Summary Of Last Week’s Influences:
The Moon in fiery and confident Leo Monday and Tuesday kept the market’s winning streak going which began to weaken Wednesday as the Moon entered Virgo and investors began to digest the economic and earnings data and found it lacking. The major indices sold off Friday as the Moon conjoined Saturn in Virgo before moving into Libra where it set off the planetary alignment begun at the Summer Solstice.
Please see my post, “Premature Optimism For Goldman Sachs and BP” for the other major events that occurred last week as they relate to the week ahead.
Summary Of This Week’s Influences:
Events heat up related to the influences present at the July 11 Solar Eclipse at the First Quarter Moon on July 18 as the Moon in Venus-ruled Libra is 90 degrees away from the Sun in Cancer. The First Quarter Moon squares the January 15 Capricorn Solar Eclipse which conjoined Venus. The themes and people prominent then are once again the center of the action. It was at this time that the US and global markets declined over concerns about Greece’s sovereign debt which put pressure on the value of the Euro.
As mentioned in last week’s Forecast, this week will conclude with Jupiter in Aries turning retrograde while making the first of three squares to Pluto in Capricorn. (More on this in a separate post.) Jupiter rules foreign matters, and attention will be focused on the results of the stress tests conducted on 91 European banks.
Speaking of banks, the First Quarter Moon squares the USA’s natal Pluto in the sector of the USA chart ruling the financial system. The Quarter Moon also conjoins Fed Chairman Bernanke’s natal Mars and Neptune in Libra and opposes the Federal Reserve’s natal Neptune.
Bernanke will be appearing before the Senate Banking Committee Wednesday and the House Financial Services Committee on Thursday to give his semi-annual monetary policy report. If Wall St. is expecting Bernanke to hint at expanding monetary policy accommodation, they are overestimating the Fed’s influence in the current political climate.
What is not being considered is that an increase in the money supply would adversely impact the shadow banking system (Pluto) as money market funds which are already suffering from a nearly zero Fed funds rate would not be able to continue to support banks short term financing. Although this is not a bad thing as it would get backs back on the path of plain vanilla banking, it would put banks in a bind as they would have to rely on financing through bank deposits, forcing many banks to lose money by having to pay customers a higher rate of interest to obtain more customer deposits.
The Moon in Scorpio Tuesday and Wednesday further emphasizes matters related the shadow banking system such as opaque financial products, debt, taxes, corporate welfare, corruption, secrets, and insurance.
After Repulicans delayed the vote by one week, the Senate Judiciary Committee is scheduled to vote on Elena Kagan’s nomination to the Supreme Court Tuesday after Republicans and The Wall Street Journal made a fuss over Kagan not specifically stating she would recuse herself if the lawsuit lead by Florida Attorney General (and Republican gubernatorial candidate) Bill McCullum to repeal the mandate that individuals obtain health insurance in 2014 under healthcare reform is heard by the Supreme Court.
The Sun forms a stressful to alignment to Neptune (oil/deception) Tuesday as British Prime Minister David Cameron visits President Obama at the White House on the 90th day since the BP oil disaster. Cameron is expected to press the President about easing up on BP, a major UK employer and source of income for the pensioners relying on BP’s now suspended dividend. (And would Her Majesty’s government feel the same way if an American oil company caused this much damage to the UK economy and environment?)
Adding to the two leaders conversation is the growing pressure from the Senate Foreign Relations Committee which will be holding a hearing on the matter July 29 to investigate whether the UK government released the Lockerbie bomber in exchange for Libya signing a $900 million deal with BP to drill deep water wells off the Libyan coast.
International matters continue to be in focus as the Moon will be in Jupiter-ruled Sagittarius Wednesday and Thursday while Jupiter’s energies are pronounced Wednesday through Sunday as it turns retrograde on Friday until November 18. Foreign relations and trade, immigration, the courts, and publishing are some of the matters related to Jupiter.
The Moon enters Saturn-ruled Capricorn Friday and aligns with Pluto, reactivating the energies of the June 26 Lunar Eclipse which gets magnified due to Jupiter turning retrograde squaring Pluto.
Monday, July 19, 2010
Market improves as the day progresses; strongest in early afternoon. Ends negative.
Tuesday, July 20, 2010
Positive trend bias, but could become choppy/mixed intraday.
Wednesday, July 21, 2010
Thursday, July 22, 2010
Negative conditions improve to choppy/mixed to positive.
Friday, July 23, 2010
CORRECTION (added 7/19/10 at 11:30 AM EDT): The Moon is in Pluto-ruled Scorpio on Monday and Tuesday this week.