WallStreetWeather.net Forecast For Week Of January 16, 2011

Add to Google
Mars is the planet of physical energy, aggression, and what stimulates action. Tuesday is the first day the market is open since Mars entered Aquarius Saturday until February 22. Mars is where attention and energy are drawn to; in Aquarius the focus is on technology and innovation.

Mars transits the same sign about every two years (Mars was last in Aquarius February 4 – March 14, 2009), and just finished its sojourn in Capricorn (December 7 – January 15), which reflected the market’s slow and steady climb back up to levels last seen over 2 years ago. The do it/buy it now energies of Mars work well in ambitious Capricorn, reflecting that the market is being propelled upward by government policies and profits by the largest corporations.

Mars in Aquarius is an erratic energy since it is ruled by Uranus which tends to be anything but steady and predictable. With Uranus in Pisces still in close conjunction with Jupiter until February, the overall bias of Mars in Aquarius is still to the upside, but there is an increased potential for sudden and unexpected moves that can break through support levels even if it is only intraday. And when things appear to be bleak, there is greater potential for an upside surprise.

Jupiter moving into Mars-ruled Aries on Saturday can further accentuate the energy of Uranus while Mars transits Aquarius. Geopolitical eruptions and data breaches/system malfunctions can have a greater impact on market moves. Jupiter was briefly in Aries June 6 – September 9, 2010 and will finish wrap up its transit of Aries on June 4. Jupiter expands what it comes in contact with and many of the things that are ruled by Aries have already increased in value: heavy industries, iron/iron ore, steel, and weapons (Jupiter in Aries reflects we have an excess supply of guns!)

The abbreviated work week begins with the Moon (sentiment) in its “home” sign Cancer, culminating with Wednesday’s Full Moon. Cancer is all about what we need to feel emotional and physically secure. Real estate, food, water, and domestic security are in the spotlight now. The Full Moon occurring at the end of Cancer signifies that now is the time to reach decisions to resolve issues that have been outstanding for too long and are blocking the ability to move forward.

Cancer is symbolized by the crab that carries its home around with it and uses its pincers to lash out if it feels its turf is under siege. The light of the Full Moon conjoins the Federal Reserve’s natal Neptune and opposes the USA Pluto which is located in the sector of the USA chart representing the economy and financial system. The Federal Reserve is in denial that there is a dark side to monetary policy that no one wants to acknowledge.

The strain of negative interest rates on money managers, insurance companies, and pension plans, along with ever tightening net interest income for banks cannot be sustained until employment and inflation rise to the Fed’s comfort level. For the past two years the loss of positive interest income has caused higher expenses to make up for the deficit. The cost of all types of insurance premiums have to be higher, contributions to pension plans have to increase, money managers have to reduce their fees, and banks have to charge higher fees to make up for the lost revenue. The question that needs to be asked is with monetary policy unchanged since December 2008 which was during the depths of the financial crisis, when does the stress of zero interest rates exceed the economic benefits?

Since Cancer and the Moon rule our emotional outlook and instinctive behaviors, the Cancer Full Moon can be a very emotionally charged time, bringing tears (and precipitation/snow). On Wednesday the House is scheduled to vote on the “Repeal the job-killing health care law” that had been postponed from last Wednesday following the shootings in Tucson. (The chart for the First Quarter Moon set for Washington did not reflect a vote on this bill but the Full Moon chart does which means that if the House doesn’t vote on Wednesday, a vote is likely to occur by January 26.)

After the CBO estimated that repealing the healthcare legislation would increase the deficit by $145 billion through 2019, the GOP leadership specifically excluded their repeal bill (as well as all tax cuts) from their “cut-as-you-go” provision (every item that adds to the federal deficit must be matched with a cut at least equal to the amount added).

To make a long story short, this vote is nothing more than an exercise solely designed to appease the GOP’s base/Tea Party. All the elements of the healthcare bill that benefit consumers now and in the future as more provisions of the bill take effect will likely remain in place.

The chart for the Full Moon in the USA shows President Obama putting all his energy now into diplomacy and trade, reflecting the state visit of China’s President Hu Jintao. The January 4 Solar Eclipse opposed the USA Sun which is altering the balance of power between the US and other nations it chooses to do business with. The Full Moon falling in the sector of the USA chart representing debt indicates the Chinese government wants to be assured that their large investment in U.S. government debt maintains its value.

The Sun (speculation) enters Aquarius Thursday until February 18 as the Moon transits Sun-ruled Leo Thursday and Friday which could bring a bit of sector rotation and focus on very short term trading rather than investing strategies.

Tuesday, January 18, 2011
Negative conditions improve as the day progresses; closes mixed.

Wednesday, January 19, 2011
Positive open and close, but choppy to negative intraday.

Thursday, January 20, 2011

Friday, January 21, 2011 (Options Expiration)
Choppy/mixed to positive.

No comments: