Summary Of Last Week’s Influences:
“As January goes, so goes the market” is what’s known as the “January barometer.” With the three major indices closing January in the red, the January barometer would suggest that 2010 will be a negative year for the stock market.
As outlined in a prior Forecast, 2010 does not have the optimistic euphoria of Jupiter conjoining Neptune that dominated the year from the spring forward. And the ultra accommodative monetary policies and government stimulus that drove the outsize gains are slowly ending or will be tightened.
The January 15 Solar Eclipse in Saturn-ruled Capricorn at the same time Saturn stationed retrograde and Mercury turned direct in Capricorn so close to Saturn in Libra exactly squaring Pluto in Capricorn for the second time while Mars retrograde in speculative Leo opposed the Sun and Venus in Aquarius last week, reversed the market’s upward momentum.
As the FT’s John Authers wrote yesterday, “After months when every risk appeared to be an opportunity, markets have suddenly started to treat interesting opportunities as risks.” In an earlier column last week, Authers noted the irony that China is driving a lot of the current concerns. Authers quoted Morgan Stanley’s Teun Draaisma who observes that history’s biggest “relief rallies” during a bear market have averaged about a 70% gain followed by a 25% correction. We’ve made the 70% gain, but are not yet near the minimum 10% drop that defines a market correction.
Saturn’s fear over the sovereign debt (Pluto) of other nations has strengthened the U.S. dollar. The Jan 15 Solar Eclipse conjoined the Euro chart’s Venus (currency) and squared its Saturn in Aries, putting pressure on its value over concerns about Greece’s debt and commitment to budget tightening. Like the U.S., Greece’s natal Venus is in Moon-ruled Cancer and is being impacted by the Saturn/Pluto square. Compounding the problem is that Venus in Cancer squares the Moon and Pluto in Venus-ruled Libra in Greece’s chart.
Crude oil experienced its biggest monthly decline since December 2008. Jupiter in Pisces reflects an abundance of oil and natural gas. Thanks to Saturn in Libra, sugar has been the only commodity that continues to gain due to severe supply constraints and increased global demand.
President Obama and the Democrats are still struggling to pass healthcare reform. The Senate confirmed Ben Bernanke to a second term as Fed Chairman but not without a lot of arm twisting. Toyota spend $1 billion in 2008 in the U.S. advertising “Toyota quality” which would have been better spent building vehicles that don’t unexpectedly surge out of control. Saturn, Pluto, and Mars brought Toyota’s massive problem front and center in the spotlight last week. In my next post I will explain how these influences are affecting three key charts for Toyota.
Summary Of This Week’s Influences:
The energies of Saturn in Libra and Pluto in Capricorn continue to dominate economic events this week. Congress and the Administration will continue to bicker about reaching an agreement on ways to rein in spending to lower the ever growing mountain of government debt.
Virgo is the bookkeeper and the efficiency expert ruled by dualistic Mercury. With the Moon (sentiment) in Virgo on Monday, the government will release the President’s budget for the FY2011 beginning in October which seeks to “freeze” spending. (Saturn and Capricorn represent cold and harsh weather conditions.) The Moon in Virgo harmonizing with Mercury in Capricorn Monday can help decipher the fine print and determine if the numbers add up.
Defense Secretary Gates will hold a news conference to discuss the Pentagon’s budget and long term national security vision. Mars represents military matters, and Mars in Leo exactly conjoins Gates’ Pluto Monday. Saturn and Pluto have been impacting Gates’ natal Mercury, Sun, and Neptune in Venus-ruled Libra while Pluto is harmonizing with natal Venus in Virgo. As an article in yesterday’s Wall Street Journal points out, Gates is determined to transform (Pluto) the structure (Saturn) of the military “to focus on smaller-scale guerilla warfare,” believing that the conventional strategy of being prepared to fight two major wars simultaneously “was outdated and overly focused on conventional warfare.”
With Mars conjoining natal Uranus in Gemini (which exactly conjoins the USA Uranus) and with Venus in Virgo squaring natal Uranus, Gates is attuned to the need for a flexible military that is equipped with the latest and most efficient technology. Gates is requesting more unmanned drones and helicopters. He also wants defense contractors to build more fuel efficient armored vehicles and aircraft to lower energy costs and the number of convoys needed to get supplies into remote and landlocked areas such as Afghanistan.
With the Pentagon’s progressed* Sun in Libra conjoining Gates’ Libra lineup, it appears that Robert Gates is the right person at the right time to lead this effort. Defense contractors and their friends in Congress will balk, but in the end it looks like Gates will have successfully negotiated to get much of what he wants.
According to the FT, At 6 foot 7 inches tall Paul Volcker “is too big to fail.” Like Gates, Volcker was also born with Venus in Virgo (along with the Sun, Mercury, and Mars). The former Federal Reserve Chairman and Chairman of President Obama’s Economic Advisory Board has an op-ed piece in today’s New York Times on “How to Reform Our Financial System.” Volcker will testify at 10:00 AM Tuesday before the Senate Banking Committee on what President Obama has dubbed the “Volcker Rule.”
Saturn is fear. If we allow our deepest fears to get the better of us they become our reality. The Bush Administration’s obsession with moral hazard ended up creating what they claimed they most feared: failures and takeovers that have created banks that are now too big to fail. Now the Obama Administration and other governments propose to create a “resolution authority” that would take control of any financial institution the government believes would pose a systemic risk to the financial system to facilitate an orderly liquidation or merger.
The UK (we have a pattern of copying them on these issues since the financial crisis) has proposed these systemically important financial institutions have a living will in place to provide guidance to the resolution authority. Institutions designated too big to fail would have to pay a tax that would go to a fund to cover the costs in the event of a failure of a systemically important financial institution.
While this is all sooo Saturn/Pluto, there is a simpler solution. Saturn/Pluto reflects it is time to return to a structure of plain vanilla banking. Enact the “Volcker Rule,” impose higher capital requirements, make banks get their funding through deposit taking, and establish the Consumer Financial Protection Agency to separate consumer regulations from commercial banking regulations.
Paul Volcker’s Mars opposes his Jupiter and Uranus in Aries. Transiting Uranus, Saturn, and Pluto are impacting these natal planets. Later this year and in 2011, Jupiter and Uranus will return to where they were when Volcker was born. A Jupiter return occurs about every 12 years; a Uranus return happens once in a lifetime (around age 84). Both occurring simultaneously is a liberating influence that allows Volcker to be free to speak his mind and be more assertive and influential in helping to take the financial system back to the future.
Consensus estimates call for a gain of 13,000 jobs in the January employment report to be released on Friday. I think there will be a gain but the prior month(s) revision could be what the market is more fixated on. Last week’s Employment Cost Index reflected that wages grew more slowly in 2009 than since the government began tracking data in 1982 when Saturn was last in Libra. Wages by people employed in the private sector rose 1.5% in 2009 while consumer prices increased 2.8%, resulting in a loss of real wages of 1.3%. Inflation will really overheat midyear when Jupiter conjoins Uranus in Aries.
The Last Quarter Moon in Pluto-ruled Scorpio occurs Friday at 6:48 PM EST. Mercury is the chart ruler and resides in the sector representing the stock market. Mercury is conjoining the January 15 Solar Eclipse now as the G7 finance ministers meet Friday and Saturday in Canada. Events that occurred then will be back in the news now. With Saturn in the sector representing the economy and the banking system and Mercury ruling this area of the chart, and Saturn ruling the sector representing the stock market with Pluto here, the market is focused on sovereign debt and tighter financial regulations. The public is concerned about their investments, particularly retirement accounts. There could be some surprising new developments related to credit conditions.
The indices have closed at or near session lows for the last 6 out of 7 consecutive sessions. This week appears to have a similar pattern.
Monday, February 1, 2010
The strong influence of Saturn square Pluto and the Moon in Virgo’s aspect to Mercury in Saturn-ruled Capricorn brings news that is viewed negatively by the market. (Indices strongest around midday.)
Tuesday, February 2, 2010
Choppy/mixed to moderately positive, but weakens to close negative.
Wednesday, February 3, 2010
The indices could have a hard time deciding which direction to go today. Negative early, then becomes choppy/mixed before turning positive. Loses momentum going into the close.
Thursday, February 4, 2010
Positive early then becomes choppy/mixed to moderately up, then weakens in the afternoon.
Friday, February 5, 2010
Volatile with large moves that swing from bullish to bearish.
*A mathematical calculation that moves the planets forward in time as a method of prediction.
The Euro: January 1, 1999 12:00 AM CET Frankfurt, Germany
Greece: July 24, 1974 4:00 AM EET, Athens, Greece
Robert M. Gates: September 25, 1943 time unknown Wichita, KS
Defense Dept: July 26, 1947 12:15 PM EDT Washington, DC
Paul Volcker: September 5, 1927 time unknown Cape May, NJ
The future of the Federal Reserve under a reconfirmed Bernanke
Published by WallStreetWeather.netBen Bernanke has consistently cited the Federal Reserve’s “independence” every time members of Congress requested additional information about the central bank’s secret deals and special lending programs it established during the financial crisis. But when his nomination to be reconfirmed Fed Chairman appeared to be in jeopardy, Bernanke was anything but independent of the political process.
Bernanke made numerous visits to Senators seeking their support and was reported to have been still working the phones during the FOMC meeting. Several Republicans broke their filibuster of blocking anything the Democrats wanted, joining in the spirit of bipartisanship to please the corporate and Wall St. donors they enjoy trashing when the cameras are rolling. Warren Buffett who said on CNBC the week before to “let me know a day or two in advance if Bernanke is not confirmed so I can sell some stocks,” had been lobbying Senators. And so was GE CEO Jeffrey Immelt who serves on the board of the New York FRB “representing the public”; as the company has received beaucoup benefits from Bernanke’s Fed.
Resistance declined as the week progressed, and Ben Bernanke was confirmed at 4:12 PM yesterday to a second term as Fed Chairman by a 70-30 vote after Senators voted 77-23 to break the filibuster on his nomination. Bernanke is lucky that politicians are also driven by the fears they enjoy stirring up. Members of the Administration and Bernanke supporters were working feverishly to push Senators to vote for Bernanke for fear they would be accused of contributing to a market collapse. (This was the same excuse used by Buffett and other supporters to push Timothy Geithner’s nomination through even though other Obama nominees dropped out over tax issues.) Senators were instructed to imagine how much worse things would have been if Bernanke hadn’t been at the helm during the financial crisis.
While Washington, Wall Street, and corporate America largely support Bernanke, a majority of Americans do not. Only 18% of people surveyed in a January 23-25 Wall Street Journal/NBC News poll said they were “positive” about Bernanke; support for his reappointment had changed little since a June poll. More men favored his reappointment than women, probably because women are still predominantly responsible for grocery and other household expenditures and managing household budgets. Because of this, women (at least speaking for myself :-) ) tend to be more cognizant of inflation’s real world effect on purchasing power and how the Fed’s policy of zero interest rates create a negative return on interest income even before it is taxed. For all the political pandering to senior citizens on healthcare and other issues, Washington and advocate groups such as AARP have been stone silent about how the Fed’s policies have severely harmed seniors’ financial health.
“Beginning late this year and extending through 2009, Pluto will aspect the Fed’s Sun (identity/the Chairman), Midheaven** (reputation/status), and Pluto (transformation). This has never happened in the Fed’s history. What it means is that the Fed’s purpose and scope will be radically revamped from its current existence.
Chairman Bernanke’s Sun, Moon, Mercury, Venus, and Jupiter will face challenging energies in 2008-09 from Saturn and Uranus. High level people (especially government) will exert even greater pressure on him to do their bidding. At the same time, he will want to free himself from these restrictions to pursue a different course of action. (Or he could disagree with the new duties and structure of the Fed.) These energies also have the potential to create health challenges from high stress. Bernanke’s position as Chairman expires on January 31, 2010. He will not be re-appointed, and will probably resign before then.” – From my post on “The Fed’s Future”
I wrote that post on September 18, 2007 – less than one month before the Dow and the S&P made record highs and one year before the financial crisis erupted on Wall Street. Even when he was nominated for a second term on August 25 as part of President Obama’s agenda of “change that we can believe in,” virtually no one had any concerns that the Senate would fail to reconfirm him. Bernanke will go down in the history books as the Fed Chairman with the most “No” votes.
Pluto in Capricorn has already “revamped the Fed’s purpose and scope” as Bernanke has pushed the Fed’s powers to the limit. Now that Saturn in Libra is squaring Pluto, proposals are making their way through Congress that would limit or separate the Fed’s power and responsibilities. Saturn in Venus-ruled Libra reflects the movement in Congress to remove the Fed’s ability to regulate banks, while the Administration proposes the creation of a Consumer Financial Protection Agency to regulate consumer finance while the Fed would be in charge of regulating all financial institutions that could pose a systemic risk. Bernanke has made it clear that he opposes any legislation that would reduce the Fed’s authority and threaten its “independence.” The GAO is auditing the Fed’s handling of AIG, and Bernanke is not pleased that a bill to audit all of the Fed’s special lending programs is going through the Congress.
It is unfortunate that Bernanke still refuses to take responsibility for the Fed’s role in precipitating the financial crisis. His continued allegiance to the Greenspan doctrine of creating asset bubbles now and mopping up the mess later is not the way to create a steady and sustainable economy.
Wednesday’s FOMC Announcement contained subtle changes, reflecting that Bernanke runs the risk of waiting too long to embark on an exit strategy to tighten monetary policy. The only FOMC member who appears to realize the Fed is moving too slowly and wanted the “extended period” phrase dropped from Wednesday’s statement was Thomas Hoenig, president of the Kansas City FRB. This was really interesting to me as the intuitive impression (versus examining the planetary influences) that immediately entered my mind before I wrote the Weekly Forecast was “it’s time to take off the training wheels” regarding the “extended period” phase. It never dawned on me to think about any dissenters since the committee has been unified with Bernanke for so long.
I have previously written why I believe the Fed will raise interest rates no later than the June 23 FOMC meeting. The training wheels could come off at the March 16 meeting. The April 28 FOMC statement will prepare the market for the rate increases to follow. At the same time, the Fed will probably assure the market that mortgage liquidity will be available.
The stock market has always been fearful of change, especially when overly accommodative monetary policies were the primary source of Wall Street’s recovery. Monetary tightening does not signal the end of the world but is a welcome acknowledgement that economic conditions are gradually improving. There is the additional danger that inflation could quickly overheat if tightening does not occur.
As much as I disagree with the Greenspan/Bernanke doctrine, I object even more to those who would like to abolish the Federal Reserve System altogether. If Congress were in complete control of the Federal Reserve we would have an extremely accommodative monetary policy forever instead of for an “extended period” of time.
Because there will likely never be a Fed Chairman like Paul Volcker again, Congress should limit the Fed’s duties to focus on monetary policy. And then Congress should refrain from any attempt to interfere with the Fed’s independence.
Short Fuse on Healthcare and the Obama Presidency
Published by WallStreetWeather.net
It was expected that Barack Obama would be celebrating his one year anniversary as President of the United States having passed healthcare reform. Instead the President and the Democrats received a stunning defeat as Republican Scott Brown won the election for the late Teddy Kennedy’s Senate seat.The Democrat loss in Massachusetts seemed like a cruel twist of fate since Teddy Kennedy is portrayed as making healthcare reform “the cause of my life.” President Obama made healthcare reform a key part of his political campaign and his first year agenda, and has come closer than any of his predecessors to enacting healthcare reform. Having already passed the House and the Senate, Congressional negotiators were in the process of melding the two bills at the time of the Massachusetts Senate election.
Saturn represents the law of cause and effect.* What we put out, we get back. Saturn’s energy can seem harsh and restrictive, but this is Saturn’s way of reminding us that we must be accountable and take responsibility for our actions by investing the time and effort required to achieve our goals.
Massachusetts Attorney General Martha Coakley learned the hard way what happens when you don’t put enough effort into a political campaign. A lack of strong planetary influences to her natal chart during the campaign reflects her lack of motivation as evidenced by her refusing to campaign in front of Fenway Park in the cold.
Eclipses are harbingers of major change. The January 15 Solar Eclipse in Saturn-ruled Capricorn squaring Coakley’s progressed** Saturn in Libra reflected that Massachusetts voters gave her the cold shoulder for failing to make the effort to relate to them. Coakley and the Democratic Party committed a foul in Saturn’s playbook by acting as if Kennedy’s seat was reserved for Democrats only; failing to grasp Saturn’s no work, no reward mantra.
Saturn in Libra and Pluto in Capricorn squaring Scott Brown’s natal Mars in Libra motivated him to aggressively campaign for the Senate seat. And with Neptune in Aquarius squaring natal Jupiter, Brown fervently believed he could win by portraying himself as an independent even though he voted with Republicans a majority of the time as a State Senator. Libra is ruled by Venus and with his Venus conjoining Pluto in Virgo, Brown presented the image of a down to earth “regular guy” who kept his backing by the Republican party and powerful special interests in the shadows and never acknowledged the Party in his victory speech. Venus (banks) conjunct Pluto (taxes) and Venus squaring natal Jupiter in Pluto-ruled Scorpio reflects Brown’s opposition to proposals to tax bank profits to recoup bailout money and his opposition to taxing bank executive compensation.
The energies at an eclipse are influential over the next several months. Saturn’s energies were particularly powerful as the planet appeared stationary from Earth’s vantage point as it began moving retrograde until May 30, 2010. Saturn is a slow and cautious energy that presents delays and obstacles along the path in order to test our discipline and perseverance.
Saturn is fear. On the surface it appears that the Solar Eclipse exactly conjoining Obama’s natal Saturn in Capricorn has caused him to retreat from healthcare reform, fearing that the rejection of a Democrat to fill Teddy Kennedy’s seat served as a public referendum against healthcare reform. The influence of Mars retrograde in Leo exactly conjoining his Sun last week put the President in a fighting mood. With Saturn and Pluto impacting President Obama’s natal Venus in Cancer, he decided to channel his anger and frustration over healthcare reform into attacking the banks (Venus), feeling that his actions would resonate with public sentiment (Cancer).
The Sun/Leo and Saturn/Capricorn represents leadership. The characteristic of a true leader is a person who does not retreat from a setback, but instead is able to quickly reevaluate the situation and take the steps necessary to get the job done.
President Obama formally announced his objective to achieve healthcare reform on May 13, 2009 when Saturn was stationary and about to shift into direct motion. Saturn rules history. The President believed that by allowing Congress to craft the legislation and by seeking to get all the players in the healthcare industry on board, would avoid repeating the mistakes made by the Clintons.
Saturn can present basic facts and fundamentals that are easily understood or it can be highly structured, complex and bureaucratic. A big mistake made by Obama and the Democrats is that healthcare reform became too complex to be able to explain to anyone beyond policy wonks. This made it all too easy for opponents to attack it.
If the Democrat’s proposal had been straightforward in addressing the abuses of health insurance that people most feared, it would have been difficult for the Republicans to mount an aggressive attack against it. The first issue is that the public’s fear of insurance abuse was not high enough, and the second issue is that the public was convinced by the bill’s detractors that they would be worse off under reform. Complexity made defending the bill nearly impossible.
Saturn rules time. Obama and the Democrats allowed deadlines to be pushed back through the summer in the hope of garnering Republican support even though Republicans openly declared their strategy to destroy healthcare reform would be the President's “Waterloo.” By the time the House passed their version of the bill on November 7, Saturn had left Virgo (healthcare) and moved into Libra and was about to make the first of three challenging alignments to Pluto.
In the House, Saturn squaring Pluto the ruler of insurance and life and death issues reflected the House bill’s severe restrictions on insurance coverage of abortion. Pluto in Capricorn describes the powerful special interests that push their agenda at the expense of the general public. Saturn and Pluto impacting the USA natal Venus when the Senate passed their bill December 24 pushed the leadership into negotiating concessions to motivate a couple of Democratic Senators to support the bill.
The Unions played hardball and withheld their support for Martha Coakley, angry that the Senate bill would tax (Pluto) some union members high cost health insurance plans. Saturn square Pluto describes political pressures and power struggles. The Senate is telling the House to pass the Senate bill as is while House Speaker Pelosi is trying to use what little leverage she has to convince the Senate to pass a Corrections bill covering the House’s objections to the Senate’s version. Even though the Republicans during the Bush Administration used reconciliation a number of times to pass legislation, the Senate is afraid of being accused by Republicans of “ramming” a bill through to satisfy the House. With Saturn squaring Pluto and Mars retrograde in Leo opposing Venus and the Sun this week, the players would rather let their pride get in the way than agree to pass the Senate bill in the House, avoiding confrontation.
The Solar Eclipse conjoined President Obama’s Saturn in the sector of his chart representing activity taking place behind the scenes. The President’s recognition that time is not on his side is confirmed by the hiring of his former campaign manager David Plouffe as a political consultant. In an op-ed piece in Sunday’s Washington Post, Plouffe remarked that Democrats “own” healthcare since they already voted on it. Plouffe wants the House to pass the Senate’s version so Obama can sign the bill into law, giving the public enough time to see for themselves that the bill is not what opponents have made it out to be.
Challenging aspects between Saturn and Pluto represent economic contraction (Saturn) that usually follows a period of excess spending and debt (Pluto). The last time Saturn and Pluto were squaring each other in cardinal (action-oriented) signs was in 1930-1 when Saturn opposed Pluto. Saturn/Pluto influences tend to limit the party in power and have correlated to Presidents pushing healthcare reform.
The Medicare Act passed during the time when Saturn in Pisces opposed Uranus and Pluto in Virgo from 1965-66. During 2010 Saturn is opposing Uranus and both of these planets are squaring Pluto. In 1974 when Saturn was squaring Pluto in the waning part of its cycle as it is now, President Nixon introduced healthcare reform and worked with Teddy Kennedy and then House Ways & Means Committee Chairman Wilbur Mills. Saturn/Pluto describes how the power players tarnished reputations (Nixon's resignation over Watergate and Mills’ fall from power after being caught drunk with stripper Fannie Fox), brought an end to healthcare reform.
As Saturn conjoined Pluto in 1982, Republicans lost House seats to Democrats primarily over high unemployment. Saturn was in Libra as it is now. Saturn square Pluto in 1993 to early 1994 occurred during the Clinton's healthcare plan and the Republicans winning the midterm election with their "Contract with America." Saturn opposed Pluto in 2001-2 and marked the first election in several decades that the President’s party gained seats in Congress to become the majority party. Saturn/Pluto aspects relate to terrorism and natural disasters that cause destruction and loss of life on a massive scale.
President Obama is resonating with the energies of Saturn square Pluto by proposing a three year “freeze” (Saturn) affecting $447 billion of discretionary spending in the federal budget in an attempt to contract the $1.4 trillion budget deficit (Pluto). With the Moon in Cancer forming challenging alignments to the Sun in Aquarius and Mercury in Saturn-ruled Capricorn, the President will announce a grab bag of tax cuts and credits aimed at helping families with child and elder care at tonight’s State of the Union address. Jupiter in Pisces forming a favorable aspect to Pluto in Capricorn in the sector of the State of the Union chart representing the workforce and healthcare offers an opportunity to expand measures that relate to job creation and healthcare.
We all have a choice as to how we will respond to various planetary influences. President Obama could choose to repeat Teddy Kennedy’s mistakes by allowing the Unions and liberals to squash healthcare reform just because it’s not perfect OR convince them to be more pragmatic and learn the incremental approach from the antiabortion crowd. Teddy Kennedy’s biggest regret doesn’t have to be President Obama’s.
After the intense influences of Mars, Saturn, and Pluto start to slowly dissipate following Saturday’s Full Moon that conjoins President Obama’s Sun, he can release the fear and frustration felt over the last few weeks. He can tell the Unions to turn their tepid support for the Senate bill into letting House members know that it is better than no reform at all. If President Obama goes back to being the leader on healthcare reform that he was meant to be, then there’s a good possibility that he will be signing the Senate version of the healthcare bill during the Aquarius New Moon cycle (February 13 – March 15) as the New Moon exactly opposes his natal Uranus in Leo.
Aquarius and its planetary ruler Uranus represent progressive change as there’s a greater tendency to want to shakeup inertia and the status quo. Barack Obama was elected President the day Saturn opposed Uranus. His rise to become the Democratic presidential candidate is reflected by the USA’s natal Moon in Aquarius opposing his natal Uranus in Leo. Voters wanted a change from the status quo.
President Obama does not have much time left before Democrats will become too focused on the November midterm elections. If he fails to sign healthcare legislation into law by mid-March, healthcare reform is probably finished. And so is the presidency of Barack Obama and the Democratic majority as the public will consider them to be ineffective at bringing the change they voted for.
President Obama: August 4, 1961 7:24 PM Honolulu, HI
USA: July 4, 1776 5:10 PM Philadelphia, PA
Martha Coakley: July 14, 1953 time unknown Pittsfield, MA
Scott Brown: September 12, 1959 time unknown Kittery, ME
*karma
** A mathematical calculation that moves the planets forward in time as a method of prediction.
WallStreetWeather.net Forecast For Week Of January 25, 2010
Summary Of Last Week’s Influences:
The major indices experienced their largest weekly decline last week since hitting multiyear lows last March. Markets chalked up the losses to China’s regulators cutting back on bank lending, fears over Greece’s sovereign debt, President Obama getting tough on the big banks after Republican Scott Brown won the Massachusetts Senate race, and concerns that the Senate might not confirm Federal Reserve Chairman Bernanke to a second term.
Regardless of the reasons, Saturn square Pluto is injecting caution over concerns that the market has went too far, too fast and is overdue for a correction.
Summary Of This Week’s Influences:
Mars in Leo pushes its way to the forefront to let Saturn and Pluto know that just because Mars has been retrograde since December 20 does not mean its energies are not influential!
Mars in Leo will form its third and final challenging alignment to Mercury in Capricorn on Monday,* oppose Venus in Aquarius Tuesday/Wednesday, and oppose the Sun in Aquarius on Friday. The Moon (sentiment) will enter Leo on Friday with the strong Mars influences culminating at the Leo Full Moon early Saturday at the same time Saturn squares Pluto.
Since Mars is the closest to the Earth it has been in two years, these aspects can quickly raise people’s level of frustration and anger, creating hurt pride and bruised egos. The Mercury/Mars alignment reflects the need to make adjustments in order to effectively get your message across. Venus opposing Mars can make it more difficult to relate to others and particularly create tension in romantic relationships. The Sun’s opposition to Mars can create a battle of wills as there is a strong need for self-expression and gaining control (Saturn) through manipulation and power struggles (Pluto).
From a financial perspective, the combination of these energies will likely increase volatility and fear in the market from concerns arising from news (Mercury) coming from the government and corporate earnings (Venus). In addition to the fears of tighter regulation, global stimulus measures coming to an end, and companies not exceeding lofty future earnings projections, the Mars aspects raise the possibility of violence and military actions resulting from geopolitical tensions.
With the Sun and Venus in Uranus-ruled Aquarius opposing Mars, volatility is likely to increase as market sentiment can quickly move from one extreme to the other. This also increases the possibility of intraday reversals as the market reacts to unexpected events.
Mars is action and Leo is speculation. Mars retrograde is a time to review past actions. As I wrote in the Mars in Leo post, Mars retrograde at the same time Saturn squares Pluto would motivate government leaders to restrict speculation on Wall St. President Obama’s amendment to his Financial Regulatory Reform proposal announced last week would prohibit banks from engaging in proprietary trading (trading for their own account). Banks would also not be able to invest, sponsor or own a hedge fund or private equity fund. Additionally the proposal seeks to restrict the combination of deposits and other funding sources whereas currently restrictions only apply to the bank’s deposit base.
Leaders are ruled by Leo and its planetary ruler the Sun. Mars retrograde in Leo brings back leaders from the past. President Obama named the new proposal the “Volcker Rule” after former Federal Reserve Chairman Paul Volcker who I said in the 12/20/09 Weekly Forecast “would be having an expanded role in shaping financial regulatory reform in 2010.” The next time Volcker’s chart will be particularly active is around the March 15 Pisces New Moon which occurs the day before the next FOMC meeting after this one. (I can dream can’t I that Volcker replaces Bernanke?!)
The “Volcker Rule” is a more modified version of The Banking Act of 1933 (“Glass-Steagall”) which separated commercial from investment banking. Mars in Leo reflects a Senate bill to repeal the 1999 repeal of Glass-Steagall which as I wrote in that 12/20/09 post is being affected by the Saturn/Pluto square.
Three leaders will dominate the news on Wednesday, and two have the Sun in Leo. Treasury Secretary Geithner will testify at a House Oversight Committee hearing investigating the government’s payment in full to AIG’s counterparties. (Former Treasury Secretary Hank Paulson and Stephen Friedman, the former Chairman of the NY Fed, have been invited to testify.)
In a November post I wrote that Geithner would come under questioning in early 2010 over AIG. The January 15 Solar Eclipse conjoined Geithner’s Saturn in Capricorn. Mercury conjoining Geithner's Saturn and Jupiter, and Jupiter in Pisces opposing his Pluto next month could raise ethcal issues that might lead to legal troubles. Neptune in Aquarius opposing his Sun/Uranus conjunction in Leo and the Full Moon squaring Geithner’s Neptune in Scorpio raise the potential Geithner was not forthcoming in his communications during the AIG crisis last March.
And if Geithner was not forthcoming, that doesn’t reflect well on Ben Bernanke who was his boss when the government took 79.9% control of AIG. Bernanke has been busy calling Senators while the Administration tries to shore up support to get 60 votes to break the filibuster on his nomination. Bernanke’s term as Chairman expires January 31. Fed Vice Chairman Donald Kohn will take over as acting Chairman of the Fed until he is confirmed or replaced.
The problem with Bernanke is that he continues to deny that the Fed did anything wrong, refusing to acknowledge that the public and many members of Congress are fed up with him for perpetuating the failed policies of Alan Greenspan. He has done nothing whatsoever to help consumers. Someone needs to ask Bernanke why banks are charging consumers up to 30% interest on credit cards while paying consumers less than 1% interest on bank deposits.
The Administration and Bernanke’s supporters are trying to make Bernanke into a hero for preventing Depression 2.0 when the Fed’s policies and lax regulatory enforcement created the crisis in the first place! And now they’re trying to convince the Senators to vote for Bernanke to prevent the stock market from declining further. Keeping Bernanke at the Fed or replacing him with another Greenspan devotee completely conflicts with the Administration’s financial regulatory reform proposals and shows the politicians care more about zero interest rates than a sound economy. Besides, Bernanke has been vigorously campaigning against any proposal that would diminish the Fed’s power and influence. The Full Moon opposes the Federal Reserve’s progressed Uranus in Aquarius, indicating some surprising developments might be in store over the next two weeks.
The FOMC will release its announcement at 2:15 PM Wednesday. While I do not anticipate major changes in the Fed’s direction at this time, the statement could show subtle signs of sympathy to the plight of workers and consumers as a reason to maintain the “extended period of time” phrase in the statement.
As we approach the Full Moon which opposes his Sun in Leo, President Obama will give his State of the Union address Wednesday night at 9:00 PM. (More about the President and his agenda in a separate post.)
Monday, January 25, 2010
Volatile; weak early but improves as day progresses, then declines going into the close.
Tuesday, January 26, 2010
Negative.
Wednesday, January 27, 2010
Negative, but improving conditions could turn the market positive in early afternoon only to retreat going into the close.
Thursday, January 28, 2010
Positive trend bias.
Friday, January 29, 2010
Volatile; market deteriorates as day progresses, selling into the close.
*This aspect previously occurred on December 21 and December 31, 2009.
** A mathematical calculation that moves the planets forward in time as a method of prediction.
The major indices experienced their largest weekly decline last week since hitting multiyear lows last March. Markets chalked up the losses to China’s regulators cutting back on bank lending, fears over Greece’s sovereign debt, President Obama getting tough on the big banks after Republican Scott Brown won the Massachusetts Senate race, and concerns that the Senate might not confirm Federal Reserve Chairman Bernanke to a second term.
Regardless of the reasons, Saturn square Pluto is injecting caution over concerns that the market has went too far, too fast and is overdue for a correction.
Summary Of This Week’s Influences:
Mars in Leo pushes its way to the forefront to let Saturn and Pluto know that just because Mars has been retrograde since December 20 does not mean its energies are not influential!
Mars in Leo will form its third and final challenging alignment to Mercury in Capricorn on Monday,* oppose Venus in Aquarius Tuesday/Wednesday, and oppose the Sun in Aquarius on Friday. The Moon (sentiment) will enter Leo on Friday with the strong Mars influences culminating at the Leo Full Moon early Saturday at the same time Saturn squares Pluto.
Since Mars is the closest to the Earth it has been in two years, these aspects can quickly raise people’s level of frustration and anger, creating hurt pride and bruised egos. The Mercury/Mars alignment reflects the need to make adjustments in order to effectively get your message across. Venus opposing Mars can make it more difficult to relate to others and particularly create tension in romantic relationships. The Sun’s opposition to Mars can create a battle of wills as there is a strong need for self-expression and gaining control (Saturn) through manipulation and power struggles (Pluto).
From a financial perspective, the combination of these energies will likely increase volatility and fear in the market from concerns arising from news (Mercury) coming from the government and corporate earnings (Venus). In addition to the fears of tighter regulation, global stimulus measures coming to an end, and companies not exceeding lofty future earnings projections, the Mars aspects raise the possibility of violence and military actions resulting from geopolitical tensions.
With the Sun and Venus in Uranus-ruled Aquarius opposing Mars, volatility is likely to increase as market sentiment can quickly move from one extreme to the other. This also increases the possibility of intraday reversals as the market reacts to unexpected events.
Mars is action and Leo is speculation. Mars retrograde is a time to review past actions. As I wrote in the Mars in Leo post, Mars retrograde at the same time Saturn squares Pluto would motivate government leaders to restrict speculation on Wall St. President Obama’s amendment to his Financial Regulatory Reform proposal announced last week would prohibit banks from engaging in proprietary trading (trading for their own account). Banks would also not be able to invest, sponsor or own a hedge fund or private equity fund. Additionally the proposal seeks to restrict the combination of deposits and other funding sources whereas currently restrictions only apply to the bank’s deposit base.
Leaders are ruled by Leo and its planetary ruler the Sun. Mars retrograde in Leo brings back leaders from the past. President Obama named the new proposal the “Volcker Rule” after former Federal Reserve Chairman Paul Volcker who I said in the 12/20/09 Weekly Forecast “would be having an expanded role in shaping financial regulatory reform in 2010.” The next time Volcker’s chart will be particularly active is around the March 15 Pisces New Moon which occurs the day before the next FOMC meeting after this one. (I can dream can’t I that Volcker replaces Bernanke?!)
The “Volcker Rule” is a more modified version of The Banking Act of 1933 (“Glass-Steagall”) which separated commercial from investment banking. Mars in Leo reflects a Senate bill to repeal the 1999 repeal of Glass-Steagall which as I wrote in that 12/20/09 post is being affected by the Saturn/Pluto square.
Three leaders will dominate the news on Wednesday, and two have the Sun in Leo. Treasury Secretary Geithner will testify at a House Oversight Committee hearing investigating the government’s payment in full to AIG’s counterparties. (Former Treasury Secretary Hank Paulson and Stephen Friedman, the former Chairman of the NY Fed, have been invited to testify.)
In a November post I wrote that Geithner would come under questioning in early 2010 over AIG. The January 15 Solar Eclipse conjoined Geithner’s Saturn in Capricorn. Mercury conjoining Geithner's Saturn and Jupiter, and Jupiter in Pisces opposing his Pluto next month could raise ethcal issues that might lead to legal troubles. Neptune in Aquarius opposing his Sun/Uranus conjunction in Leo and the Full Moon squaring Geithner’s Neptune in Scorpio raise the potential Geithner was not forthcoming in his communications during the AIG crisis last March.
And if Geithner was not forthcoming, that doesn’t reflect well on Ben Bernanke who was his boss when the government took 79.9% control of AIG. Bernanke has been busy calling Senators while the Administration tries to shore up support to get 60 votes to break the filibuster on his nomination. Bernanke’s term as Chairman expires January 31. Fed Vice Chairman Donald Kohn will take over as acting Chairman of the Fed until he is confirmed or replaced.
The problem with Bernanke is that he continues to deny that the Fed did anything wrong, refusing to acknowledge that the public and many members of Congress are fed up with him for perpetuating the failed policies of Alan Greenspan. He has done nothing whatsoever to help consumers. Someone needs to ask Bernanke why banks are charging consumers up to 30% interest on credit cards while paying consumers less than 1% interest on bank deposits.
The Administration and Bernanke’s supporters are trying to make Bernanke into a hero for preventing Depression 2.0 when the Fed’s policies and lax regulatory enforcement created the crisis in the first place! And now they’re trying to convince the Senators to vote for Bernanke to prevent the stock market from declining further. Keeping Bernanke at the Fed or replacing him with another Greenspan devotee completely conflicts with the Administration’s financial regulatory reform proposals and shows the politicians care more about zero interest rates than a sound economy. Besides, Bernanke has been vigorously campaigning against any proposal that would diminish the Fed’s power and influence. The Full Moon opposes the Federal Reserve’s progressed Uranus in Aquarius, indicating some surprising developments might be in store over the next two weeks.
The FOMC will release its announcement at 2:15 PM Wednesday. While I do not anticipate major changes in the Fed’s direction at this time, the statement could show subtle signs of sympathy to the plight of workers and consumers as a reason to maintain the “extended period of time” phrase in the statement.
As we approach the Full Moon which opposes his Sun in Leo, President Obama will give his State of the Union address Wednesday night at 9:00 PM. (More about the President and his agenda in a separate post.)
Monday, January 25, 2010
Volatile; weak early but improves as day progresses, then declines going into the close.
Tuesday, January 26, 2010
Negative.
Wednesday, January 27, 2010
Negative, but improving conditions could turn the market positive in early afternoon only to retreat going into the close.
Thursday, January 28, 2010
Positive trend bias.
Friday, January 29, 2010
Volatile; market deteriorates as day progresses, selling into the close.
*This aspect previously occurred on December 21 and December 31, 2009.
** A mathematical calculation that moves the planets forward in time as a method of prediction.
Economic Trends During Jupiter in Pisces: January 17-June 6, 2010; September 9-January 22, 2011
Published by WallStreetWeather.net
Jupiter, the planetary energy of expansion and abundance, began a new cycle in Pisces on January17, 2010.Jupiter energy tends to be jovial and optimistic, preferring to view the glass as half full. As the largest planet in our solar system, Jupiter does everything in a big way. Usually considered the energy of luck and risk-taking, Jupiter also represents excess and exaggeration. Strong Jupiter energies tend to manifest as large stock market moves that are not always bullish.
Jupiter represents wisdom, truth, and ethical behavior. It is one’s personal philosophy which society categorizes as politics and religion. Jupiter rules long distance travel, global trade, foreign affairs, publishing, the courts/judicial system, and higher education.
Jupiter was the planetary ruler of Pisces until Neptune was discovered in 1846. Pisces represents interconnectedness, dissolving boundaries and barriers as it strives for inclusion and unity as Jupiter in Pisces is idealistic and believes in faith, hope, and charity. The motto for Jupiter in Pisces is “believing is seeing” since intuitive vision is the first step in bringing what has yet to come into being. Pisces rules the unconscious mind and the intuitive faculties. Getting a peaceful night’s sleep, working with dreams, and setting aside a short amount of time each day for meditation/reflection enhances intuition and sparks the imagination.
Pisces rules:
film, photography, music, the arts
alcohol, drugs, tobacco
oil, gas and chemicals
charities
prisons; hospitals, nursing homes, rehabilitation facilities
advertising and propaganda
mental health; the feet (as well as a vehicle’s tires)
Legal rulings are likely to be dominated by matters ruled by Jupiter and Pisces. The most positive manifestation of Jupiter in Pisces is political decisions and judicial rulings that focus more on the “greater good” rather than benefiting a select group of people. Overturning existing laws will also tend to be connected to Jupiter in Pisces themes. States allowing medical marijuana will continue to grow. And now the floodgates are opened to a tidal wave of political advertising after the Supreme Court ruled the government cannot restrict spending by corporations and unions in political campaigns.
Major ethics violations, scandal and fraud are more likely to be committed by individuals in charities, government, and corporations related to the themes above. Companies will increase their donations to charity and to organizations with charitable or patriotic sounding names that masquerade as a front to further their own agenda. Jupiter in Pisces blurs the line between reality and illusion.
Jupiter inflates and Pisces creates bubbles caused by easy credit. Government stimulus and zero interest rates have already spawned an asset price bubble in 2009 when Jupiter conjoined Neptune in Aquarius for most of the year. Jupiter in Pisces could inflate investments related to the movies/music, healthcare (pharmaceuticals; hospitals), and chemicals sectors. Since Jupiter tends to be indulgent and sensitive Pisces seeks an escape hatch from the harsh realities of the world, spas and spa type services (pedicures, reflexology, massage), short-term cruises and retreats could see a pickup in business as people with even a limited budget seek out a few hours or day of rejuvenation. Shoe sales could get a boost.
As far as the healthcare sector is concerned, the easy money has already been made as big pharma’s pipeline is waning and money for new drug development is redirected into advertising and growth through M&A. Jupiter in Pisces describes an abundant supply of oil and gas with major new discoveries found under the sea this year; any price spikes are likely to be temporary.
Jupiter aspecting Pluto (exact February 6) brings news related to issues that began around the time of the January 15 Solar Eclipse. Debt increases more than projected. Unexpected credit issues surface and major scandals and information about clandestine government activities could be exposed. This can be an opportunity to transform the tax code, but will probably result in tax measures being proposed or expanded upon. There could be a merger announcement in the healthcare sector. This could involve a big pharma company acquiring a one drug wonder biotech company.
The bursting of asset price bubbles in foreign markets such as China will create a ripple effect throughout the world. This is what happened the last time Jupiter was in Pisces* The Russian financial crisis precipitated the fall of hedge fund Long Term Capital Management on September 23, 1998 when Jupiter in Pisces was exactly opposing the USA’s natal Neptune and squaring the USA Mars. This is a sensitive degree area that coincides with the financial crisis in 2008 and the panic of 1907. Jupiter here can also bring increased military related action.
Jupiter in Pisces will pass over this degree area on April 22, around the same time Jupiter will oppose Saturn in Virgo (exact May 23) while Saturn opposes Uranus in Pisces (exact April 26). Virgo and Pisces represent cleaning up the errors of the past as these signs mark a transition from the closing of one cycle and the start of a new one. Jupiter expands and Saturn contracts, creating a mixed economic picture and a shift to more nationalistic policies. Saturn opposite Uranus reflects the status quo (Saturn) who are resistant to Uranus’ wakeup call to release fear so outworn conditions can dissolve to make way for new innovations.
Enthusiasm and optimism for new innovations and making a fresh start will begin when Jupiter and Uranus conjoin in Aries on June 8. This begins a shift back to engineering and manufacturing products in the U.S. and a push for developing real technology. The last time Jupiter conjoined Uranus at the beginning of a cardinal (action-oriented) sign** was on July 20, 1969 – the day Apollo 11 astronauts Neil Armstrong and Buzz Aldrin stepped on the Moon in “one giant (Jupiter) leap (Uranus) for mankind.” Jupiter and Uranus in Aries exactly opposing the 1969 Jupiter/Uranus conjunction in Libra can usher in that same pioneering sense of discovery.
Jupiter and Uranus will retrograde back into Pisces where they will conjoin on September 19 and January 4, 2011. Jupiter conjoining Uranus in Pisces will bring welcome developments for biotech companies as the truly innovative companies hit pay dirt. There could also be breakthroughs in the application of material science, such as paints and other coatings being used to collect solar energy. Innovative paints have already been shown to be self cleansing and glass for commercial applications is already in place that sheds dirt.
Pisces rules the oceans as it is part of the water element, and clean water could be a particular problem. Weather wise, there will be periods this year where excess water brings flooding and a lack of water brings draught. Crop damage will elevate food prices. It’s a good idea to have a supply of bottled water on hand as severe weather and contaminates in the water supply could temporarily make drinking water unsafe.
Jupiter in Pisces can bring forth a tidal wave of emotions. The wisdom of Jupiter in Pisces is to be flexible and go with the flow, having compassion for others as well as ourselves.
*Jupiter takes about 12 years to make a complete cycle around the Sun. Recent transits of Jupiter in Pisces:
February 4, 1998 – February 13, 1999
February 20, 1986 – March 2, 1987
March 8, 1974 – March 18, 1975 (Like now, Saturn squared Pluto.)
March 25, 1962 – April 4, 1963
**The cardinal signs are Aries, Cancer, Libra, and Capricorn.
WallStreetWeather.net Forecast For Week Of January 17, 2010
Summary Of Last Week's Influences:
Last week’s planetary influences of the Sun conjoining Venus in Capricorn, Saturn in Venus-ruled Libra turning retrograde, Mercury turning direct the day of the Solar Eclipse in Capricorn, and all occurring as Saturn squares Pluto, put the focus on banks and bank CEOs, corporate earnings, proposed government taxes on financial institutions, China’s attempt to curb it asset price bubble as well as control the internet, and a massive earthquake in Haiti.
The major indices reflected these planetary shifts with the indices making 15 month highs Thursday before reversing course on Friday to close slightly lower for the week. The Sun conjoining Venus describes Wall St.’s expectations for Q4 S&P500 earnings to nearly triple year over year, but reports from Dow components Alcoa (AA) and JPMorgan Chase (JPM) disappointed as all roads right now lead to one path straight to Saturn indicating that the stock market is overdue for a reality check.
Summary Of This Week’s Influences:
With the stock market closed for Martin Luther King Jr. Day on Monday, the business week begins on Tuesday with three planets shifting into different signs.
Jupiter enters Pisces on January 17 until June 6 and again September 9 to January 22, 2011. As my next post will be about Jupiter in Pisces, I will focus here on how it relates to Tuesday’s special Massachusetts Senate election to fill the late Sen. Ted Kennedy’s seat.
Jupiter expands what it touches and Pisces and its ruler Neptune dissolve barriers. For the USA, Jupiter entering Pisces will finally bring passage of the healthcare legislation which will occur in an unexpected way. In the special Senate election, Martha Coakley the Democratic Massachusetts Attorney General is being challenged for the seat by Republican Massachusetts State Senator Scott Brown. Coakley has exerted virtually no effort to win the seat, reflecting that there is little planetary activity currently in her chart to motivate her. With Saturn and Pluto impacting his Mars/Saturn square and Neptune in Aquarius squaring his Jupiter in Scorpio, Scott Brown is aggressively campaigning on being “the 41st vote” in the Senate to preserve the status quo and vote against healthcare reform. Since it appears that Brown is more likely to win, the Democrats need to pass the healthcare bill within 15 days of the election in order to circumvent the bill returning to the Senate and being defeated by Brown’s vote. And if Brown is elected, the Republicans and Brown’s “Tea Party” supporters might end up wishing that Coakley had won.
Venus enters Aquarius Monday until February 11 and the Sun enters Aquarius late Tuesday evening until February 18. Aquarius is ruled by Uranus, the great awakener and the planetary energy of extremes and shocks and surprises. This could make for choppy trading this week as the market tries to hold on to the enormous gains made since last March. Turbulence could accelerate the following week as the Sun and Venus oppose Mars in Leo leading up to the January 30 Full Moon and Saturn’s second square to Pluto January 31.
Tuesday, January 19, 2010
Choppy session that closes negative.
Wednesday, January 20, 2010
Swings between positive and negative; closing mixed to negative.
Thursday, January 21, 2010
Positive, then becomes choppy/mixed to negative. The influence of Venus in Aquarius harmonizing with Saturn in Libra (exact early Friday morning) has a tendency to be either bullish or bearish.
Friday, January 22, 2010
Negative.
Scott Brown: Septemer 12, 1959 Kittery, ME
Martha Coakley: July 14, 1953 Pittsfield, MA
CORRECTION MADE: On 1/19/10 @ 8:16 AM I corrected a typo that listed Scott Brown's state of birth as MA (Massachusetts) and corrected it to ME (Maine).
Last week’s planetary influences of the Sun conjoining Venus in Capricorn, Saturn in Venus-ruled Libra turning retrograde, Mercury turning direct the day of the Solar Eclipse in Capricorn, and all occurring as Saturn squares Pluto, put the focus on banks and bank CEOs, corporate earnings, proposed government taxes on financial institutions, China’s attempt to curb it asset price bubble as well as control the internet, and a massive earthquake in Haiti.
The major indices reflected these planetary shifts with the indices making 15 month highs Thursday before reversing course on Friday to close slightly lower for the week. The Sun conjoining Venus describes Wall St.’s expectations for Q4 S&P500 earnings to nearly triple year over year, but reports from Dow components Alcoa (AA) and JPMorgan Chase (JPM) disappointed as all roads right now lead to one path straight to Saturn indicating that the stock market is overdue for a reality check.
Summary Of This Week’s Influences:
With the stock market closed for Martin Luther King Jr. Day on Monday, the business week begins on Tuesday with three planets shifting into different signs.
Jupiter enters Pisces on January 17 until June 6 and again September 9 to January 22, 2011. As my next post will be about Jupiter in Pisces, I will focus here on how it relates to Tuesday’s special Massachusetts Senate election to fill the late Sen. Ted Kennedy’s seat.
Jupiter expands what it touches and Pisces and its ruler Neptune dissolve barriers. For the USA, Jupiter entering Pisces will finally bring passage of the healthcare legislation which will occur in an unexpected way. In the special Senate election, Martha Coakley the Democratic Massachusetts Attorney General is being challenged for the seat by Republican Massachusetts State Senator Scott Brown. Coakley has exerted virtually no effort to win the seat, reflecting that there is little planetary activity currently in her chart to motivate her. With Saturn and Pluto impacting his Mars/Saturn square and Neptune in Aquarius squaring his Jupiter in Scorpio, Scott Brown is aggressively campaigning on being “the 41st vote” in the Senate to preserve the status quo and vote against healthcare reform. Since it appears that Brown is more likely to win, the Democrats need to pass the healthcare bill within 15 days of the election in order to circumvent the bill returning to the Senate and being defeated by Brown’s vote. And if Brown is elected, the Republicans and Brown’s “Tea Party” supporters might end up wishing that Coakley had won.
Venus enters Aquarius Monday until February 11 and the Sun enters Aquarius late Tuesday evening until February 18. Aquarius is ruled by Uranus, the great awakener and the planetary energy of extremes and shocks and surprises. This could make for choppy trading this week as the market tries to hold on to the enormous gains made since last March. Turbulence could accelerate the following week as the Sun and Venus oppose Mars in Leo leading up to the January 30 Full Moon and Saturn’s second square to Pluto January 31.
Tuesday, January 19, 2010
Choppy session that closes negative.
Wednesday, January 20, 2010
Swings between positive and negative; closing mixed to negative.
Thursday, January 21, 2010
Positive, then becomes choppy/mixed to negative. The influence of Venus in Aquarius harmonizing with Saturn in Libra (exact early Friday morning) has a tendency to be either bullish or bearish.
Friday, January 22, 2010
Negative.
Scott Brown: Septemer 12, 1959 Kittery, ME
Martha Coakley: July 14, 1953 Pittsfield, MA
CORRECTION MADE: On 1/19/10 @ 8:16 AM I corrected a typo that listed Scott Brown's state of birth as MA (Massachusetts) and corrected it to ME (Maine).
Johnson & Johnson’s Tylenol: a Mercury Retrograde Problem
Published by WallStreetWeather.net
Mercury is the planetary energy of communication, movement, and commerce. The three week period three to four times a year when Mercury appears to move retrograde from Earth’s vantage point tends to bring news of more product recalls as when Mercury slows down, our thought processes pick up on things that have been overlooked in order that past errors can be rectified.Mercury is a dualistic energy and was particularly potent on January 15, 2010 as it stationed direct. Johnson & Johnson (JNJ) announced a second recall affecting about 50 million bottles of Tylenol, Motrin and some other OTC products sold in the Americas, the U.A.E., and Fiji that expanded on its recall of Tylenol arthritis products announced December 29 after Mercury went retrograde.
The two recalls expanded the original recall issued by J&J on November 6, 2009 for Tylenol Arthritis Pain caplets that were recalled after some consumers reported nausea, stomach pain, vomiting and diarrhea, along with a moldy odor emanating from the product. On September 24, 2009 when Mercury was retrograde in its own sign Virgo which rules health and hygiene, J&J recalled infant and children’s Tylenol liquid products after detecting bacteria in an inactive ingredient.
According to news reports, J&J’s latest voluntary recall was in response to a warning letter from the FDA* criticizing the drug company for its delay in not conducting a full investigation after it knew in 2008 it had an odor contamination problem related to the chemical 2,4,6-tribromoanisole (TBA) in wood pellets that were used to transport and store the product’s packaging material. In its latest recall announcement, J&J said “no serious events have been documented in medical literature” connected with contamination to TBA, but admitted that “the health effects of this chemical have not been well studied.”
The Wall Street Journal points out J&J’s response to its current problems with Tylenol and other OTC products contrasts with the company’s quick and decisive action to recall millions of Tylenol products on October 5, 1982 after seven people in the Chicago area died from taking Tylenol capsules that had been laced with cyanide.
Mercury was retrograde at the time of the original 1982 recall which occurred the last time Saturn was in Libra. Saturn represents economic contraction, and Pluto rules toxic conditions, what is hidden, and events on a massive scale. Saturn was conjoining Pluto in Libra during the 1982 recall. By J&J being accountable and quickly taking responsibility for the problem, the amount of money the company lost on the recall was more than recouped by earning the public’s respect and continued patronage.
Saturn and the sign Capricorn rule the elderly and the body’s bones and joints. At the time of the November 2009 Tylenol arthritis recall, Saturn in Libra was about to square Pluto in Capricorn. Saturn rules government and Pluto exposes what has been manipulated and kept secret. Saturn conjoining Pluto marked the beginning of a new economic cycle. Saturn squaring Pluto represents that this cycle is waning, coinciding with the decline of big pharma’s proprietary pipeline. Unlike the 1982 recall, J&J didn’t begin the November 2009 recall until FDA investigators were inspecting a plant.
Beyond the multiple recalls of the Mercury retrograde cycle in Capricorn, Saturn’s energy was pronounced last week as it stationed retrograde on January 13. Mercury turning direct on January 15 the day of the Solar Eclipse in Capricorn, reflected there was more news related to J&J related to the government and the elderly. The Department of Justice announced a lawsuit against J&J for paying millions of dollars in kickbacks to Omnicare, the nation’s largest pharmacy serving nursing homes and long-term care facilities. In what the two companies called the “Risperdal Initiative,” J&J would pay Omnicare to recommend patients be put on Risperdal, an anti-psychotic medication that has not been approved by the FDA for patients with Alzheimer’s or dementia. According to The Wall Street Journal, state and federal Medicaid programs are major Omnicare customers.
J&J will record costs connected to the recalls in its 2009 financial results which it is scheduled to report on January 26. J&J does not expect the loss to be material, but with the January 15 Solar Eclipse squaring J&J’s stock chart Venus in Libra, Saturn square Pluto affecting the stock chart’s Sun and Neptune in Libra and Moon in Capricorn, and Mars in Leo conjoining its Pluto, J&J’s earnings could be disappointing. Revenue or future revenue projections look to be contracting. The Moon represents the public and investor sentiment which unlike 1982 does not appear to be on J&J’s side.
J&J has a lot of work to do if it wants to avoid yet another recall during the next Mercury retrograde cycle April 18 to May 11, 2010.
*At the time of this writing the FDA warning letter to J&J does not appear on the FDA’s website. In related news Friday, the FDA began to reverse its stance that the chemical bisphenol A (BPA) that is used to harden plastics and is found in certain types of food containers, might not be safe for young children.
Johnson & Johnson stock chart: September 25, 1944 NYC
The January 15, 2010 Solar Eclipse Constrains Banks
Published by WallStreetWeather.netProposed taxes and restrictions on bank bonuses, a bipartisan government committee investigating the cause of the financial crisis, financial regulatory reform legislation in Congress, the Federal Reserve and its Chairman fighting to retain power, and a “financial crisis responsibility fee” to recoup the cost of government bailouts are all dominating the news. They reflect the buildup in planetary influences over the last several weeks converging at today’s Capricorn Solar Eclipse.
A Solar Eclipse is a “supercharged” New Moon. What is in begun at this time will have ramifications particularly over the summer and in the years to come as this eclipse in Capricorn will be repeated on January 14, 2029. Capricorn is an ambitious and action oriented sign focused on professional achievement and the material rewards it brings to create a secure foundation. Capricorn and its planetary ruler Saturn represent economic contraction and consolidation. There are no shortcuts with Saturn; what you put out, you get back. As the ruler of time, Saturn requires that we be accountable and take responsibility for our actions.
The Solar Eclipse conjoining Venus puts the focus on self-worth and financial values. Saturn rules government and Venus rules money and banks. Saturn in Libra (2009-2012) reinforces this theme, representing the relationship between the government and the banks that have rebounded to record profits following the government’s bailout. The mission of Saturn in Libra is to balance out the scales too tilted in favor of Wall St and Washington special interests at the expense of the nation’s overall economic stability.
Pluto rules leverage, Wall Street’s fancy name for debt and all the opaque financial instruments that began turning toxic when Pluto entered Capricorn in 2008. As the planetary ruler of life and death, the government exerted its power by deciding which financial institutions would live and which ones would die before instituting financially friendly policies such as government guaranteed loans and zero percent interest rates which contributed to banks’ outsized gains in bonds, commodities, stocks, and mergers.
Saturn is squaring Pluto at the Solar Eclipse, seeking to put the brakes on Wall St.’s return to its old ways. While the square represents the motivation to restructure and transform the financial system, those in power in government and the plutocrats in the so-called free market system where handouts and special treatment is fine for them but not anyone else, will make every attempt to keep the status quo intact. Saturn square Pluto calls for deleveraging and curtailing wasteful spending; forcing individuals and governments to get their priorities in order and focus on the long term. Pluto rules taxes, and governments will look for various ways to tax and manipulate budgets as a way of indirectly dealing with the issue.
Mercury rules communications. Mercury has been retrograde in Capricorn since December 26, turning stationary direct just hours after the Solar Eclipse. Mercury retrograde brings back matters from the past. Most of the financial news during this retrograde period has focused on government proposals and legislation that seeks to restrict Wall St’s profits, re-examining the factors leading up to and the government’s conduct in handling the crisis.
Mercury squaring Saturn and conjoining Pluto now describes how the government and the media want the public to be focused on bank bonus compensation to conceal the deeper and more fundamental issues that need to be resolved. If banks are forced to return to basic banking and raise capital through deposits rather than wholesale borrowing, they would not be able to engage in the level of risk that generates the outsize profits that allow outsize bonuses. FDIC guaranteed deposits come with restrictions, such as not using the money to trade for the banks’ own account.
Saturn represents foundations and getting to the root cause. Saturn’s energy is particularly potent now as it turned retrograde on Wednesday, the day the Financial Crisis Inquiry Commission (FCIC) held its first hearing to investigate the cause of the financial crisis. Most of Chairman Phil Angelides questions were directed at Goldman Sachs chief executive Lloyd Blankfein. Angelides invoked Saturn and Pluto when he compared Goldman’s practice of selling mortgage-backed securities while shorting the subprime market to selling a car with faulty brakes and purchasing insurance on it. Basically it comes down to Chairman Angelides being “troubled” by Blankfein’s lack of deference to Saturn and Pluto by refusing to admit that the government rescued Goldman from its near death experience.
The Solar Eclipse conjoining Venus puts the focus on the leaders of the nation’s central bank and the Treasury. Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner who was president of the New York Fed when the government bailed out AIG, are both in the hot seat over their lack of transparency for using the insurance giant as a conduit to fully reimburse Goldman and other AIG counterparties at taxpayers’ expense.
Bernanke also refuses to give Saturn and Pluto the respect they deserve by denying the Fed’s policy of ultralow interest rates and lax regulation encouraged Wall St to take on excessive risk in the pursuit of yield. In speeches and in communications to Congress, Bernanke is conducting a vigorous political campaign to be reappointed Fed Chairman and to keep the Fed’s regulatory powers intact. Bernanke’s defense of the Greenspan doctrine of bubble now and fix later is incompatible with the energies of Pluto in Saturn’s sign until 2024. Contrary to the Greenspan/Bernanke doctrine, banks are not innovators. Nor do they produce any physical products. Banks are the backbone providing financial support to the real economy.
The government proposal that touches on all the planetary players involved in the Solar Eclipse has got to be President Obama’s “Financial Crisis Responsibility Fee” that first surfaced when Saturn went retrograde on Wednesday. Mercury retrograde describes how the proposal emanates from a provision in the TARP bill requiring the Administration to come up with a plan to recoup any losses from the $700 billion bailout by 2013. To make up for the currently estimated $120 billion shortfall primarily due to bailouts to the automakers who are exempt from the tax, the Administration has proposed a 0.15% fee on financial firms with $50 billion+ in consolidated assets, including General Electric’s GE Capital division and AIG. This is essentially a leverage tax as it will have a greater affect on banks that rely on wholesale funding as another way to discourage excessive risk taking.
Saturn is a cautious and pessimistic energy that is focused on fundamentals. Venus and the Solar Eclipse conjoin the USA Pluto in the sector of the USA chart representing the banking system and the nation’s wealth. And Mercury turns stationary direct exactly opposite the USA Jupiter in Cancer. Fears that JPMorgan Chase would be required to buy back faulty WaMu mortgage originations is just one of the factors that could contribute to a stock market decline as risks not previously revealed or fully accounted for rise to the surface.
Eclipses are harbingers of major change. The message of the Capricorn Solar Eclipse is that the factors causing the financial crisis have yet to be addressed despite the stock market’s race to return to pre-crisis levels. Wall St. will have to learn to make money the old-fashioned way as the government enacts various financial restrictions. And regardless of their “extended period of time” mantra, the Fed could be forced to raise rates by their June 23 meeting. It appears that the double dip recession that many analysts are concerned about is awaiting Wall St. as innovation returns to Main St.
Related Posts:
Chanos, China, and the Capricorn Solar Eclipse of January 15, 2010
The New Year’s Eve “Blue Moon” Lunar Eclipse
7.0 Haiti Earthquake: Saturn, Pluto and the Eclipses Create a “Catastrophe of Major Proportions”
Capricorn Solar Eclipse: January 15, 2010 2:11 AM EST
USA: July 4, 1776 5:10 PM Philadelphia, PA
7.0 Haiti Earthquake: Saturn, Pluto and the Eclipses Create a “Catastrophe of Major Proportions”
Published by WallStreetWeather.net
As the poorest nation in the western hemisphere, Haiti could be described as “the land that time forgot,” crowded out in a world focused on exciting emerging economies and other countries such as Burma with higher profile human rights abuses.From a planetary perspective, Haiti and Burma became independent nations when the Sun was in Saturn-ruled Capricorn. And while Haiti shares the same January 1 birthday with Britain, its history and its horoscope couldn’t be more different. As someone who is more interested in looking at the planetary influences from a financial perspective, Haiti unfortunately only becomes a news event when yet another tragedy befalls it.
Saturn rules all types of structures – from buildings and infrastructure, to government, financial, and societal structures. As I wrote in the Weekly Forecast, Saturn’s energies are particularly prominent this week as from Earth’s vantage point Saturn appears to be stationary as it turns retrograde today. With Saturn in Venus-ruled Libra for the next 2.5 years, the focus is on the need to restructure these systems that have become so out of balanced. Since Venus rules money and banking, doing this will come at tremendous financial cost because all global governments have cut corners and ignored basic building and infrastructure conditions to one degree or another.
In the chart for the moment the 7.0 earthquake struck Haiti at 4:53:09 PM EST yesterday, Saturn is conjoining the sector representing the country’s foundation and structure. With the majority of Haiti’s homes and buildings deemed to be of shoddy and unsafe construction, news reports have confirmed that the earthquake and its series of up to 30 aftershocks have destroyed a hospital, the UN’s 5-story headquarters, the World Bank’s offices in Petionville, and portions of the National Palace in Port-au-Prince.
Saturn rules the sign Capricorn. This is an earth energy, reflecting how the weather and geophysical events affect material concerns. Saturn and Capricorn represent economic contraction and hardship especially when individuals or nations sacrifice the long term for short term benefits.
“A catastrophe of major proportions” is how Fritz Longchamp, the Secretary General to the presidency of Haiti was quoted as describing the situation last night. Catastrophes and events that have a profound and transformative effect fall under the domain of Pluto. With Pluto in Capricorn, the sign ruled by Saturn and Saturn squaring Pluto from November 2009 through August 2010, the world is in a time period where economic contraction will bring about transformation of government, financial, and physical infrastructures.
With Pluto the mythological lord of the underworld in Saturn’s sign, Saturn squaring Pluto, and several planets in Capricorn right now, the pressure within the Earth increases which elevates the potential for earthquakes now and throughout 2010. According to USGS geophysicist Kristin Marano, yesterday’s 7.0 earthquake was the strongest to hit Haiti since 1770 which was the last time Pluto was in Capricorn.
Saturn in the sector of the earthquake chart representing communication and movement reflects that communications coming out of Haiti will likely be slow and delayed. This is exacerbated by the fact that Mercury rules this sector of the chart and Mercury is retrograde in Capricorn until January 15, as Mercury retrograde periods in an earth sign tend to correlate to increased geophysical instability. Mercury retrograde conjoins Pluto, reflecting that communications systems are down and it is near impossible to get around Haiti. It will take some time before the true situation in Haiti is revealed. Stories of corruption will surface.
With its Sun conjoining Mars in Capricorn and squaring Uranus in Libra, Haiti is a country that has a history of being run as a military dictatorship. Mars in Capricorn squaring Saturn in Libra and Venus in Capricorn squaring Jupiter in Scorpio reflects the struggles and hardships the Haitian people have had to endure and how the government has squandered the country’s resources to enrich its leaders.
From December 2009 through August 2010 Haiti is experiencing a Saturn return.* Saturn and Capricorn rule time. For individuals and nations, Saturn returning to its place of birth every 29.5 years marks a time of accountability to determine if the lessons of the past have been learned. If we fail to take responsibility by putting in the work necessary to build a strong physical and financial foundation, the Saturn return marks a time of upheaval and limitations in order to learn and grow from the experience. Hopefully this motivates us to make the necessary changes that can allow us to reap the rewards at the next Saturn return.
Eclipses are harbingers of major change and the period between eclipses can create an unstable environment literally and figuratively as too much energy is injected into the atmosphere. The December 31, 2009 Lunar Eclipse exactly opposed Haiti’s Sun indicating the nation could be facing an identity crisis over the next six months. At the January 7, 2010 Last Quarter Moon (representing the period January 7-15), Pluto in Capricorn was exactly conjoining Haiti’s natal Mars for the first time since the 18th century and the quarter Moon in Libra was overhead through Haiti and intersected by Pluto. This acted like a trigger, and the pressure of Saturn stationary squaring Pluto in the sky and impacting Haiti’s Mars square Saturn, proved to be too much to contain.
The January15, 2010 Solar Eclipse opposes Haiti’s progressed Mercury in Cancer and squares progressed Jupiter in Libra. The number of people who have lost their homes and entire neighborhoods will be huge. Haiti’s progressed** Mercury/Jupiter falls on the USA natal Pluto in Capricorn and Haiti’s natal Mars/Saturn falls on the USA natal Venus, among other shared planetary relationships between the two nations. Mercury turns direct, conjoining Haiti’s natal Mars. Beyond the economic aid and assistance extended to Haiti by the U.S., there will probably be a lot of news reports about the continuous corruption behind U.S.-Haiti relations.
While Saturn represents boundaries and structures, Neptune dissolves them to expose that no concrete foundation existed in the first place. Haiti’s poor infrastructure has been highlighted recently and Neptune in Aquarius exactly squaring Haiti’s Neptune in Scorpio at the January 15 eclipse reflects this known “catastrophe waiting to happen.” As the ruler of the oceans, Neptune represents flooding. The August 16, 2008 Lunar Eclipse squared Haiti’s Neptune, a year when the country experienced four hurricanes. On November 7, 2008 when transiting Mars in Scorpio squared the August 16 Lunar Eclipse and exactly conjoined Haiti’s natal Neptune, a school collapsed in Petionville, killing 93 and injuring over 150. Rev. Fortin Augustin, the owner of the church school admitted afterward the school lacked any structural steel or cement to hold its concrete blocks together.
The Moon rules food and shelter and is the ruler of the earthquake chart. Neptune can obscure our ability to see clearly and objectively and with the Moon in Jupiter-ruled Sagittarius and Jupiter conjoining Neptune in the earthquake chart, reports last night of a huge cloud of dust affected visibility caused by the concrete from all the structures collapsing. Neptune running below the Earth through Haiti and the Guantanamo Bay area of Cuba at the January 15 Eclipse raises the potential for tsunami warnings as well as flooding and mudslides.
The Lunar Eclipse of June 26, 2010 conjoins Pluto in Capricorn and opposes the Sun and Mercury in Cancer, all impacting Haiti’s natal Mars in Capricorn. In addition, Jupiter conjoining Uranus in Mars-ruled Aries will square Haiti’s Mars. All of these aspects create the potential for social unrest and uprisings that seek to overthrow the government.
Jupiter, Saturn, Uranus, and Pluto in the fire, air, and earth elements forming stressful alignments to each other during the Summer of 2010 greatly raise the potential for unexpectedly harsh and severe weather conditions throughout the world. Earthquakes, volcanoes, hurricanes, tsunamis, and fires caused by lightning strikes are likely to be above normal. Water is the missing element among this planetary lineup, indicating that a lack of water will be an overall global problem while parts of the world could be flooded with water caused by severe weather patterns.
*The Saturn return affects individuals, countries, and corporations around ages 28-30, 58-60, 86-88, etc. The USA will experience a Saturn return in late 2010-2011.
** A mathematical calculation that moves the planets forward in time.
Haiti: January 1, 1804 time unknown Gonaives, Haiti
USA: July 4, 1776 5:10 PM Philadelphia, PA
WallStreetWeather.net Forecast For Week Of January 11, 2010
Summary Of Last Week’s Influences:
The Sun represents self-identity and Capricorn rules high places such as mountains. The Sun conjoining Mercury in Capricorn last Monday marked the opening of the Burj Dubai, the world’s tallest tower (2,717 ft). With Mercury retrograde, the tower was immediately renamed the Burj Khalifa in honor of U.A.E. president Sheikh Khalifa bin Zayed al-Nahyan, the ruler of Abu Dhabi who gave a second bailout loan to help alleviate Dubai’s $100 billion debt mountain. As The Economist points out, “skyscrapers have long been associated with the ends of financial booms.”
The choppy and “see saw” trading I described in last week’s Forecast certainly reflected last week’s market behavior as Monday was the only day the indices moved in one direction all day as “investors gained renewed faith in the global economic recovery,” according to The Wall Street Journal (italics mine). Mercury conjoining Venus did indeed bring out “the feel good factor.”
Many analysts expected December’s employment report would show jobs being added to nonfarm payrolls instead of a reported loss of 85,000 jobs. November nonfarm payrolls were revised from -11,000 to a gain of 4,000 jobs. Even accounting for such wide revisions, the employment picture reflects that fewer jobs are being shed each month. A steady increase each month in temporary workers (+46,500) is viewed as a precursor to permanent hires. Sustainable employment growth should begin to appear later in the third quarter.
As I’ve written before, Wall St. and Main St. are in parallel universes. Wall St. wants a jobless recovery so the Fed will keep interest rates at zero and financial markets can party on. Each week there are more signs that Wall St. is returning to its pre-crisis behavior. Yesterday’s Wall Street Journal reported that super-TARPED Citigroup (C) and former “TARP babies”* JPMorgan Chase (JPM), Bank of America (BAC), and Morgan Stanley (MS) are offering hedge funds leverage again. Citi is even calling up hedge funds to ask if they want to borrow money as they believe the stocks and bonds hedge funds put up as collateral are a safer risk than lending to small businesses and consumers. Loading up leverage for deal making has also made a comeback.
Wall St. would freak out, but I believe financial reform should prohibit or at least institute high margin requirements. Leverage exaggerates the market’s rise as well as its fall when securities must be sold to meet margin calls.
Is what happened during the fall of 2008 already too far away to remember?
Summary Of This Week’s Influences:
Planets giving the appearance of changing direction from Earth’s vantage point symbolize shifts in consciousness which can also reflect a shift in market sentiment.
Saturn represents caution, fear, pessimism, and accountability. As Saturn appears stationary in the sky all week as it turns retrograde on Thursday, the lord of the rings could not only put the brakes on stocks moving higher but increase the potential for the market to fall.
Saturn rules Capricorn. With the Moon (sentiment) in Capricorn from late Tuesday night until midday Friday afternoon and Mercury moving direct in Capricorn on Friday just hours after the Capricorn Solar Eclipse, Saturn’s energies are particularly potent now.
And to top it off, Saturn in Libra is about to exactly square Pluto in Capricorn for the second time on January 31, highlighting how out of balance our economy has become. Libra is ruled by Venus (money/banks). Mountains of private and sovereign debt cannot be concealed by central banks creating asset bubbles. Saturn retrograde until May 30 means now is the time to restructure the financial system to create a more balanced economy.
The Sun rules speculation, and with the Sun conjoining Venus Monday and the Moon in optimistic Sagittarius through Tuesday, the stock market is likely to begin the week on a high note that deteriorates as the week progresses. Venus conjoining the Solar Eclipse and Mercury moving direct Friday should help bring milder weather conditions even though most of the planets will still be in cold signs.
Monday, January 11, 2010
Positive as Wall St. believes markets are in a “sweet spot.”
Tuesday, January 12, 2010
Positive early but could weaken in the afternoon to close to mixed to moderately up.
Wednesday, January 13, 2010
Negative.
Thursday, January 14, 2010
Positive early, then turns negative.
Friday, January 15, 2010
Negative. (Options expiration)
*Paraphrasing JPMorgan CEO Jamie Dimon’s description when his bank was TARPed.
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