Summary Of Last Week’s Influences:
Perhaps St. Patrick dropped a bunch of four leaf clovers on Wall St. The March 15 New Moon conjoining Uranus in Pisces reflected the hope the S&P could break through the 1150 range. Combined with Pisces’ ruler Neptune in Aquarius squaring the NYSE’s Sun in Taurus for the first time in 148 years along with the enthusiasm of the Moon and Mercury entering Aries, the major indices sprang forward and reached 17 month highs last week before breaking their momentum on Friday.
Summary Of This Week’s Influences:
The Vernal Equinox marked the Sun’s entrance into Aries, the first sign of the zodiac. The Sun represents leaders and Aries is eager to push new idead and endeavors forward, especially with the Sun conjoining Mercury in Aries. With the Sun, Mercury, and Venus in gung ho Aries and the Sun harmonizing with Mars in speculative Leo, the market’s enthusiasm could face a reality check this week as it witnesses an equally resurgent enthusiasm by government leaders to push major economic reforms.
The Sun opposing Saturn in Libra (March 21) and squaring Pluto in Capricorn (March 25) can find world leaders at least acting more assertively to address the issues raised by Saturn squaring Pluto. So far in most instances government leaders have chosen to express the downside of this planetary alignment by keeping most elements of the status quo structures frozen in place, choosing to keep and even resurrect the failed policies of the past that precipitated the financial crisis and the financial busts that preceded it.
Saturn in indecisive and need to please Libra can delay and diminish proposals as they are met with resistance from the plutocrats - the wealthy and influential interests working in the shadows. And as much as everyone fears (Saturn) the debt mountain (Pluto), most would rather keep spending for short term gain, fearing serious regulatory reforms would jeopardize economic recovery and curb speculation that has brought a rapid resurgence in financial markets.
Reflecting Saturn’s giant rings, the Sun opposing Saturn describes leaders seeking to set boundaries on structures that are out of balance. German Chancellor Angela Merkel was invoking some key words to describe Saturn over the weekend when she talked about wanting to get to the “roots” of the problem and impose greater budget “discipline” on Greece. Saturn in Venus-ruled Libra describes financial partnerships, and Merkel is none too eager to lend another EU partner a helping hand if Greece is not able to take strong enough austerity (another Saturn trait) measures.
Leo rules the Sun, and the Moon (sentiment) in Leo as the Sun squares Pluto can create friction amongst leaders regarding how to transform financial and government structures as no individual is willing to cede their authority. Since Pluto rules nuclear issues, this can bring more sabre rattling by Iran.
The Federal Reserve offers a more relevant example of these influences at work as the Vernal Equinox lineup of the Sun, Mercury, and Uranus in Pisces conjoins the sector of the Fed’s chart representing its status and reputation. The Sun in Aries and Saturn square Pluto are challenging the Fed’s Sun in Capricorn opposite Pluto in Cancer, reflecting Fed Chairman Bernanke’s aggressive efforts to keep the Fed’s structure and power intact. Addressing the Independent Community Bankers of America convention yesterday, Bernanke said what the world wanted to hear by stating that large bank bailouts were “unconscionable” and “we must ensure that we never again face such a situation.” And while the idea of endorsing a British government proposal that financial firms that pose systemic risk need to draw up “living wills” to help regulators make an orderly wind down in the event of the firm’s demise is part of Pluto’s domain, it serves no practical purpose. Bernanke used the speech to continue to lobby against any regulatory reforms that would help to prevent another crisis down the road.
Pluto rules secrets. The Sun, Saturn, and Pluto affecting the Fed’s natal Sun/Pluto continue to reflect the push to get the Fed to open up its secrets. Last Friday Bloomberg won its Freedom of Information Act lawsuit against the Fed when the U.S. Court of Appeals ruled that the Fed must release its documents related to the special loans made to financial firms after the collapse of Lehman Brothers. The Fed invoked “trade secrets and commercial or financial information obtained from a person and privileged or confidential” as its excuse for refusing to disclose the documents and has not decided whether it will appeal the appeal.
Another example of the transits to the Fed’s Sun/Pluto was Friday’s letter from House Oversight Committee Chairman Edolphus Towns to Bernanke. Towns has given the Fed until Thursday to turn over documents relating to whether the Fed knew that Stephen Friedman, the former chairman of the New York FRB and a director of Goldman Sachs, had purchased 37,000 additional shares to add to his 46,000 shares of Goldman stock one month after the Fed forced AIG to pay Goldman and other counterparties at par. Fed Board members are prohibited from owning shares in companies under Fed supervision which Goldman came under when the Fed allowed Goldman to save itself by granting it emergency approval to become a bank holding company. The Fed granted Friedman a special waiver in January 2009 so he could keep his Goldman shares as the Fed deemed Friedman too important to lose in searching for a replacement for Timothy Geithner. Towns is now requesting the Fed provide documentation of all waiver requests the Fed has granted since 2000 since the Fed has so far failed to provided the committee with sufficient information.
Aries is ruled by Mars which makes favorable aspects to the Sun and Saturn at the beginning of the week which can assist efforts of leaders (Sun) forging ahead with regulatory reform (Saturn) to curb risky financial speculation (Mars in Leo).
With the Moon in Mercury-ruled Gemini on Monday, news emanating from leaders will particularly influence market sentiment. Mercury and Gemini rule legislation and Gemini represents two types of legislation: the healthcare bill* and Sen. Dodd’s financial regulatory reform proposal that the Senate Banking Committee will begin to markup Monday. Dodd announced his proposal on March 15, and Wall St. was surprised that the “Volcker Rule” was contained in the bill, even though I wrote in the January 24 Forecast that Paul Volcker’s influence would be exerted at the March 15 Pisces New Moon.
The First Quarter Moon in Cancer occurs Tuesday at 7:00 AM EDT and the Moon remaining in Cancer until early Thursday morning puts the market’s focus on home sales, consumer issues and “Main St.” interests.
Monday, March 22, 2010
The Sun opposite Saturn can be a depressing influence on equity values while other influences today are positive, resulting in a day that is not as negative as it otherwise could be.
Tuesday, March 23, 2010
Negative conditions improve as the day progresses and might even turn positive by the close.
Wednesday, March 24, 2010
Choppy/mixed to moderately negative.
Thursday, March 25, 2010
Negative conditions improve to choppy/mixed to moderately positive late in session.
Friday, March 26, 2010
Positive conditions could weaken and turn choppy to negative midsession before regaining strength.
*My next post will be on the healthcare legislation.