(6 November 2018)
Stocks have rebounded since bottoming in last week on hopes that a
trade deal with China may happen sooner rather than later. The Dow is
back over 25,000 while India's Sensex is now trading near 35,000 ahead
of the Diwali holiday break. The rebound was more or less expected
given the fairly positive planetary alignments in recent days involving
Jupiter and Mercury. This week has also leaned bullish on the
Venus-Moon-Uranus alignment. However, the US midterm elections take place today and could theoretically upset the market's temporary calm. While I think the Democrats are very likely to win the House, I suspect the market has discounted that outcome already. Therefore, I would not necessarily expect a big reaction in the stock market on Wednesday.
The New Moon at 21 Libra could be a bit bearish since it opposes the Saturn in the NASDAQ chart. I would tend to think that a strong rally is a less likely outcome on Wednesday and beyond. Also Mars is in the first degree of Aquarius at midweek and aligns with Rahu. This is another less-than-positive looking pattern. But Friday's Mars-Venus alignment and Moon-Mercury conjunction perhaps make a stronger case for some downside later in the week. With the Fed meeting on Thursday, some changes may be afoot.
The BSE chart illustrates how the approaching Venus-Mars 120 degree alignment could indicate some significant moves in the coming days. The Venus on the Ascendant is usually positive, however the Mars is more of a question mark. This week could go either way actually, although I would be wary about Saturn's square aspect to the Moon (12 Virgo) in this chart. If stocks stay afloat this week, the next week will likely be a different story. We can see the transits for next Wednesday the 14th puts Mars in a more prominent position for this chart along with Rahu and Uranus. Mars is usually bad news for the markets.
The bottom line is I don't have a strong opinion for where stocks will go this week. I don't think the planets lean strongly bullish or bearish. So perhaps the rebound can continue. But I would say that next week looks more negative as Mars aligns with Rahu and Uranus. Bulls should tread carefully.
For more details on possible market directions in the coming weeks and months, check out my weekly subscriber newsletter which is published every Saturday. I cover US and Indian stock markets, as well as currencies, oil and gold.
