“Mars square Neptune will affect the market today to tomorrow. It is a bearish influence in the already apprehensive credit markets” -- my Weekly Forecast Stockmarket entry for today, posted on 7/21/07.
Action oriented Mars (in the financial sign Taurus) squared Neptune in Aquarius today. Neptune represents debt and Aquarius represents packaging, such as CDO’s and MBS’s. Reaching the degree of the Saturn/Neptune opposition cycle*, Mars pulled the trigger and shot down the illusion that stocks are worth what private equity is paying for them.
Mars and Saturn (fear) adversely impacted Countrywide Financial’s stock horoscope’s Sun (identity), Mercury (information), and Uranus (shocks and surprises). CFC became the catalyst for today’s market drop when they could not clearly differentiate between Prime and Subprime. FICO scores couldn’t do it. In fact, CFC allows a Prime borrower one 30 day late mortgage payment in the prior 12 months. Bankruptcy appears to be one of the very few differentiators. This is what truly freaked out the credit markets.
* Please see my previous posts, Party’s Over and Will Barron’s Like Lehman in August? in the Commentary section.