Venus loves stocks

After another strong Monday that pushed the market to new highs, enthusiasm for stocks in New York faded last week as the indexes ended mostly flat. President Obama's midweek comment on the possibility of a double dip recession appeared to tipped the scales in favour of the bears as the Dow closed at 10,318 while the S&P finished at 1091. Indian stocks fared a little better as Friday's late day rally came on reassurances that the government would not tax foreign investment capital. The Nifty gained 1% on the week to close at 5052 while the Sensex stood at 17,021. Tuesday's Mercury-Saturn-Pluto alignment turned out to be a non-event as stocks showed only mild intraday weakness. This outcome gave some support to the idea that not all aspects are created equal. Last week I had wondered if the third house, sextile aspect was less malefic than the conjunction or square. In the current circumstance, this relatively benign result supported that view, my own bearish forecast notwithstanding. Empirical reality can be a cruel teacher. The second main aspect for the week was the Venus-Mars square which arguably created more problems. With Mars in debilitation in sidereal Cancer, even a strong Venus in Libra was put under significant stress by this aspect which coincided with modest selling in global markets Wednesday and Thursday. Even there, one could argue that the Thursday's decline was not the result of the Venus-Mars square but rather the Moon-Pluto-Saturn alignment. As I noted last week, this was the same pattern that sent stocks lower on the previous Thursday also. With declines coming on consecutive Moon-Saturn-Pluto patterns, we have a better sense of what kind of reservoir of bearish sentiment may be contained within the Saturn-Pluto combination. I believe we have only begun to tap into the possibilities in this malefic aspect.

With holiday-shortened week due to US Thanksgiving, markets are usually fairly quiet and show a bullish bias. This is likely to be the case also this year as benefic Venus will make its presence felt through several aspects. Monday features a Moon-Venus-Jupiter pattern that ought to encourage optimism, at least at the outset. Once the aspect is exact around midday, there could be some erosion of confidence. At the same time, the Sun will come under Saturn's aspect Monday and especially Tuesday, so that is a potentially bearish influence. There ought to be enough negative planetary energy there to generate several hours of selling which ought to be good for one down day. Wednesday appears to be a return to the happy influence of Venus as it forms close aspects to both Uranus and Neptune. This could well carry over into Thursday in many global markets. Friday could signal a change in the mood as Venus enters sidereal Scorpio and will therefore weaken somewhat. The Moon will oppose Saturn and may bring out the bleakness of Saturn-Pluto once again. Friday may be worse in Asian markets since the Moon-Saturn angle will be that much closer.

In the wake of Obama's trip to China, there is increasing concern to do something about the falling US dollar. China has invested heavily in US treasuries and they can't be too pleased with their tumbling value. Chinese banking officials are now openly complaining about the loose US monetary policy that lies behind the dollar's ongoing weakness. The Fed's near-zero interest rate policy has produced a new speculative bubble in equities and commodities may lead to another crash in the near future. While a crash may be overstating things, markets are certainly vulnerable to substantial correction in this upcoming period of the Saturn-Pluto square and the beginning of the Mars and Saturn retrograde cycles over the next two months.

Stocks push higher; Mercury-Saturn ahead

Stocks bubbled higher last week as the US Dollar continued to teeter on the edge of oblivion at its key support level of USDX75. The Dow pushed to new highs midweek before closing at 10,270 while the S&P matched its October highs and finished at 1093 (beware the double top). In Mumbai, the indices shook off the recent correction as the Sensex climbed 4% to close at 16,848 and the Nifty finished at 4998. So the midweek Mercury-Uranus-Ketu pattern was mostly bullish, no doubt aided by the simultaneous Sun-Jupiter aspect. It's noteworthy that the high point for the week coincided with those two aspects after which there was a slight retreat. Thursday was an important statement of the bearish potential of the Saturn-Pluto aspect as the Moon acted as trigger during its tight conjunction with Saturn in sidereal Virgo. The release of this Saturn-Pluto energy pushed global markets down across the board. As precise as the timing of this aspect was, it's worth noting that the Moon is the fastest moving planet in the astrological pantheon and therefore is a fairly weak trigger. Usually, planetary power is inversely related with velocity: the slower the planet, the greater the capacity to manifest in human sentiment and action. If the market dropped 1% with the fast-moving Moon, I wonder how much it could drop with a slower moving body like the Sun, Mercury or Mars, to say nothing of Uranus, Rahu or Ketu?

This week may provide some useful data that may answer that question as Mercury falls under the full strength sextile (60 degree) aspect of pessimistic Saturn. This planetary combination is bearish enough, but the fact that Saturn is in a close square aspect with cold, cruel Pluto increases the potential for a significant move. The three-planet alignment makes its closest angle on Tuesday. One possible saving grace is that the sextile is probably not as strong as the conjunction or square so its damage may be mitigated somewhat. Nonetheless, this is still a dangerous combination.

On Wednesday and Thursday, Mars forms an exact square aspect with Venus. Since Mars is debilitated here in sidereal Cancer, it has considerable potential to do harm. Readers may recall the damage Mars did through its square aspect with the Sun back in late October. The market dropped about 5% in a three-day pullback. While there is some bearish potential here, it's important to note the differences. The Sun was also debilitated in Libra at the time, so that may have increased the bearish potential of the aspect. By contrast, Venus here is in its own sign (Libra) and hence much stronger. As a result it may be able to better withstand Mars' unwelcome overtures. We should also note that this Thursday will see an echo of last Thursday's bearish pattern as the Moon may once again activate the Saturn-Pluto square. The Moon will conjoin Pluto at 8 Sagittarius (Lahiri) during the afternoon in New York. History needn't repeat exactly since the Moon will be conjoining Pluto instead of Saturn, but it will nonetheless bear watching.
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Stocks lift on Sun-Mercury conjunction; uncertainty ahead on Me-Ur-Ke

Stocks bounced back last week on some less-than-awful US employment data and more cheap money happy talk from Fed Chair Ben Bernanke. In New York, the Dow climbed 3% to 10,023 while the S&P finished at 1069. In Mumbai, equities rallied back after Tuesday's thumping as the Nifty ended Friday at 4796 and the Sensex at 16,158. The midweek conjunction of Sun and Mercury delivered higher prices as expected, although the early and late week downside did not quite deliver the goods. While New York was quite solid in the early going, Mumbai was down Tuesday on the Aries Moon and Mercury-Mars square, probably because of Mars afflictions to key placements in the NSE natal chart. Despite a minor Mercury-Saturn aspect, Friday saw the bulls once again carry the day. All in all, it was a victory for the bullish short term aspects over more challenging and shadowy medium term influences. In other words, another edifying lesson in empiricism.

This week could make or break the correction as the Mercury-Uranus-Ketu grand trine configuration takes root around midweek. Both Uranus and Ketu are planets that symbolize change and sudden events and their close aspect here would seem to incline towards new and unforeseen developments. As a fast moving planet, Mercury may be able to act as a trigger to release whatever surprises Uranus and Ketu have in store. By itself, the Mercury-Uranus combination is often bullish, and all the more so given Neptune's additional harmonic influence there. But Ketu changes things up considerably, and it's unclear if stocks can handle so much uncertainty and suddenness. The background influence of the Saturn-Pluto square should also be seen as a negative factor, although it's precise due date is still up in the air. Venus forms an alignment with Saturn and Pluto before trading on Monday, so that could generate some fear and disappointment. However, this aspect clears out fairly quickly so it's conceivable that Monday may not be too bad. Tuesday features the Sun-Jupiter square, a classic symbol of unfounded optimism and excessive expectations. The market could rally briefly but it's perhaps more prone to quick pullbacks once it separates. Thursday will be an interesting measure of the Saturn-Pluto square as the Moon will conjoin Saturn in sidereal Virgo before the close in New York. This combination of energies represents solitude and isolation so it may be more difficult for investors to feel comfortable with their positions. In addition, I think the hardship symbolized by the Saturn-Pluto aspect may correspond with a rebound in the US dollar very soon. All that coldness and cruelty could have investors rushing back to safe harbours.

Stocks pummeled by Sun-Mars aspect

Stocks moved lower last week on recovery worries and poor US consumer data. Despite Thursday's rally on the upbeat Q3 GDP numbers, the New York market fell 4% as the Dow closed at 9712 and the S&P at 1036. Meanwhile, Mumbai tumbled 6% on disappointing Q2 results as the Nifty closed at 4711 with the Sensex finishing at 15,896. This bearish result was in keeping with last week's forecast as the double dose of malefic debilitation from the Sun-Mars square contributed to the anxious mood. The tension inherent in the Sun-Mars tandem was powerful enough to counter much of the optimism of the passing Venus-Jupiter aspect. Monday started higher in New York on the Moon-Jupiter conjunction but selling soon engulfed the rally faithful. Thursday's 2% bump came on the same day as the exact Venus-Jupiter aspect so that is one possible explanation for it. Not surprisingly, its effects didn't last long as the market sold off sharply on Friday as the Moon set up a nasty t-square pattern with Saturn and Pluto.

This volatility is likely to continue this week as we will see more potential planetary trouble spots. Monday's Full Moon in sidereal Aries occurs at the tail end of a difficult Mercury-Mars aspect, a very dangerous combination that could prove anathema to investor confidence. At the same time, however, Venus will form an aspect with Rahu, Uranus and Neptune which may offer some support. While otherwise positive, its simultaneous occurrence here may not be enough to bring sellers back into the market. As the Moon enters Taurus late Tuesday, the Sun and Mercury will form a conjunction at 18 degrees of sidereal Libra in midweek. This is normally a favourable combination for stocks so some kind of bounce back is to be expected. Of course, the other medium term influences look less positive so it's unclear how much lift this configuration can generate here. Friday looks like more skittishness as Mercury will fall under the minor aspect of Saturn, especially in New York.

The long-awaited correction seems to be fully underway now. The bearish promise of the Saturn-Pluto and Ketu-Uranus aspects would tend to suggest that we're going to see a decline that is larger than a standard-issue 10% dip. Even with some optimism returning for the Jupiter Neptune conjunction in early December, there's good reason to think this 7-month rally is undergoing some fundamental transformation.

Stocks slip back; Sun-Mars aspect ahead

Stocks slipped last week as investors took profits on positive earnings news. In New York, the Dow backed off its highs and closed Friday down about 1% for the week at 9972 while the S&P finished at 1079. In Mumbai, stocks retreated 3% as the Sensex closed at 16,810 and the Nifty at 4997. No surprises here really given the mix of aspects in play, although as always the exact timing defied an easy logic. The bullish Mercury-Jupiter aspect manifested a day early in Monday's gain while the midweek Sun-Saturn minor aspect similarly arrived somewhat ahead of exactitude as the market pulled back on Tuesday and Wednesday. Interestingly, Friday's apparently bullish Mercury-Uranus-Neptune aspect did not pay off as stocks fell in New York, albeit after a positive open. The failure of the market to hold onto its initial gains on this configuration is a possible sign of developing weakness.

This week's planets seem somewhat more difficult and will be an important test of the underlying sustainability of the rally. For the bulls, Venus comes under the benefic influence of Jupiter early in the week, with gains possible on either Monday or Tuesday. The Moon may play the role of midwife here as it conjoins Jupiter in Capricorn for both these days, although I am skeptical if we will see gains both days. Actually, the aspect is exact early Thursday but it seems more likely to manifest early all things considered.

For the bears, the Sun is entering into a potential tense square aspect with Mars, also on Thursday. These fiery planets can produce a lot of energy for good or ill but the square aspect can mean that there is an uncontrolled or harmful element present here, particularly since Mars is debilitated in sidereal Cancer and the Sun is debilitated in Libra. While it's conceivable that this combination may not reflect problems in investors sentiment, it's nonetheless an aspect to take very seriously. In addition, Mercury is in a minor aspect with Saturn midweek so that is another potentially bearish energy. By the time Friday rolls around, Mercury (10 Libra) will be close to coming under the influence of that debilitated Mars (12 Cancer) so that is definitely a hazardous aspect for stocks. It's still two degrees short of exactitude but that may not be enough to prevent fear from taking hold in the market. As a special bearish bonus, on Friday the Moon forms a t-square with Saturn and Pluto, now just one degree away from an exact 90 degree aspect. While these two slow moving planets will be in aspect for several weeks in November, this may be a possible early activation by the transiting Moon. It will definitely bear close watching.

Dow hits 10,000 on Jupiter station

Euphoria is back in fashion as the Dow hit 10,000 last week on a parade of encouraging earnings reports. A double shot of Intel and JP Morgan on Wednesday was the big market mover coming just one day after Jupiter's direct station. Despite the danger implied in the Venus-Saturn-Rahu pattern, Jupiter's extra dose of stationary energy prevailed as the Great Benefic did the heavy lifting this time around. After Friday's retreat, the Dow finished the week at 9995 and the S&P at 1087. In Mumbai, stocks were also buoyant as the Nifty climbed to 5142 and the Sensex hit a 17-month high of 17,322. Heady days indeed for this rally that has bounced back from every correction thus far. I had thought the Saturn-Rahu might have been enough to nullify the Jupiter station but again my best laid bearish plans were thwarted.

What may be occurring here is a kind of planetary inversion where some apparently negative patterns are corresponding with highs rather than lows. One of the most prominent features of the October 2008 crash was an alignment of mostly malefic planets -- Sun, Saturn and Rahu. Negative sentiment and market declines correspond with "bad" planets in close aspect. The lows are typically marked by the exact aspect after which prices rebound and move higher. The March 2009 lows also occurred in a similar way as malefic Saturn was in close aspect with a stationing Venus. The negativity of the aspect manifested at the same time as the market low. But since this is the unknowable world of astrology, there are many exceptions to this pattern. In fact, global stock markets made their highs in October 2007 very close to a rare triple conjunction of Venus, Saturn, and Ketu. While Venus is a benefic planet, Saturn and Ketu are first class malefics and thus render the pattern quite harmful. So in that case, bad planets corresponded not with a low, but with a high. Where did all that negativity go? Perhaps some negative combinations only mark the beginning of a negative trend, like opening up a black door of bearishness. Once the market made its highs in late 2007, it plunged 40% over the next 12 months.

So it may be that some of these difficult patterns we've seen in September and October may actually be marking significant highs for the market. While the market has rallied going into these patterns, the Saturn-Rahu and Saturn-Uranus aspects may well have opened the black door once again and some significant declines are about to unfold.

This week holds some promise for the bulls as Tuesday's Mercury-Jupiter aspect usually brings optimism and good news. And Friday sees Mercury moving into a minor aspects with Uranus and Neptune so that also augurs positively for stocks. But on the other side of the ledger, Mars is in a harmonic aspect with Pluto on Monday and the Sun receives a minor aspect from Saturn on Wednesday and Thursday. We could well see an increase in volatility this here leading into the very difficult Sun-Mars-Mercury square next week.

Planetary trainwreck looms

Last week US markets fell the for second straight week amidst growing fears that the recovery may not be just around the corner. Stocks fell 2% as the Dow closed at 9487 and the S&P finished at 1025. Indian markets bucked the worldwide negative trend in a holiday-shortened week as the stocks moved 2% higher. The Sensex closed Thursday at 17,134 while the Nifty ended the week at 5083. This outcome was mostly in keeping with expectations since I had been bearish on the unusually prolonged minor Mercury-Mars aspect last week. After Monday's gain in New York, stocks fell over the next four days as the retreat from the previous week's highs proceeded apace. So far, the Saturn-Uranus aspect is proving to be a significant signpost for the markets as stocks rose leading up to the exact opposition aspect on September 18, and have fallen as the aspect has separated. This mirrors what happened in the two previous oppositions in November 2008 and February 2009. Mumbai is an important exception to this trend so far, perhaps due to some benefic hits in the relevant natal charts that have offset the transit energy.

The markets now stand on the precipice as we have an impressive array of foreboding planetary aspects this week. Mercury (trading) conjoins Saturn (pessimism) while under the damaging aspect of Rahu (exaggeration). While there is no certain interpretation of this configuration, I believe we are likely going to see increased fears and investor caution which will translate into greater selling and more declines. As an added dimension, I note that we will have no less than four planetary ingresses this week. When planets change signs, there is supposed to be a shift in energy. Usually this is fairly subtle, and often undetectable (read: unfalsifiable) especially on a mundane level. Now once again moving forward, Mercury re-enters Virgo on Sunday while Mars enters Cancer on the same day. Virgo is generally kind to Mercury so that may be construed as a slightly bullish factor. But Mars is debilitated in Cancer and that may increase volatility as aggression and conflict is more likely to come to the surface. Mars is also in a close conjunction with unpredictable Ketu, so that ratchets up the chances for unusual or sudden outbursts of conflict or violent action. (As a side note, the September 11th attacks took place under a Mars-Ketu conjunction). So that's two planets changing energy on the same day and neither in is good planetary company -- Mercury is with grim, old Saturn and Mars is with nutty Ketu. This is quite unusual, and perhaps destabilizing although the ingresses may be less important than the aspects and conjunctions

But we also have two outer planets, Uranus and Neptune, also changing their sidereal signs this week according to Lahiri or Krishnamurti. Unlike inner planets which change signs every month or so, outer planets change signs every few years and hence their ingresses may be more noteworthy. According to the Krishnamurti ayanamsha, Uranus enters Aquarius Monday while Neptune enters Capricorn on Thursday. Since these distant planets move so slowly, their ingresses will vary by a few days depending on which ayanamsha is used. I should also point out that this will not be the initial ingress for either Uranus or Neptune since both are retrograding back to a previous sign, and hence one could argue that the ingress may be less significant. Nonetheless, having four planets changing signs in such quick succession is a very rare occurrence and may serve to amplify any developments we see in the markets or the world over the next week or two. American astrologer Richard Houck noted that outer planet ingresses often coincide with major changes in the status quo. Uranus in particular was associated with major stock market declines. The 1987 US crash occurred the day Uranus entered Sagittarius, and the Dow lost 6% the day Uranus entered Capricorn in 1994. It's by no means a certain correlation or even a probabilistic one since we can point to many Uranus ingresses when the markets were relatively calm. But it should be seen as another potentially negative factor that could weigh heavily on markets, especially combined with the difficult Mercury-Saturn-Rahu and Mars-Ketu patterns.

This week nothing would surprise me. Get ready for anything.