As noted in last week’s post, bond yields look vulnerable to another round of increases, either as a result of strong economic growth or a more hawkish Fed dedicated to taking rates above 5% next year. The Saturn-Neptune alignment is pivotal in this respect as forms important alignments with the US Treasuries horoscope which makes higher bond yields more likely in the coming weeks. In the current environment, higher yields are bad news for stocks as they point towards more expensive credit which will eventually weigh on economic activity.
Stocks are also vulnerable to declines with the approach of the Saturn-Neptune alignment in the coming weeks. More immediately, there is a possibility of more selling in the wake of the Fed decision. While the Saturn-Neptune alignment is only two degrees from exact, the extent of its current influence is unclear. Usually, alignments between slow-moving planets need to be closer to exert a stronger influence on stocks.
Instead, we can look at a fairly bearish set up for the rest of this week as Mercury aligns with Mars and Rahu (North Lunar Node). More specifically, we can say that Mercury will be aspected by both Mars and Rahu on Thursday and Friday. Mars (19 Taurus) casts its full-strength 210-degree, 8th house aspect to Mercury (18 Sagittarius), the planet of commerce and trading. Mercury is also at the receiving end of another dose of potentially bearish energy as Rahu (18 Aries) casts its 120-degree aspect within one degree. While Mars-Mercury aspects tend to be bearish, Rahu-Mercury aspects are a bit more mixed, although with some downside risk. The fact that these two afflictions to Mercury occur almost simultaneously is a red flag.
But financial astrology demands we look at the whole picture in order to weigh the importance of all the relevant influences. There is a potentially offsetting influence in play this week given the Sun-Venus/Jupiter-Chiron alignment. This alignment should be seen having second tier strength, however, since there are no direct aspects involved. Instead, the alignment is formed through angular separation.
Thus, the angular separation of the Sun and Venus (=13°16) is almost equal to the angular separation of Jupiter and Chiron (=12°22). Both of these planetary pairs are somewhat bullish and their resonance through equal angular separation suggests some optimism. However, we should note that the faster-moving Sun-Venus pair (13°) has already moved beyond the 12° Jupiter-Chiron separation. In fact, the angular separation of these two pairs almost matched exactly earlier in the week when stocks were bullish. The fact that they are separating now suggests optimism could be diminishing just as the pessimism and anxiety of the Mercury-Mars-Rahu alignment is increasing. Thursday morning’s Mars-Moon square also looks negative.
Right now, I would be fairly skeptical about the prospects for a year-end Santa Claus rally.
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