Summary of This Week’s Influences/All times listed are Eastern Daylight Time (EDT).
- General Influences: Business and professional concerns take center stage Monday and Tuesday. Thursday is a good time for meetings, group gatherings, and socializing in general. The Moon and Pisces this weekend is good for getting some R&R. Keep in mind that Mercury is retrograde through October 15.
- Stockmarket: As yesterday’s Wall Street Journal observed, “not even $700 billion can buy a stock-market rally these days.” That’s because the TARP doesn’t cover what would instill confidence in the financial system: binding mortgage modifications to stem foreclosures, permanent and unlimited FDIC coverage, and temporarily lowering financial firms capital requirements so they can sell “distressed assets” without facing a ratings firm downgrade that reinforces the crisis in confidence. It’s interesting that bailout bill’s temporarily increases FDIC coverage from $100,000 to $250,000 ends on December 31, 2009 when Mercury will be retrograde in Capricorn, the sign of government. Mercury retrograde in Libra adds to the confusion and indecision in the markets, as arrangements either get done, come undone, or get redone.
Mars joined Venus in Scorpio yesterday, reflecting Citigroup’s desire for vengeance over Wachovia leaving Citigroup at the altar to elope with Wells Fargo. After getting pushed into a shotgun marriage arranged by the FDIC late last Sunday, Wachovia (WB) signed a hastily put together Exclusivity Agreement with Citigroup (C) that expires October 6. Citigroup is estimated to have $61 billion in losses from the financial crisis, and according to The New York Times, is seeking $60 billion in damages for Wells Fargo usurping their deal with Wachovia. New York State Supreme Court Judge Charles Ramos issued an emergency injunction from his home Saturday night, ordering Citigroup and Wachovia to appear before him October 10. Despite the fact that the Wells Fargo deal would benefit Wachovia shareholders and requires no government assistance, the government is not ready to let go. The Federal Reserve Board of Governors and the Office of the Comptroller of the Currency issued a statement on the Fed’s website late Friday that “regulators will be working with the parties to achieve an outcome that protects all Wachovia creditors, including depositors, insured and uninsured, and promotes market stability.” Notice protecting Wachovia shareholders is missing from the statement, reflecting the government’s obsession for inflicting moral hazard. And it is that overriding ideology that pushed Lehman Brothers into bankruptcy, shutting off the credit spigot from blue chip companies to state and local governments.
Speaking of Lehman, the House Oversight Committee is scheduled to hold a hearing on October 6 into the cause of Lehman’s collapse. CEO Dick Fuld has been invited to testify. Tuesday’s hearing will focus on AIG.
The SEC will end the ban on shorting financial stocks at 11:59 PM October 8, the end of the third trading day after President Bush signed the bailout bill.
Alcoa (AA) will kick off earnings season after the close Tuesday. The opposition of Saturn and Uranus that becomes exact on November 4, along with upcoming transits by Mars and Pluto to other planets in its stock chart creates a pessimistic influence.
Even CNBC acknowledged that Mercury retrograde in Libra creates volatile and unsettling conditions in the financial markets that tend to supersede all trading trends. Allow me to take a cue from Mercury retrograde and repeat what I wrote in last week’s Weekly Forecast: “With all the government heavy handedness and Mercury retrograde, do you really expect me to figure out which way the market is going this week?” :-)
Monday, October 6, 2008
- General Influences: People tend to be more ambitious today with the Moon in Capricorn. The Sun and Mercury retrograde in Libra challenging Jupiter creates big expectations for discussing potential business arrangements/partnerships. With Mercury retrograde until October 15, it could amount to nothing more than a lot of exaggerated hype. With favorable aspects between Venus and Saturn, take this opportunity to perform a thorough review to ensure the numbers all add up.
- Stockmarket: Positive trend bias. Due to Mercury retrograde, this is the second of three alignments between Mercury and Jupiter. The first time was September 8, the day the government took the GSEs under conservatorship.
Tuesday, October 7, 2008
- General Influences: The First Quarter Moon occurs at 5:04 AM. Potential conflicts might arise over the next week between a relationship with a loved one and pressing business obligations. Capricorn Moon harmonizing with Saturn facilitates getting an early start to accomplishing the most challenging and tedious tasks. It’s a good time to enlist cooperation from others to get things done. Favorable aspects this afternoon between the Moon and Uranus can bring new insight that had previously been overlooked concerning a business matter. Capricorn Moon becomes VOC* at 3:37 PM.
- Stockmarket: Choppy/mixed. Could see improvement after 3:30 PM.
Wednesday, October 8, 2008
- General Influences: The Moon is VOC until entering Aquarius at 12:03 PM, providing a chance to catch up on routine matters this morning. The Moon in Aquarius this afternoon through early Friday evening favors innovation and rethinking old ideas. Watch your temper and be mindful of what you’re doing as the Moon challenges Mars early this evening.
- Stockmarket: Negative trend bias.
Thursday, October 9, 2008
- General Influences: Harmonious aspects between the Moon, Sun, and Mercury, along with Venus harmonizing with Uranus, make this a good day for social outings, getting together with friends, and holding meetings where it’s crucial to get everyone on the same page. Singles could receive an unexpected invitation for a date from a secret admirer. Surprise your significant other by doing something completely out of character that you know is bound to put a smile on their face.
- Stockmarket: Negative trend bias to choppy/mixed to improving conditions.
Friday, October 10, 2008
- General Influences: Don’t hit the snooze button! The Moon conjoining Neptune early this morning could indicate a reluctance to leave the dream world behind. Philosophical-type discussions with another could get intense but are able to stay on friendly ground. Aquarius Moon becomes VOC at 7:13 PM. The Moon settles into Pisces at 9:31 PM until 1:02 AM Monday morning.
- Stockmarket: Negative trend bias but could improve to choppy/mixed conditions.
Weekend: October 11-12, 2008
- Saturday: The Moon in Pisces emphasizes contemplation and offers a chance to get some R&R. Venus challenges Neptune (the planetary ruler of Pisces), emphasizing artistic and creative pursuits. It’s a good time to conjure up creative and inexpensive ways to decorate and put costumes together for Halloween. This alignment has the tendency to create confusion and unrealistic expectations regarding love, beauty, and money matters.
- Sunday: The Moon conjoining Uranus this morning can bring up something unexpected. People tend to want to time to do their own thing before spending time with loved ones in the afternoon.
*VOC (Void-of-Course) = When the Moon (our emotional barometer) does not form any relationships 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.
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