Summary Of Last Week’s Influences:
The major indices closed higher for the third consecutive week. Except for a one day reversal on Tuesday which occurred on the 23rd anniversary of the 1987 crash, the indices continued to try to break through their April 26, 2010 highs. (On Thursday the Dow reached an intraday high that exceeded its April 26 closing price.)
As described in a prior post, there is a strong tendency for markets to at least temporarily reverse when Venus turns retrograde, and I thought the market would take a temporary break when Venus turned retrograde October 8 before resuming its climb higher. Although the Sun conjoining Venus October 28 can represent a turning point in the Venus retrograde cycle, it is more likely the market will continue to climb higher.
In last week’s Forecast I wrote that commodities mined underground could be subject to a correction. While far from a correction, gold declined more than 3% last week. Mercury making a challenging aspect to Uranus in Pisces Tuesday brought currency reversals as the dollar strengthened against the pound, euro, Swiss franc, and the Australian and Canadian dollar following China’s unexpected interest rate hike. In true Uranus fashion, markets reversed back to their speculative positions the following day as the Sun formed the same aspect to Uranus.
The week concluded with the finance ministers and central bankers of the G20 nations meeting in South Korea who in their communiqué agreed in theory to “refrain from competitive devaluation of their currencies” but could not reach agreement for setting specific targets to even out currency imbalances. While the US pushes China to let the yuan appreciate, The New York Times reports that “several officials expressed concerns” about the Fed weakening the dollar by stimulating growth through current monetary policy and expectations of QE2 and inflation targeting.
Summary Of This Week’s Influences:
The Sun moved into Scorpio yesterday until November 23, joining Mercury, Venus, and Mars. Speculation and news tends to revolve around what actions leaders will take related to Scorpio issues such as debt, insurance, taxes and corporate welfare that particularly affect the value of bonds.
Venus represents assets and self-worth (through its rulership of Taurus) and alliances/ partnerships (through its rulership of Libra). Venus in Taurus’ opposite sign Scorpio represents shared assets together with liabilities. Borrowing can be a means to acquire more assets, or the liabilities can become so great they bankrupt. With Venus in Scorpio financial gains depend upon the generosity of someone else whether it is a loan, subsidy, inheritance, or speculating in anticipation that the nation’s central bank (Sun/Venus) will engage in another round of quantitative easing.
Treasuries – especially long-dated maturities – are definitely in a bubble. Speculators buying the 30 year bond have no intention of holding to maturity but are counting on making a profit by selling to the Fed. With Scorpio’s planetary ruler Pluto in Capricorn the sign of government since 2008, financial markets have become dependent upon actual and anticipated fiscal and monetary policies to continue moving higher.
With Mercury conjoining Venus and the Sun conjoining Venus retrograde this week, the market is not in the mood to allow any unpleasant thoughts creep in that could weaken investor confidence.
Mercury the planetary energy of communication, commerce, and movement conjoins Venus (money/banking) as the stock market opens Monday, and the Moon (sentiment) will be in Mercury-ruled Gemini until mid afternoon Wednesday. Mercury conjoining Venus can represent making money through currency trading. Beyond markets reacting to the G-20’s communiqué, copper, banks, mortgages, bonds, and merger announcements are ruled by Venus and Scorpio that could be on investors’ minds now.
The Moon will be in its home sign Cancer from 3:14 PM Wednesday through Friday evening, harmonizing with the Mercury/Sun/Venus influences. The Moon rules food and liquids; Venus rules sweets and sugar, which could put the market on a “sugar high” Thursday as the Sun conjoins Venus, the halfway point of the Venus retrograde cycle that began October 8 until Venus turns direct November 18.
The Sun conjoining Venus retrograde occurs when Venus is at its closest approach to Earth. This is the midpoint in the Sun/Venus cycle that began on January 11. Raw sugar reached its highest price in 29 years (a Saturn cycle) following the alignment. When a planet from Earth’s vantage point appears to be moving backwards in the sky it symbolizes a time to reexamine past matters that the retrograde planet rules.
The Sun conjoined Venus in Saturn-ruled Capricorn and now the Sun conjoins Venus retrograde in Pluto ruled Scorpio, so with Pluto in Capricorn and Capricorn’s ruler Saturn in Venus-ruled Libra it is not surprising that we’re almost back where we started. Confidence was running high then for commodities, the euro and other currencies but low for the dollar, while China’s banking regulator tried to damp excess speculation by cracking down on banks selling loans to trust companies.
Venus has disappeared from the evening sky and will rise in the morning later next week, remaining a morning star until mid-July 2011 before beginning a new cycle on August 16 when the Sun and Venus conjoin in Sun-ruled Leo.
Mars moves into the global sign Sagittarius early Thursday until December 7. The Fed wants more inflation and with Mars in Jupiter-ruled Sagittarius combined with Jupiter in Pisces still in close quarters with Uranus (sudden spikes), the archer risks hitting the wrong target, raising the potential to create a currency war/trade dispute abroad and further asset price inflation that pushes higher prices through to consmers.
Monday, October 25, 2010
Tuesday, October 26, 2010
Markets reverse to negative.
Wednesday, October 27, 2010
Seesaws between positive and negative to end choppy/mixed .
Thursday, October 28, 2010
Friday, October 29, 2010
Positive but could weaken and become choppy/mixed intraday before improving to close positive.