Stocks edge higher; lunar eclipse due on Tuesday

Stocks edged higher last week as the Fed reaffirmed its commitment to stimulate the economy by any means necessary. The Dow closed at new highs for the year at 11,491 while the S&P500 finished at 1243. It was much the same result in Mumbai as markets rose almost 2% with the Sensex closing at 19,864 and the Nifty at 5948. While I thought we might see more downside on the Mercury-Mars conjunction early in the week, we can't be overly surprised that markets continue to rally here on the approach of the Jupiter-Uranus conjunction. The midweek aspect between the Sun and Jupiter-Uranus manifested a little early as stocks generally rose through Tuesday. The same was true for gold as it once again traded above $1400 in Tuesday's session before turning lower for the rest of the week.

So the optimism of Jupiter continues to operate in a bullish syncopation with the risk-orientation of Uranus. It is tempting to think the good times will continue all the way to their exact conjunction on January 4 2011. After all, that is in keeping with standard astrological thinking as conjunctions are most strongly felt right at the point of exactitude. But even here it is important to note that conjunctions sometimes do not act exactly as advertised. Some conjunctions peak earlier than expected due to the presence of other factors, while the effect of others last well after they are exact, as we saw with the previous Jupiter-Uranus conjunction on September 15. This not only sparked the rally off the late August bottom, but the rally continued well into November. This was perhaps due to the fact that although past exact, the retrograde motion of both planets meant that they would continue to be in close proximity (less than 3 degrees) to each other for over three months. But once the faster moving Jupiter passes Uranus on January 4, there will be no future conjunctions until 2024. So that is an argument perhaps that the upcoming conjunction may not behave as bullishly as the last one did.

As always, other facts have to be considered. One such factor is the impending eclipse period, which begins with a lunar eclipse on Tuesday, December 21. Eclipses generally occur in pairs and the accompanying solar eclipse is slated for January 4 2011. That is certainly an intriguing coincidence given that this second eclipse will fall on the same day as the Jupiter-Uranus conjunction. Eclipses are generally seen as destabilizing events which can change market direction and upset the status quo. Just as the light of the Sun is blocked or interrupted in a solar eclipse, so are prevailing trends "interrupted" by solar eclipses. That is one reason why earthquakes and volcanoes tend to cluster around eclipse periods -- there is an upset in the Earth's status quo.

Readers may recall that the previous two eclipse series were closely implicated in market reversals. In January 2010, the market topped in the US on January 19, just four days after a solar eclipse, and then tumbled more than 10% over the next three weeks. The solar eclipse followed a preceding lunar eclipse which had occurred on Dec 29. The next eclipse period happened very close to the US market bottom on July 2, as a lunar eclipse occurred on June 26 and this was followed by a solar eclipse on July 11. In light of the tendency of eclipses to reverse trends, there is additional reason to think that the current rally and underlying optimism surrounding the market may be "interrupted" quite soon. The fact that the solar eclipse falls on the same day as the completion of the Jupiter-Uranus conjunction only adds to the likelihood that changes are afoot.

Besides Tuesday's lunar eclipse, this week will see Mercury forming aspects with Uranus and Jupiter. Since all three of these planets are nominally positive energies, there is some reason to expect more upside, presumably earlier in the week when the aspects are closest. After Tuesday, however, the positive effects of these aspects will likely wane and caution may soon move in on the Venus-Saturn aspect later in the week. Sentiment is likely to get even more cautions and perhaps downright tense in the week after Christmas as Mars squares Saturn.

US Stocks drift higher on Jupiter-Uranus; Mercury runs gauntlet this week

Stocks in New York drifted higher last week as favorable economic data supported the belief that the recovery is 'just around the corner'. The Dow was slightly higher at 11,410 while the S&P500 fared somewhat better closing at 1240, its highest level since 2008. Indian stocks were lower, however, as domestic inflation concerns and the outbreak of more financial scandals sent investors to the exits. The BSE Sensex tumbled more than 2% to 19,508 with the Nifty finishing at 5857. Meanwhile, gold fell back below $1400 last week as currency worries were put on the back burner. I had pointed out the probable negative effect of the early week Sun-Saturn aspect and all markets were generally weaker at that time, although Mumbai continued to fall through Thursday, possibly due to natal afflictions. Gold's decline arrived more or less on schedule with this aspect as prices tumbled more than 2%.

As most global markets inch higher here, we may well be seeing the "glass half-full" thinking that comes with Jupiter-Uranus conjunctions. Now that Jupiter is only two degrees away from Uranus, most markets are choosing to not "fight the Fed" and just get on board with all the cheap money Bernanke is injecting into the financial system, regardless of the downstream consequences. Jupiter's confidence and optimism is combining with Uranus' love of excitement and risk-taking to create something of a monster that has lost its sense of caution and fear. Well, it's all fun and games until someone loses an eye. The exuberance of Jupiter with Uranus may be seen as an astrological equivalent of a bubble. Even as more commentators openly question how long this game of musical chairs can go on, the bubble continues to be inflated. When will it pop? One possible answer might lie in the date of its exact conjunction on January 3, 2011. Once conjunctions are exact, they begin to lose energy as the planets separate. This is a general rule of thumb, however, as other influences must also be factored into the overall equation. Certainly, we are getting pretty close to that point where the balloon cannot expand any further without popping.

This week we will see the immediate effects of the bearish quadruple conjunction of Mercury, Mars, Rahu and Pluto. While this alignment has not been very negative in the US, it has had more impact in Asian markets where the negative effects of the inflation of Jupiter-Uranus is in full view. Mercury may be the key planet to watch here as it symbolizes trading and information flows. Now in its retrograde cycle until Dec 30, Mercury will conjoin Mars and Pluto early in the week with its closest pass on Tuesday. Around the same time, however, we will have a more bullish Sun-Jupiter aspect that is likely to boost confidence. Its effects are perhaps more likely to arrive midweek. Gold may be benefited in particular by this Sun-Jupiter aspect. The late week period looks mixed as Mercury suffers from its contact with Rahu on Thursday but the Sun teams up with Uranus which could spark more speculative interest.

Stocks rise on Mercury-Venus

Despite another disappointing US employment report that, stocks rebounded last week as the European debt crisis showed signs of coming under control. In New York, the Dow gained 3% on the week closing at 11,382 while the S&P500 finished at 1224. It was a similar tale in Mumbai as the BSE Sensex rose 4% closing at 19,966 and the Nifty at 5992. Last week, I had noted the unreliability of Monday's Mars-Jupiter aspect. This combination was often bullish due to its symbolism of excessive risk but it seemed less conducive to gains in the current climate. While we saw gains in Asia on this aspect, much of the rest of the world was modestly lower. The midweek pairing of Mercury and Venus delivered gains more or less as expected across the board as Wednesday saw prices climb sharply. The end of the week saw an ebbing of enthusiasm, although it was nowhere near as negative as the aspects would have suggested. The proximity of Mercury with Rahu and the Mars-Uranus square seemed to portend bigger moves than what we got. Since Mercury is slowing down in advance of its retrograde cycle which begins this Friday, some of the confusion and uncertainty from this Mercury-Rahu conjunction could conceivably be protracted over several days.

The world is awash in debt these days with stimulus plans, bailouts, and of course the Fed's QE2 program of quantitative easing. The aim of all these market interventions is to restore confidence, boost demand and economic activity, and avoid losses that would otherwise result if the market was left to its own devices. These are all understandable and commendable actions and yet with each new bailout comes an increased risk of inflation and debt default. Inflation occurs because too much money is being printed relative to the amount of value produced by an economy. In an attempt to restore economic confidence in indebted companies and countries, there is a risk that inflation will devalue fiat currencies and paper money. This is the main reason why the price of gold has been rising, as it once again closed above $1400 last week, and why money has been pouring into stocks of late. With the likelihood of currency debasement down the road -- as this risk-loving Jupiter-Uranus thinking goes -- it makes more sense to be invested in the stock market. But the risk of default is also growing as the amount of outstanding debt continues to mount. As a reflection of this increasing supply of debt, yields on debt are starting to rise all over the world. This is even happening with US Treasuries despite the Fed's buy back program. If bond yields continue to rise, it will begin to set off alarm bells as the debt will become too expensive to service. The danger here is that if yields continue to rise it could start chain reaction of ever-greater borrowing to pay the interest, higher inflation, devalued currency, and ultimately economic collapse. Bailouts are often necessary, but they are not risk-free.

This week begins with Jupiter entering Pisces (actually on Sunday), a Sun-Saturn aspect and a Uranus direct station. Jupiter entering a new sign is usually a bullish indication and it is now just two degrees away from Uranus. While their exact conjunction is still four weeks away, this is background influence is bullish, albeit somewhat diffuse. However, Sun-Saturn aspects usually sap confidence so this is often a difficult influence in the short term. Gold is also susceptible here since the Sun is its planetary significator. With Uranus returning to forward motion this week, there is a greater chance for sudden developments which may change some prevailing trends. When Uranus last changed its direction on July 5, the market had formed an important low just 3 days before. The midweek period features a Venus-Pluto aspect which will eventually blend into a Mercury-Venus aspect by the end of the week. These are usually positive influences. However, Friday's close Mars-Rahu conjunction is not a bullish combination and increases the chances for uncontrolled bursts of energy, irritation and hostility. The formation of the quadruple conjunction of Rahu (distortion, greed), Pluto (power,control), Mercury (communication), and Mars (action, urgency) over the next week or two is an unusual and awkward blending of energies that does not promote stability in either the financial markets or in the geopolitical sphere.

Markets slide under more Rahu-Pluto fallout

Stocks moved lower last week over Eurozone debt worries and geopolitical uncertainty in the Korean peninsula. In New York, the Dow lost about 1% during Thanksgiving week closing at 11,092 while the S&P500 finished at 1189. Indian stocks suffered deeper losses as the housing loan scandal merely added to the headwinds. The Sensex lost more than 2% to 19,136 as the Nifty closed at 5751. The fairly gloomy mood here was more or less in keeping with my expectations for more uncertainty and pessimism from the recent Rahu-Pluto conjunction. The early week was fairly bearish in the US and this roughly correlated with the aftermath of the Mercury-Mars conjunction. The midweek Mercury-Jupiter aspect delivered the goods on time as most world markets rallied strongly on Wednesday's improving job picture. And as expected, the late week saw an increase in caution as the Sun was in aspect to Pluto.

November is thus far shaping up to be quite a negative month as the Rahu-Pluto conjunction continues to dominate the proceedings. Rahu's penchant for narrow self-interest and distortion is expressed through the lens of Pluto's desire for power and control over large scale structures. The circumstances surrounding the EU bailout of Ireland last week perhaps speaks to this influence as the political implications of the proposed austerity package is coming under much scrutiny. While austerity may be necessary to restore confidence of the bond market, more citizens are asking why it is necessary that average people are having to foot the bill for mistakes made by privately-owned banks. In other words, if gains are private, then why are losses socialized? It will be interesting to see how this discourse of fairness plays out as Rahu and Pluto are joined by Mercury and Mars over the coming weeks. I would expect some kind of peaking or resolution of these power-related issues by mid-December.

This week begins with a close square of Mars and Jupiter. Recent experience suggests that the combination of Mars' energy with the optimism of Jupiter tends to increase risk appetite and take prices higher. That may well be the case here, although the general situation seems less favourable than it has been previously. On Tuesday and Wednesday there will be a minor aspect between benefics Mercury and Venus which could boost sentiment, at least temporarily. But the cloud hanging over the market is still the approach of Mercury and Mars to that dangerous Rahu-Pluto combination. Mercury will conjoin Rahu on Friday just as Mars squares Uranus. Since both of these aspects are negative influences, the late week period looks much more uncertain.

QE2 fuels inflation fears; Rahu-Pluto haunts markets

US Stocks were mostly flat last week on offsetting signals from China's bank tightening and Ireland's acceptance of the EU's bailout package. After briefly dipping below the 11K level, the Dow closed at 11,203 while the S&P finished at 1199. Indian shares fared worse as inflationary fears and tighter credit markets in Asia persuaded more investors to take profits. The BSE Sensex closed down 3% at 19,585 while the Nifty ended the week at 5890.

It was an interesting week in astrological terms as Monday's bullish Sun-Jupiter aspect did push up prices in Mumbai but optimism faded around noon in New York. Stocks then began to drift lower in the afternoon and continuing through the day Tuesday and into Wednesday. I had expected some significant downward pressure on prices going into the midweek Mercury-Saturn aspect and that was more or less what happened. As expected, Thursday was higher as risk appetite increased on the Sun-Uranus aspect. I was puzzled about what Friday might bring given the twin direct stations of Venus and Jupiter. While normally bullish, the coincidence of the nasty Mercury-Mars conjunction definitely took the shine off those benefic planets. Mumbai was sharply lower owing to some specific afflictions in the key natal charts while New York ended mostly flat as the early pessimism faded into equanimity.

The Fed continues to come under fire for QE2 and the inflationary pressures it has created in many emerging markets now awash in hot money. This is in keeping with the symbolism of the Rahu-Pluto conjunction that emphasizes the notion of power exercised by large organizations in the service of narrow and greedy self-interest. Not exactly a ringing endorsement of humanity's better impulses, but then again these are two malefic planets that are associated with some of the more base human qualities. While the exact conjunction of Rahu (the North Lunar Node) and Pluto occurred back on November 9, the slow velocity of these planets could mean a lingering influence into December. The quadruple conjunction involving Mercury and Mars in the second week of December may well mark a significant manifestation in this assertive and difficult energy.

This week will begin with the aftermath of the Mercury-Mars conjunction. On the face of it, this is bearish combination although since it is separating, it may not have a lot of negativity left in the tank. By midweek, we could see a rebound in sentiment as Mercury approaches its aspect with bullish Jupiter. This is perhaps not unexpected given the usual positive bias around the US Thanksgiving period. After Mercury loses Jupiter's glow later in the week, there may be a return to uncertainty, especially in Asian markets.

Stocks tumble on Rahu-Pluto; Venus, Jupiter turn direct

Stocks moved lower last week on concerns that China's inflation problem
would force its central bank to raise interest rates and thus choke off
growth. In New York, the Dow closed 2% lower at 11,192 while the
S&P500 finished at 1199. Indian stocks suffered even larger losses as
the Sensex had its worst week since May falling 4% to 20,156 with the
Nifty closing at 6071. This negative outcome was largely in keeping
with expectations as the ongoing Rahu-Pluto conjunction is highlighting
international tensions around trade and currency. The midweek aspect
between Mercury and Rahu seemed to act as a kind of trigger for the slow
moving Rahu and Pluto and this was perhaps exacerbated by the approach
of the stressful Saturn-Mars aspect on Friday.

It is interesting to see how the growing tensions around the Fed's QE2
stimulus plan and the resulting destabilization of world currencies can
be seen through astrological patterns. Rahu (thoughtless self-interest,
greed) and Pluto (power, large organizations) conjoined exactly on
November 9 just as the G20 were about to meet in South Korea to fashion
some kind of an agreement over currency and trade. No agreement was
reached as export-oriented nations continue to be hurt by the
appreciation of their own currencies. The US wants to create jobs as a
lower Dollar will boost exports, but this is bad news for its trading
partners which are seeing a loss of its export markets as its goods
become more expensive. In keeping with the symbolism of greedy Rahu and
assertive Pluto, this appears to be a time where narrow national
self-interest is being laid bare for all to see.

But the upcoming stations of Venus and Jupiter this week offer some kind
of hope for an end to the impasse. Both Venus and Jupiter end their
retrograde cycles on Friday and will resume their normal forward motion
in the sky. Since both are considered naturally benefic (and bullish)
planets, there is some reason to expect some kind of reconciliation or
agreement is possible. Whether such an agreement will be good for
stocks remains to be seen, however, since a coordinated plan to bolster
the US Dollar would likely lessen risk appetite and make stocks less
attractive.

Ahead of Friday's possible trend reversal, there is an unusually dense
mixture of positive and negative aspects this week. Monday will feature
both the completion of the bearish Mars-Saturn aspect and the start of a
supportive Sun-Jupiter aspect. This suggests the possibility of higher
volatility with gains quickly following upon losses. By Wednesday,
Mercury falls under the influence of pessimistic Saturn so that is may
somewhat increase the likelihood of declines. Thursday's Sun-Uranus
aspect may make risk more attractive and thus tend to boost prices. The
week concludes with "The Venus and Jupiter Show". While these planetary
reversals would appear to be bullish, they occur at the same time as
Mercury conjoins Mars. Since Mars is usually a negative influence,
there is still the possibility that things may not proceed according to
plan. So that is something of a wild card influence on the situation.
The end of the week looks interesting to say the least, with an
increased likelihood of a large price move.

Markets cheer QE2 ahead of Rahu-Pluto conjunction

Transits for Monday November 8, 2010

Stocks rose sharply last week as Fed Chair Ben Bernanke announced the much-anticipated QE2 stimulus measures designed to boost the listless US economy. In New York, the Dow rallied to new highs for the year and closed at 11,444 while the S&P500 finished at 1225. Indian stocks likewise took a shine to Bernanke's freshly minted rescue package as the Sensex closed at an all-time high of 21,004 with the Nifty coming in at 6312. I thought we might see more downside on midweek Mars-Ketu aspect but the late week Mercury-Jupiter appears to have trumped all other influences. As a result, Wednesday's weakness was quite mild and didn't last long. Monday's Venus-Pluto aspect produced significant gains in Mumbai while Thursday's Mercury-Jupiter aspect sent stocks soaring. Neither of these up moves was especially surprising, although with Ketu's influence largely invisible here, the market rose overall.

An aspect worth watching this week is the conjunction between Rahu and Pluto which is exact on Tuesday. Rahu symbolizes speculation and greed and is considered a malefic planet. It is also connected with situations that break with the status quo and cause uncertainty. Pluto is also a nominally malefic planet and represents power and control, especially as it pertains to large organizations. It is possible that we could see further rally attempts with this intensification of greed, but it seems like a fairly precarious set up. With the G20 meeting in South Korea this coming weekend, one wonders if some significant changes are afoot. Some member nations have expressed frustration with the Fed's stimulus measures since they are devaluing the US Dollar and thus forcing up the value of their own currencies. This is creating problems by fueling inflation and making their exports more expensive. If there was a major change to the current currency regime, it could throw a wrench into the recent stock market rally since much of it has been driven by a falling US Dollar. The combination of Rahu and Pluto certainty has the power to effect such a change, although its full force may take some time to be released. The early December quadruple conjunction of Mercury, Mars, Rahu and Pluto is perhaps the most obvious potential configuration in that respect.

The week begins with a fleeting Mercury-Venus aspect that may boost sentiment and spur some more buying. By midweek, Mercury will form an alignment with Rahu and Pluto and this may correspond with distorted communication and confusion. These conditions would therefore seem to encourage greater caution and lower prices. At the same time, we can see that Mars is gradually coming under the influence of Saturn's full strength sextile aspect, so this may be another drag on sentiment as we move through the week. This aspect is not exact until next Monday the 15th but it will bear close watching.


"A government that robs Peter to pay Paul can always depend on the support of Paul. "
-- George Bernard Shaw