Summary Of Last Week’s Influences:
The bulls ran out the gate Monday to welcome in 2011 but became a bit fatigued by Friday. The slight gains made by the major indices last week were largely due to economic data that for the most part continued to exhibit signs of growth.
While the 103,000 jobs created in December was a big improvement from November's slight gain, the Labor Department’s report was a bit of a letdown for the market as it did not come close to the big upside surprise of 297,000 private sector jobs reported by ADP which was the largest monthly number of jobs created since the company began the report in 2001.
As noted in last week’s Forecast, the Sun squaring Saturn Friday injected some caution about how strong economic fundamentals really are. Treasury yields declined as Federal Reserve Chairman Bernanke appeared before the Senate Budget Committee, emphatically reiterating the points he made in an interview on “60 Minutes” last month.
The influence of the Sun square Saturn reversed the market’s happiness on Monday when Bank of America (BAC) agreed to a settlement with Fannie Mae (FNM) and Freddie Mac (FRE) over mortgages Countrywide sold to the government. Friday’s ruling by the Massachusetts Supreme Court which upheld a lower court’s decision that a foreclosure by U.S. Bancorp (USB) and another by Wells Fargo (WFC) was not valid as the banks failed to prove they owned the mortgages raised concerns that it could become more difficult for banks to foreclose if the documentation is not complete.
Summary Of This Week’s Influences:
The week begins with the Moon (sentiment) in Pisces before things speed up when the Moon moves into Mars-ruled Aries mid morning Monday through Wednesday. As described in the Capricorn New Moon cycle, the energies of Jupiter and Uranus conjoining in Pisces are reinforced as Mercury (communication) and Mars (action) aspect last week’s conjunction of Jupiter and Uranus in Pisces.
The Moon in Venus-ruled Taurus Thursday and Friday puts the focus on bank stocks. Earnings season begins this week with JPMorgan Chase (JPM) being the first bank to report report on Friday, the day of the week ruled by Venus.
Monday, January 10, 2011
Tuesday, January 11, 2011
Improving conditions as day progresses, closes positive.
Wednesday, January 12, 2011
Thursday, January 13, 2011
Choppy/mixed to negative.
Friday, January 14, 2011
Deteriorates as day progresses; closes negative.