Summary of This Week’s Influences/All times listed are Eastern Daylight Time (EDT).
- General Influences: Tuesday to midday Thursday is the most productive days of the week. Saturday’s Lunar Eclipse is a wonderful time to connect with friends and groups who share your vision.
- Stockmarket: As I wrote in last week’s forecast, “we’re now in the volatile time band between the August 1 Solar Eclipse and the August 16 Lunar Eclipse.” With the eclipse in fiery Leo conjoining Mercury, the stock market experienced a dramatic upside reversal. In Leo there’s a tendency to see the sunny side of things. News that Japan and the Eurozone economies are weakening was interpreted as good news, causing the dollar to rally and crude oil to enter bear market territory. (Apparently “decoupling” has become passé.) As I wrote in “The Commodities Craze” back in January, oil would be the first commodity to take a fall. However, I did think that oil would trade in wide volatile swings with “periods of upside moves” based on geopolitical and weather events this month. One third of last Tuesday’s gain occurred after the FOMC’s no brainer announcement was interpreted by the market as the Fed staying on hold longer than the futures market had priced in. I warned that retailers would not have an easy time, and last week’s July same store sales came in weaker than expected. Yet most retail stocks rallied on Friday as if the drop in gas prices would find consumers rushing back to the mall, restaurants, etc. The better than expected number of May pending home sales showed the best gains in areas with the greatest number of bank owned foreclosures – California’s “inland empire”, Las Vegas, Cape Coral/Ft. Myers Florida. The weakest areas were the parts of the country where sales previously were strong, such as the Seattle area and Texas.
Energies during the eclipse period (especially August 1- 16) tend to be unpredictable and unstable. Current trading patterns might break down just before or just after this Friday. If they do hold up, things might change after the Virgo New Moon on August 30. My sense is the bullish enthusiasm cannot hold up as the underlying fundamentals are not there to support it. If 70% of the US economy is consumer-driven, it will take more than lower gas prices to turn housing and the consumer’s debt burdened balanced sheet around. This means that outside of the financial sector, most other equity sectors are overvalued.
Expect another highly volatile week. Mercury has left Leo for its “home” sign Virgo. News should be digested differently as it’s harder to put a sunny spin on bad news. Venus will conjoin Saturn in Virgo on Wednesday. This is likely to revive credit concerns and reduce valuations. Mercury will conjoin Saturn on Friday, the alignment becoming precise at 4:00 PM. This could bring news of government regulations. Analysts could be lowering expectations and valuations. Mercury conjoining Saturn in Virgo represents caution, contraction, and tends to worry about everything.
The CPI comes out on Thursday. The Sun opposes Neptune late this week; this is usually an inflationary indicator. Oil usually rises under this aspect. The Sun/Neptune can bring news of false information revealed. One or more scandals might erupt involving corporate or government leaders.
It should be a wild Options Expiration on Friday with the Sun opposite Neptune in Aquarius conjoining the Lunar Eclipse, along with Mercury conjoining Saturn. Aquarius (and its ruler Uranus), represents sharp price swings in either direction. The Lunar Eclipse conjoins the USA Moon. The Moon in a country’s horoscope represents the general public/consumers and real estate, so housing and the consumer are at the forefront.
Pay attention to news that emerges after the close Friday and over the weekend as Mars in Virgo challenges Pluto in Sagittarius. Takeovers are possible. Geopolitical tensions could violently erupt. Mars with Pluto relates to serious ammo/nuclear issues.
Related Post: “The SEC’s Short Story”
Monday, August 11, 2008
- General Influences: There might be more chatting going on about the weekend’s events than work getting done this morning. People need a lot of freedom and latitude this afternoon as the Moon in Sagittarius challenges Uranus. Inspiration meets optimism late this afternoon. It might be better to go to bed early tonight as the Moon challenging Mars in Virgo late this evening can tend to make people feel impatient and irritable.
- Stockmarket: Choppy/mixed to negative bias. Might see improvement in late afternoon.
Tuesday, August 12, 2008
- General Influences: The Sagittarius Moon becomes VOC* at 5:04 AM; Moon enters Capricorn at 7:42 AM. For the next 2.5 days, the focus is all business. The Moon and Mercury harmonizing mid afternoon is a good time to discuss details with coworkers or subordinates, make important phone calls, send email, and write reports.
- Stockmarket: Choppy/mixed conditions. Could show improvement at the close.
Wednesday, August 13, 2008
- General Influences: The Moon conjoining Jupiter in Capricorn this morning promotes an optimistic and upbeat outlook. Venus conjoins Saturn in Virgo. It’s a good day to work on financial matters and take an objective look at your personal balance sheet. Financial stability and physical wellbeing are paramount.
- Stockmarket: Negative bias – likely strongest in morning.
Thursday, August 14, 2008
- General Influences: The Moon harmonizing with Mars until the early afternoon tends to make people feel energetic and eager to accomplish all types of work. Do it now as the Moon becomes VOC at 1:09 PM until entering Aquarius at 6:56 PM. The Sun in Leo opposes Neptune in Aquarius, influencing today through Saturday. Unrealistic attitudes regarding relationships can result in self-deception, as people tend to project what they wish to see in the other person. Fantasy can conflict with reality.
- Stockmarket: Choppy; swinging from mildly positive to negative.
Friday, August 15, 2008
- General Influences: Mercury conjoining Saturn in Virgo today provides sobering clarity. It’s best to take a cautious and systemic approach. This can be a good time to work on tedious projects requiring a high level of detail. Allow extra time traveling as there could be delays.
- Stockmarket: Highly volatile; negative.
Weekend: August 16-17, 2008
*VOC (Void-of-Course) = When the Moon (our emotional barometer) does not form any relationship to a planet before entering a new zodiacal sign. This time period is best suited for anything where NO ACTION OR SPECIFIC OUTCOME is desired, as actions taken during the VOC period might not turn out as planned.