Jupiter-Uranus saves markets

Markets teetered near their recent lows before bouncing higher last week as Euro concerns moved to the back burner on more hopeful economic data. In New York, the Dow climbed back over the 10k level and ended almost 3% higher at 10,211 with the S&P coming in at 1091. The situation was a little less rosy in Mumbai, however, as markets edged lower with the Sensex finishing at 17,064 and the Nifty at 5119. US markets survived a near-death experience on Tuesday as the key indexes flirted with recent May low, a violation of which would have likely sparked near panic selling. Astrologically, this coincided with the high-energy alignment of Mars with the Jupiter-Uranus conjunction. The move by Venus into Cancer introduced a measure of optimism midweek which got a further boost Thursday and Friday when Mercury joined the party with Jupiter-Uranus. While we are currently trapped in the vice-like grip of some very heavy and portentous planets, I did expect some relief rally here so it was nice to see that come to fruition.

Meanwhile, the nightmarish never-ending oil spill in the Gulf is reaching a point that it may be affecting overall US market sentiment. Revised leak rates and more dire predictions of environmental damage are contributing to the overall gloomy mood on Wall Street, even if there may be relatively little direct impact on the economy as a whole. As we know, the markets are driven by sentiment in all its glorious "animal spirits" irrationality, and this is where understanding planetary influences can become so helpful for gaining extra insight. So while there may an increase of entrepreneurial enthusiasm from the Jupiter-Uranus conjunction here, it is important to note that Jupiter is now separating from Uranus, so this effect may be prone to weakening in the days to come. Furthermore, Saturn will begin to replace Jupiter as the primary interface for Uranus. It was Saturn and Uranus that started this latest negative phase in the market back on April 26 when it last formed its opposition aspect. Yes, folks, its coming back for yet another return engagement. In other words, we cannot expect too much smooth sailing anytime soon.

This week begins with a text book instance of favorable planets. Venus, the planet of love, luxury and enjoyment, will come under the aspect of Jupiter-Uranus on Monday and Tuesday. Since Jupiter is the very embodiment of bullish optimism, one would tend to think a positive result would be likely. Of course, all the background influences are looking unsettled at best, so we should not become too complacent even with bullish patterns. On Tuesday, the Sun enters sidereal Gemini. This may result in more sober thinking (hint: this is a euphemism for gloom) since the Sun will come under the aspect of plodding, deliberative Saturn. Later in the week Mercury, the planet of commerce and communication, forms an aspect with Ketu, the planet of sacrifice and renunciation. Not a good combination for financial markets I should think.

"Caution is the eldest child of wisdom" - Victor Hugo

Mars does damage; hopes now pinned on Jupiter-Uranus

Another week of fear and loathing in the financial world amidst a sea of less than cheery news. Hungary's potential for default pushed the Euro below 1.20 for the first time since 2006, a US employment report that showed precious little in the way of new jobs, and the never-ending oil Gulf spill threatens to put the entire US eastern seaboard in a choke hold. After gamely pushing back to its 200-day moving average on Thursday, Friday's jobs report sent the Dow below 10,000 closing at 9931 down more than 2% on the week. In Mumbai, the picture was somewhat rosier since Indian markets were largely spared Friday's carnage. The Sensex closed at 17,177 while the Nifty finished at a respectable 5135. Mars over-fulfilled its role as the planetary villain last week as the Mars-Saturn aspect coincided with Tuesday's decline worldwide. The Mars-Neptune opposition manifested a little later than expected (but still right on time), as Friday's selloff occurred when Mars (4 Leo 41) was almost exactly opposite Neptune (4 Aquarius 47).

Of course, these Mars aspects have become extremely potent here because the planets being aspected (Saturn, Neptune) are involved with larger and more clearly negative celestial alignments. It is critically important to recognize that these aspects are going to hang around for while and will create more tension and anxiety in financial markets for much of 2010. For example, Saturn and Uranus are in close opposition aspect until late July. Saturn and Neptune will form a quincunx aspect until the beginning of July. And by the time August rolls around, Pluto will join in and square Saturn. All told, this sequence of aspects this year is among the very the worst imaginable.

This week begins with Mars aspecting the conjunction of Jupiter and Uranus. This looks like a very energetic and intense combination that suggests major moves are possible. Jupiter and Uranus are often seen as optimistic and risk-taking planets but against the larger backdrop of all that Saturn energy, it will interesting to see how these divergent impulses play out. Mars is not an energy that is easily integrated into an already tense environment although Jupiter can be a very forgiving planet. Later in the week, Venus enters Cancer and Mercury will move in sync with Jupiter and Uranus which suggests that despite the gathering gloom, the cup may actually be half full -- if only for a short while.

Mars runs Saturn-Neptune gauntlet early; Jupiter-Uranus await

After a near death experience early in the week, stocks regained their footing later on as some improved economic data and soothing words about Europe from the Chinese government induced buyers to part with their money. For all the volatility, stocks in New York closed mostly unchanged as the Dow closed at 10,136 and the S&P at 1089. Indian markets fared somewhat better as shares added more than 2% as the Sensex ended Friday's session at 16,863 while the Nifty finished at 5066.

The approach of the twin stations of gloomy Saturn (May 30) and sickly Neptune (May 31) did not disappoint as our prediction for more market mayhem and intensity was more or less realized. Tuesday's plunge revisited levels last seen in February and thereby became a basis for a fledgling low volume rally into the end of the week. While current prices are still perilously close to the 200 day moving average, there may be a ray of hope emerging on the sense that the markets may have dodged a bullet -- at least for now.

Mars will be a key player in the planetary soup this week as it forms a minor aspect with Saturn and Neptune early in the week. Mars is often a bitter taste, especially when combined with malefics such as Saturn and Neptune. This appears to be a destabilizing influence that will reflect some kind of dysfunctional quality in the economy. This does not seem like a positive combination at all. Towards the end of the week, Mars will leave the negativity behind and move towards Uranus and Jupiter. This is an entirely different sort of cosmic picture where risk, action and restlessness will be the watchwords. In fact, the trio of Mars, Jupiter and Uranus would seem to be the perfect planetary profile of "the speculator".

Not looking good

A pretty grim day as Monday's go. S&P got as far as 1090 again but just faded away at the close. No melt up, no short squeeze, no break above the 200 DMA. Bulls have got to be sweating now.

We just took another step closer to another major down move.

We may see another rally attempt to 1100 on the S&P before it falls apart.

Euro haunts markets; Saturn-Neptune still looms

Transits for May 24, 2010 9.30 a.m. New York

It felt like 2008 all over again last week as markets teetered over mounting fears surrounding the Euro and the Eurozone economies. As volatility spiked in New York, stocks fell more than 4% for the week with the Dow closing at 10,193 and the S&P at 1087. The sell-off also took hold in Mumbai as the Sensex closed down 3% to 16,445 and the Nifty at 4931. The market looks to have broken down here as psychology has undergone a fundamental shift. This is very much in keeping with the extremely tense and powerful alignment of planets that marks the sky at the present time. While I thought we might have seen more gains later in the week -- only Friday's session was higher in the US -- the overriding pessimism out there was not surprising as we approached the extremely nasty Saturn direct station on May 30.

Interestingly, the Euro did manage to rebound, although it was mostly fueled on the belief that the European Central Bank had begun to intervene in the market and was buying up unwanted Euros. As the turbulence has grown, even gold has fallen out of favour as investors are wary of another deflationary spiral like we saw in 2008. Gold's weakness is very much a reflection of the recent weakening of the planet Venus. Its parabolic run-up occurred while Venus was transiting sidereal Taurus, a sign that Venus is said to rule and do well in. It left Taurus and entered Gemini on May 14 -- the very same day of its all time high at $1250 on the futures contract. Gemini is a less favourable sign for Venus and it has been in retreat ever since that date. The prospect of Mars entering Leo on Wednesday this week may deliver another blow to gold. Leo is a sign with a strong affinity for gold and when it is connected with a malefic planet like Mars, it may make it even more vulnerable to declines.

Market analysts point to the breakdown of the 200-day moving average last week as a technical sign that we may have entered new territory here. Whenever the key stock indexes are above this moving average, the market is said to enjoy positive momentum as most people believe it to be a bullish condition. But when prices fall below this line, gloom descends and investors become more fearful. What is interesting is that this new and dangerous situation is very much reflected in the stars. The twin stations of Saturn and Neptune on the 30th and 31st are quite unusual and, when combined with their tense aspects to Uranus and Jupiter, quite portentous of difficult events and outcomes. All told, the next two weeks or so could be quite intense.

US falls 4%; breaks support

Markets are looking pretty grim right now as major indexes have closed below their 200 day moving averages.

While I had expected some kind of major fallout in May from the current planetary alignment, I didn't expect we would fall quite this far this fast.

The twin stations of Saturn on May 30 and Neptune on May 31 are looming quite large right now. As Mars enters into the Big Alignment around the same time in early June, we could be that far away from a bottom. But just where that will be is unclear. Those February lows are fast approaching.

By prepared for more extreme bearishness over the next six months.

Stocks unable to escape shadow of Eurozone

Despite the EU's munificent $1 Trillion bailout package, markets ended the week with another bad case of the shakes. For all the reassuring talk and seemingly endless supplies of paper money, a growing number of investors are not convinced that the high debts levels in Europe are compatible with economic growth. Nonetheless, stocks did finish higher on the week as the Dow climbed 2% to close at 10,620 while the S&P finished at 1135. A similar story unfolded in Mumbai as equities ended higher on the week but left a bad taste in the mouth. As of Friday, the Sensex stood at 16,996 with the Nifty at 5093. While I thought we would see some supporting sentiment form after the flash crash, I thought much of it would follow Wednesday's Mercury direct station closer to the exact aspect between the Sun and Venus. As a probabilistic enterprise grappling with the vicissitudes of the human condition, the only thing we can say about astrology is that it is about as scientific as economics. As I noted last week, the growing influence of Jupiter over the second half of May could well buttress stocks somewhat in the face of an otherwise harsh planetary environment.

To be sure, this correction has found a close correlation with the planetary geometry in the current sky. Most global equity markets formed a top on April 26, the same day as Saturn (4 Virgo) formed an exact opposition angle with Uranus (4 Pisces). These incompatible energies have manifested in struggles over austerity and regulation (Saturn) at odds with the desire for risk and freedom (Uranus). As troublesome Neptune (4 Aquarius) joined this extremely rare alignment in May, the market has undergone a significant correction which threatens to bring the recovery rally of the past 13 months to a screeching halt. These are very powerful planets that can signal not only changes in investor mood, but can serve to disrupt and ultimately reorganize some of our most fundamental human institutions. The current Saturn-Uranus-Neptune configuration is just the most recent phase in the much more complex planetary pattern that will unfold from 2008 to 2013. Just to give some indication of the kind of significant economic and societal changes that might be in store, we have not seen an alignment of this many outer planets since the early 1930s.

This week features the transits of the Sun and Venus into the thicket of the Big Alignment on Monday and Tuesday. This is likely to coincide with at least another down day, although we should note that the tell-tale Saturn aspect only occurs on Tuesday as the more comforting Jupiter aspects to Venus and the Sun hit exactly on Monday. Given the close degree proximity of Jupiter (2 Pisces) to Saturn (4 Virgo), these transit effects may become blurred as the market gyrates in both directions in the early part of the week. After Venus and the Sun escape from Saturn, they will have the opportunity to form aspects with Uranus and Neptune starting on Wednesday. These appear to be much more risk-positive influences that we often associate with rising stocks. Jupiter's tightening aspect to Saturn could bring further relief here although that picture may not last as Saturn ends its retrograde cycle and turns direct on May 30.