WallStreetWeather.net Forecast For Week Of May 18, 2009

Add to Google
Summary Of Last Week’s Influences:
As last Tuesday’s Wall Street Journal observed: “Stocks fell as investors reassessed some of their upbeat bets of the past few weeks amid concern the market may have rallied too far, too fast.”

Reassess, reform, review. Putting the re prefix in front of everything you do is the key to working with Mercury’s energies during the time (May 7-30) the planetary energy of communication and movement appears to be retrograde from Earth’s vantage point.

When Mercury is retrograde, financial markets tend to get choppy with no clear sense of direction. When Mercury turned retrograde on May 7, the stock market reversed its bullish bias. But bullish sentiment returned the following day. Then stocks reversed on the following trading day (Monday, May 11). The Journal attributed Monday’s action to “Bulls and bears clash on repercussions* of the moves by Capital One (COF), Key Corp. (KEY), and US Bancorp (USB) to raise capital, and GM’s (GM) Fritz Henderson saying bankruptcy is ‘probable.’”

Mercury is often referred to as the trickster, and tends to exhibit this trait in full form when retrograde. (This is Mercury reminding us to maintain our sense of humor.) Beyond financial markets being up or down one or two days and then reversing, Mercury is changeable and fond of variety. Even if market sentiment dominated in one direction, the indices are more prone to being choppy and/or mixed intraday. Everything got thrown into the mix on Friday when the indices opened slightly down, reversed five minutes later, were choppy/mixed and positive biased in the morning before heading down in the afternoon.

Volume was light last week, perhaps attributed to investors relaxing on the sidelines until Mercury moves forward again.
:-) Not that Mercury retrograde really matters if limit orders have been placed to buy and sell.

Each day of the week resonates to a certain planetary energy and Wednesday is Mercury’s day. Last Wednesday Mercury re-entered Taurus, the sign of banking/finance and values. (Mercury will be in Taurus until June 13.) Banks stocks fell as more financial companies raised capital to pay back the TARP. Treasury Secretary Geithner announced the Administration is working on a plan to reform and revise the OTC derivatives market. Customized contracts would be subject to recordkeeping and reporting requirements. Federal regulators are rethinking the Commodity Futures Modernization Act of 2000 (see 4.).

Mercury is not the only planetary energy moving in a different direction. Saturn’s energies became more pronounced on Wednesday as it prepared to turn direct May 16. (Saturn turned retrograde December 31.) Mercury rules Gemini and Virgo, and Saturn in Virgo combined with Mercury retrograde reflected the market’s disappointment that April retail sales came in lower than expected. “Consumer Caution Erodes Retail Sales” (WSJ) perfectly describes Saturn’s cautious and pessimistic energy combined with frugal Virgo. Virgo rules jobs and the essentials for daily living. As long as employment (Virgo) is contracting (Saturn), people will place a greater priority on saving and debt reduction (Pluto in Capricorn).

Saturn rules government, and Virgo rules health matters. As more people lose, cannot obtain, or cannot afford health insurance, it has become necessary for the government to insure that all Americans have access to health insurance that is affordable.

Saturn rules time, and after several decades of Congressional debates over the issue that resulted in coverage for senior citizens (Medicare) and the poor (Medicaid), leading Congressional Democrats began working on the issue shortly after Election Day. President Obama’s remark Wednesday that “the stars are aligned” for healthcare reform this year was a reminder this long neglected issue has reached a crisis point that severely limits the nation’s economic recovery. Alan Abelson’s latest column in Barron’s cites an ISI Group policy report that the reform plan underway in Congress could mean “a tremendous loss of market share” for managed care companies.

Summary Of This Week’s Influences:
The Sun conjoining Mercury in Taurus on Monday indicates that Mercury has reached the midpoint of its retrograde cycle. Mercury retrograde is a good time to review finances and apparently The New York Times agrees, as today’s magazine is called "the money issue." Mercury is getting ready to challenge Jupiter and Neptune on Wednesday, and Monday and Tuesday the Moon (sentiment) will be in Pisces, a sign that was ruled by Jupiter before Neptune was discovered. Creative juices can flow by taking time out for quiet reflection.

The Moon will be in fast acting Aries Wednesday and Thursday as Mercury challenges Jupiter and Neptune. (Mercury last hooked up with Jupiter on April 22 and Neptune April 25, and will again June 9-10.) News outlets will be in overdrive as Jupiter expands and exaggerates, and Neptune can create deceit and rumors, contagious euphoria or panic. The Sun entering Mercury-ruled Gemini early this evening until June 21 only adds to the mental overstimulation. Too much multitasking can lead to communication snafus and errors.

Volatility is likely to increase this week. The most volatile market moves could occur on Monday and Wednesday. Mix Mercury’s vacillation with cautious and fearful Saturn, which can be exaggerated or ignored by Jupiter in favor of overzealous optimism. Foggy Neptune creates more confusion, making it difficult for the market to find its footing.

Monday, May 18, 2009
Negative trend bias.

Tuesday, May 19, 2009
Negative trend bias; improving conditions in early afternoon.

Wednesday, May 20, 2009
Conflicting information and rumors is likely to create sharp and swift moves that can be in either or both directions, but more biased to the downside.

Thursday, May 21, 2009
Choppy/mixed to positive trend bias.

Friday, May 22, 2009
Positive trend bias.

*I italicized the words in the two WSJ quotes for emphasis.

No disclosures.

No comments: