WallStreetWeather.net Forecast For Week Of May 11, 2009

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Summary Of Last Week’s Influences:
A planet appearing from Earth’s vantage point to change direction can indicate at least a temporary shift in sentiment and trend reversal. Last Thursday Mercury, the planetary energy of communication turned retrograde in its “home” sign Gemini. True to Gemini’s dualistic nature, two reversals occurred.

A big part of Thursday’s market drop resulted from low demand in the Treasury’s $14 billion auction of 30 year bonds that pushed yields higher. The 30 year bond closed Friday at 4.275% and the 10 year note closed at 3.293%. With an estimated $2 trillion of debt to be issued by the Treasury between now and September 30, the Federal Reserve is going to have a difficult time keeping the 10 year below 3% in order to keep mortgage rates low.

Thursday saw an accelerated reversal out of the technology and retail sectors and into financials and commodities. Beyond tech’s seasonality, patterns that begin when Mercury is retrograde might not last beyond May 30 when Mercury turns direct. Financial markets tend to be choppy and unsure whether to head higher or lower, so they tend to revert to one pattern for a day or two before doing something different. Or they do it all in one trading session.

Summary Of This Week’s Influences:
Most of the time I’m more preoccupied with preparing or cleaning up from dinner than paying close attention to what Jim Cramer’s talking about on Mad Money. But Cramer got my attention when he said on Friday’s show that “the market’s got another week to run and then it’s about value.” I doubt that Cramer is following planetary cycles since he’s always made it clear he’s not a chartist of any kind, be it technical or planetary. But Cramer’s remark exactly correlates to the fact that conservative, cautious, and “value” oriented Saturn in Virgo will turn direct on Saturday ("Saturn’s Day") May 16. (Saturn has been retrograde since December 31.)

Saturn is about fundamentals and boundaries and Virgo accountability. Saturn is loss and limitation and Virgo the workforce. The market shrugged off Friday’s April nonfarm payrolls that reported a loss of 539,000 jobs and 8.9% unemployment. The number would have been 611,000 if not for the government hiring census takers, a once every decade event. If you go by the U-6 which includes part time workers seeking full time employment, about 24.7 million or 15.8% of the U.S. population are currently unemployed. And I suppose it’s just pure coincidence that a top story in the business section of The New York Times is about the “the shift back to thrift” as Saturn prepares to move direct. ;-)

Combining Saturn direct with retro Mercury’s tendency to spin its wheels could make it difficult for the market to break through the next level of resistance. However, optimistic Jupiter is about to align with Neptune, the planetary energy that dissolves barriers and boundaries on May 27, which could help the bulls keep charging onward and upward.

This week Mercury will backtrack into Taurus where it last transited April 9 to 30. Mercury retrograde in Taurus and Saturn moving direct is a good time to conduct a thorough review of all financial matters. Mercury will remain in Taurus until June 13.

Jupiter aligned with Neptune creates inflation; conjoining the USA’s natal Moon it means rising food and energy costs for consumers. The producer price index on Thursday and CPI on Friday could come in higher than expected, despite the statistical engineering.

Monday, May 11, 2009
Choppy/mixed to negative as bulls encounter resistance.

Tuesday, May 12, 2009
Choppy/mixed to negative in morning, then reverses in afternoon only to decline late in session.

Wednesday, May 13, 2009
Choppy/mixed; swings from moderately lower to moderately higher. Likely turns negative going into the close.

Thursday, May 14, 2009
Market strongest around midday to early afternoon before heading lower.

Friday, May 15, 2009
(Options expiration) Positive trend bias.

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