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

Markets mostly flat ahead of Fed meeting and Mars-Ketu

US Stocks were mostly flat last week as offsetting economic data was enough to maintain the holding pattern ahead of the midterm elections and this week's crucial Fed meeting. The Dow finished slightly lower at 11,118 while the S&P500 remained stuck at 1183. Indian markets fared somewhat worse as the Sensex closed less than 1% lower at 20,032 and the Nifty at 6017. While I thought the heavy planetary traffic might create a little more movement last week, the outcome was not unexpected. Monday's gain coincided nicely with the Mercury-Venus conjunction, while the midweek Sun-Ketu aspect also fit well with Wednesday's decline, even if prices rebounded somewhat by the close. Thursday was also higher as expected on the Sun-Venus conjunction although most of the gains occurred at the open.

This week could see a significant break from the recent narrow trading range as the Fed meets on Tuesday and Wednesday and will likely announce the scope of its latest round of stimulus measures, so-called QE2. As far as stocks are concerned, bigger is better so any amount of treasury buy backs in excess of $1 Trillion will likely spark some buying. This seems unlikely, however, as Fed bankers have been hinting that QE2 will likely be smaller, perhaps closer to $500 Billion. Since this number has largely been discounted already by the market, it could possibly spark a "sell the news" reaction. Interestingly, the Reserve Bank of India also meets on Tuesday so that will be another important piece of information for the market to consider. The consensus view is for a modest 25 point hike as the RBI tries to tame inflationary pressures.

In astrological terms, the early week has a decent chance for gains as Venus, Mars and Pluto form an alignment on Monday. Tuesday and Wednesday look more uncertain as Mars forms a close aspect with Ketu, the South Lunar Node. Mars-Ketu aspects are very unpredictable and are often connected with fast-changing circumstances. Since these are both considered negative planets, there is a greater likelihood that markets will selloff midweek, perhaps in reaction to either the US midterm elections or the Fed announcement. The possibility of a major reaction to the news is boosted somewhat by the fact that Ketu is involved in a close opposition to Pluto. While this opposition will become exact early next week on Nov 9, some of that energy may be released through this Mars aspect here. The end of the week looks somewhat more stable as Thursday's Mercury-Jupiter brings together two positive planets.

"Doubt is not a pleasant state but certainty is a ridiculous one." -- Voltaire

Markets tread water; Venus meets Ketu this week

Transits for Monday October 25, 2010

Stocks mostly treaded water for another week as positive earnings reports offset the fallout from China's unexpected interest rate hike. In New York, the Dow briefly traded at levels last seen in near its April high before closing at 11,132 while the S&P500 finished at 1183. The Indian market was also mostly unchanged despite growing worries over the fast rising Rupee. After trading below 20,000 midweek, the Sensex ended the week at 20,165 with the Nifty closing at 6066. While I thought we might see more downside towards the end of the week on the Mars-Neptune aspect, prices adhered fairly closely to the storyline described by the key aspects, at least in the US. I had expected some upside from the Sun-Jupiter aspect on Monday and the Mars-Jupiter aspect on Wednesday and we did indeed see broadly based gains on both those days. (In Mumbai, however, the effects from the Mars-Jupiter aspect lagged somewhat as the 2% gain arrived on Thursday.) Tuesday's decline was quite steep and roughly corresponded to the difficult Venus-Saturn aspect, although I did not have an inkling that the selloff would be as large as it was.

As Fed Chair Ben Bernanke continues to promise endless stimulus through the purchasing of US treasuries, market sentiment has remained quite positive. Much of the rally since September has been driven by the assumption of another round of quantitative easing (so-called QE2) which will likely be announced sooner rather than later. With the next Fed meeting slated for November 3, it's worth reflecting on the possible outcomes of any announcements. Ketu (aka the South Lunar Node) will be in aspect with Mars on that day and this may well capture the jittery market mood then. Mars-Ketu combinations are usually found in situations that release a lot of energy in a short time and are sometimes found in accidents, violence, and other unpleasant circumstances. While Mars-Ketu contacts are not always connected with "negative" events, both planets are considered malefic by nature and there could be an urgency there that is incompatible with smooth or routinized behaviour. At very least, we know that trading volumes will likely rise sharply around that time.

This week will see an unusual blending of positive and negative forces as there will be two Venus conjunctions along with a strengthening of Ketu (South Node). Mercury conjoins retrograde Venus on Monday and when these two benefic planets combine there is usually a lift in the mood that accompanies higher prices. At the same time, however, this conjunction will occur in fairly close aspect to Ketu. Ketu can be a disruptive influence which undermines the status quo and generates surprising outcomes. This could either act as a mirror that flips the expected outcome from positive to negative or it may act as a magnifier that actually intensifies positive outcomes. A more clearly problematic set up occurs midweek on the Sun-Ketu aspect as confidence may ebb as government and leadership is called into question. On Thursday, there is a second Venus conjunction, this time with the Sun. This is also usually a favourable alignment of planets that boosts happiness although again, the presence of weird Ketu confuses matters somewhat. If nothing else, the impact of these two Venus conjunctions will probably be exaggerated in either direction, so larger price moves are more likely.

Quote of the week: "Coming events cast their shadows forward." – Goethe

Stocks stay firm after Venus retrograde

US stocks edged higher last week on the hope that the Federal Reserve
would undertake a new round of stimulus measures to revive the flagging
economy. Despite the the deepening of concern over the foreclosure
scandal that implicates many large banks, the Dow closed slightly higher
at 11,062 and the S&P500 finished the week at 1176. It was a somewhat
different story in India, however, as investors took profits on worries
the rising Rupee might undermine exports and outsourcing. The BSE
Sensex lost 1% to close at 20,2125 and the Nifty ended Friday's session
at 6062. This was our first glimpse at the possible effects of the
Venus retrograde period (Oct 7 - Nov 18) and the results were a little
underwhelming. A change in direction in Venus might have corresponded
with the rally coming to an end and prices moving lower. It's harder to
make that argument now since prices have generally drifted higher,
albeit not by much. Last week's Mars aspects on Monday and Friday saw
some weakness, especially in India, although the early week period was
fairly strong. The midweek Venus-Uranus aspect did correlate nicely
with Wednesday's big gain.

This rally that began in September is largely rooted in the assumption
that Ben Bernanke will continue to pump liquidity into the system in
order to stave off a deflationary spiral. With interest rates near
zero, stocks become a very attractive investment, especially as the US
Dollar is on the verge of turning into a Third World currency. This
belief in the power of cheap, risk-free government money to paper over
any economic shortcomings might be linked to the recent Jupiter-Uranus
conjunction that was exact in September. Jupiter symbolizes expansion
and wealth, while Uranus embodies the notion of risk and excitement.
Together, these planets increase the appetite for risk and may well
reflect the market's infatuation with the Fed's intention to "pump it
up", regardless of the consequences. While this conjunction is now
separating and therefore weakening, there seems to be a continued
reservoir of belief in this 'glass as half-full' approach. The
retrograde motion of Venus offered the possibility that the current
approach to shopping, buying and the valuation process may be undergoing
some kind of change or review.

This week has an unusually high number of close aspects involving both
Jupiter and Saturn. On the face of it, it would seem that the optimists
may claim bragging rights as Monday's Sun-Jupiter aspect inclines
towards the bullish camp. Wednesday's Mars-Jupiter aspect appears to
support wise (Jupiter) actions (Mars) and in the past often coincides
with gains. In between these configurations is more of a mixed picture,
however, as Venus is in aspect with Saturn in the midweek and
afterwards. The Mars-Neptune square late on Friday also seems more
negative as actions may lose their focus or be subordinated by hidden or
deceptive means. And with Mars simultaneously in a harmonic aspect with
Saturn here, the late week period could be significantly negative.

"The only principle that does not inhibit progress is: anything goes".
-- Paul Feyerabend