturn.  This is a very tense configuration that seems unlikely to bring about much upside.  In fact, it looks like a bearish pattern that will coincide with further declines.  Mars and Saturn are due to exactly conjoin on Monday, April 2 although their bearish influence need not be strongest on the precise day of their alignment.

The bottom line here is that investors may have to be patient for the next big rally to take place.  It seems more likely that the Feb 9th lows will not only be matched (i.e. "tested") but that stocks could well fall further in the first half of April.   I go into greater detail about possible scenarios for the stock market in the coming months in my investor newsletter.

Facebook data scandal hits stocks

(20 March 2018) Yesterday was not a good day for Facebook founder Mark Zuckerberg.  As news spread of the Cambridge Analytica data abuse scandal, Facebook shares lost 7% and took the rest of the US market down with it.  Facebook was down another 3% today amid growing calls for a formal investigation of Facebook's data sharing practices.  Neither Zuckerberg nor any other top official have yet to address the matter as the company finds itself in hot water again.  Recently, Facebook has come under fire for its role in Russia's interference in the 2016 US election. 

Just how significant is this controversy for Facebook?  Could this be a sign that the social media behemoth has peaked and is now facing the prospect of a slow decline?  Certainly, the key horoscopes for Facebook do reflect its current troubles.  The incorporation chart from 2004 is under heavy affliction by -- you guessed it -- the approaching Mars-Saturn conjunction in sidereal Sagittarius.  While we don't know the exact time of incorporation, the noon chart puts the Moon at 13 Sagittarius.  The potential natal range of the Moon would therefore be between 12 and 15 Sagittarius which is very close to the current position of Saturn (14 Sagittarius). 

Saturn's status as a malefic may well be amplified by the approach of Mars, the other first-class malefic, but that is not the whole story.  Saturn transits do not always bring bad news, especially with the conjunction.   The bigger problem is that the natal Moon in the Facebook horoscope receives a very close aspect from Rahu (North Lunar Node).  This creates an intrinsic instability in the Moon which make it vulnerable when it comes under difficult transits. 

That is a fundamental rule of Vedic astrology: well-placed planets can handle stressful transits from malefics better than weak or unstable planets that are afflicted in the natal chart.  And the Saturn transit to the Moon also brings the natal Sun (13 Cancer) into the picture.  Both Moon and Sun, the two most important planets in the chart, are involved in a strongly negative Saturn transit. 


Facebook forecast

Looking down the road, Facebook may continue to be on the defensive for some time to come as Saturn is due to station retrograde on April 17th.  It will then move back over its conjunction with the Moon in May and June.  This extended conjunction of the Saturn with the natal Moon therefore will likely represent a time when the company is on the defensive.  As an added layer of affliction, transiting Rahu will conjoin the natal Sun in June.  This suggests more problems with status and reputation.  It may well reflect problems involving Mark Zuckerberg himself since he is symbolized by the Sun (=leaders) in this chart.   It is even possible that Zuckerberg could be forced out of his CEO position.  And with Saturn due to make its final conjunction with the Moon in December, 2018 as a whole looks challenging for Facebook. 

We can also see Facebook's recent problems in the horoscope of the IPO when it was first publicly traded.  Unlike the incorporation chart, the IPO chart is exactly timed so it may be more reliable, at least in terms of reflecting price movements.  Much of the recent criticism of Facebook is likely seen through the transit of Rahu to the Ascendant (22 Cancer).  Rahu is another natural malefic planet although it sometimes behaves in more positive ways.  Its conjunction to the Ascendant is problematic, however, if only because it often coincides with times of uncertainty and change.  The groundswell of criticism of Facebook over the election began in late 2017 when Rahu was exactly conjunct the Ascendant.  Rahu is since moved off a bit but it still within range.

Saturn is active in this chart too, as it is now forms a symmetrical "Grand Trine" alignment with Mars (15 Leo) and the Midheaven/10th house cusp (13 Aries).  The station at 15 Sagittarius will still be very close to these points.  Saturn is a malefic, Mars is a malefic, and the Midheaven is a neutral point that reflects the angular influences at any given time.  Some Western astrologers might consider 120 degree (trine) aspects as benign but I have found this is often not the case when malefics are involved.

The other key factor here is Neptune (20 Aquarius).  Neptune sits very close to the 8th house cusp by most  house systems and therefore conveys a sense of intrigue and deception.  Like the other outer planets Uranus and Pluto, Neptune goes with the flow.  If it is associated with benefics like Jupiter, it amplifies positive outcomes.  But if it is associated with malefics like Rahu or Saturn, then outcome will be worsened.   In this case, not only is Neptune aligned with Rahu at 20 degrees of their respective signs, but Neptune is positioned on the 8th house cusp.  In Vedic astrology, the 8th house is a negative dussthana house that symbolizes scandals, setbacks and obstacles.  It is a very bad placement for Neptune (along with the 6th and 12th house cusps) that is clearly a big factor why Facebook is coming under closer scrutiny.  The Neptune factor here could well mean that Facebook was fully aware of the abuses of the privacy of its users but did nothing to stop it.  Deception and confusion figure prominently when Neptune is badly placed.

Neptune moves very slowly and will station retrograde in June at 22 Aquarius -- exactly on the equal 8th house cusp and aligning with the Ascendant at 22 Cancer.  This is another reason why Facebook could come under renewed pressure in June.  When Mars conjoins Ketu in mid-June, it will align with natal Mars (by 8th house aspect) and square the Midheaven/IC.  With Saturn still within close range, it suggests Facebook will face another wave of conflict and public opposition.  Needless to say, it looks like a time when the stock is likely to fall further. 



Stock Market Forecast

Stocks have trended lower over the past week or so as investors have grown increasingly nervous about unpredictability of the Trump White House and the prospects for a damaging trade war.   While it remains well above its early February low, the Dow has again fallen below 25,000.   Indian stocks have also been weaker as the Sensex is now below 33,000.  In late January it had briefly traded above 36,000. 

This new weakness has been broadly in line with my expectations as I thought sentiment would turn increasingly fragile as we moved further into the month of March.  The reason for this new rise in caution is that Saturn is due to form some difficult alignments in March and April ahead of its retrograde station on April 17.  Saturn aligns with the Sun next week on Thursday the 29th, although the Sun will first align with Mars on Saturday the 24th.  Planets do not often manifest their effects exactly but the alignments would appear to favor volatility and declines.

Of course, the new Fed Chair Jay Powell is due to give his first press conference following the latest FOMC meeting on Wednesday.  He is widely expected to hike rates.  However, the planets look somewhat negative following the meeting.  Mercury turns retrograde on Thursday while aspected by Rahu (North Lunar Node) and Mars will aspect the Sun within just one degree.  Whether or not this is the result of the Fed statement or some other factor is unclear.  But it does underline the heightened risk in the days ahead.

For more details and analysis on market trends for this week, this month and this year, please check out my weekly MVA Investor Newsletter.  The newsletter is published every Saturday and includes extended discussion of US and Indian stock markets, as well as gold, oil and major currencies.

Trump's tariff talk puts markets on edge

(6 March 2018) The stock market suffered another body blow late last week after President Trump suddenly announced tariffs on imported steel and aluminum.   The tariffs came a surprise to US trading partners who quickly threatened retaliation on US imports to their countries.  The prospect of a looming trade war has put investors on edge in recent days as economic growth would likely decline and inflation would rise as a result of these protectionist moves.   The tariffs appear to be a fait accompli now that Trump's leading economic advisor Gary Cohn resigned from the White House today.  Cohn had been a staunch free trade advocate and steadying influence on the unpredictable Trump.

It seems that the recent correction in the market may not be over yet.  After early February's decline, buyers had re-entered the market on hopes that interest rates were stabilizing and that inflation was less of a pressing problem.  However, the news of the Cohn departure have caused a sharp reversal in stock futures.  Could this be a signal of another move lower in the stock market in the short term? 

My overall view is that markets are likely to remain more volatile than usual for several more weeks at least.   I have previously noted some potent alignments in several financial horoscopes for February, March and April.  Saturn is at the center of these alignments as it assumes greater strength in advance of its retrograde station on April 17.  Saturn is a bearish planet and is more often associated with market declines when it forms significant alignments with other planets.

Another window on this question can be found through the chart of Donald Trump.  The approaching Saturn station at 15 Sagittarius is likely to hit President Trump very hard indeed as it will oppose his natal Mercury (15 Gemini) almost exactly.   This is almost certainly going to coincide with a highly stressful and frustrating time for him.  He is also likely to suffer major setbacks, perhaps on multiple fronts.   Of course, this may relate to North Korea or perhaps the ongoing Mueller investigation of the Russian involvement in the Trump campaign.  The investigation has been drawing closer to Trump and his inner circle as more staffers have been indicted.   Son-in-law Jared Kushner may well be the next big domino to fall. 

But I suspect the Saturn opposition to Trump's Mercury in April could also relate to the state of financial markets.  In Trump's horoscope, Mercury is more closely associated with money matters because it rules both of the money houses -- the 2nd and 11th -- and it is placed in the 11th house representing gains and income.   For a regular person, a Saturn station in opposition to the lord of the 11th house would likely mean a loss of income or assets and more generally a disappointment that comes from a denial of wishes.   For the individual, a job loss is one possible manifestation of this alignment (ahem!) although I wouldn't think that is likely in Trump's case.   In any event, the recent market turbulence is likely related to the approaching Saturn-Mercury opposition since Saturn has been just a few degrees short of an exact 180 degree aspect.

Since Trump is the President of the United States his chart is now indirectly the chart of the nation as a whole.  His karma is now America's karma, so to speak.  When his chart is afflicted by Saturn, that likely means that the country will have to deal with the fallout.  And since Mercury has strong financial symbolism for Trump, there is a greater chance that whatever happens to Trump personally in the coming weeks, it is likely to have national financial implications. 

We can see that the pressures may be increasing on Trump now that Mars enter sidereal Sagittarius tomorrow March 7.   Last week, Mars was conjunct his Moon/Ketu.  It was a time when he was apparently very angry with how everything were going against him and thus decided to launch this ill-considered tariff policy.  Mars is now closely aspecting (by 8th house aspect/quincunx) Saturn and Venus in the 12th house so his rage will likely turn to frustration and conflict for the rest of the week. 

For the rest of March, Mars will move further into Sagittarius and is due to conjoin Saturn on April 2 at 14/15 Sagittarius.  This is a time well worth watching as it could represent a very intense and eventful moment for the US.   It seems more likely that we will see stocks decline further in the weeks ahead, probably to lower lows.  That said, there remain some unanswered questions on timing about when larger declines are more likely.   Without pretending to know exact dates, I do discuss some specific timing possibilities in my newsletter.  Of course, I will try to update this space also as time allows.

For more details and analysis on market trends for this week, this month and this year, please check out my weekly MVA Investor Newsletter.  The newsletter is published every Saturday and includes extended discussion of US and Indian stock markets, as well as gold, oil and major currencies.