WallStreetWeather.net Forecast For Week Of May 31, 2010

Summary Of Last Week’s Influences:
As previously described, the combination of Jupiter opposite Saturn, Venus opposite Pluto, and the Moon in Venus-ruled Libra triggered a selloff Monday led by bank stocks over concerns about the troubles in Europe’s bank sector moving beyond its boundaries and spilling into the US market.

Spain replaced Greece as the Eurozone focus after the Bank of Spain last Saturday took over Catholic church owned CajaSur and replaced most of its management including its Chairman priest after it refused to merge with Unicaja. On Monday four troubled cajas (savings banks) agreed to merge to form Spain’s fifth largest bank.

On Thursday Spain’s parliament approved an additional $18.5 billion in spending cuts by one vote. The indices were moderately negative Friday until Fitch announced it had downgraded Spain’s credit rating from AAA to AA+.

Neptune rules credit, and Neptune’s energy is pronounced as it turns retrograde* May 31. Right now transiting Neptune in Aquarius is squaring Spain’s natal Sun (self-identity) in Scorpio, the sign representing debt. Spain will continue to experience economic difficulties as Jupiter, Saturn, and Uranus square its natal Mars in Cancer during the summer. Cancer rules the sector of Spain’s chart representing the work force. Saturn in Libra will square Spain’s natal Moon in Cancer and conjoin Spain’s natal Venus and Pluto in the fourth quarter and during most of 2011, reflecting tight employment conditions and a severe contraction in public benefits.

Pluto in Capricorn is conjoining Spain’s progressed Sun now and the June 26 Lunar Eclipse will conjoin the Sun, reflecting that Spain will have to enact far greater austerity measures to prove to the world that it has the discipline to get its debt under control.

Late June is a crucial time as the Lunar Eclipse conjoins Pluto and both will oppose the USA’s natal Venus and Jupiter in Cancer. Around this time is when investors might start demanding higher Treasury yields.

Thursday’s Full Moon in Sagittarius generated a Jupiter-sized rally after China called reports that it is considering selling some of its Euro bond holdings “groundless.” Reflecting the energies of the Sag Full Moon, the OECD raised its forecast for global growth.

Despite the Full Moon fever, May was a bad month for the indices. The Dow and S&P put in their worst May performances since 1962. The Dow has now lost almost 900 points since reaching its 2010 high on April 26.

As I wrote in the Full Moon post, BP’s “top kill” would not be successful in closing the leak. And now the Deepwater Horizon spill has surpassed the March 24, 1989 Exxon Valdez oil spill. Neptune rules oil, Saturn loss, and Uranus represents unexpected events that are meant to awaken our consciousness. At the time of the Valdez spill, Neptune was conjoining Uranus and Saturn in Capricorn. Jupiter was opposing Saturn in 1989 and one Jupiter/Saturn opposition later when the Deepwater Horizon rig exploded, Saturn in Virgo was opposing Uranus in Neptune-ruled Pisces and forming a stressful alignment with Neptune in Uranus-ruled Aquarius.

As I have written, planets aspecting the USA’s natal Mars in Gemini square natal Neptune in Virgo tend to trigger financial panics, military action related to oil. Mercury was exactly opposing the USA’s natal Neptune and squaring Mars during the Exxon Valdez spill. At the Deepwater explosion, Jupiter in Pisces was opposing natal Neptune and squaring natal Mars, indicating that this would be the largest (Jupiter) oil (Neptune) spill in US history. Mercury was retrograde in Taurus at the time of the Deepwater Horizon spill, reflecting that this will be the longest and costliest spill to clean up. The USA’s progressed Moon is in Virgo now and exactly squared the USA’s natal Mars on May 26 and will conjoin natal Neptune June 27, reflecting the public’s anger and disillusionment that the spill is not been contained and cleaned up.

Summary Of This Week’s Influences:
This holiday shortened week is the only week over the next several weeks featuring only one planetary alignment and no planets changing signs. Except for Friday, volatility could be somewhat more subdued compared to what we’ve experienced over the past month.

Warren Buffett is all too eager to appear on CNBC or even the occasional soap opera episode, yet he refused to appear before the Financial Crisis Inquiry Commission unless he was subpoenaed.

Berkshire Hathaway (BRK.A/B) is a major shareholder of Moody’s (MCO). On Wednesday, Buffett along with current and former Moody’s officials will testify on the “Credibility of Credit Ratings, the Investment Decisions Made Based on those Ratings, and the Financial Crisis.” Of far greater interest than the ratings agencies would be to question Buffett about what inside information he had before Berkshire took a $5 billion stake in Goldman Sachs in September 2008.

Consensus estimates project an additional 500,000 jobs were added when May employment numbers are released Friday. I hope I’m wrong, but even though the number should reflect steady job growth, I think it is a bit high at this juncture. Saturn in Virgo (April 7 to July 21) could keep job growth more subdued although the number of temporary workers should continue to gain.

Mars in Leo opposes Neptune in Aquarius Friday which tends to be a negative influence on the market. With the Last Quarter Moon in Neptune-ruled Pisces, some of the factors that could cause the market to be jittery could involve rumors and news related to securities fraud, scandals, credit ratings, and talk of creditors having to take haircuts. There could be attacks or explosions of oil and gas pipelines. Mars opposite Neptune could bring threats or actual military action related to oil or angry leaders (Leo) engaging in sabre rattling melodrama.

Pisces and Neptune rule drugs, and ASCO’s annual meeting begins Friday. Mars opposing Neptune could shine the spotlight on the importance of eliminating inflammation in the body in treating cancer.

Tuesday, June 1, 2010
Strongest early and then weakens as the day progresses; closes negative.

Wednesday, June 2, 2010
Choppy/mixed to negative.

Thursday, June 3, 2010
Choppy/mixed to positive.

Friday, June 4, 2010
Negative.

*Planets do not really move backwards, but appear to from Earth’s vantage point.

** A mathematical calculation that moves the planets forward in time as a method of prediction.

Spain: November 22, 1975 12:45 PM CET Madrid
USA: July 4, 1776 5:10 PM Philadelphia
Deepwater Horizon explosion: April 20, 2010 9:53 PM CDT 28N44’20 88W’23’23’(off the coast of Venice, Louisiana)
Exxon Valdez spill: March 24, 1989 12:04 AM YST Valdez, Alaska

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