Summary Of Last Week’s Influences:
In last week’s Forecast I wrote that in its conjunction with Jupiter on September 18, Uranus in Pisces had retrograded back to the same degree where it was on April 26, the day it opposed Saturn and the indices reached 2010 highs. Monday was the first trading day following their conjunction; together with the Moon in Uranus-ruled Aquarius it was the rocket fuel needed to lift the S&P past 1131 on merger news and the announcement the recession officially ended in June 2009.
Another example of the Jupiter/Uranus conjunction in Pisces and its connection back to April relates to the explosion of BP’s Deepwater Horizon rig on April 20. BP permanently sealed the Macondo well September 17 and the U.S. government declared the well “effectively dead” at 5:54 AM CDT September 19. Pisces rules the sea and is symbolized by the fish. Whether the fish swimming in the Gulf of Mexico are healthy let alone safe to eat will not be effectively known for some time to come as the disaster was made far worse by pouring chemical dispersants into the water to conceal the oil. The oil industry and its allies are now acting like nothing ever happened and it’s time to go back to deepwater drilling despite the fact that even Tony Hayward (who steps down as CEO October 1) admitted the industry is not prepared to handle a spill occurring in deepwater.
The Sun opposing Jupiter and Uranus Tuesday certainly reflected the unusual announcement out of the Federal Reserve that it is “prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.” (bold emphasis mine) So much for deflation :-) (More to come on this subject as the Fed has proven in the past what they say should not always to be taken at face value.)
Oppositions involving Jupiter and Uranus tend to bring large moves and reversals, and that is certainly what happened Tuesday as the indices sharply reversed from their low prior to the Fed announcement to turning positive before the NASDAQ and the S&P reversed to close negative.
Although the market was negative during the September 22-23 Autumnal Equinox/Harvest Moon, the downturn was not to the extent that I thought it would be. The market’s certainty that the Fed will announce the start of QE2 at its November 3 meeting propelled most commodities and stocks to take another leg up while the dollar continued to decline. An unexpectedly strong reading on German business sentiment followed by a better than expected increase in capital equipment orders in the US for machinery and computers/electronic products got the market off to a bullish start Friday that kept it climbing into the close.
In the Autumnal Equinox post I pointed out that the regulators and the White House will still wield the power to reform our economic structures, regardless of who is in charge in Congress. On September 17 President Obama appointed Elizabeth Warren to oversee the establishment of the Consumer Financial Protection Agency. Since FINREG specifies that the Federal Reserve will fund the agency, Congress cannot punish it by closing the purse strings. On Tuesday Warren and Treasury Secretary Geithner convened a forum to tackle the agency’s first job of creating a simple and easy to understand mortgage disclosure form.
Summary Of This Week’s Influences:
As The Sun exactly conjoins Saturn in Libra Thursday, we will start to see the regulators in action. The Senate Banking Committee will hold a hearing Thursday on implementing FINREG. Fed Chairman Bernanke along with the Chairmen of the FDIC, SEC, and CFTC, and leaders from the Treasury and the OCC are scheduled to testify.
The Financial Stability Oversight Council created in the FINREG legislation and whose members include the leaders of the above mentioned regulatory agencies, will hold its first meeting Friday chaired by Treasury Secretary Geithner. The Council’s purpose is to identify and respond to risks threatening the stability of the financial system. How the Council can fully carry out its mission in addition to being charged with “promoting market discipline by eliminating expectations on the part of shareholders, creditors, and counterparties that the government will shield them from losses in the event of failure” as long as the Fed is pushing investors to speculate on risky investments, is beyond my comprehension.
The CFTC will meet on Friday to vote on proposals to implement the OTC derivatives provisions in FINREG, together with setting a deadline to submit data on outstanding swap trades that took place before the legislation was enacted. The U.S. Chamber of Commerce has fought the CFTC’s efforts to bring transparency to the Pluto-ruled opaque $615 trillion OTC derivatives market, despite analysis that Paul Volcker talked about in a speech last week that derivatives actually increase volatility. (Volcker noted there are 10 times as many derivatives as there are things to hedge against!) CFTC Chairman Gary Gensler will be meeting with the European Commission this week to discuss their proposal for derivatives regulation which is similar to the U.S.
Although this week has an upward bias, the Sun conjoining Saturn Thursday could exert downward pressure on the market, and the indices could become choppy/mixed to negative for brief periods intraday. Mercury in Virgo opposing Jupiter and Uranus at the end of the week could bring currency reversals and big news related to global trade.
Monday, September 27, 2010
Positive.
Tuesday, September 28, 2010
Positive trend bias but weakest around midday.
Wednesday, September 29, 2010
Positive.
Thursday, September 30, 2010
Negative.
Friday, October 1, 2010
Positive.
2010 Autumnal Equinox/Harvest Moon: The Regulators Are Running The Show Now
Published by WallStreetWeather.net
The entrance of the Sun (our life force) entering the cardinal (initiating) signs* mark the seasonal turning points of the year. Autumn began in the northern hemisphere on September 22, 2010 at 11:10 PM EDT when the Sun entered Libra.Since Libra is the sign of balance it is fitting that at this time of the year that the hours of day and night are roughly equal in length. Although this also occurs at the time of the Vernal Equinox, it is when the Sun is in Libra (September 22 – October 23), that personal objectives are achieved through balancing opposite yet complementary energies which usually occurs through relationships. As a cardinal (action-oriented) sign that is part of the air (mental) element,* Libra is the bridge that brings people together in order for ideas and initiatives to move forward.
The Sun entering Libra marks the halfway point of the solar year that began at the Vernal Equinox when the Sun entered Aries, the first sign of the zodiac (and opposite sign to Libra). This energy is akin to a Full Moon. Libra is ruled by Venus, the planetary energy of love, money, and values. Financial markets can get jittery as the Sun (which represents speculation) in Libra can result in the market becoming unsure about which direction to take. If the market has become overbought or oversold when the Sun is in Libra it might be time to balance the scales.
The planetary energies present at the Autumnal Equinox have an overall three month influence. This year the energies become even more intense as the Harvest Full Moon in Aries occurred on September 23 at 5:17 AM EDT, just hours after Autumnal Equinox. This last occurred in 1991 when the Full Moon was at the end of Aries and will not occur again until 2029 (at the end of Pisces).
At the Autumnal Equinox the Sun conjoined Saturn in Libra and opposed the Moon, Jupiter and Uranus in Pisces as they squared Pluto in Capricorn. These alignments reactivate the energies of the tight planetary lineup at the beginning of cardinal signs that occurred during the summer when Jupiter and Uranus were conjoined in Aries opposing Saturn and squaring Pluto.
Planets in Libra must overcome their hesitancy and indecisiveness in making decisions. With the Sun conjoining Saturn in Libra, people (especially leaders) must be fully responsible and accountable for what they do. Placing blame on someone or something else will backfire.
The Sun conjoining Saturn indicates the regulators are taking center stage, charged with the responsibility to implement rules and regulations to enforce legislation resulting from the reform of economic structures. Although the most sweeping structural transformations will occur in the US, most of the financial reforms are being regulated on a global level, dissolving the barriers caused by discrepancies in international standards and enforcement.
The market and the media are so obsessively focused on the issues surrounding the midterm elections that they are not paying enough attention to the power of the regulators who will continue with their work regardless of which party controls Congress. The legislation for FINREG and healthcare reform were written to give the regulators free rein in implementation so Congress has very few levers to pull in influencing the White House. Just like IRS regulations, the financial and healthcare regulations will remain in force until and unless they are challenged successfully in the courts. Markets are being too optimistic that the regulators will completely do their bidding on the most important components of the legislation.
Even though the financial and the health insurance industries are challenging their regulators, the difference is the financial industry is doing so in a "cooperative” framework while the health insurers are doing so in an advesarial framework. In both situations, private companies owe their very existence to the discretion of the regulators, but the health insurance industry is exhibiting its lack of experience in dealing with the power of federal regulators in contrast to the more easily influended state regulators. While health insurance laws such as HIPAA and COBRA were passed at the federal level, interpretation through regulation has always been carried out at the state level. The financial industry is used to dealing with federal regulators, but the health insurance industry’s lack of experience with federal regulators could prove to be detrimental to their existence.
The insurance industry and financial industries are ruled at least in part by Pluto. So is the mining industry, along with the interests of the largest and most powerful individuals and corporations. Pluto in Capricorn the sign of government has also brought to light the gaps in government regulation and oversight through disasters caused by corporations cutting corners. From mining disasters to deepwater drilling to food safety, these are some of the major incidents that highlight lax oversight and the blurring of boundaries between the regulator and the regulated. With the Moon involved in the planetary configuration at the Autumn Equinox, there will likely be more food safety problems and incidents that harm the public as Pluto brings out all the corruption and manipulation under the guise that things must get worse to spark demand for real transformation to occur.
The Moon is our emotional barometer. The Moon in Pisces at the Equinox and zero degrees Aries at the Harvest Moon represent one cycle is dissolving and glimpses of a new cycle are coming into view now (and particularly at the April 3, 2011 Aries New Moon).
Freedom is not to be found in placing blind faith in someone else’s philosophy/propaganda, but in independently seeking your own truth and allowing your intuitive abilities to come through. That is how to bridge the Pisces/Aries energies. The bigger the effort to try to preserve and recreate the structures that once existed, the greater the chance they will give way and collapse altogether. The Aries Full Moon describes the battle between preserving the status quo that benefits certain individuals, corporations, and groups at the expense of the nation as a whole.
The Moon conjoining Jupiter indicates greater optimism about economic and market conditions. However, their conjunction to Uranus and opposition to the Sun and Saturn and square to Pluto mean that sentiment is prone to sharp and sudden reversals when expectations are not met. The Sun conjoining Saturn indicates the market is reacting to what leaders and regulators are doing.
Mercury the planet of communication, commerce, and movement is in its home sign Virgo but is not in any relationships to the other planets, indicating that the market is digesting all the data but they might not be seeing the forest for the trees in all instances.
As the planetary ruler of Libra, Venus is always a key influence at the Autumn Equinox. Venus and Mars conjoined in Pluto-ruled Scorpio brings more speculative action centering around debt issuance to push up the value of stock prices through share buybacks and M&A activity.
Venus has been in Scorpio since the September 8 Virgo New Moon and will remain there until January 7, 2011 due to Venus turning retrograde October 8 until November 18. Venus retrograde tends to correlate to at least a temporary change in asset values and valuations. Treasury yields could accelerate their creep up. There is a strong tendency for markets to reverse direction during the retrograde period. The Sun conjoining Venus retrograde on October 28 marks the midpoint of the retrograde cycle and can either mark a turning point in the cycle, or the trend begun at Venus retrograde gains further momentum.
The market appears to be moving higher again in late October/early November and except for a few minor bumps in the road could peak by mid December.
Financial markets have a greater potential for more pronounced moves, increased volatility or a shift in direction on or around the following dates:
September 22-23, 30
October 1, 4-5, 7-8, 11-12, 15, 18-20, 22, 25, 28-29
November 1-5, 8-9, 11, 15, 18-19, 22, 24, 26, 29
December 3, 6-7, 10, 13-14, 16, 20-21, 27, 29-30
The Weekly Forecast features a detailed view of planetary influences and how they might affect the economy and financial markets.
*The cardinal signs are Aries (Spring/Vernal Equinox), Cancer (Summer Solstice), Libra (Fall), Capricorn (Winter Solstice).
**Planets do not really move backwards, but appear to from Earth’s vantage point.
The Great Recession Is Officially Over As Jupiter Conjoins Uranus
Published by WallStreetWeather.netThe major stock indices climbed back up to their highest levels since mid-May on Monday after the high priests of economic academia at the National Bureau of Economic Research (NBER) announced the recession officially ended in June 2009. The 18 month recession marked the longest economic downturn since the Great Depression.
While many people would view economic conditions as still being in a recession, the indicators used by the NBER reflect that economic conditions peaked in December 2007 and troughed in June 2009. As the NBER points out in their press release, “Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion.”
Before comparing the NBER’s cycle dating of the recession to the planetary cycles in play then, it’s important to note the timing of the NBER’s announcement as it relates to their recession dating since Jupiter which represents economic expansion, plays an outsized role. As described in the Weekly Forecast, Jupiter exactly conjoined Uranus (surprises; breakouts) in Pisces (endings) on September 18. The NBER’s Business Cycle Dating Committee concluded in a conference call the following day (Sunday) that the recession ended 15 months ago, but did not make the announcement public until Monday at 10:30 AM.*
In addition to the factors explained in the Forecast why the energies of Jupiter and Uranus remain exceptionally strong now, the 10:30 AM announcement occurred at the exact moment the Moon (sentiment) in Aquarius conjoined the USA Moon. Optimistic Jupiter ruling the sector of the economy for the charts of the announcement and the USA’s Lunar return located in the sector representing the stock market together with Uranus the planetary ruler of Aquarius, reflect the indices being propelled higher on the news. The Moon conjoining Neptune (the ruler of Pisces) in Aquarius reflects the market’s euphoria.
However, The Moon (which represents the general public) conjoining Neptune (the ruler of Pisces) in Aquarius, reflects the public feeling that their economic security has eroded, as much of their economic gains were too dependent upon rising home values. The much-touted “American Dream” is largely underwater. Pluto is the ruler of the charts and is located in the sector representing the economy. The Sun (speculation) squaring Pluto in Capricorn indicates that economic growth is slow as the heart of the matter is that the economy must transform from being a consumer dependent economy to one based on manufacturing and technological innovation. Yet the Federal Reserve is acting to maintain the status quo of the old economy.
The NBER dating the peak in economic activity and the start of the recession to December 2007 corresponds to when Jupiter conjoined Pluto in Sagittarius on December 11, 2007, an alignment that occurs every 13 years. Jupiter is the planetary ruler of Sagittarius. Jupiter conjoining Pluto as it was completing its sojourn in Sagittarius begun in 1995 marked the peak of economic growth fueled by excess debt that was turning toxic. As the planets approached conjunction, the Dow and S&P reached record highs on October 9 - the day Jupiter was squaring Uranus in Pisces and the Sun (speculation) in Libra was favorably aspecting Jupiter. The harbingers of the coming recession began in July 2005 when Saturn ended its 2.5 year transit in Moon-ruled Cancer (real estate) and Saturn in Leo opposed Neptune in Aquarius (August 2006–June 2007), reflecting falling home prices and deteriorating credit conditions.
The NBER announced the recession began in December 2007 on December 1, 2008, the day** Venus (money; banking) conjoined Jupiter in Capricorn, a sign ruled by Saturn (economic contraction). Saturn entered Virgo the sign ruling the work force in September 2007, indicating that employment which peaked in December 2007 would begin to contract.
Once Pluto entered Capricorn the sign of government in January 2008, it wasn’t long before governments on both sides of the Atlantic stepped in to support the financial system following the fall of Bear Stearns and Northern Rock. The financial system went into meltdown mode at the Harvest Moon after Lehman Brothers filed for bankruptcy. Saturn began opposing Uranus in the autumn of 2008, reflecting the chaos that ensued as the structure of the financial system was being torn apart, impacting the entire economy.
As Pluto exactly opposed the USA natal Venus in Cancer for the first time in the nation’s history on March 8, 2009 just as Venus turned retrograde, the effects of the extraordinary amount of monetary stimulus provided by the Federal Reserve together with fiscal stimulus measures enacted by the Bush and Obama Administrations, brought a rapid recovery to banks and financial markets.
The 2009 cycle of Jupiter conjoining Neptune in Aquarius that began on May 27 conjoined the USA Moon which reflected that all the liquidity and stimulus was beginning to take hold in the broader economy. This alignment coincides with the NBER’s June 2009 trough. Even though many of the programs to stimulate consumer spending such as cash for clunkers and the homebuyer tax credit simply moved spending forward, Jupiter conjoining Neptune generated enough optimism to spur investing and spending on the hope that an economic recovery was underway.
The NBER notes that “The 18 month recession eclipses the previous post WWII recessions of 1973-75 and 1981-82. The third quarter of 2009 marked the first quarter to exhibit signs of growth following four consecutive months of decline.” Interestingly, the dominant planetary cycles during those recessions have repeated in similar patterns since June 2009. Saturn squared Pluto during the 1973-75 recession as it did from November 2009 to August 2010. Jupiter in Pisces now is exactly where it was when the recession ended in May 1975. Jupiter opposed Pluto then; now Jupiter is squaring Pluto between July 2010 and February 2011.
Saturn is in Libra now for the first time since the 1981-82 recession. Jupiter conjoined Saturn when the recession began in July 1981; now Jupiter is opposing Saturn through March 2011. Saturn conjoining Pluto marked the start of a new 38 year cycle that reached its midpoint when Saturn opposed Pluto in the summer of 2001, and is now in its waning phase (the same as the 1973-75 recession) until 2020.
The close planetary alignments during the summer of Jupiter opposing Saturn and conjoining Uranus as the three planets squared Pluto in cardinal (initiating) signs*** was the first time since early 1931 (the midpoint of the NBER’s Great Depression) that these planets formed a similar pattern. Despite what many doom and gloom prognosticators say, this does not mean the U.S. is headed for another Great Depression as these alignments are now occurring at the beginning degrees of cardinal signs. Old economic models and societal structures must be rebalanced and transformed to create a new economic foundation that fosters long term stability.
Pluto makes its fifth and final opposition to the USA Venus on October 18,**** an indication that additional monetary and fiscal stimulus measures are unlikely to occur. On December 3 the USA will experience its first Saturn return since October 1981. The economic reckoning has arrived. It’s time to get serious about building a balanced economy that operates in the best interests of the nation as a whole rather than solely for the special interests so we can be the United States of America.
Jupiter conjunct Pluto in 2007 marked the peak of the era of globalization that had its roots in the 1981-82 recession. The real message of Jupiter conjoining Neptune in 2009 was to end our addiction to the illusion of economic innovation predicated on cheap goods from abroad and Wall Street’s financial alchemy. Jupiter first conjoined Uranus on June 8 in Aries, the sign of new beginnings. Jupiter conjoining Uranus in Neptune-ruled Pisces the sign of endings now and for the final time on January 4, 2011, indicates an awakening from the dogmatic beliefs and illusions that caused the financial crisis. Refusing to change will put us back into another recession (which the NBER would classify as a double dip that extends the Great Recession).
Jupiter conjoining Uranus describes economic expansion through manufacturing and technological innovation. Rather than helping to foster conditions that support this new era, the powers of the Fed and the Treasury prefer to rerun the same old movie. The critical time for decision making is between October and January; the choice being between a smooth transition and fighting it each step of the way.
*Based on looking back through Monday’s newswires.
**The NBER made their decision on November 28 when the Moon was in Jupiter-ruled Sagittarius.
***The cardinal signs are Aries, Cancer, Libra, and Capricorn. Libra was the “missing” sign of the four during the Great Depression; Cancer is the absent sign this time around.
****Venus will be retrograde then for the first time since the spring of 2009.
USA: July 4, 1776 5:10 PM Philadelphia, PA
USA Lunar Return: September 20, 2010 10:30 AM EDT Washington, DC
WallStreetWeather.net Forecast For Week Of September 19, 2010
This week’s planetary influences indicate the market is at a crossroads. On Friday the S&P 500 closed at 1,125.59 after reaching 1,131 which was its intraday high on the June 21 Summer Solstice.
90 days (and 90 degrees) later, the market has reached a turning point. As Summer shifts into Fall the moment the Sun enters Libra, it is time for the market to decide whether to break out and move higher or start to sell off.
The conjunction of expansive Jupiter and Uranus the awakener in dreamy Pisces which was exact September 18 remains an outsized influence as the Sun (speculation) and the Moon (sentiment) hook up with the planetary pair this week. If you want proof of Jupiter’s influence now, go outside at dusk Monday to see Jupiter rising in the East (or look to the West just before sunrise Tuesday morning when Jupiter sets) as Jupiter makes its closest approach to Earth since 1963.* (Uranus will be adjacent to Jupiter but requires a telescope to see clearly.)
Jupiter in Pisces can remain upbeat as long as investors maintain the faith that economic growth will continue to at least meet their expectations and the Fed will continue to feed their addiction to cheap money to fund riskier investments.
Jupiter expands and exaggerates the energies it aspects. Since Uranus tends to operate in extremes, Jupiter conjoining Uranus can manifest as a sharp and sudden breakout to the upside. Or Uranus can stir up an unexpected surprise or two that shatters Jupiter in Pisces’ grand illusion since Pisces rules bubbles.
Thanks to the Fed’s extremely accommodative monetary policy, stocks, bonds, and gold and silver have been moving in tandem rather than in opposition. This week there could start to be a divergence.
In preparing this week’s Forecast, I noticed that when Jupiter and Uranus (which are both retrograde) conjoined Saturday evening, Uranus had returned to the exact degree of Pisces that it was on April 26, the day that Saturn opposed Uranus and the major indices reached their highest levels of 2010. This week’s influences can indicate that the market has peaked for now.
The Moon (which rules real estate and silver), has been in Uranus-ruled Aquarius since Saturday where it will remain until 4:15 PM EDT Monday when the Moon enters Pisces. When Aquarius/Uranus energies are highlighted, there is an even stronger need to be ahead of the curve. Monday could signal the start of a transition as certain stocks/sectors/asset classes break out and diverge from operating in tandem.
The Sun rules gold and also represents the leaders of industries and governments. With the Sun in Virgo opposing Jupiter and Uranus Tuesday, investors’ expectations must be exceeded for the market to break out to the upside as these energies reflect the bar has been set very high. Anything unexpected can create a disruption in the markets. Since Jupiter rules things at a distance and Pisces represents the blurring of boundaries, an announcement made by leaders or news about them has a global impact.
Oppositions bring to light opposing yet complementary forces. The market has a tendency to get shaky at the Autumnal Equinox as the Sun entering Libra succumbs to Libra’s need to balance opposing energies on its scales. The Sun in Virgo opposing the Moon, Jupiter, and Uranus in Pisces at the time of the Autumnal Equinox Wednesday at 11:10 PM EDT**, highlights the giant transitional shift that has been happening since 2008 as Jupiter, Saturn, Uranus, and Pluto shift from mutable signs*** (which represent endings), to the beginning degrees of cardinal signs that initiate the start of something new.
Just as the Full Moon marks the halfway point of the Moon’s monthly cycle, the Sun reaches the halfway point of its annual cycle at the Autumnal Equinox. This year these energies are even more pronounced as the Harvest Full Moon occurs at 5:17 AM Thursday. The Full Moon in fast moving Aries can accelerate market moves. What has been largely occurring behind the scenes gets shoved front and center into the spotlight now.
This is the first of two Full Moons in Mars-ruled Aries (the second one occurs on October 22 at the last degree of Aries). At 0 degrees Aries (the start of the zodiac known as the world point), this Full Moon reactivates the energies when Jupiter first conjoined Uranus in Aries June 8, and Jupiter opposing Saturn and Saturn squaring Pluto during the week of August 15 that marked the end of such an unprecedented amount of challenging planetary alignments occurring in such a short span of time. Jupiter, Saturn, and Uranus all squared Pluto; now the Sun in Libra squaring Pluto (exact Saturday evening) can shift the balance of power as deeper structural problems and more debt are excavated.
The Federal Reserve could be in the spotlight beyond the FOMC meeting Tuesday as the Aries Full Moon conjoins the sector of the Fed’s chart representing its reputation and squares the Fed’s Sun in Capricorn opposite Pluto in Cancer. There could be more situations (or light is shed on already known instances) where the Fed and particularly Chairman Bernanke has been far from transparent concerning the Fed’s financial arrangements since it embarked on all these unusual programs and asset purchases.
The Sun opposing Jupiter Tuesday reinforces Ben Bernanke’s natal Sun opposing Jupiter, and Mars in Scorpio conjoins his natal Saturn, exerting pressure on him to take pre-emptive action to prevent an economic double dip by expanding the Fed’s balance sheet by starting a second round of quantitative easing. Although the potential to do this is stronger Tuesday than at the Fed’s November 3 meeting when most prognosticators think the Fed will act, I think if the Fed does anything it will most likely announce that an acceleration of mortgage retirements is happening quicker than the Fed projected at its August 10 meeting. The Fed could be more active in the Treasury market which potentially could create some disruptions. (The Fed increasing Treasury purchases to maintain its $2 trillion balance sheet would still keep the Fed in a neutral position, and is not “printing money.”) Between the Fed doing everything possible to keep long term borrowing costs as low as possible and banks and the government (through Fannie and Freddie) holding back foreclosures to prevent home prices from falling further, the US housing market is becoming entrenched in its own Lost Decade.
If the market continues to go up this week, the Last Quarter Moon September 30 could be the next chance for a market turn as the Sun will conjoin Saturn in Libra then. Market declines that begin now could continue until after Venus turns retrograde October 8 which indicates a reversal in values.
Monday, September 20, 2010
Unsettled to mixed conditions as the market seesaws between moderately negative to moderately positive.
Tuesday, September 21, 2010
Volatility could increase as the potential for large moves and reversals are elevated over the next three days. Market weakens as day progresses; closes negative.
Wednesday, September 22, 2010
Negative.
Thursday, September 23, 2010
Negative.
Friday, September 24, 2010
Positive conditions become choppy/mixed to negative.
*Although Jupiter reaches its closest approach to Earth about every 12 years, Jupiter will not be this close again to Earth until 2022.
**I’ll be writing more on the Autumnal Equinox in a separate post.
***Jupiter and Uranus in Pisces will shift to Aries, Saturn shifted from Virgo to Libra, and Pluto shifted from Sagittarius to Capricorn.
WallStreetWeather.net Forecast For Week Of September 12, 2010
Summary Of Last Week’s Influences:
The period when Mercury the planet of communication, commerce, and movement appears from Earth’s vantage point to move retrograde in the sky can correspond to market reversals or lackluster trading.
Since Mercury went retrograde in number crunching Virgo August 20 as Saturn (fear) made its final square to Pluto (debt), the obsessive fear that the economy was entering a double dip recession began receding after the release of weak yet better than expected economic data which caused markets to reverse course. The Dow gained about 250 points during Mercury retrograde and stands at 10,462.77. The bond bubble kept inflating as the yield on the 10 year note continued to decline to 2.48% by August 31. The yield reversed course the next day - two days before the Sun conjoined Mercury (September 3), the midpoint of the cycle which can also mark a time that markets can reverse course.
During this Mercury retrograde cycle, the major indices followed a pattern of being negative early in the week and improving as the week progressed. The Labor Day holiday delayed Monday’s planetary influences into Tuesday, as sentiment turned negative after a front page story in Tuesday’s Wall Street Journal renewed worries that the results of the stress tests conducted on major European banks that was announced July 23 understated banks’ holdings of sovereign debt. I explained before the stress test results were announced why I thought they would disappoint. Despite criticism that day that regulators were not vigorous enough in conducting the tests, Jupiter turning retrograde and squaring Pluto manifested as market optimism that the sovereign debt on banks books was not as great as feared.
The European bank stress tests are an example how Mercury retrograde periods can bring renewed scrutiny over past results and information. Likewise, events and information that occur when Mercury is retrograde are susceptible to a rethink after Mercury begins moving forward again.
Summary Of This Week’s Influences:
The Federal Reserve’s extremely accommodative monetary policy and to a lesser degree the SEC’s circuit breakers are helping to provide a floor under the market. Yet many planetary events this week can correspond to large market moves that increase volatility and reversals in reaction to events relating to the planetary energies prominent now. The Moon (sentiment) in Jupiter-ruled Sagittarius Monday until late Wednesday afternoon emphasizes issues that have a global impact.
As Mercury changes from retrograde to direct motion this evening, many news events are likely to bring new developments or reversals of opinion concerning past issues. This is already happening as central bankers and bank regulators from 27 countries that comprise the Basel Committee on Banking Supervision have just reached an agreement that substantially raises global bank capital requirements after failing to reach complete agreement at the conclusion of their meeting on July 26.
Banks will have until the end of 2015 to maintain at least 7% common equity (excluding preferred shares and bonds) at all times. During good times banks will have to have an additional capital cushion of up to 2.5% (depending upon country) to help absorb losses during a downturn. There will be a gradual phase in until the end of 2018 for banks to maintain at least a 3% capital ratio on total assets (including derivatives and off balance sheet vehicles).
Congress returns from summer recess Monday. Reflecting the reversal in thinking that often happens once Mercury reverses direction, House Minority Leader John Boehner indicated today that if it became necessary, he would vote for legislation proposed by President Obama and Democratic leaders to extend the Bush tax cuts except for people earning $250,000+.
Taxes are ruled by Pluto, the planetary energy of transformation. Pluto in Capricorn, the sign of government and big business, moves direct early Tuesday after being retrograde since April 6. Pluto’s energies are pronounced September 10-17 and together with Mercury turning direct in Virgo (facts and figures), thoughts return with a vengeance to Pluto themes: debt, deficits, leverage, bonds, mortgages, bankruptcy, opaque financial instruments, insurance, M&A, legacies, and nuclear issues.
The most overly used word that emerged from the historic midsummer lineup of Jupiter, Saturn, Uranus, and Pluto forming challenging alignments to one another is “uncertainty.” Although this word relates more to the energies of Uranus the planetary energy of the unexpected (especially after Fed Chairman Bernanke made it into a double Uranus by adding “unusual” in front of it), I view it as “code” for something deeper: death. As the mythological lord of the underworld, death is Pluto’s domain. Jupiter, Saturn, Uranus – they all have and will be squaring Pluto from 2009-2015.
Pluto in Capricorn the sign representing the status quo and what is exclusionary reflects the tremendous resistance that powerful and wealthy special interests (the plutocrats) have in keeping their so-called “free market” system alive, even if it means being in a state of suspended animation and kept alive on life support. The vested interests refuse to let the mortgage market die and rebirth into a new form, refuse to allow banks to write down real estate collateral to its true utilitarian purpose, and refuse to lend at interest rates that will surely lead to a negative carry in the not too distant future.
This lethargic behavior is being promoted by the Federal Reserve directly, the Republicans who have grown weary to direct investment in infrastructure, and Democrats who are promoting endless subsidies to state and local governments. All three are refusing to let old ideologies die. With Pluto, you can delay death to a point, but you cannot escape it. Delaying only serves to prolong the pain and make the inevitable even harder than it ever needed to be.
Adding emphasis to Pluto’s energies is that Mars, the planet of action, enters Scorpio Tuesday evening until October 28. Mars was the ruler of Scorpio before Pluto was discovered in 1930. Mars in Scorpio prefers covert action. Mars is traveling together with Venus in Scorpio over the next few weeks which could reveal some interesting financial secrets, especially after Venus turns retrograde October 8.
The First Quarter Moon Wednesday at 1:50 AM EDT is a time of intense action. The Moon in Sagittarius will square Jupiter and Uranus which are aligned in Pisces (exact Saturday). This can bring shocks that increase market volatility leading up to the Autumnal Equinox/Full Moon next week. The Quarter Moon in Sagittarius reflects the hypocritical “free market” philosophies and dogmatic religious beliefs that serve to advance the plutocrats agenda. Sagittarius tends to be frank and transparent. Combined with the strong Pluto energies, more information on groups such as FreedomWorks that backs the Tea Party movement and Conservatives for Patients Rights run by Medicare fraudster and Florida Republican gubernatorial nominee Rick Scott could be revealed now.
Wednesday marks the second anniversary since Lehman Brothers filed for bankruptcy after failing to obtain a financial backstop from the Federal Reserve. (Fed Chairman Bernanke marked the first anniversary of Lehman’s passing by stating “the recession is very likely over.” If the recession is over, why is Fed policy more accommodative than ever?!)
The Harvest Full Moon in Pisces conjoined Uranus then, opposing the USA’s natal Neptune in Virgo which squares the USA Mars in Gemini. The First Quarter Moon in Sagittarius exactly squares that Full Moon which could reignite some of the themes in play then. Sagittarius and Jupiter relate to foreign relations and matters pertaining to international trade, the courts, higher education, and publishing.
Pisces and its planetary ruler Neptune represent the world of illusion, propaganda, fraud and deceit. Transits that impact the USA’s natal Mars/Neptune square highlight the enormous amount of energy the US puts into perpetuating its illusions at home and abroad. Matters related to the military, oil, drugs and chemicals, credit, financial bubbles, and the “American Dream” of homeownership that became a nightmare when the E-Z credit dissolved, are in focus now. The House Financial Services subcommittee on capital markets will hold a hearing Wednesday at 9:30 AM on “The Future of Housing Finance: A Progress Update on the GSEs.” (Fannie & Freddie were taken under government conservatorship the day Pluto turned direct on September 8, 2008.
Jupiter conjoins Uranus for the second time Saturday. Their first alignment occurred on June 8 at the beginning of fast acting Aries. Now the two planets are conjoined in Pisces Saturday and during the final alignment January 4. Jupiter conjoining Uranus in Pisces can represent R&D breakthroughs, particularly in biotechnology and that have been elusive. With Pluto prominent now, these advances could be related to diseases such as AIDS and cancer. The alignment in Pisces could also relate to fraudulent activity connected to hospitals, charities, or prisons. A scandal could suddenly emerge involving a CEO connected to one of these industries (which could also encompass the music and film industries), or it could relate to shocking news concerning a prominent executive’s addictive behavior.
The combination of energies involving Jupiter, Uranus and Neptune can increase inflation.
Monday, September 13, 2010
The combination of Mercury direct and Pluto about to turn direct could reverse market sentiment to negative. Mars in its final day in Venus-ruled Libra (money/banking/values) forming challenging alignments to Jupiter and Uranus the wild card today can increase volatility and the size of the market moves.
Tuesday, September 14, 2010
Pluto turning direct today could reverse the market in the opposite direction of yesterday.
Wednesday, September 15, 2010
Negative.
Thursday, September 16, 2010
Positive.
Friday, September 17, 2010
(Options expiration) Choppy/mixed to positive.
The period when Mercury the planet of communication, commerce, and movement appears from Earth’s vantage point to move retrograde in the sky can correspond to market reversals or lackluster trading.
Since Mercury went retrograde in number crunching Virgo August 20 as Saturn (fear) made its final square to Pluto (debt), the obsessive fear that the economy was entering a double dip recession began receding after the release of weak yet better than expected economic data which caused markets to reverse course. The Dow gained about 250 points during Mercury retrograde and stands at 10,462.77. The bond bubble kept inflating as the yield on the 10 year note continued to decline to 2.48% by August 31. The yield reversed course the next day - two days before the Sun conjoined Mercury (September 3), the midpoint of the cycle which can also mark a time that markets can reverse course.
During this Mercury retrograde cycle, the major indices followed a pattern of being negative early in the week and improving as the week progressed. The Labor Day holiday delayed Monday’s planetary influences into Tuesday, as sentiment turned negative after a front page story in Tuesday’s Wall Street Journal renewed worries that the results of the stress tests conducted on major European banks that was announced July 23 understated banks’ holdings of sovereign debt. I explained before the stress test results were announced why I thought they would disappoint. Despite criticism that day that regulators were not vigorous enough in conducting the tests, Jupiter turning retrograde and squaring Pluto manifested as market optimism that the sovereign debt on banks books was not as great as feared.
The European bank stress tests are an example how Mercury retrograde periods can bring renewed scrutiny over past results and information. Likewise, events and information that occur when Mercury is retrograde are susceptible to a rethink after Mercury begins moving forward again.
Summary Of This Week’s Influences:
The Federal Reserve’s extremely accommodative monetary policy and to a lesser degree the SEC’s circuit breakers are helping to provide a floor under the market. Yet many planetary events this week can correspond to large market moves that increase volatility and reversals in reaction to events relating to the planetary energies prominent now. The Moon (sentiment) in Jupiter-ruled Sagittarius Monday until late Wednesday afternoon emphasizes issues that have a global impact.
As Mercury changes from retrograde to direct motion this evening, many news events are likely to bring new developments or reversals of opinion concerning past issues. This is already happening as central bankers and bank regulators from 27 countries that comprise the Basel Committee on Banking Supervision have just reached an agreement that substantially raises global bank capital requirements after failing to reach complete agreement at the conclusion of their meeting on July 26.
Banks will have until the end of 2015 to maintain at least 7% common equity (excluding preferred shares and bonds) at all times. During good times banks will have to have an additional capital cushion of up to 2.5% (depending upon country) to help absorb losses during a downturn. There will be a gradual phase in until the end of 2018 for banks to maintain at least a 3% capital ratio on total assets (including derivatives and off balance sheet vehicles).
Congress returns from summer recess Monday. Reflecting the reversal in thinking that often happens once Mercury reverses direction, House Minority Leader John Boehner indicated today that if it became necessary, he would vote for legislation proposed by President Obama and Democratic leaders to extend the Bush tax cuts except for people earning $250,000+.
Taxes are ruled by Pluto, the planetary energy of transformation. Pluto in Capricorn, the sign of government and big business, moves direct early Tuesday after being retrograde since April 6. Pluto’s energies are pronounced September 10-17 and together with Mercury turning direct in Virgo (facts and figures), thoughts return with a vengeance to Pluto themes: debt, deficits, leverage, bonds, mortgages, bankruptcy, opaque financial instruments, insurance, M&A, legacies, and nuclear issues.
The most overly used word that emerged from the historic midsummer lineup of Jupiter, Saturn, Uranus, and Pluto forming challenging alignments to one another is “uncertainty.” Although this word relates more to the energies of Uranus the planetary energy of the unexpected (especially after Fed Chairman Bernanke made it into a double Uranus by adding “unusual” in front of it), I view it as “code” for something deeper: death. As the mythological lord of the underworld, death is Pluto’s domain. Jupiter, Saturn, Uranus – they all have and will be squaring Pluto from 2009-2015.
Pluto in Capricorn the sign representing the status quo and what is exclusionary reflects the tremendous resistance that powerful and wealthy special interests (the plutocrats) have in keeping their so-called “free market” system alive, even if it means being in a state of suspended animation and kept alive on life support. The vested interests refuse to let the mortgage market die and rebirth into a new form, refuse to allow banks to write down real estate collateral to its true utilitarian purpose, and refuse to lend at interest rates that will surely lead to a negative carry in the not too distant future.
This lethargic behavior is being promoted by the Federal Reserve directly, the Republicans who have grown weary to direct investment in infrastructure, and Democrats who are promoting endless subsidies to state and local governments. All three are refusing to let old ideologies die. With Pluto, you can delay death to a point, but you cannot escape it. Delaying only serves to prolong the pain and make the inevitable even harder than it ever needed to be.
Adding emphasis to Pluto’s energies is that Mars, the planet of action, enters Scorpio Tuesday evening until October 28. Mars was the ruler of Scorpio before Pluto was discovered in 1930. Mars in Scorpio prefers covert action. Mars is traveling together with Venus in Scorpio over the next few weeks which could reveal some interesting financial secrets, especially after Venus turns retrograde October 8.
The First Quarter Moon Wednesday at 1:50 AM EDT is a time of intense action. The Moon in Sagittarius will square Jupiter and Uranus which are aligned in Pisces (exact Saturday). This can bring shocks that increase market volatility leading up to the Autumnal Equinox/Full Moon next week. The Quarter Moon in Sagittarius reflects the hypocritical “free market” philosophies and dogmatic religious beliefs that serve to advance the plutocrats agenda. Sagittarius tends to be frank and transparent. Combined with the strong Pluto energies, more information on groups such as FreedomWorks that backs the Tea Party movement and Conservatives for Patients Rights run by Medicare fraudster and Florida Republican gubernatorial nominee Rick Scott could be revealed now.
Wednesday marks the second anniversary since Lehman Brothers filed for bankruptcy after failing to obtain a financial backstop from the Federal Reserve. (Fed Chairman Bernanke marked the first anniversary of Lehman’s passing by stating “the recession is very likely over.” If the recession is over, why is Fed policy more accommodative than ever?!)
The Harvest Full Moon in Pisces conjoined Uranus then, opposing the USA’s natal Neptune in Virgo which squares the USA Mars in Gemini. The First Quarter Moon in Sagittarius exactly squares that Full Moon which could reignite some of the themes in play then. Sagittarius and Jupiter relate to foreign relations and matters pertaining to international trade, the courts, higher education, and publishing.
Pisces and its planetary ruler Neptune represent the world of illusion, propaganda, fraud and deceit. Transits that impact the USA’s natal Mars/Neptune square highlight the enormous amount of energy the US puts into perpetuating its illusions at home and abroad. Matters related to the military, oil, drugs and chemicals, credit, financial bubbles, and the “American Dream” of homeownership that became a nightmare when the E-Z credit dissolved, are in focus now. The House Financial Services subcommittee on capital markets will hold a hearing Wednesday at 9:30 AM on “The Future of Housing Finance: A Progress Update on the GSEs.” (Fannie & Freddie were taken under government conservatorship the day Pluto turned direct on September 8, 2008.
Jupiter conjoins Uranus for the second time Saturday. Their first alignment occurred on June 8 at the beginning of fast acting Aries. Now the two planets are conjoined in Pisces Saturday and during the final alignment January 4. Jupiter conjoining Uranus in Pisces can represent R&D breakthroughs, particularly in biotechnology and that have been elusive. With Pluto prominent now, these advances could be related to diseases such as AIDS and cancer. The alignment in Pisces could also relate to fraudulent activity connected to hospitals, charities, or prisons. A scandal could suddenly emerge involving a CEO connected to one of these industries (which could also encompass the music and film industries), or it could relate to shocking news concerning a prominent executive’s addictive behavior.
The combination of energies involving Jupiter, Uranus and Neptune can increase inflation.
Monday, September 13, 2010
The combination of Mercury direct and Pluto about to turn direct could reverse market sentiment to negative. Mars in its final day in Venus-ruled Libra (money/banking/values) forming challenging alignments to Jupiter and Uranus the wild card today can increase volatility and the size of the market moves.
Tuesday, September 14, 2010
Pluto turning direct today could reverse the market in the opposite direction of yesterday.
Wednesday, September 15, 2010
Negative.
Thursday, September 16, 2010
Positive.
Friday, September 17, 2010
(Options expiration) Choppy/mixed to positive.
WallStreetWeather.net Forecast For Week Of September 5, 2010
Summary Of Last Week’s Influences:
The major indices ended August on a negative note, with the Dow experiencing is worst August since 2001 and the Russell 2000 index of small cap stocks its biggest August decline in 12 years. 12 years represents one cycle of Jupiter, the planetary energy of expansion.
Last month the only thing Jupiter was expanding was an aversion to risk, reflected in Jupiter’s opposition to Saturn (fear/contraction) at the same time both planets squared Pluto (debt) in Saturn-ruled Capricorn (government/big business). These energies have given investors an insatiable appetite for government debt as well as corporate debt.
Mercury the planetary energy of communication, commerce, and movement turned retrograde August 20 amidst these energies. Many times when Mercury is retrograde markets will (at least temporarily) reverse their trend or remain range bound during the three week period Mercury is retrograde. Although the market reversed its down trend August 27 after weak yet slightly better than expected key economic numbers, neither acquisitions or stock buybacks announced at the beginning of last week could keep the market from reverting back to negative again.
It took a turn of the calendar (and with it the accompanying “new” money coming into funds for investment), for the indices to reverse course. The “triple Mercury day” that kicked off September brought triple digit gains for the Dow as the indices made moves reminiscent of the first trading day in August. Venus rules money and Mercury relates to trading it. “Currency Trading Soars” proclaimed the front page of The Wall Street Journal, reporting that currency trading has dwarfed stock and even trading in U.S. Treasuries, with retail investors getting into the game through currency ETFs and mutual funds.
Returning to the Jupiter cycle, the indices experienced their best start to September since 1998. The rally that began in Asia on the news of better than expected manufacturing data was repeated in Europe and the US. The Last Quarter Moon in Gemini conjoining the USA’s natal Uranus brought a sharp reversal as reduced expectations in the economic indicators allowed the slightest of improvements to “surprise” the market.
The triple Mercury day did bring some typical Mercury retrograde events in the corporate world. Apple (AAPL) sought to revive its Apple TV with a redesigned set top box, along with a refresh of its iPods. This is the perfect example of what to do when Mercury is retrograde: reintroduce and revamp existing products and services rather than announcing new ones. Mercury retrograde can bring a return to the past. Burger King (BKC) is reverting back to being a private company for the second time in a decade.
When it comes to the employment picture, any gains are a welcome sign, although it will require continued monthly payroll gains of at least 150,000-200,000 jobs to bring an economic sea change. 54,000 jobs were lost in August and 67,000 private sector jobs were created. The Sun conjoining Mercury retrograde brought major upside revisions to the June and July reports. Although I wrote back in November about the employment situation improving during the current quarter, I thought the market would react to a slightly better than expected employment picture in a perverse way as there are so many factions wanting the Fed to restart restart quantitative easing (QE2). This report gives less ammo to that (although Fed Chairman Bernanke is probably trying to figure out some way he can further accommodate what Wall St. wants).
In testifying before the Financial Crisis Inquiry Commission Thursday on “too big to fail,” Bernanke once again demonstrated that he hasn’t learned any lessons from the financial crisis. Indeed, the actions taken by Bernanke, Paulson, Geithner, and Bair created bank behemoths that might not have been too big to fail two years ago but certainly are now.
Summary Of This Week’s Influences:
The Sun rules career matters and Virgo rules the labor force. Labor Day is celebrated the first Monday in September as the Sun transits Virgo. Employment and economic data will continue to remain in the forefront with Wednesday’s New Moon in Virgo which occurs at 6:30 AM EDT.
Last week Dallas FRB president Richard Fisher remarked that “The ball is in the fiscal court for now,” insinuating that the Fed has done all it can do at this time to promote economic growth. In keeping with Virgo’s rulership of health and employment matters, President Obama remarked in his weekly address yesterday that “The steps we have taken to date have stopped the bleeding.” (Yes, but the patient is still weak and anemic.)
Mercury rules the New Moon chart set for the USA as well as the sector representing the Administration, and Mercury is retrograde in the sector of the chart representing R&D and behind the scenes activities. As Venus (money) enters Scorpio (taxes, debt) Wednesday morning, President Obama will give a major speech on the economy in Cleveland, proposing to increase and permanently extend the tax credit for R&D expenses that was first enacted in 1981 and is now experiencing its Saturn return.
Congress has extended the research tax credit 13 times after it lapsed in 2009 and its renewal is currently pending in the Senate. As The New York Times points out, “Doing so, however, would end one of the longest-running budget gimmicks in town: Presidents and Congresses of both parties have called for a permanent extension but ultimately kept it temporary to reduce deficit projections.” Although Republicans generally support the credit, they don’t want to give the Democrats any advantage in November. (Budget gimmicks are the reason why the Bush tax cuts expire at the end of the year and why healthcare reform is delayed until 2014.)
Venus will not fully complete its sojourn in Scorpio until January 7 due to being retrograde October 8 to November 18. Venus in Scorpio (particularly during the retrograde period), emphasizes revaluing debt which could trigger rising yields on government and corporate debt.
Venus changing signs can signal a change in investment values while Jupiter re-entering Pisces early Thursday until January 22 can signal a shift in economic and political philosophy related to global growth. Interestingly, Venus and Jupiter will turn direct on November 18 which increases the potential for large market moves to the upside then.
The Moon shifting into Venus-ruled Libra Thursday together with Venus and Jupiter shifting signs might bring a reversal in sentiment as the Moon reactivates the energies of the dog days of August. As September progresses, the more likely volatility will increase and with it the increased potential for another market downturn around the time of Vernal Equinox and Full Moon September 22-23.
It could be a good thing that the market is closed Monday as Mars in Libra squaring the January 15 Solar Eclipse and Saturn in Libra squaring the June 26 Lunar Eclipse might have temporarily reversed last week’s sentiment by renewing fears about sovereign debt, mortgage debt, regulatory changes created by FINREG, and fears of an economic slowdown.
Tuesday, September 7, 2010
Positive trend bias.
Wednesday, September 8, 2010
Choppy/mixed to positive.
Thursday, September 9, 2010
Negative trend bias.
Friday, September 10, 2010
Choppy/mixed to moderately negative.
The major indices ended August on a negative note, with the Dow experiencing is worst August since 2001 and the Russell 2000 index of small cap stocks its biggest August decline in 12 years. 12 years represents one cycle of Jupiter, the planetary energy of expansion.
Last month the only thing Jupiter was expanding was an aversion to risk, reflected in Jupiter’s opposition to Saturn (fear/contraction) at the same time both planets squared Pluto (debt) in Saturn-ruled Capricorn (government/big business). These energies have given investors an insatiable appetite for government debt as well as corporate debt.
Mercury the planetary energy of communication, commerce, and movement turned retrograde August 20 amidst these energies. Many times when Mercury is retrograde markets will (at least temporarily) reverse their trend or remain range bound during the three week period Mercury is retrograde. Although the market reversed its down trend August 27 after weak yet slightly better than expected key economic numbers, neither acquisitions or stock buybacks announced at the beginning of last week could keep the market from reverting back to negative again.
It took a turn of the calendar (and with it the accompanying “new” money coming into funds for investment), for the indices to reverse course. The “triple Mercury day” that kicked off September brought triple digit gains for the Dow as the indices made moves reminiscent of the first trading day in August. Venus rules money and Mercury relates to trading it. “Currency Trading Soars” proclaimed the front page of The Wall Street Journal, reporting that currency trading has dwarfed stock and even trading in U.S. Treasuries, with retail investors getting into the game through currency ETFs and mutual funds.
Returning to the Jupiter cycle, the indices experienced their best start to September since 1998. The rally that began in Asia on the news of better than expected manufacturing data was repeated in Europe and the US. The Last Quarter Moon in Gemini conjoining the USA’s natal Uranus brought a sharp reversal as reduced expectations in the economic indicators allowed the slightest of improvements to “surprise” the market.
The triple Mercury day did bring some typical Mercury retrograde events in the corporate world. Apple (AAPL) sought to revive its Apple TV with a redesigned set top box, along with a refresh of its iPods. This is the perfect example of what to do when Mercury is retrograde: reintroduce and revamp existing products and services rather than announcing new ones. Mercury retrograde can bring a return to the past. Burger King (BKC) is reverting back to being a private company for the second time in a decade.
When it comes to the employment picture, any gains are a welcome sign, although it will require continued monthly payroll gains of at least 150,000-200,000 jobs to bring an economic sea change. 54,000 jobs were lost in August and 67,000 private sector jobs were created. The Sun conjoining Mercury retrograde brought major upside revisions to the June and July reports. Although I wrote back in November about the employment situation improving during the current quarter, I thought the market would react to a slightly better than expected employment picture in a perverse way as there are so many factions wanting the Fed to restart restart quantitative easing (QE2). This report gives less ammo to that (although Fed Chairman Bernanke is probably trying to figure out some way he can further accommodate what Wall St. wants).
In testifying before the Financial Crisis Inquiry Commission Thursday on “too big to fail,” Bernanke once again demonstrated that he hasn’t learned any lessons from the financial crisis. Indeed, the actions taken by Bernanke, Paulson, Geithner, and Bair created bank behemoths that might not have been too big to fail two years ago but certainly are now.
Summary Of This Week’s Influences:
The Sun rules career matters and Virgo rules the labor force. Labor Day is celebrated the first Monday in September as the Sun transits Virgo. Employment and economic data will continue to remain in the forefront with Wednesday’s New Moon in Virgo which occurs at 6:30 AM EDT.
Last week Dallas FRB president Richard Fisher remarked that “The ball is in the fiscal court for now,” insinuating that the Fed has done all it can do at this time to promote economic growth. In keeping with Virgo’s rulership of health and employment matters, President Obama remarked in his weekly address yesterday that “The steps we have taken to date have stopped the bleeding.” (Yes, but the patient is still weak and anemic.)
Mercury rules the New Moon chart set for the USA as well as the sector representing the Administration, and Mercury is retrograde in the sector of the chart representing R&D and behind the scenes activities. As Venus (money) enters Scorpio (taxes, debt) Wednesday morning, President Obama will give a major speech on the economy in Cleveland, proposing to increase and permanently extend the tax credit for R&D expenses that was first enacted in 1981 and is now experiencing its Saturn return.
Congress has extended the research tax credit 13 times after it lapsed in 2009 and its renewal is currently pending in the Senate. As The New York Times points out, “Doing so, however, would end one of the longest-running budget gimmicks in town: Presidents and Congresses of both parties have called for a permanent extension but ultimately kept it temporary to reduce deficit projections.” Although Republicans generally support the credit, they don’t want to give the Democrats any advantage in November. (Budget gimmicks are the reason why the Bush tax cuts expire at the end of the year and why healthcare reform is delayed until 2014.)
Venus will not fully complete its sojourn in Scorpio until January 7 due to being retrograde October 8 to November 18. Venus in Scorpio (particularly during the retrograde period), emphasizes revaluing debt which could trigger rising yields on government and corporate debt.
Venus changing signs can signal a change in investment values while Jupiter re-entering Pisces early Thursday until January 22 can signal a shift in economic and political philosophy related to global growth. Interestingly, Venus and Jupiter will turn direct on November 18 which increases the potential for large market moves to the upside then.
The Moon shifting into Venus-ruled Libra Thursday together with Venus and Jupiter shifting signs might bring a reversal in sentiment as the Moon reactivates the energies of the dog days of August. As September progresses, the more likely volatility will increase and with it the increased potential for another market downturn around the time of Vernal Equinox and Full Moon September 22-23.
It could be a good thing that the market is closed Monday as Mars in Libra squaring the January 15 Solar Eclipse and Saturn in Libra squaring the June 26 Lunar Eclipse might have temporarily reversed last week’s sentiment by renewing fears about sovereign debt, mortgage debt, regulatory changes created by FINREG, and fears of an economic slowdown.
Tuesday, September 7, 2010
Positive trend bias.
Wednesday, September 8, 2010
Choppy/mixed to positive.
Thursday, September 9, 2010
Negative trend bias.
Friday, September 10, 2010
Choppy/mixed to moderately negative.
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