“Wall Street’s budding optimism confronted reality during the week. Reality won.” – Wall Street Journal: “Optimism Suffers Setback as Dow Drops for the Week”
This is accurate description of what happened when Jupiter moved stationary retrograde* in Capricorn, a sign ruled by Saturn. During the prior week when Saturn went stationary direct in Virgo, markets moved up. When planets are about to change direction, their characteristics become magnified. On the surface, it appeared that financial markets interpreted the Saturn and Jupiter stations in the opposite manner than is most commonly ascribed to these planetary energies. However, a closer examination reveals Wall Street did indeed follow planetary patterns.
Saturn is the planetary energy of caution and limitation. Virgo rules the workforce. The April employment report showed a loss of 20,000 jobs, far less than Wall Street expected. This combined with other indicators led many investors to believe we had reached the bottom and it was time for financial markets to begin their climb to the top. (Saturn relates to putting in the effort required to climb to the top of the mountain or the top of one’s profession.)
Jupiter is the planetary energy of optimism and expansion; it tends to manifest in upward market moves. And the market did see large gains – in oil. The stock market got spooked on Friday by Dow component American International Group’s (AIG) $7.8 billion loss and plan to raise $12.5 billion in capital. Jupiter is constrained transiting Capricorn this year as Capricorn is a sign ruled by Saturn. The upward spiral of inflation puts limits (Saturn) on growth (Jupiter). As the planetary energy of excess, Jupiter can make large moves in either direction.
Oil’s record high close of $125.96 Friday was another factor in dampening the market’s enthusiasm. Oil is ruled by Neptune and the sign Pisces. Uranus, the planet of shocks, surprises, and speculative trends, has been in Pisces since 2003. In financial markets, Uranus relates to price spikes. Goldman Sachs (GS) expanded their 2005 bullish oil forecast this week to predicting a “super spike” of $150-200 a barrel over the next 6 to 24 months. Prices for oil futures to be delivered up to December 2016 are trading above $110 a barrel. (Uranus rules uranium, which sold for around $10 a pound in 2003 and now is at about $65 a pound on renewed interest in nuclear power.)
Jupiter is making three aspects to Uranus this year, a sign of large and unusual price moves. The first pass occurred on March 28, around two weeks after oil hit a then record high. Stocks declined leading up to that day, and had a mega short covering rally April 1. May 21 marks the second pass. The Moon will be in Sagittarius again, the sign ruled by Jupiter. The final hookup of Jupiter and Uranus will occur on November 13. There will be a Full Moon in Taurus that is perigee (closest to the Earth). The Full Moon will challenge Neptune that day. Besides higher than average tides and strong storms likely around that time, inflation will probably be in the spotlight.
There is no doubt that oil and other commodities are in a bubble. Unlike the era of Uranus in Aquarius (1996-2003) that saw any company’s stock skyrocket and then crash if it had dot com in its name, high oil and commodities prices are also based on supply constraints and demand from emerging markets. Investors will have to draw their own conclusions as to how much oil is worth after speculation and inflation is removed. With Uranus, one thing is certain. The downward spikes will be just as swift and surprising as the upward ones.
*Planets do not really move backwards but appear to from Earth’s vantage point.
Related Posts: “Factors Fueling Oil Prices”, “Satellite Searching for Saudi Oil”
“Oil and Election Year Politics”, “The Commodities Craze”