WallStreetWeather.net Forecast For Week of December 5, 2010

My post on the Sagittarius New Moon cycle describes the planetary influences happening this week and during the next month.

Jupiter and Uranus are the dominant influences now as they approach exact conjunction on January 4. Their energies are reinforced with Jupiter the planetary ruler of the Sagittarius New Moon and Uranus turning direct now. Jupiter will then move into Aries on January 22 for the first time* since the dot.com bubble.

One Jupiter cycle later the only thing that has changed is that now it’s the China dot.com bubble as two Chinese companies – internet video site Youku (YOKU) and online bookseller Dangdang (DANG) IPO on the Nasdaq this week. It seemes that most people are under the illusion that China’s economy is immune to asset price bubbles, stagflation and a decline in exports to the U.S. over time.

While the Jupiter/Uranus influence is providing a big boost to a market tilted to the upside and the aspects this week are conducive to news and agreements that for the most part are likely to be viewed favorably by the market, they are offset by other influences that could create choppy to volatile conditions at least intraday.

The Moon in Sagittarius Monday can help to keep sentiment skewed to the upside. Caution about sovereign debt and economic contraction are likely to return when the Moon is in Saturn-ruled Capricorn Tuesday and Wednesday and Mars enters Capricorn Tuesday evening. Now the heat is on for governments and the Federal Reserve to placate the market as Mars reactivates the energies of the challenging planetary alignments of late spring and early summer that pushed the major indices to their lowest levels of the year. The Moon will be in Uranus-ruled Aquarius Thursday and Friday when Mercury turns retrograde Friday morning (see the New Moon post) which could bring buzz about tech mergers. The combination of Mercury retrograde and the Moon in Aquarius can result in erratic and irrational market behavior. There could be glitches in data feeds.

Monday, December 6, 2010
Negative before seesawing between Choppy/mixed to positive.

Tuesday, December 7, 2010
Negative conditions improve to close mixed.

Wednesday, December 8, 2010
Positive.

Thursday, December 9, 2010
Negative.

Friday, December 10, 2010
Improving conditions as day progresses.

*Jupiter was briefly in Aries June 6 – September 9, 2010.

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