Published by WallStreetWeather.net
Summer begins in the northern hemisphere at 7:30 AM EDT on June 21, 2010 when the Sun enters Cancer. At the Summer Solstice, the Sun appears to stand still as it has reached its highest point in the northern hemisphere and the hours of daylight are the longest all year. From this point on the hours of daylight will gradually decrease leading up to the December 21 Winter Solstice, the shortest day of the year.
The Sun is the vital life force; it symbolizes self-identity. Physical and emotional security takes center stage when the Sun is in Cancer, the first sign in the water (feeling) element. Cancer is ruled by the Moon, which represents instinctual needs and nurturing. Home and family (especially women), food and liquids, agriculture, real estate, and domestic security issues are ruled by Cancer and the Moon and these themes will be in the forefront over the next three months.
The Sun in Cancer encompasses the two energies we cannot live without – sunlight and water. Our bodies contain over 50% water; men are actually under the lunar influence slightly more than women since their bodies contain at least 5% more water! This reflects that physically and emotionally we are affected by the relationship between the Sun and the Moon just as much as nature and the planet and animal kingdoms are.
A low level of water element energies this summer and even a complete absence of planets in water signs between July 22 and August 13* symbolically represents a lack of emotional support in caring for ourselves and others. Too little water energy can also go to the other extreme and over express what’s missing, drowning in a tidal wave of emotions.
This tends to bring drought, higher than normal temperatures, and fires. When precipitation finally arrives in the form of sudden and intense storms, it is likely to cause severe flooding. Water levels could become dangerously low, creating supply problems. There is also the potential for supply disruptions and water supplies becoming contaminated.
The cardinal signs – Aries, Cancer, Libra, and Capricorn mark the seasonal turning points of the year as cardinal signs represent embarking on new initiatives. Since the Sun symbolizes who we are, the Sun in Cancer takes the lead and gives us a preview of the unprecedented planetary alignments of Jupiter and Uranus in Aries opposing Saturn in Libra while all three planets square Pluto in Capricorn on the world stage during July and August. An abundance of solar energies at the Summer Solstice increases the likelihood that solar flares and sunspots could increase, raising the potential for power and communication disruptions.
The Sun’s series of alignments to the outer planets at the Summer Solstice reflect that major transformation begins at the individual level. It’s time to decide what you intend to create as these planetary alignments stimulate action that has a long term influence. Actions taken by corporate and world leaders now will rapidly unfold as the summer progresses, reverberating for years to come. With Mercury the planetary energy of communication and movement entering Cancer June 25 and forming challenging alignments to Uranus that day, Jupiter (June 26) and Pluto (June 27), and the Sun conjoining Mercury June 28, individuals and leaders will have to think outside the box. It’s time to walk the talk or be held up for hypocrisy. Mercury shifting signs can equate to currency shifts and revaluations. Mercury in Cancer can represent more protectionist thinking about domestic security issues, particularly related to border policies.
Saturn represents all types of structures, government and big business. It is the only planet involved in the cardinal concentration of outer planets this summer that is not in a cardinal sign at the Summer Solstice. The Sun in Gemini squaring Saturn in Virgo the day before the Summer Solstice represents the need to clean up the mess from the shaky financial and societal foundations.
Saturn can bring painful lessons when there is a failure to be accountable for one’s actions since there are no shortcuts with Saturn. The Sun squared Saturn in Virgo June 19, emphasizing the importance of having the discipline, determination and patience to overcome any obstacles and barriers in order to achieve what is fundamentally important.
Saturn in Virgo since September 2007 correlates to the contraction in employment after the credit and housing bubbles burst. Since Gemini and Virgo are part of the mutable element, the Sun in Gemini squaring Saturn in Virgo at the end of these signs indicates that individuals must have greater flexibility regarding the type of work they do along with a stronger financial backbone to prepare for periods of unemployment or underemployment. Having at least two distinct careers over the course of one’s work life is now the new normal. Carrying very little debt or preferably no debt, living below your means, and saving as much money as possible will help to ensure a more secure tomorrow.
Saturn is generally resistant to change, preferring to cling to the status quo until it becomes beyond repair. Leaders who continue to try to recreate what worked in the past will only prolong the pain and postpone economic recovery. This is no different than a person who is ill taking medication that masks the symptoms but refuses to make long term changes to address the root cause of their illness.
Ironically, high deficits and budgetary shortfalls will end up forcing all levels of government to implement austerity measures that bring long sought reforms that were not politically possible during stronger economic times. Although these changes will be painful now and in the near term future, the results are likely to pay off in the long run.
The downside of Saturn in Virgo is that there can be so much criticism of what needs to be done, too many obstacles are created to block doing anything about it if the proposals are not deemed to be the “perfect” solution. For example, healthcare reform is considered to be a very Saturn in Virgo issue, yet healthcare legislation didn’t pass until Saturn had temporarily moved into Libra and the Sun had reached its most powerful point of the calendar year (the Vernal Equinox). This reflects the power of planets at the beginning of cardinal signs which represents what is new and continuing to evolve. When Saturn re-enters Libra July 21 until October 2012, action will be focused on legislation and laws that seek fairness by bringing structures that have become out of balance back to equilibrium.
With the Sun in Cancer squaring Uranus in Aries on the day of the Summer Solstice, “expect the unexpected” should be the motto this summer, as sudden events occur that are intended to shock people into awakening. This also comes in the form of physical shocks such as earthquakes, volcanic eruptions, thunderstorms that create fires, tornadoes, and hurricanes. Leaders could exhibit unexpected behavior and even reverse long standing policies.
The Sun rules speculation and gold. The Sun square Uranus is about breaking free from the herd mentality and doing what you intuitively feel is right for you. How could any new ideas ever manifest unless at least one person was willing to break free from the herd and hold a contrary point of view? The “trend is your friend” but if everyone is speculating in overcrowded trades such as shorting the Euro, buying Treasuries that mature in over 5 years time, and buying gold or the gold ETF (GLD), then what happens when the herd wants to get out? (And at least one if not all of these themes could start unraveling big time over the summer.) Uranus (especially in fast moving Aries) can bring sharp and sudden reversals that break through conventional measures of support and resistance. The more market sentiment is calibrated to one particular extreme, the greater the chance Uranus will want to defy it.
At its lowest level the energies of the Sun square Uranus is rebellious, desiring change simply for its own sake as a way to attract attention. However, the real meaning of the Sun in Cancer squaring Uranus in Aries is to be a trailblazer in your own unique way as this energy is all about being a leader, not a follower. Which means determining what you think could be the next investment opportunity might put you ahead of the curve.
Jupiter represents growth and expansion. Jupiter exaggerates, creating overbought or oversold conditions. The Sun squaring Jupiter in gung ho Aries June 23 can bring a burst of confidence that can make individuals and leaders prone to promise more than they can deliver.
Strong Jupiter energies are inflationary. Jupiter conjoining Uranus in Aries throughout the summer indicates that inflation is emanating from sources not traditionally measured by the Federal Reserve and the government. What exists is a bifurcated economy where deflation exists in most consumer discretionary products and services while the products, services, and taxes you have to pay for are increasing.
If there’s really “no inflation,” then why was the May CPI up 2% year over year, the supposed “ceiling” of the Fed’s target for inflation? May producer prices increased 5.3% from a year ago and companies are subtly passing along the costs using lower quality materials, reducing the content, or passing the costs through regardless of economic conditions. Goodyear (GT) raised consumer tire prices 6% at the beginning of the month. You can postpone purchasing the latest electronic gizmo, but you can’t continue to drive on worn out tires.
Several central banks including the Bank of Canada have already raised interest rates to combat inflation, and the Bank of England will have to act if UK inflation continues to come in above 3% year over year.
So it’s symbolically rich that the Federal Reserve led by Jupiter-ruled Ben Bernanke will issue its statement on monetary policy the day the Sun squares Jupiter, exacly five minutes after the Moon enters Jupiter-ruled Sagittarius. Yet the Sun squaring Jupiter in bold acting Aries seems to be lost on the Fed and especially Bernanke who although born with the Sun in Sagittarius opposite Jupiter in Gemini lacks the confidence to even take a baby step by dropping the “extended period” language from the FOMC statement for fear of setting off another Great Depression. The reality is that while Bernanke & Co. are determined not to repeat the Great Depression, they are trying their very best to emulate Japan’s lost decade.
The Sun in Cancer square Jupiter in Aries reflects the proposed expansion of the Fed’s powers under the financial regulatory reform bill as the Sun conjoins the Fed’s natal Pluto and Jupiter conjoins the sector of the Fed’s chart representing its reputation (the Midheaven). During the summer Jupiter, Saturn and Uranus are engaged in challenging alignments to the Fed’s natal Sun in Capricorn which opposes natal Pluto in Cancer, along with the Fed’s Aries Midheaven. Triggering these alignments into action will be the July 11 Solar Eclipse that exactly conjoins the Fed’s natal Mars. Since the Fed has already used up all its ammo, it has little room to expand policy accommodation in the event of a double dip recession and/or stock market collapse.
Between now and early 2012, Uranus in Aries will conjoin the Fed’s natal Midheaven, square its Sun (the Chairman), and Pluto, creating shockwaves as all the Fed’s secret financial arrangements engineered by Bernanke during the crisis get exposed. Uranus squaring the Fed’s Pluto reinforces the energies of the transit of Uranus in Aries squaring Pluto in Capricorn influencing the world between 2010 and 2015. This time when Fed engineered asset price bubbles (in stocks, commodities, and especially Treasuries) burst, the Fed is likely to face a radical overhaul regardless of what ends up in the financial regulatory reform bill. The Fed will no longer be able to use the excuse that it’s saving the world.
Power struggles and issues concerning consumer and sovereign debt, consumer interests vs. corporate interests, nuclear power, corporate and government corruption, could spew like toxins to the surface as the Sun in Cancer opposes Pluto in Capricorn June 25.
Oppositions act like a Full Moon as they make us aware of the need to balance opposing yet complementary energies. The energies of the Sun opposite Pluto are intensified as the alignment occurs the day before the Capricorn Lunar Eclipse which conjoins Pluto.
Pluto represents the extremes of great wealth in the hands of the few (the plutocrats) as well as massive debt levels and bankruptcy. Pluto in Capricorn reflects the mountain of debt that will need to be reduced, with some of it occurring through corporate and government defaults.
Pluto reflects the painful death and transformational phases that must take place in order for a rebirth to occur. Eclipses help us to see situations in a whole new light in retrospect. The Lunar Eclipse conjoining Pluto preceding the major planetary alignments of July and August brings awareness that the consumer-based economy is waning. It cannot be resurrected since it wasn’t built on a secure foundation in the first place. With 1 in 7 borrowers owing more on their homes than they are worth and likely carrying additional debt, combined with high unemployment and wages not keeping up with inflation, along with much tighter lending standards, consumers are still living with the repercussions of their spending binges from the Pluto in Jupiter-ruled Sagittarius years (1995-2008).
The reason why the stock market will take a dive this summer is because the days of government handing out stimulus to mask the true health of the economy are reaching the end. What will ultimately rise from the ashes will be an industrial and high tech-based economy where the only government “handouts” will comprise of public-private partnerships where private industry cannot or will not participate alone do to the costs or potential outsized liabilities.
In Part II of my Summer Solstice analysis to be posted during the week, I will explain why the USA is most affected by the eclipses and planetary alignments occurring this summer, why the market could enter bear market territory by late July/early August, a list of dates of potential shifts in market direction as well as days most likely to witness the most pronounced market moves of the summer, and potential global hot spots.
The Weekly Forecast features a detailed view of planetary influences and how they might affect the economy and financial markets.
*Except for July 28-29 when the Moon is in Pisces and August 6-7 when the Moon is in Cancer. Even after Uranus re-enters Pisces August 13, it will be the sole planet in water until Venus enters Scorpio September 8 and Jupiter re-enters Pisces the following day.