Summary Of Last Week's Influences:
After closing moderately higher on Monday, the major indices closed negative for the rest of the week following the Fed’s downgrade of the economy and halting the wind down of its $2 trillion balance sheet.
Last week’s market downturn reflects that the final opposition of Saturn and Uranus was consistent with the downturn following the previous four alignments during this almost two year cycle that began on Election Day 2008.
Summary Of This Week’s Influences:
Jupiter opposite Saturn and Saturn square Pluto are a negative influence on the market. And now these two planetary alignments will occur within the same week.
Monday will be the second of three times that Jupiter (expansion) and Saturn (contraction) will oppose each other. Jupiter/Saturn oppositions occur every 20 years and tends to mark a recession.
Jupiter was in Pisces opposing Saturn in Virgo during their first opposition on May 23. Jupiter (international matters) opposite Saturn (government) indicates global issues will dominate market behavior. Planets in opposition are in their “Full Moon” phase, and global markets certainly were in the throes of Full Moon fever over Europe’s sovereign debt crisis then.
As Jupiter opposes Saturn once again, nervousness about the Eurozone is being rekindled after Q2 Eurozone GDP last Friday showed stronger than expected growth in Germany but contraction in Greece. Jupiter opposite Saturn describes economic imbalances that need to be brought back into equilibrium. Wringing out the excesses (Jupiter) takes time (Saturn) as these two planets engage in a push/pull between quick fixes (Jupiter) vs. belt tightening measures (Saturn).
Jupiter in Aries opposite Saturn in Libra together with Saturn squaring Pluto (debt) are impacting the USA’s natal Venus (money/banking) in Cancer now, indicating the US economy and the policies of the nation’s central bank are the primary focus of concern now. While Europe is working with these energies by adopting austerity measures to reduce debt levels and enacting policies to build a more sustainable economic structure, US monetary and fiscal policies reflect a lack of restraint for fear it would trigger a double dip recession. With the opposition of this planetary pair occurring in the early degrees of the cardinal (initiating) signs Aries and Libra now and for a final time on March 28, attempts at recreating the old economic model will only prolong the recession.
Jupiter opposite Saturn expands efforts to control illegal immigration as the opposition of these planets increases nationalistic tendencies. The Obama bashing Wall Street Journal recently reported the Administration deported 60% more criminal aliens this year versus a comparable period during the Bush Administration. On Friday President Obama signed a $600 million bill to increase border surveillance after quickly passing Congress with strong bipartisan support.
Jupiter’s girth and Saturn’s rings of restriction are no match for Pluto despite the fact that Pluto is not even technically considered a planet anymore in certain circles. Powerful Pluto transits demand nothing less than total transformation. The choice is whether it is accomplished voluntarily or by force.
And there’s a LOT of stuff to be transformed between now and 2024 with the heavy lifting occurring during 2008-2015. All types of debt from sovereign to mortgages to structured products will have to be addressed. Insurance, taxes, corporate welfare, pensions, and governments will undergo massive structural transformation.
Saturn will square Pluto for the third and final time Saturday (Saturn’s day). Saturn is government and Pluto is debt. With Pluto in Saturn-ruled Capricorn, the concerns relate to sovereign debt (including government guarantees on commercial debt). This time it is the US that is primarily in the hot seat.
After Saturn first squared Pluto November 15, the Dubai government asked creditors to allow government conglomerate Dubai World to freeze (Saturn) making payments on $60 billion in debt. The second time Saturn squared Pluto on January 31 was preceded by a Solar Eclipse in Saturn-ruled Capricorn which affected Greece and started the sovereign debt crisis in Europe.
The Fed maintaining rates at close to zero for an “extended period of time” and preventing its balance sheet from shrinking by purchasing Treasuries reflects a fear of fear. Rather than helping the economy grow (Jupiter), the Fed’s words and deeds will cause the economy to shrink (Saturn).
Jupiter has exaggerated Saturn’s fear as investors buy government debt (Pluto) at the same time they complain about the deficit. In desperation for a slightly higher yield, junk bonds are being snapped up as if they’re FDIC-insured CDs.
All the focus on Jupiter, Saturn, Uranus, and Pluto has left Neptune back in the fog. Neptune rules bubbles. The Sun in Leo (speculation) opposing Neptune in Aquarius Friday at the same time Saturn squares Pluto could reflect that the bond bubble might be getting close to bursting. Neptune puts the focus on issues relating to credit, oil, fraudulent activities committed by people in leadership positions, and waking up to our illusions. All this is leading up to the Full Moon in Neptune-ruled Pisces August 24.
Mercury turning retrograde Friday at 3:59 PM until September 12 can prompt a review of government policies related to employment, healthcare, and the armed forces as this is a time to review and revise past actions rather than move forward with new issues.
The Moon is a key gauge to determine the mood of the market. The Moon transiting Pluto-ruled Scorpio (Monday), Jupiter-ruled Sagittarius (Tuesday until 10:17 AM EDT Thursday), and Saturn-ruled Capricorn (Thursday until 9:37 AM Saturday) intensifies the effects of the alignments between Jupiter, Saturn, and Pluto.
The First Quarter Moon in Scorpio Monday at 2:14 PM EDT heightens tensions and brings secrets to the surface related to Pluto-ruled matters. What occurs now will be reactivated during the Last Quarter Moon on September 1.
Jupiter opposite Saturn today can increase geopolitical tensions over territorial disputes and invading boundaries. As I pointed out in the post on the Jupiter/Saturn opposition (see link above), North Korea is particularly affected by this influence.
Pluto and Scorpio rule nuclear power. Russia is scheduled to begin loading fuel into Iran’s nuclear reactor in Bushehr as Saturn exactly squares Pluto Saturday after years of delays (Saturn)! The Quarter Moon squaring Israel’s Taurus Sun and conjoining its progressed Scorpio Moon together with Uranus in Pisces opposing natal Mars in Virgo and Mercury turning retrograde squaring progressed Jupiter in Virgo, elevates the possibility that Israel could launch a surprise pre-emptive strike to take out the reactor. As Jupiter opposed Saturn May 23, tensions between Israel and Turkey erupted after Israeli commandos stormed a Turkish aid flotilla that violated Israel’s blockade of Gaza, killing 9 passengers. Turkey, Syria, and Russia are also in the spotlight at this time.
Increased volatility and larger market moves are likely this week that take the market lower than where it began. Strong intraday reversals are possible, especially during the latter half of the week. Since Mercury retrograde can temporarily reverse current trends or keep the market trading in a tight range, the downtrend could restart after Mercury turns direct September 12 and all the energies of Jupiter, Saturn, Uranus, and Pluto are centered around the Autumnal Equinox on September 22. The “Full Moon effect” of the Autumnal Equinox has a tendency to put markets on edge; the Full Moon at zero degrees Aries is likely to exacerbate the anxiety and macro events to fret over. Such as the September 21 FOMC meeting.
Monday, August 16, 2010
Tuesday, August 17, 2010
Wednesday, August 18, 2010
Improving conditions as day progresses but could rapidly weaken at the close.
Thursday, August 19, 2010
Friday, August 20, 2010 (Options expiration)
Venus conjoining Mars in Libra on Venus-ruled Friday emphasizes the financial sector and business alliances/partnerships. Negative conditions improve as the morning progresses. With Mercury turning retrograde one minute before the market closes, anything could happen. But with the Moon in Capricorn and Saturn squaring Pluto, any gain the market makes could reverse back to negative again at the close.