WallStreetWeather.net Forecast For Week Of September 28, 2009

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Summary Of Last Week’s Influences:
Mercury retrograde periods tend to interrupt trends in place prior to the retrograde. Since Mercury turned retrograde September 7, most of this period has continued the trends established prior to retrograde: rising equity prices, falling dollar, higher commodities – particularly gold, silver, and oil.

In last week’s Forecast I noted the planetary shifts and alignments that would increase market volatility and reverse trends. On the first trading day following the Autumnal Equinox, the major indices reached new 2009 highs while the dollar hit a fresh 2009 low following the release of Wednesday’s FOMC announcement. Suddenly stocks reversed, the dollar gained strength, and commodities weakened.

Information previously held in secret can get revealed during Mercury retrograde. (And new information released during Mercury retrograde tends to get revised or reversed after Mercury has begun moving forward.)

I wrote last week that the Sun challenging Pluto would bring information on nuclear issues and possibly some M&A activity. Leading his first meeting of the U.N. Security Council, President Obama got the Council to unanimously approve the “clear-safeguards” resolution, establishing the framework to take action against nations that use nuclear technology for military purposes. At the G20, President Obama revealed what he had been briefed on shortly after he won the election: that Iran has built a secret nuclear facility buried deep at an Islamic Revolutionary Guard base in the holy city of Qom.

It’s particularly important to be as clear and concise as possible when communicating during Mercury retrograde to avoid misunderstandings. The Sun represents leaders and chief executives, and with the Sun in Venus-ruled Libra (sugar/sweets), Cadbury CEO Todd Stitzer found this out the hard way when he “admitted there is some strategic sense in combining” Kraft and Cadbury, at a Bank of America investor conference in London on Wednesday. Two days later Stitzer said his views were “misconstrued.”

One M&A deal that was official last week is Dell’s (DELL) acquisition of Perot Systems (PER) for $3.9 billion. Speculation about Microsoft (MSFT) making an acquisition seems to surface when Mercury is retrograde, perhaps because the company went public years ago when Mercury retrograde. This time the speculation is Microsoft will acquire Electronic Arts (ERTS).

Last week NASA scientists rediscovered water molecules on the Moon. I say rediscovered as the Moon and its sign Cancer are part of the water element, representing our emotions, market sentiment, and consumer behavior. For instance, when we’re highly emotionally charged, our eyes get watery and produce tears.

Mars rules the color red and is hot and dry influence. Mars in Cancer (August 25 to October 16) creates weather conditions of draught and wildfires in some parts of the country while other areas are flooded with water. So it’s fitting that with Mars in Cancer, NASA would reveal more information about frozen water on Mars.

With Pluto in Capricorn (2008-2024), more discoveries will be revealed about what’s buried beneath the soil of the Earth, its satellite and the other planets in our solar system.

Summary Of This Week’s Influences:
After appearing from Earth’s vantage point to move in reverse since September 7, Mercury turns stationary direct Tuesday at 9:14 AM EDT.

Mercury turning direct on the USA’s challenging Mars/Neptune alignment, as well conjoining President Obama’s natal Mars reflects the Administration must determine soon what military action to take with our adversaries in Afghanistan. Mars challenging Neptune in the USA chart indicates that military action (Mars) in the name of idealism (Neptune) such as Vietnam, Iraq, and Afghanistan has never proved to be successful. President Obama must decide if we’re in Afghanistan to “nation build” or annihilate the Taliban and Al-Qaeda before determining the size and scope of the military effort. Since President Hamid Karzai might not represent a government we can “believe in,” it’s difficult to justify a nation building effort. The future of nation building has probably past; it’s more likely we will become “the terrorists to the terrorists.” The smartest strategists learn from their enemies.

Will the faith-based rally” as David Rosenberg calls it, continue once Mercury begins moving forward? I think the bear is getting ready to awaken from hibernation – he’s just been a bit delayed.

Sir John Templeton once said, “The four most expensive words in the English language are ‘this time it’s different.’” Frankly, this time it truly is different. The Fed dropped interest rates to near zero and established all kinds of lending programs. Yet banks aren’t lending, and this time consumers are truly tapped out. What the Fed and the government still doesn’t get is that the traditional means of stimulating the economy will only have a temporary effect since the U.S. will not return to being a heavily consumer-based economy.

The next phase of the financial crisis will arrive when the current asset bubble bursts, since the Fed has already used up all its ammo. With Pluto in Capricorn, establishing a solid and sustainable economic foundation will take time. The government will have to continue to play a leading role in bringing about the massive transformation of the economy by confronting issues that politicians have put off for too long: healthcare reform, infrastructure and clean and cost efficient energy sources that support how we’ll live and work in the years to come.

Jupiter, Saturn, Uranus, and Pluto will be dynamically “interacting” with one another in full force less than one year from now. As these planets will be at the beginning of cardinal (action) signs, it will be time to make a fresh start in these areas. Since 2007, we have been in a “clean up phase” as the old ways of doing business and operating the economy will be ending. This is what the cycle of oppositions between Saturn (status quo) and Uranus (reform/revolution) from November 2008 to July 2010 is all about. Individuals, groups, and businesses who are working to maintain the status quo by engaging in extremist (Uranus) tactics may believe that is the way to “freedom” (Uranus), but they are the ones who will actually be left behind.

Aquarius rules space travel, and with the Moon in Aquarius and Mercury the messenger turning direct Tuesday, NASA’s MESSENGER spacecraft will make its third and final flyby of Mercury before entering Mercury’s orbit in 2011.

As above, so below. :-)

Monday, September 28, 2009
Indices choppy/mixed, vacillating between negative and positive; likely closes down.

Tuesday, September 29, 2009
Negative trend bias, but could see improvement in final hour.

Wednesday, September 30, 2009
Market improves as day progresses; closes up.

Thursday, October 1, 2009
Up early, then becomes choppy/mixed to negative.

Friday, October 2, 2009
Positive trend bias in the morning, then becomes choppy/mixed and likely turns negative by late afternoon.

No disclosures.

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