WallStreetWeather.net Forecast For Week Of November 30, 2009
Summary Of Last Week’s Influences:
The Dow made a fresh 2009 closing high on Wednesday (10, 464.40), after it and the other major indices made their biggest moves on Monday.
Venus squaring Jupiter can exaggerate financial conditions in either direction. Venus square Jupiter Monday brought the bulls back on the “risk trade” after St. Louis Fed president James Bullard said in a Dow Jones interview Sunday that the Fed should continue “at a very low level” to buy MBS beyond the end of March 2010. Investors perceived Bullard’s remarks as an indication that the Fed will be the last central bank to remove massive liquidity and raise interest rates, causing the dollar to have its biggest drop in two weeks.
As I wrote in the last week’s Forecast, Venus squaring Neptune Thursday caused a big shift in global currencies as the dollar rebounded after the Dubai government announced it was taking charge of Dubai World’s debt, asking creditors to let Dubai World suspend making payments tied to $60 billion in debt for six months. As I noted in the Forecast, the influence of Venus is short-lived. The dollar began to weaken again late Friday, and hit a 14 year low against the yen.
Summary Of This Week’s Influences:
“Expect the unexpected” is the mantra this week as Uranus in Pisces appears motionless in the sky, making its energy more pronounced. Uranus will station direct Tuesday after being retrograde since July 1. Volatility and greater potential for sharp and sudden price movements in either direction that can break support and resistance levels and intraday reversals are increased when Uranus is prominent. This energy likes to shake up and break up in order to breakthrough to a new way of being and doing.
Uranus rules electricity and electronic devices, creating the potential for temporary power and systems outages. The potential for earthquakes, tsunamis, and extreme weather conditions that can create travel cancellations, delays, and accidents is greater now.
Mercury and Gemini represent communication and movement. Mercury squaring Uranus Monday and the Full Moon in Gemini Wednesday can bring an overload of information and rapidly changing news events that shock and surprise.
Mercury represents legislation and Uranus reform. On Monday the Senate will begin debate on the healthcare bill. With the Moon in stubborn Taurus and Mercury in Sagittarius squaring Uranus, Senators may spend the first day airing their most extreme ideological viewpoints before the dynamics start to change. From December 1-19 all of the planets will be in direct motion which should help the bill move forward.
Venus and Taurus rule money and banking, and the Moon rules real estate and consumers. The Treasury is expected to announce Monday it is escalating the government’s efforts to pressure financial institutions and mortgage servicers to increase the rate of loan modifications on residential mortgages. The low number of modifications is a message to the markets that a new wave of foreclosures will be arriving, driving up inventories and driving down home prices, reflected by Saturn squaring Pluto. The Treasury is also changing the rules of the $75 billion program funded by the TARP. Companies will have to permanently modify a mortgage before receiving payment from the Treasury for the modification, as none of the lenders have made their modifications permanent.
As Uranus turns direct opposite his natal Mars, President Obama will address the nation Tuesday evening to outline his strategy for Afghanistan. Mars rules military matters. With his natal Mars in Virgo, President Obama required a high level of detail before reaching his decision. Elements of the President’s announcement are likely to surprise both parties.
Virgo rules employment. With Uranus opposite his Mars in Virgo, President Obama will host a Jobs Summit on Thursday. With the Moon in dualistic Gemini, Wall Street will also be watching Federal Reserve Chairman Ben Bernanke’s confirmation hearing by the Senate Banking Committee. It’s pretty blatant that the “independent” Federal Reserve is in full political campaign mode. Bernanke wrote an op-ed piece in today’s Washington Post, asserting his actions as Fed Chairman “played a major part in arresting the crisis” “that could have rivaled the Great Depression in length and severity,” if not for the fact that he spent his career studying the Depression. And now Bernanke is depressing us all.
Monday, November 30, 2009
Volatile; large moves that swing in either or both directions. Mercury square Uranus tends to be a bullish influence despite the urge to book profits.
Mercury in Sagittarius squaring Uranus can create sharp currency swings and reversals over foreign news events such as Dubai World. Mercury square Uranus can bring news of scientific/technical breakthroughs and innovations.
Tuesday, December 1, 2009
Volatile; Choppy/mixed to negative.
Wednesday, December 2, 2009
Positive but weakens in the mid afternoon.
Thursday, December 3, 2009
Negative, but could be choppy to positive for a time in the afternoon before turning down again.
A favorable influence between Venus and Saturn in Libra can forge equitable financial and legal arrangements.
Friday, December 4, 2009
Negative. A worse than expected employment report renews concerns about the health of the consumer.