WallStreetWeather.net Forecast For Week Of July 25, 2010

Full Moons can be emotionally intense as the light of the Moon shines the spotlight on what we need to fully awaken to. With the Full Moon in Uranus-ruled Aquarius, there could be some shocks and surprises that seek to shake things up literally and figuratively! Since Aquarius and Uranus prefer to look ahead rather than behind, this week's Forecast will focus on the week ahead.

The Aquarius Full Moon carries similar energies to the Sagittarius Full Moon of May 27 as Jupiter’s energies are also strong now as it has just turned retrograde and is squaring Pluto. Wild and crazy Uranus is the star of the show now as the planetary ruler of the Full Moon as it opposes Saturn and Mars this week.

Volatility tends to rise when Uranus energies are strong as it increases the potential for sharp and unexpected reversals and price movements that break through support and resistance levels. With Jupiter's energies strong, these moves can be large. Monday marks the final opposition between Saturn (economic contraction/ fear/status quo) and Uranus (reform/rebellion/shocks to the system) that began on Election Day 2008. The four prior alignments occurred with Saturn in Virgo and Uranus in Pisces, signs that indicate the transition from one cycle to another as described in a post I wrote in October 2008.

During each of the prior oppositions between Saturn and Uranus, the stock market was predominately positive on the day of the opposition before falling within four weeks of the opposition. Markets dropped to multiyear lows in November 2008 over nagging fears about the values of toxic assets on banks books. In the month following the second opposition on February 5, 2009, the indices hit even lower lows over concerns about bank stress tests and calls for nationalizing banks.

The major indices hit their highest levels in nearly a year at the time of the September 15, 2009 opposition which occurred on the one year anniversary of the collapse of Lehman Brothers. Chalk it up to the expansive euphoria of Jupiter conjoining Neptune for most of 2009, reflected in the huge government stimulus and accommodative monetary policy that could have helped to keep the market buoyant as the Dow only lost about 500 points of the Dow in the weeks following the opposition.

The indices not only reached their highs for the year during the fourth opposition on April 26, but the Dow and S&P had returned to where they were in September 2008 while the NASDAQ almost reached a two year high. Fears over Eurozone sovereign debt brought the market sharply down by early May. The explosion of the Deepwater Horizon less than a week before the opposition reflects the environmental and economic damage (Saturn in earth sign Virgo) from deepwater oil drilling (Uranus in Pisces) due to a lack of safety plans (Saturn) and technology (Uranus) available to contain (Virgo) an accident.

The market could peak at this time or do something completely new during this final opposition of Saturn and Uranus as these planets have now entered cardinal signs, indicating a new cycle has begun. Saturn in Libra opposite Uranus in Aries reflects it is time for Uranus to start shaking up all the structures that have become imbalanced. For example, the government worked to clean up bank balance sheets (Saturn in Virgo) by forcing them to recapitalize. These recapitalizations together with economic stimulus measures and accommodative monetary policy helped boost the financial sector and quickly created another bubble in certain asset prices (Uranus in Pisces).

Now that the effects of the stimulus drug are starting to wear off, we are beginning to see that the economy is growing very slowly and unevenly. Until government and corporate America accept that the nation must transition from a consumer-based to a new industrial and technologically based economy (Uranus in Aries), this will contiue to largely be a jobless recovery.

Uranus/Aquarius is an extreme energy. Saturn’s opposition to Uranus can bring rebellious resistance from the status quo who would like to keep things as they are, preferring a return to how things were before the financial crisis erupted. These individuals, groups, and organizations fear (Saturn) change (Uranus) and they have tried to instill fear amongst the public that change and reform would be far worse. But when you have Mars (action), Jupiter (expansion), Saturn (structure), Uranus (innovation), and Pluto (transformation) forming challenging alignments to one another over the next month at the beginning of cardinal (initiating) signs, there is only direction to go and that is forward. And with Aquarius’ ruler Uranus in Aries the first sign of the zodiac conjoining Jupiter now, it’s time to get a move on!

All of these planetary alignments now are giving us a glimpse of a new horizon (Jupiter) coming into view. The more we resist it and cling to the past (Saturn), the longer and more difficult the transition (Pluto) will be to create the economy of the future (Uranus) that produces tangible goods and services.

Jupiter’s energies are still strong from turning retrograde on Friday as it squared Pluto in Capricorn over the weekend. Jupiter expands what it comes in contact with. While the results of the stress tests on 91 European banks turned the market around after they were released midday Friday, Jupiter/Pluto reflects that either the market’s optimistic reaction was exaggerated or its fears of the last couple months about Europe were overblown since only 7 of the 91 banks failed the test and only 1 of those banks were in Greece.

It won’t take long to find out as Jupiter squares Pluto again August 3. What Jupiter/Pluto does indicate is that the excess debt accumulated during the Pluto in Sagittarius years (1995-2008) has yet to be fully realized by the markets. The cycle of Saturn square Pluto which completes August 21 reflects the growing call for reducing government deficits.

Jupiter (greed) and Saturn (fear) squaring Pluto (debt) simultaneously reflects the market’s belief that the Federal Reserve will take interest rates lower before they go higher. A drop in rates gives greater capital appreciation to a 30 year bond than a 5 or 10 year note. That’s why there is such a huge demand for long dated Treasuries even though it makes no logical sense to hold such long dated instruments until maturity at such low rates. The speculators are playing a game of chicken with the Federal Reserve, not taking into account Bernanke’s fear of implementing further monetary stimulus.

Military tensions over nuclear issues are in the forefront as the tight square of Jupiter in Aries to Pluto in Capricorn is creating a lot of friction over the joint military exercises the U.S. is conducting with South Korea today until Wednesday following tighter U.S. sanctions against North Korea last week.

The U.S. is employing some of its biggest military equipment for the exercises, including one of the Navy’s largest nuclear-powered aircraft carriers and the F-22 Raptor fighter for the first time to counter Pyongyang’s threats of nuclear retaliation. Tuesday marks the 57th anniversary since the Armistice agreement was signed “ending” the Korean War that began during a prior opposition of Jupiter and Saturn. Jupiter and Pluto prominent over Pyongyang during the Full Moon reinforce these tensions.

With the Full Moon in Aquarius and Uranus energies accentuated, there is greater potential for flash floods, strong winds, severe thunderstorms, and tornadoes. Jupiter conjoining Uranus in fiery Aries creates excess heat. The potential for earthquakes 5.0 or greater is strong this week.

The Full Moon culminates the energies began at the New Moon of July 11 which was a Solar Eclipse. Emotions tend to run high at the Full Moon and in Aquarius they can become defiant and rebellious as the need to be free to express one’s individuality is high. The Sun in its home sign Leo harmonizing with Jupiter in Aries boosts optimism and self-confidence for taking risks. The Cancer Solar Eclipse conjoined BP CEO Tony Hayward’s progressed Sun (self-identity; career), and it appears that the Aquarius Full Moon will give him “his life back.”

Mercury in speculative Leo opposing Neptune in Aquarius reflects rumors about leaders and speculative behavior that may or may not turn out to be totally true as with Neptune there can be intent to deceive or create a false illusion. Since Neptune in Aquarius relates back to the extreme energies of Uranus, news will tend to bring an extreme reaction of euphoria or panic. Neptune rules oil, drugs, hospitals, prisons, and charities which could be prominent in the news. Certainly whatever comes out of the closet now will command the media’s full attention.

Mercury enters its home sign Virgo after hours Tuesday until October 3 (due to Mercury being retrograde August 20 to September 12). Mercury in analytical Virgo takes a critical eye in dissecting all the data to see if the numbers really add up.

The Moon will be in Neptune-ruled Pisces Wednesday through Friday reinforcing some of the themes related to Monday’s Mercury/Neptune opposition. Mercury harmonizing with Pluto Friday is good for forensic accounting or any type of tedious research.

Volatility could take a sharp spike later this week as Mars enters Libra Thursday evening until September 14. Mars the warrior who likes to be in charge is uncomfortable in Libra the sign of diplomacy and partnerships. Mars opposing Uranus Friday could create explosive events that turn the market into a rollercoaster ride, creating strong potential for the SEC’s circuit breakers to wreak havoc. Systems problems could cause disruptions in data feeds. Power outages could occur now. Geopolitical events could also create market turmoil. Mars conjoining Saturn in Libra now can put the market under pressure and block it from moving higher.

Explosions and volcanic eruptions can occur with Mars opposite Uranus. Iceland’s volcano could erupt again since the Full Moon is prominent over Iceland. Uranus rules air travel which would be affected. Mars conjoining Saturn at the same time can bring delays, obstacles and frustrations which can cause strain in all types of relationships more now. With the Moon in Mars-ruled Aries added to the mix late Friday afternoon through the weekend, tempers and tensions are quick to flare up.

Regardless of the daily forecast, the chances of intraday volatility and reversals, large moves are quite high during the next month.

Monday, July 26, 2010
Although the Saturn/Uranus opposition together with the other planetary alignments today tends to be a positive influence, there is strong potential for a reversal and/or wild intraday swings.

Tuesday, July 27, 2010
Negative bias, but could see a late day reversal.

Wednesday, July 28, 2010
Market weakens as day progresses; ends mixed to slightly positive.

Thursday, July 29, 2010
Positive bias but could become choppy/mixed to negative intraday.

Friday, July 30, 2010
Strongest early before deteriorating into what could be a sharp selloff at the close.

Related Posts:“The Record Breaking, Unprecedented and Transformative Energies of the 2010 Summer Solstice, Part I” and “Summer Solstice Part II: Economic and Financial Effects

*A mathematical calculation that moves the planets forward in time as a method of prediction.
Tony Hayward: May 21, 1957 time unknown Eton, England

ADDENDUM (7/26/10 at 11 AM): Corrected the days of the week (Monday, July 25 was corrected to Monday, July 26 etc). Thanks go out to one of my astute readers.

No comments: