Weekly Forecast: March 2 – 8, 2009
Summary Of Last Week’s Influences:
It was inevitable that the cycle of oppositions between Saturn in Virgo and Uranus in Pisces would create conditions that question the overall health and ability to withstand toxic conditions. As the faster moving planets interact with them, market volatility tends to increase to the downside.
The Sun represents physical vitality, confidence, and the stock market, and in Pisces from February 18 to March 20 the immune system can be weakened if not given adequate time for rest. Right now the stock market is suffering what CNBC last Thursday diagnosed as “Washington Fatigue”, as Wall Street reacts to the almost daily pronouncements from the President and other key players in the Administration.
Another characteristic of Pisces and its planetary ruler Neptune is confusion. First the government defined “healthy banks” as those who took TARP. Having a strong Tier 1 Capital ratio was considered another indicator. Last week we learned the government’s new definition of a “healthy bank” is a TCE (tangible common equity) ratio above 3%. Citigroup (C) passed the stress test Friday after the government announced it will convert up to $25 billion of its $45 billion preferreds into common stock at $3.25 a share. Now the “taxpayers” will be Citi’s biggest shareholder, with the government of Singapore coming in second. The government got more bang for its buck and avoided nationalization, but once again common equity holders got diluted. (Citi closed at $1.50 Friday, down 96 cents.) So far the only new concession the government is pressuring Citi is for a Board shakeup, and Vikram Pandit will remain as CEO. In what could be a karmic test for Pandit, one of the people being considered for the Board is short term ex-Wachovia CEO Robert Steel. Maybe all the out of work ex-bank CEOs will end up on Citi’s Board. As yesterday’s Wall Street Journal editorial observed, “The taxpayer never sleeps when it comes to Citigroup.”
With one down and 19 more banks to fail the stress test, this is what has Wall Street losing sleep. Because once the government has completed testing, it looks like Ken Lewis will be available to serve on Citi’s Board. Once the stress tests are completed in April, the government’s political agenda for the banks will probably get into full swing. This is when Jupiter will be getting ready to conjoin Neptune in Aquarius on the USA’s natal Moon in May which could see a big push to expand (Jupiter) credit (Neptune) to consumers (Moon). Jupiter and Neptune together can create a dangerous financial combination as they are the main ingredients for economic bubbles and inflation, and being in Aquarius can rapidly spin out of control.
Summary Of This Week’s Influences:
Banks are ruled by Venus, and on Friday (the day of the week ruled by Venus), Venus energies will be more pronounced as the planet turns retrograde* in Aries. (Read all about it in “Aspects Further Stressing the Banking System”.) Venus will be retrograde March 6 to April 17, a good time to reassess personal finances and values. Alliances and relationships can potentially come under strain as each individual in the relationship seeks to assert their needs and desires.
The transit of Venus in Aries is particularly a good time to barter. As far as I'm concerned, bartering is the real gold. If there was ever a financial cataclysm on the level some of these alarmists like to describe (which I refuse to buy into), how do you buy the equivalent of $50 worth of goods or services using a $1,000 troy ounce gold bar? People who purchased gold coins and bullion when it was much cheaper have profited, but there’s always the underlying (and costly) issue of how to safely store yet have easy access to your stash. If times ever became that desperate, some people would probably be desperate enough to eliminate you to get your gold.
Monday, March 2, 2009
Market could show its strongest performance early in session, then give way to choppy/mixed conditions to negative by early afternoon.
The Moon in Venus-ruled Taurus today needs to feel financially secure.
Tuesday, March 3, 2009
Choppy/mixed conditions; indices likely to be strongest in the morning.
The Moon in Gemini today and tomorrow brings information overload and a tendency toward nervous and scattered energies.
Wednesday, March 4, 2009
Improving conditions in late morning. (Perhaps British PM Brown has some inspiring words for the market when he addresses a joint session of Congress scheduled for 10:45 AM.)
The First Quarter Moon occurs at 2:46 AM EST. For the USA, economic conditions continue to deteriorate. There could be more news about individuals or entities committing financial fraud. The financial rumor mill could be working overtime.
Thursday, March 5, 2009
Choppy/mixed to negative trend bias.
The Moon in Cancer puts the focus on housing and consumer-related financial issues. Mercury conjoins Neptune: is it real or is it rumor? It’s a good day to let your imagination run free rather than think analytically or make important commitments.
Friday, March 6, 2009
Negative; could see improving conditions in early afternoon.
*Planets do not really move backwards, but appear to from Earth’s vantage point.
USA: July 4, 1776 5:10 PM Philadelphia, PA
Posted 3/01/2009 10:19:00 PM