WallStreetWeather.net Forecast For Week Of August 1, 2010

Summary Of Last Week’s Influences:
After falling to the lowest levels of the year July 2, the major indices reversed course after Uranus went retrograde July 5, steadily climbing right into the final alignment of Saturn opposite Uranus on July 26.

The indices have been positive during each of the five alignments between Saturn and Uranus followed by a decline within two to four weeks. The indices made fresh 2010 highs as well as 18 month highs during the April 26 opposition, followed by a low below the close on February 8 at the time Saturn squared Pluto. Exactly one month later at the time Jupiter opposed Saturn, the DJIA closed below its February 8 level. And then the indices dropped to fresh lows for the year on June 7 as Jupiter conjoined Uranus before falling even lower July 2.

With Jupiter, Saturn, Uranus, and Pluto repeating these planetary alignments now, joined by Mars (action) and Venus (money/banking) in Libra triggering their energies as they form challenging alignments to one another between July 30 and August 10, the potential is high that the market will continue to follow the pattern of making lower highs and lower lows as August progresses. However, after the market’s strong July rebound, it now appears unlikely that the indices will reach new 2010 lows by this Friday’s close.

Taking a look at some of the events in the news last week helps to understand these energies at work.

Full Moons shine the spotlight on matters that need our attention as this is the culmination point in the monthly lunar cycle. The July 25 Full Moon in Uranus-ruled Aquarius at the same time as the Saturn/Uranus opposition brought “breakthroughs,” breakouts, and shocks and surprises.

Cyberspace comes under the domain of Uranus and Aquarius. Jupiter (publishing) in Aries (military) squaring Pluto (secrets) in Capricorn (government) together with Saturn (authorities) opposing Uranus the rebel and computer hacker, resulted in WikiLeaks releasing 92,000 classified documents covering the war in Afghanistan to The New York Times and other media outlets. Jupiter in bold and brash Aries squaring Pluto demonstrates the power of individuals to bring transparency to what has been kept secret. The problem is that everything Jupiter does has a tendency to go too far (in this instance by publishing the names of individuals) and Aries tends to rush to action which can be regretted later.

The Moon in Aquarius Monday and Tuesday further energized the influence of Uranus. Saturn represents the elderly while Uranus rules younger people (but really anyone who thinks and acts youthful). The opposition between Saturn and Uranus since Election Day 2008 is to work to get these energies equally balanced by reforming structures that have ceased to properly function. Since four out of five of these oppositions occurred in Virgo and Pisces which rule health matters, it was not surprising that healthcare reform was signed into law during this cycle.

Not that The Wall Street Journal understands by running a front page story July 26 proclaiming “Health Law Augurs Transfer Of Funds From Old to Young.” When Medicare was enacted in 1965 during the previous Saturn/Uranus opposition, Medicare Advantage programs did not exist. But in expanding our “free market” healthcare system in recent years, Congress thought it would be more efficient if the government paid private health insurers to administer Medicare Advantage plans. It turned out to be so “efficient” that the government pays 15% more to private health insurance companies for seniors enrolled in Medicare Advantage plans than the amount the government pays out for seniors enrolled in original Medicare. So in order to help defray the costs to get everyone (that’s the equilibrium of the opposition) when the new health insurance law starts in 2014, the government will be cutting reimbursement rates on Medicare Advantage plans. (No cuts are being made to original Medicare.)

As far as Saturn/Uranus and the generation gap, the article is a very sad commentary that a mother would feel “torn” between the potential of losing her Silver Sneakers gym membership provided through her Humana Gold Medicare Advantage plan versus her diabetic son who because he cannot get insurance, ended up in the hospital after stretching his diabetic supplies too far. As I’ve written, millions of people under 65 in America do not realize how vulnerable they are under our current system that uses taxpayer dollars to prop up health insurance companies’ profits while allowing the insurers to deny coverage to individuals for whatever reason they desire.

The BP oil disaster occurred six days before Saturn opposed Uranus on April 26. As Saturn in Libra opposed Uranus in Aries Monday, a pipeline ruptured (Uranus) in Marshall, Michigan which has spilled over 1 million gallons of crude oil which has gotten into the Kalamazoo River. Saturn reflects the ruptured pipe's age (manufactured in 1969). (This was when Jupiter conjoined Uranus in Aries’ opposite sign Libra). Like BP, it appears that Enbridge Energy Partners was trying to cut corners and save time (Saturn).

With Saturn in Venus-ruled Libra opposing Uranus in Aries during the final opposition, the Basel Committee on Banking Supervision reached a “breakthrough agreement” according to the FT that requires banks to operate under more stringent capital requirements even though banks managed to sweet talk the regulators into loosening some of the elements originally proposed. Saturn rules delays, and full implementation of the agreement will not occur until 2017-18.

Summary Of This Week’s Influences:
The heat wave continues as I had written that a lack of planets in the water element July 22-August 13 would tend to bring higher than normal temperatures, drought, and fires while some parts of the world would be flooded with water.

Jupiter squaring Pluto again on Tuesday as Mars in Libra opposes Jupiter and squares Pluto on Wednesday could really heat up geopolitical events which might be one of the factors contributing to the large and turbulent market moves that could occur this week. Developments in Afghanistan and Pakistan this week could be particularly troublesome. These energies raise the potential for ambitions that know no bounds, attempts to gain power, and nuclear issues.

All of the planetary alignments occurring now affect the USA’s natal Venus (the economy/banking system) as well as the Federal Reserve. These alignments are signaling that major changes are happening now that will begin to reverse market philosophy.

Fed Chairman Bernanke’s July 21 testimony to Congress should be viewed in the same context as when the subprime market turned dow in that a major reversal is approaching. The market hears what it wants to hear, but it is too dangerous for the Fed to go any further with policy accommodation and quantitative easing. St. Louis FRB president James Bullard said that Japan has tried everything to pull their economy out of its lost decade(s). Yeah, everything except raising rates.

If Senators wanted to prevent another Fed induced financial crisis, they will join Sen. Shelby and the five other Senators on the Banking Committee who voted to oppose the nomination of San Francisco FRB president Janet Yellen to be Fed Vice Chairman.

As the heavy Saturn influence begins to dissipate after this month, it will become clearer that inflation should be more of a concern that deflation. India and New Zealand became the latest central banks to raise rates last week. Joachim Fels, co-head of economics at Morgan Stanley (MS) says inflation is rising” and is more worried about the RISKS resulting from the Fed’s ultra loose monetary policy than a double dip, which he says is “overdone” (Jupiter)! He’s concerned the Fed will allow higher inflation for “some time to help reduce the debt burden.”

Jupiter opposite Saturn and Saturn squaring Pluto indicates that the economy is growing slowly and unevenly; time and patience are needed as there is still a great deal of economic restructuring that will have to take place. Former Fed Chairman Alan Greenspan was on “Meet the Press” this morning, echoing much of my sentiment. Greenspan said that “We’re in a pause in a recovery, a modest recovery, but a pause in the modest recovery feels like a quasi-recession. Our problem basically is that we have a very distorted economy. Any recovery has mostly been limited to large banks, large businesses and high-income individuals who have just had $800 billion added to their 401(k)s, and are spending it and are carrying what consumption there is.”

The July employment report will be released Friday morning. Consensus estimates call for a loss of 70,000 government jobs (mostly due to the Census) and a gain of 100,000 private sector jobs, with the Unemployment Rate rising 0.1% to 9.6%. I think the report could surprise to the upside, boosted by an increase in tech and manufacturing jobs. The largest gains could continue to come from temporary workers. The report could be viewed more negatively as the unemployment rate comes in higher than expected as more people actively look for work.

Monday, August 2, 2010
Negative.

Tuesday, August 3, 2010
Positive and strongest early but weakens and becomes choppy/mixed. Closes negative.

Wednesday, August 4, 2010
Positive trend bias could weaken and turn choppy/mixed to negative going into the close.

Thursday, August 5, 2010
Choppy/mixed; swings between moderately negative to positive.

Friday, August 6, 2010
Mars squaring the June 26 Capricorn Lunar Eclipse could bring more than one reversal today; ends positive.

2 comments:

Anonymous said...

Regarding your comments 'Jupiter squaring Pluto again on Tuesday as Mars in Libra opposes Jupiter and squares Pluto on Wednesday could really heat up geopolitical events which might be one of the factors contributing to the large and turbulent market moves that could occur this week'.

What is your assessment for President Obama's upcoming year given his 49th birthday on Wednesday is chockablock with these powerful T-squares in the cardinal signs?

WALL STREET WEATHER said...

See my post, "President Obama's Solar Shift Could Change Economic Perceptions."
Deborah