WallStreetWeather.net Forecast For Week Of March 29, 2010

Summary Of Last Week’s Influences:
While the major indices continued to make gains last week, the Sun in Aries (leaders) opposing Saturn in Libra and squaring Pluto in Capricorn propelled President Obama to make history making gains despite the level of opposition by the status quo (Saturn) to transform (Pluto) the U.S. healthcare system that even his opponents agree is unsustainable.

The signing of the healthcare bill was followed up by Congress passing the healthcare reconciliation bill which included the Administration’s plan to return the student loan program back to a government program. This will save the government money while enabling more loans to be made by eliminating the middleman (the banks) that have been getting paid by the government to issue risk free student loans. This has the so-called free marketers and their friends at The Wall Street Journal in an absolute hissy fit.

In last week’s Forecast I mentioned that Pluto rules nuclear issues. By the end of the week, President Obama had reached a nuclear weapons reduction agreement with Russia that will reduce both country’s nuclear arsenals far below the levels of the 1991 START treaty that expired in December, as well as a 2002 treaty signed by Obama’s predecessor. The President and Russian president Dmitry Medvedev will sign the treaty on April 8 in Prague when Pluto’s energies are pronounced as Pluto appears to be stationary in the sky from Earth’s vantage point April 1-10 as it turns retrograde April 6 until September 14. (President Obama will host a major nuclear proliferation summit in Washington the following week.)

Just as the Vernal Equinox marks the birth of Spring and its promise of new beginnings, anything begun when major planetary alignments are at the beginning degrees of cardinal signs* reflects the first step of an evolving process.

News of the explosion of a South Korean naval ship near the disputed border with North Korea was a reason given for the market’s lackluster performance Friday. (With the Moon in Leo, I guess “profit taking” wasn’t a dramatic enough sounding reason.) While there has been no indication of North Korean involvement, Mars (aggression; military) in Leo turned direct March 10 on the natal Mercury of the Armistice agreement between North and South Korea and is now conjoining the chart’s natal Sun. Mercury was retrograde then signifying that agreeing to end the war left much unfinished business. N. Korea has always disputed the maritime boundaries established by the UN then reflected by Saturn (boundaries) conjoining Neptune (the sea) in diplomatic Libra.

The last two incidents when the North and South traded fire at sea was on November 10 and January 27; Friday’s incident occurred when Mars in Leo was transiting the same degree it was on those days. With Pluto prominent now and Mars in Leo transiting key planets in the Armistice chart, N. Korea’s chart and the chart of Kim Jong il, N. Korea will continue to be in the news through the spring and for most of the year. Mars will again be in Leo when Saturn returns to the natal position of the Armistice agreement in October 2011, which could bring a final act to this outworn drama.

Summary Of This Week’s Influences:
The end of one quarter and the starting of another within a shortened holiday week could skew market behavior.

Monday and Tuesday could generate choppy conditions and keep the indices restrained from making large up or down moves, as the Moon in indecisive Libra can make it difficult for the market to get a strong sense of which direction it wants to go.

The Full Moon in Libra occurs Monday at 10:25 PM EDT. This is a time of culmination, putting the spotlight on all types of partnerships and collaborative arrangements. The Full Moon squaring Pluto in Capricorn reflects the transformative nature that all types of relationships are undergoing. The atmosphere can get highly charged at the Full Moon as its light illuminates what might have not been fully realized or understood prior to this time.

In the USA, the Sun falls in its “home” sector of the chart representing self-expression and the speculative markets, opposing the Moon and Saturn in the sector representing Congress, and squaring Pluto in the sector of the economy and the banking system. The stock market is particularly influenced by actions and the legislative agenda of the President and Congress now. Uranus the planet of extremes and the unexpected, in the sector ruling the stock market opposing Saturn can bring increased volatility and greater potential for at least a temporary reversal as April progresses and with it an increase in activity in Washington and on the world stage.

The Full Moon conjoins China’s Sun, and Congress is pressuring the Treasury to declare China a “currency manipulator” for keeping the yuan’s value low to boost exports. While the U.S. might refrain from taking this action, Jupiter approaching opposition to Saturn (exact May 23; through March 2011) tends to bring a rise in nationalistic behavior that puts greater restraints on global trade.

Pluto energy is prominent over the next two weeks in Iran and North Korea. The Full Moon’s alignment and Pluto’s accentuated energies can bring greater potential for powerful storms with high winds and flash floods, as well as earthquakes/tsunamis. Additional areas in the world that could be particularly prominent in the news now are NY (NYC/L.I.), NJ, CA (areas surrounding San Francisco, San Jose, Sacramento). Eastern Cuba, Haiti, eastern Brazil, Colombia, Peru, Chile. Russia, Iraq, Saudi Arabia, Kuwait, Yemen, Somalia, Madagascar, Japan, Australia.

Pluto rules loans and debt and the Moon rules real estate, so it’s appropriate that the Moon moves into Pluto-ruled Scorpio Wednesday which is the deadline the Federal Reserve announced at its September 23 FOMC meeting to end its purchases of MBS and agency debt. While many believe the Fed could end up reneging on its commitment, I wrote at the time that Saturn in Libra squaring the Fed’s Sun/Pluto opposition (exact now and again in July/August) describes the Fed shrinking its $2+ billion balance sheet (which was about $800 billion pre crisis) as its debt purchases mature.

Venus enters its “home” sign Taurus Wednesday afternoon until April 25, during the time the banks will report quarterly earnings. Mercury enters Taurus Friday morning until June 10 due to Mercury being retrograde April 18 – May 11.**

The government will release the March employment report Friday morning while Wall St. takes the day off for Good Friday. Consensus estimates are projecting growth of 189,000 to 200,000 jobs in March. I think the report will show gains, but not as strong as projected. However, prior months’ reports could be revised more favorably.

Monday, March 29, 2010
Negative conditions improve to positive in late morning, then seesaws in afternoon before closing flat to slightly positive.

Tuesday, March 30, 2010
Choppy/mixed; to moderatelynegative trend bias.

Wednesday, March 31, 2010
Negative conditions could improve to turn choppy and close mixed to moderately positive.

Thursday, April 1, 2010
Positive, especially in the afternoon.

*The cardinal (initiating) signs are Aries, Cancer, Libra, and Capricorn.

**I will be writing a post about Mercury retrograde in Taurus. In the meantime, check out my post on the last time Mercury was retrograde to understand what it all means.

Armistice Agreement: July 27, 1953 10:00 AM JST, Panmunjom N. Korea

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