WallStreetWeather.net Forecast For Week Of October 3, 2010

Summary Of Last Week’s Influences:
Despite the three major indices ending slightly lower last week, the stock market had its best September since 1939. Although the indices began the third quarter at their lows for the year, they closed out the quarter with double digit gains. However, the indices still are below their their 2010 highs reached on April 26 when Saturn opposed Uranus.

The market’s gains came in spite of the summer’s challenging and historic planetary alignments involving Jupiter, Saturn, Uranus, and Pluto. Although fears of a double dip recession did not materialize, on Tuesday the yield on the 10 year note dropped to 2.455%, its lowest level since January 2009 when stocks were sinking and investors were wondering if the government would nationalize the big banks.

While growth has been slow and uneven, economic conditions are obviously stronger than they were then. This reflects that the real driver of the market’s upswing is the Federal Reserve who is aggressively employing talk therapy to reflate stocks, bonds, and commodities.

Summary Of Last Week’s Influences:
Venus is the star of the show this week as Mercury moves into Venus-ruled Libra, Venus conjoins Mars, the New Moon is in Libra, and Venus turns retrograde.

Money and moveable assets, banking, partnerships, agreements/alliances, love and beauty. These are the major themes ruled by Venus, the planetary energy of attraction. Venus rules the signs Taurus and Libra, and has been transiting Taurus’ opposite sign Scorpio since September 8. Venus in Scorpio puts the focus on shared assets and debt.

Venus conjoins Mars for the second time today since August 20 when they rendezvoused in Libra. Venus conjoining Mars in Scorpio brings a passionate intensity that extends beyond intimate relationships. This alignment can bring increased activities in the debt markets, both in price and volume.

Mercury the planetary energy of communication, commerce, and movement, enters Libra today until October 20 after being in its home sign Virgo since July 27.* Mercury in Libra tends to get people thinking about what has become out of balance. Words relating to “balance,” “fairness,” and “equitable” are likely to be heard more frequently now. It’s time to think about how our communications affect others and vice versa. Mercury in Libra combined with Venus in Scorpio gets investors thinking more about the relationships between asset classes.

Mercury rules contracts and Libra rules agreements, alliances/partnerships, and financial counterparties. Fear over counterparty risk erupted into the financial crisis. Mercury was (retrograde) in Libra and Venus was in Scorpio when President Bush signed the TARP into law. Today marks the second anniversary of the TARP and the end of the fund being used for new initiatives, except for up to $46 billion available for the Treasury to use to modify mortgages. (This New York Times graphic shows what has been repaid and what remains outstanding from the original $700 billion fund.) Even AIG, the government’s homemade villain, reached an agreement with the Treasury last Thursday for the government to exit its investment.

Libra is represented by the scales of justice and equality, and Mercury in Libra together with the Sun which is always in Libra each year when the Supreme Court begins its new session on the first Monday in October.

Mercury squaring Pluto and conjoining Saturn this week together with Venus and Mars in Pluto-ruled Scorpio, reflect the Court hearing cases involving the themes represented by these planets, such as whether a debtor can deduct ownership costs for a paid off car during Chapter 13 bankruptcy, to whether the First Amendment gives a church the right to picket with vulgar placards at military funerals and post insulting messages online directed at the deceased soldiers survivors in retaliation for the military’s “don’t ask, don’t tell policy.”

Secrets involving powerful individuals and corporate interests can be revealed when Mercury squares Pluto in Capricorn, along with the fact that these individuals and interests use their power and influence to gain access to confidential information. This influence can also bring news related to nuclear issues, currency manipulation, debt, and the endless obsession over the Fed doing more quantitative easing. Mercury squaring Pluto impacts the Fed’s Sun (identity), Pluto (secrets) and the sector of its chart that represents its reputation.

I have previously described how the combination of the Fed’s Sun opposite Pluto in combination with the Fed’s chart ruler the Moon in Pluto-ruled Scorpio in the sector representing speculation, reflects that the Fed’s policies are engineered to first and foremost benefit Wall St. A Reuters investigation has found that the secretive Fed can be quite transparent with some former Fed heads and even outside individuals who have built a relationship with the Fed. It is their access and ability to provide “color” on the Fed’s thinking that can give individuals and corporate interests a market edge.

The New Moon in Libra occurs Thursday at 2:44 PM, conjoining Mercury and Saturn in Libra as Venus appears stationary in the sky as it prepares to turn retrograde Friday morning. This combination of influences can indicate the market has peaked for the time being.

Venus goes retrograde every 18 months and will be retrograde until November 18. Venus retrograde tends to correlate to market reversals. (Venus last turned retrograde on March 6, 2009 when the indices plunged to multiyear lows.)

The September employment report is released Friday. Mercury conjunct Saturn describes slow but steady job growth.

Similar to last week, choppy/mixed conditions and reversals tend to prevail intraday.

Monday, October 4, 2010:
Mercury changing signs and Venus conjoining Mars could start the week off with a little bit of profit taking before turning choppy/mixed to positive by early afternoon. Mixed close.

Tuesday, October 5, 2010
Indices choppy/mixed; seesaws between moderately positive to negative.

Wednesday, October 6, 2010
Positive conditions start to weaken, becoming choppy/mixed by early afternoon. Turns negative going into the close.

Thursday, October 7, 2010
Choppy/mixed conditions deteriorate and turn negative in afternoon.

Friday, October 8, 2010
Negative.

*Due to Mercury being retrograde August 20 – September 12. Planets do not really move backwards but appear to from Earth’s vantage point.

Related Post: “2010 Autumnal Equinox/Harvest Moon: The Regulators Are Running The Show Now”

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