Ingredients To Create A Big Global Market Drop
To quote Oprah, “what I know for sure” is that when the energies of the Sun, Mercury and Jupiter strongly interact with one another, the effects are big and exaggerated. With Mercury retrograde in Libra, the mind gets muddled attempting to figure out which direction the market is most likely to go, since Libra can usually make an equally good case for bulls and bears.
Relating to what I had originally written in the Libra New Moon cycle, I thought our trigger happy Treasury Secretary and his Fed friends would announce something today that would basically give the market a one day wonder boost. The only “positive trend bias” (ha!) occurred when the DJIA recoverd 430 points after being down a record breaking intraday 800.06 points at 2:46 PM. Today marked the first time since October 2004 the Dow closed below 10,000.
With the Sun conjoining Mercury retrograde, the hearts and minds of investors worldwide have not been reassured by the massive interventions in financial markets by governments worldwide (Jupiter in Capricorn). How Bank of America (BAC) thinks they’re going to raise $10 billion in new equity shares to pay for the acquisition of Merrill Lynch (MER) when too many investors have experienced the government coming in and punitively diluting or completely wiping out their shares in the name of moral hazard is beyond me. Instead of instilling confidence, their actions are sending a message to investors to avoid any stock connected to the financial sector.
Jupiter (expansion) and Saturn (contraction) are the primary drivers of the business cycle. Jupiter in Capricorn, a sign ruled by Saturn, is creating a massive contraction along with bank consolidation. Saturn in Virgo (September 2007 to July 2010) is further squeezing out the excesses of the market. Virgo is the bookkeeper; its mission is to clean up everyone’s balance sheet so Pluto in Capricorn (2008-2024) can transform the system.
By their own admission, the government and Wall St. acknowledge that the bailout bill wasn’t a good plan but it “had to be done.” Such is the penny wise, pound foolish nature of Jupiter in Capricorn. You can’t spend your way into confidence on strategies that fail to address the roots of the problem. Saturn and Capricorn relate to fear and pessimism. The Moon in Capricorn worked with the strong Jupiter energies today to amplify these feelings. This was reflected in the VIX, as the fear index jumped to a record high 56.32 this afternoon.
Between now and 2010, Saturn will oppose Uranus in Pisces. Since Jupiter is in Capricorn, we’re primarily witnessing the Saturn side of the opposition. An opposition can be visualized as Libra’s scales of balance. Libra represents our awareness and connections to others. The Sun conjoining Mercury retrograde in Libra today reflects how we’re all affected by the financial crisis in one way or another. Saturn represents all types of structures. There’s been a lot of talk but a lack of meaningful action restructuring the financial system. Uranus in Pisces represents the disruptions and shocks that spread like a contagion throughout the financial system. Pisces and its planetary ruler Neptune represent credit which has rapidly dissolved even to state governments and the most solid blue chip companies. Pisces also represents the sharp rise and subsequent fall that crude oil and other commodities have taken. The drop has been driven by lower global demand, as well as hedge fund redemptions and margin calls.
With Jupiter in Aquarius in 2009 where it will conjoin Neptune, the scales will tilt more toward Uranus. These energies are likely to usher in radical change and expanding the social safety net for Main St rather than Wall St.
Posted 10/06/2008 10:25:00 PM