Wall Street Weather Forecast for Week of March 16, 2009
Summary Of Last Week’s Influences:
Less than two weeks ago, the cry for bank nationalization was deafening. Then last Monday Citigroup CEO Pandit (C) told employees in an internal memo that Citi was profitable the first two months of 2009. Two days later JPMorgan (JPM) CEO Dimon announced his bank was too. The momentum is growing to oust Bank of America (BAC) CEO Ken Lewis, but on Thursday he declared BAC had made money too. And guess what, General Motors (GM) doesn’t need $2 billion from the government to keep operating this month. (Apparently no one bothered to ask if they’ll still need the $2.6 billion they requested for April.)
So when do they plan to return the money they borrowed from the government? ;-) I wrote last week that “strong Uranus energies this week can bring the potential opportunity for a sudden, sharp, and short rally.” Uranus energies can go from talk that all the banks are “insolvent” to declaring a profit. Last week began with a reverse merger, so I suppose with Venus, the planetary ruler of banking and finance retrograde (March 6 to April 17), being on the bridge of insolvency can reverse to profitability for at least the time being.
The Full Moon conjoining Saturn in Virgo, and the Sun conjoining Uranus in Pisces, along with Mars conjoining Neptune in Aquarius last week brought back the healthcare sector as a defensive play, boosted by drug (Neptune/Pisces) company mergers between Merck (MRK) and Schering-Plough (SGP), to Gilead Sciences (GILD) and CV Therapeutics (CVTX), and the finally completed bid by Roche for Genentech (DNA).
Summary Of This Week’s Influences:
Since Venus is retrograde in Aries (a sign ruled by Mars), it will be interesting to see if last week’s reversal of fortune in the financial sector continues or weakens as Mars has now shifted from Uranus-ruled Aquarius to Neptune-ruled Pisces until April 22. Mars in Pisces can shift from hope and euphoria to hype and hysteria. The course of action taken depends upon how this energy feels at any given moment. Consumers could come marching to the mall to buy new shoes. (Pisces rules the feet.)
Choppy/mixed conditions could be the theme this week as the market for the most part appears not to be ready to continue last week’s rocket ride but not quite ready to dump shares en masse either. Any large point moves this week are most likely to occur intraday and not be reflected in the closing prices.
Wednesday’s FOMC Announcement could be geared to quell the concerns raised by the Chinese about the sustained value of their $1T+ treasury investment. If the FOMC announcement doesn’t shift from “prepared to purchase longer-term Treasury securities” to actually doing so, then the FOMC probably won’t. With Jupiter about to conjoin Neptune in May, we will soon be entering a long-term inflationary cycle, and the Fed will have little choice but capitulate.
Spring arrives at 7:44 AM EDT Friday when the Sun enters Aries. Lots of financial secrets are going to come to the surface over the next three months. (More on the Vernal Equinox in a separate post.)
Monday, March 16, 2009
Market likely to be strongest early, then turn choppy/mixed to negative bias by late morning.
Tuesday, March 17, 2009
Mostly positive trend but weakens to choppy/mixed mid-morning. Improving conditions in early afternoon. Could weaken into the close.
Wednesday, March 18, 2009
Positive early, then weakens to choppy/mixed. Shows improvement in early afternoon.
Thursday, March 19, 2009
Choppy/mixed to moderately up early likely turns negative by afternoon.
Friday, March 20, 2009
Quadruple Options expiration. Negative early; improves to choppy/mixed, then positive; rapidly losing momentum at the close.
Posted 3/15/2009 05:47:00 PM