Stocks in year end rally

Stocks in New York rose 2% on renewed hopes that government support for the auto industry would stave off bankruptcy. The Dow closed at 8668 and the S&P at 890. The rally in the US followed world markets higher as Mumbai was also up 2% with the Sensex at 9716 and the Nifty at 2979.

This rally was expected in advance of the Mercury-Jupiter conjunction, although the Indian markets have been extra strong, perhaps as a result of the end of Indo-Pak tensions. Tomorrow may well see another up day, although with the Mercury-Jupiter conjunction coming exact before trading in the US, it is possible that the rally may sputter somewhat.

Forecast for week of Dec 29 - Jan 2

Stocks in New York declined 2% last week as the tense Saturn-Neptune aspect continued to lurk in the background. The indexes stubbornly stayed above key support levels as the Dow closed Friday at 8515 and the S&P at 872. The immediate source of the negativity seemed to come from the Mars-Jupiter aspect as investors remained cautious before Christmas. The New Moon of December 27th suggests a mixed picture for January as malefic Mars-Pluto rises but Venus and Neptune are in exact conjunction. This is perhaps more evidence that the month to come may feature both a significant decline and a substantial rally. The optimism and idealism reflected in the Venus-Neptune conjunction is well expressed in the Obama inauguration on January 20. This will likely coincide will some kind of rise in the markets.

This week Saturn makes its retrograde station on Wednesday at 27 degrees of Leo. By itself this may not be a bearish influence, but given the Neptune aspect, it takes on a much larger importance. It is one of the reasons that we're likely to see more downward pressure on the market over the next week or two. On Wednesday, there is a conjunction of Mercury and Jupiter which may give some boost to the market, although it is more likely to occur before the aspect becomes exact.

Stocks in Mumbai were in sharp retreat last week as the major indices fell 7% with the Nifty settling at 2857 and the Sensex at 9328. Profit taking from the December rally and increased nervousness of the the tensions between India and Pakistan forced stocks lower. The near term outlook remains negative as Wednesday's Saturn retrograde station will closely aspect the natal Jupiter in the NSE horoscope. The New Moon at 12 Sagittarius is in close aspect with natal Saturn which is another bearish indicator for the Indian markets in the coming weeks.

Stocks slump further

New York continued its listless mood as the outlook for 2009 weighed on investors' minds. The Dow managed to stay above the 8400 support level but closed down 1% at 8419 while the S&P ended the day at 863. Stocks in Mumbai were negative from the open and fell over 2% as the Nifty closed at 2968 and the Sensex at 9686. Indian stocks remain above their 50 day moving average but seem ripe for a sell off.

I had thought we would see more upside by now with the Mercury-Venus-Uranus aspect. Time is running out for any last ditch rally before we head decisively lower. New York could rise Wednesday, but I'm less optimistic about Mumbai's chances. It will be interesting to see the effect of the midday (IST) Moon-Mars-Jupiter alignment. Given that Mumbai went higher in the December bounce, it is more vulnerable to profit-taking. Nifty 2525 is now very much on the table.

Stocks fall on grim outlook for 2009

Stocks in New York fell almost 2% today on the broader averages as a growing number of forecasts indicated another tough year for 2009. The Dow bounced off its intraday lows and closed at 8519 and the S&P ended at 871. Indian stocks also lost ground today as the Nifty weakened at the end of the day to close at 3039 and the Sensex at 9928. The pullback was no real surprise, especially in the US with the Moon squaring the nodes.

We may see a bounce tomorrow however. India looks quite negative at the open, so the Nifty will likely trade below 3000 before noon. However, a close in the green is still possible. And it's possible that sentiment will fully reverse by the close in New York with more upside possible by Wednesday.

Market Forecast -- week of December 22 - 26

Our bearish forecast notwithstanding, US stocks were mostly unchanged last week as the Dow closed Friday at 8579 and the S&P at 887. I had thought we would see more downside with the alignment of malefic planets, particularly the Mars-Saturn aspect. Monday saw stocks fall but they did not come close to even the 8400 support level. Tuesday's rally was not unexpected either, as Venus conjoined Rahu. But the late week decline was also a rather tepid affair as the market remains stuck in a fairly narrow trading range between 8500-9000.

It's important to note that the negative energy of the aspect between slow moving Saturn and Neptune has not disappeared. It is likely to be manifest sometime soon and is awaiting the proper planetary trigger. I mistakenly though the Sun-Mars would be sufficient, but as always astrology, the science that is not one, is rarely as straightforward as it seems. This week doesn't appear to have anything that will break us out of this trading range, although a rally is possible midweek on the Mercury-Venus aspect. Friday may be a harbinger of steeper declines to come, however, with the approach of the Mars-Pluto conjunction. Given the violent potential contained within these planets, it is possible this may be related to a geopolitical event that shakes market confidence. In any event, I think we will likely see the low around the first week of January 2009.

Stocks in Mumbai continued their winning ways last week as the major indices rose 5%. The Nifty closed at 3077 and the Sensex at 10,099. The late week Mars transit to the NSE ascendant did not bring declines but rather actually saw some gains. I'm a little puzzled by this market strength but remained convinced that this is another bear market rally that cannot be trusted to go much higher. Nifty 3150 seems like a solid resistance level.

While some gains are possible Tuesday or Wednesday, Indian stocks are likely to finish near or slightly below current levels this week. The Mars-Pluto conjunction early next week has the added feature of exactly aspecting the natal Mars in the Indian independence horoscope. This is a combination of planetary energies that speaks to sudden or even violent actions that may fall outside of the financial arena. The natal Mars in the India chart is in the 2nd house of finances however, so the most likely expression of this energy is simply more financial turbulence. Nonetheless, we should be open to all possibilities.

I think the US dollar will recover further in the coming weeks, with corresponding losses in gold.

US stocks fall for second day

Wall St. sold off amidst news of a GE debt downgrade and the increased possibility of an auto bankruptcy. The Dow was down over 2% to 8605 while the S&P closed at 885. Earlier in the day, Indian stocks rallied 3% as the Sensex closed at 10,076 and the Nifty at 3060.

I think we're likely to see another negative day tomorrow worldwide in advance of the Sun-Pluto conjunction. There is a good chance that it will be larger than today's decline in the US. These are December's dark days to be sure. While next week may be somewhat better, I get the feeling that the market still hasn't finished testing the downside here. Saturn's station on the 31st looms large.

US stocks fall back

Stocks in New York fell about 1% as traders took some profits after yesterday big run-up. The Dow closed at 8824 and the S&P at 904. In Mumbai, the major indices fell 3% as the winning streak came to an end. The Sensex ended the day at 9715 and the Nifty at 2954. The US dollar sell off continued as the Euro and Gold rose 3%.

In the wake of the Sun-Jupiter aspect, this decline was not unexpected as the positive energy was no longer available to push up prices. I had thought the US dollar might have turned around by now, but the Euro chart does show a couple of obviously positive contacts in effect today amidst all the tense ones: tr Venus conjunct the natal Uranus and tr Jupiter still conjunct the natal Venus. The Euro (and gold) may squeeze one more day out of this rally before coming back down to earth. Tomorrow could be a big down day for US stocks as Moon conjoins Saturn during the trading day. India may avoid the worst of it until Friday.