WallStreetWeather.net Forecast For Week Of July 27, 2009
Summary Of Last Week’s Influences:
“It seems entirely appropriate on the 40th anniversary of the landing on the Moon that we chose to put on our space suits and go to the Moon.” – Art Hogan, chief market strategist, Jeffries & Co.
The Moon represents the stock market’s mood, and last week’s Solar Eclipse in Moon-ruled Cancer propelled the market up, boosting the DJIA back over 9,000. The Dow has gained 38.5% in just under five months. The last time the Dow did this in such a short time was during the recession of the mid 1970s.
I’ve written that I think this bull run is a short term phenomenon, and taking some profits has been a welcome diversion from reflecting that the apex of our space program occurred 40 years ago. As a little girl glued to the TV watching Neil Armstrong step onto the Moon, I thought we would have visited Mars by this point in time!
Apollo 11 occurred when Jupiter (long distance travel) and Uranus (technological advances) were exactly conjoined in peacemaker Libra (hence the plaque left by the astronauts that “we came in peace for all mankind”). As theoretical physicist Michio Kaku wrote in Friday’s Wall Street Journal, the fact that either a comet or asteroid smashed into Jupiter at the time of the Moon landing anniversary, is a reminder that “we should look at the space program as an insurance policy” to transition to being a “two planet species.” Instead of putting money into war, we could foster diplomacy and peace by putting the money into space exploration. Instead of the Vice President acting like a hypocrite and chastising Russia last week, we could be working with the Russians on human expeditions back to the Moon and onto Mars.
Jupiter protecting the Earth from stray asteroids and comets is in line with Jupiter’s energy being associated with benevolence. Jupiter conjoining Neptune in Aquarius this year describes the stock market’s expectation and hope that better economic conditions await us in the not too distant future. Thanks to Mr. Jupiter’s (Bernanke) programs, the Bulls have a valid argument that all of the excess capital has no place else to go but into the financial markets. And the only place cautious Saturn in penny pinching Virgo has shown up is in additional corporate cost cutting to beat bottom line earnings estimates. Yet revenue and overall economic fundamentals remain weak.
Mr. Jupiter told Congress last week that he has an “exit strategy.” Jupiter exaggerates and Neptune is advertising (illusion). Bernanke put his Fed re-appointment campaign into overdrive last week by proclaiming that he saved the financial system from the brink of apocalypse. Lifting the veil of illusion shows that as a Fed Governor, Bernanke encouraged Alan Greenspan to keep interest rates at 1% for an “extended period.”
Jupiter conjoining Neptune creates inflation. To hear Bernanke describe his exit strategy and say the Fed will keep interest rates low for an “extended period,” shows the Fed doesn’t have one. A lack of exit strategy combined with record U.S. debt issuance will create rising bond yields that bring inflation in spite of high unemployment. For consumers who want to save money, Bernanke wants to ensure their money gets no yield unless they once again put themselves out on the risk curve. This is why you can’t keep in power the people who contributed to the mess in the first place! It’s also why the Fed should not be in charge of consumer protection, as the Fed’s loyalty to the banks will always trump the interests of consumers.
Summary Of This Week’s Influences:
Jupiter and Neptune are prominent this week as Venus (money/values) in Gemini harmonizes with Jupiter and Neptune on Monday and Tuesday, and Mercury in Leo opposes Jupiter and Neptune on Thursday and Friday. This could create some outsized moves in currencies (as Mercury-ruled Gemini represents exchanging one value for another), along with equities (Leo rules the stock market), and oil (Neptune). And perhaps bringing an unexpected surprise (or sudden attraction), Venus will challenge Uranus in Pisces on Tuesday.
Keeping in line with Jupiter/Neptune and inflation, the Treasury will sell $205 billion in securities this week – an all time record. Planetary oppositions represent opposing forces/ viewpoints. Mercury opposing Jupiter and Neptune reflects whether or not investors have faith in Bernanke’s exit strategy.
Venus enters Cancer Friday evening. Consumers are focused on “home sweet home” until August 26, spending on comfort food and sweets and inexpensive items that make them feel nurtured and secure.
While the Bulls probably still have momentum, Jupiter/Neptune’s euphoria could begin to encounter unexpected turbulence like the surprise asteroid or comet strike into Jupiter last week.
Monday, July 27, 2009
Positive, but market could become weak in mid to late morning.
Tuesday, July 28, 2009
Positive, then choppy/mixed before rebounding in afternoon.
Wednesday, July 29, 2009
Negative; choppy/mixed to improving conditions in afternoon (DJIA weakest).
Thursday, July 30, 2009
Friday, July 31, 2009
Positive bias, but could weaken going into the close.
Posted 7/26/2009 05:11:00 PM