WallStreetWeather.net Forecast For Week Of January 2, 2011: “New Year Edition”

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Summary Of Last Week’s Influences:
While the Dow and S&P 500 reached their highest levels of 2010 last week, most of the attention focused on the weather that created havoc throughout the nation, causing numerous accidents and travel delays and cancellations that I warned about in the Sagittarius New Moon cycle and Winter Solstice posts.

Reflecting the energies of Jupiter conjoining Uranus in Pisces (see below), gains in the energy sector last Wednesday was one of the factors helping to fuel the Dow and S&P back to late August 2008 levels following the announcement that Noble Energy’s (NBL) Leviathan gas field off the coast of Israel contains 16 trillion cubic feet of gas which makes it the world’s biggest deepwater gas find in 10 years, providing enough reserves to supply Israel’s gas needs for 100 years. (It should be noted that the December 21 Lunar Eclipse opposed Israel’s natal Jupiter in Sagittarius; now Israel needs to discover a major source of oil which would really tilt the balance of power in the Middle East!)

Summary Of This Week’s Influences:
A new calendar indicates another year has begun and with it the hope each year that the year ahead is better than the year just passed. My wish is that everyone reading this post has a happy, healthy and prosperous 2011!

Many readers of this blog understand that there are really two New Years: January 1st and the original New Year that begins at the Vernal Equinox on March 20 when the Sun enters Aries, the first sign of the zodiac. Although it is quite appropriate that the first day of the calendar year always begins when the Sun is in Capricorn, a sign ruled by Saturn (“Father Time”), Capricorn/Saturn better represents the ambitions and goals of the collective and what is promoted by business rather than individual achievement.

For example, there’s no bigger business at the start of every calendar year than “losing” weight. (Capricorn/Saturn is a contracting energy; individuals with strong Capricorn/Saturn energies in their chart tend to be thin.) Most of the methods promoted are geared to ensure that the only thing permanently “lost” is the money spent on eating the wrong foods, diet books, popping pills, etc. Ways to permanently release excess weight are not promoted since the food and liquids that are beneficial are not highly profitable since they’re unprocessed (although they would tremendously reduce healthcare costs!). Keeping the body toned and fit doesn’t require spending money on equipment or a gym membership.

Basically the Capricorn New Year represents the reputation you want to project this year (the reputation you think society approves of) whereas the Aries New Year is the time to initiate your personal goals and objectives. Of course the most personal “New Year” of all is when the Sun returns to its natal position. (The birthday is called a Solar Return and is where the expression, “many happy returns” is derived from.)

While the Sun represents who we are and rules speculation, the Moon is our emotional barometer and reflects market sentiment. Reinforcing the ambitions of the Sun in Capricorn is that the first business and trading day of 2011 begins with the Moon in Capricorn. There’s no excuses not to get a move on since all the planets are in forward motion until Saturn turns retrograde* January 26!

Monday is the time to tie up all loose ends as well as finalize plans to be implemented after Tuesday’s New Moon, and eliminate what you no longer want (physically and figuratively). Helping out is the Moon conjoining Pluto around midday. This influence relates to matters related to debt (especially sovereign debt) and government efforts to sort out the mortgage mess. It could also bring takeover news and more information on government investigations of the financial industry.

New Moons represent new beginnings and the time to initiate plans into action. The Capricorn New Moon occurs Tuesday at 4:03 AM EST, conjoins ambitious and determined Mars in Capricorn and squares Saturn in Libra. Now is the time to take action to address all types of structural imbalances whether it is in relationships among nations, between the public and private sectors, and most importantly the deficiencies in the nation’s physical and economic infrastructures that is impeding a meaningful economic recovery from taking place.

The Solar Eclipse is exactly opposite the USA’s Cancer Sun which impacts the nation’s identity. Circumstances could arise that don’t go exactly the way leaders planned. From President Obama’s economic plans and military strategies with the wars, the GOP leadership’s promises to rein in the deficit, to Fed Chairman Bernanke’s strategy to control long term interest rates – none are likely to turn out as anticipated. With the Solar Eclipse squaring China’s natal Mercury and Neptune in Libra and Saturn conjoining Mercury/Neptune, U.S. investors’ infatuation with selling to billions of Chinese consumers will lead to disappointment when the Chinese government is forced to rein in their economy to control inflation.

This is a “supercharged” New Moon since as it is a Partial Solar Eclipse. Since the eclipse blocks the light from fully coming through, it symbolizes that we do not have all the information or understanding at this moment to fully digest what is happening now but we will begin to during the second half of the month. Things will become really clear between mid March and the end of April when Mercury, Mars, Jupiter, Saturn, and the April 3 Aries New Moon re-activates the energies of this eclipse. This will likely increase volatility and the potential for a pullback that is followed up by a correction in the late winter/early spring before the market resumes its upward trajectory that could peak for the year by early summer.

Overshadowing the Solar Eclipse is the final** conjunction between Jupiter and Uranus in Pisces that has taken market optimism beyond most people’s wildest dreams in comparison to economic fundamentals. Pisces reflects that the growth spike is the result of its addiction to an external source (a flood of fiscal and monetary stimulus) to inflate asset prices. Nowhere is the irrational exuberance reflected more than in the U.S. market since the U.S. is a Jupiter-ruled nation and the Jupiter/Uranus conjunction favorably aspects the USA’s Pluto in Capricorn and the Taurus Sun of the founding of the NYSE.

Reading “As Euphoria Abounds, Some Warning Signs" by Kelly Evans does a good job of describing these energies right down to the eggnog, the “glass-overflowing mentality,” and the spike in gas prices. Jupiter/Uranus can also bring unexpected reversals; Evans concludes that “the coming year could turn out to be the reverse of 2010.” I agree since the conclusion of Jupiter conjoining Uranus at the end of Pisces greatly raises the potential of a sudden and shocking event in the market that once again demonstrates how interconnected everything is.

Imagine if gold (which is ruled by the Sun and the sign Leo) made a very sharp and unexpected reversal. The conventional wisdom would surmise that as money flows out of gold it will flow into stocks. In fact the opposite scenario could occur as investors faced with margin calls sell what’s most liquid to quickly raise cash. This could cause a sharp and unexpected decline, especially in the most liquid equities.

But with Venus in Scorpio harmonizing with Jupiter and Uranus at the same time Jupiter conjoins Uranus, people are unlikely to be interested at this time in reading about potential “black swan” type scenarios. Venus squaring Neptune in Aquarius indicates rumors are preferred to reality. There could be more incidents of financial fraud and scandal; the Justice Department’s investigation of consultants at expert network firms being paid by hedge funds for insider information on publicly traded companies is likely to expand to catch some bigger fish.

The Moon enters Uranus-ruled Aquarius later Wednesday morning for the rest of the market week which can bring unexpected surprises and discoveries as it emphasizes the Jupiter/Uranus conjunction. The Moon here can tend to make the market more choppy and prone to intraday reversals.

After a long sojourn in Scorpio, Venus enters Jupiter-ruled Sagittarius Friday until February 4 which puts the focus on foreign banks and investments, and income derived from exports. Major currencies could reverse their current trend.

Planets aspecting Saturn can represent the market is about to peak for the time being. The USA is particularly affected by this aspect as it was born with the Sun square Saturn which reflects its longstanding role as the world’s policeman. The USA’s natal Moon-ruled Sun in Cancer square Saturn in Libra also explains why economic policies are tilted more in favor of the most powerful individuals and corporations instead of policies benefiting the public at large.

The Sun squares Saturn Friday just after the release of the December employment report which could surprise to the upside not only for December but also in prior month revisions. This aspect also indicates that authority figures and government regulators could continue to express a cautious view of economic conditions in light of all the unresolved structural issues that continue to loom large over the economy. Fed Chairman Bernanke will testify before the Senate Budget Committee this morning about the economic outlook. Bernanke could be on the defensive, emphasizing the risks to economic growth if the Fed didn’t embark on QE2.

More on these and other planetary influences in my post on the Capricorn New Moon cycle to be posted by Tuesday.

Monday, January 3, 2011
Strong early, weakest around midday; positive close.

Tuesday, January 4, 2011
Happy Birthday, Mom!

Wednesday, January 5, 2011
Choppy/mixed to positive.

Thursday, January 6, 2011
Positive trend bias could weaken and turn mixed going into the close.

Friday, January 7, 2011
Negative conditions improve as the day progresses.

*Planets do not really move backwards but appear to from Earth’s vantage point. The energies of retrograde planets can be more internally experienced as retrograde planets are at their closest approach to the Earth.

**Jupiter and Uranus last conjoined in Pisces on September 18. Jupiter and Uranus were briefly in Aries last year; the first conjunction of Jupiter and Uranus occurred in Aries on June 8.


Anonymous said...

Great New Year post!

I see that the Capricorn solar eclipse coincides with the anniversary of the New York Stock Exchange's move to its first permanent HQ at 10-12 Broad Street in 1865.

Pivotal year ahead?

Wall Street Weather said...

That building was demolished in 1901 to construct the current NYSE building which opened on April 22, 1903 when the Sun (speculation) was appropriately in Taurus the money sign.

See http://www.nyse.com/about/history/1022743347410.html for more info.