WallStreetWeather.net Forecast For Week Of January 30, 2011: “Egypt Erupts Edition”
Summary Of Last Week’s Influences:
After surpassing the 12,000 level intraday on Wednesday with weaker follow up attempts on Thursday and Friday, the DJIA closed the week at 11,823.70. The S&P followed suit, breaking through the 1300 level Thursday and Friday before ending the week at 1,275.10.
Last week started out strong and ended weak, with intraday reversals amongst the three indices occurring throughout most of the week. In the Forecast for the Week of January 16 I wrote that the combination of Jupiter in Aries with Aries’ planetary ruler Mars in Uranus-ruled Aquarius until February 22 would increase the potential for unexpected market moves as well as geopolitical eruptions that could affect the market. That was a follow-up to what I wrote in the Capricorn New Moon cycle about the potential for a brief pullback later in January (and February). I had noted then that “geopolitical turmoil could erupt in the Middle East” during the time of the January 26 Last Quarter Moon. The planetary influences present at the Winter Solstice showed that geopolitics would dominate the winter season; I wrote then about “the potential for a military coup that could topple at least one of the many dictatorships in the world.” (In Tunisia, the military went against their orders to fire on the protesters which ended up forcing the corrupt Tunisian president to flee the country.)
Eclipses are harbingers of major change; the ancients believed that the countries in the path of the eclipse would experience the greatest changes. As you can see from this NASA map, the path of the January 4 Solar Eclipse (the current lunation cycle), crossed northern Africa and the Middle East and on to China and Mongolia. The Solar Eclipse in Saturn-ruled Capricorn raised the potential for changes in government leadership and structure in those countries along the eclipse path – the most vulnerable countries for a change in leadership (Sun) are those countries run by dictatorial leaders who have been in power for many years and are unwilling to relinquish control (the Solar Eclipse squared Saturn).
With the eclipse in the earth element, the focus is on economic concerns which reached a boiling point at the Full Moon in Cancer (food/liquids; general public). Jupiter and Uranus conjoined in Pisces at the Solar Eclipse. Inflation spikes, especially in food and fuel prices (Pisces rules oil and gas), are especially affecting the “emerging market” nations thanks to the Federal Reserve’s campaign to reflate asset prices to rejuvenate the U.S. economy. The U.S. is exporting inflation (and in the global economy what goes around, comes around).
The transformative process of Pluto in Capricorn will impact EVERY government in the world before its transit is completed in 2024. In the U.S. and the West, Pluto in Capricorn has so far been an economic transformation as the government intervened to rescue the financial system from collapse. Recovery has been heavily dependent upon fiscal and monetary stimulus. As the wealthy lord of the underworld, Pluto in Capricorn reflects the rapid increase in prices of commodities extracted from underground and grown in the earth’s soil.
When people face such high inflation that it’s difficult for their daily needs to be met coupled with stagnant wages and high unemployment, it reaches the point where they are no longer willing to tolerate living under an autocratic regime where they see no signs of the leadership willing to alter the status quo. Jupiter in Aries until June 4 and more importantly, Uranus in Aries for the next eight years (especially when it squares Pluto in Capricorn during 2012-2015) reflects that revolutionary change must begin at the individual level so outmoded government and societal structures can disintegrate so that something new can emerge from the ashes.
This is the lowest expression of Saturn’s energies. As described in last week’s Forecast, Saturn’s energies were particularly pronounced Tuesday and Wednesday as from Earth’s vantage point it appeared to turn retrograde.
Uranus is the planetary energy of rebellion and revolution which can be assisted by technological innovation as Uranus (and the sign Aquarius) rule electronics and the internet. Uranus/Aquarius represents people gathering together for a common cause. The internet’s social networks (Twitter, Facebook) helped spread the message. And even when the internet and mobile phone lines were shut down, people could still see what was happening on TV.
The Republic of Egypt came into being on June 18, 1953 following a military coup on July 23, 1952. Saturn in Libra exactly squared the Republic’s natal Uranus in Cancer as well as the 1952 revolution’s progressed* Uranus when Saturn turned retrograde last week. The high cost of living was the last straw that for too long had tilted Libra’s scales way too far in favor of the status quo and against the benefit of the people. The Solar Eclipse opposing Egypt’s progressed Venus in Cancer confirms the cost of food and necessities was the motivating factor.
This had really been building up since the December 21 Lunar Eclipse that conjoined Egypt’s Sun in Gemini, followed by Jupiter, and now Uranus in Pisces squaring the Sun in Gemini (and opposing the 1952 progressed Sun in Virgo), indicating the people want to break free from the nearly 30 year rule of President Hosni Mubarak.
I have previously pointed out that a planetary alignment in the sky tends to bring out people and entities with this same configuration in their chart. The Sun conjoins Mars in Egypt’s chart, indicating the strong military influence. The Sun and Mars have been traveling close together in the sky since December. Now the pair will exactly conjoin in the middle of Aquarius on Friday, indicating a rebellion against the leadership which pushes the leader out. Around the same time, Jupiter in Mars-ruled Aries squares Egypt’s Mars in Cancer, reinforcing the push for freedom from the current leadership.
Born with the Sun conjoining Mercury in Venus-ruled Taurus, Hosni Mubarak has remained stubbornly fixated on remaining Egypt’s leader. His longevity as leader is attributed to his Sun and Mercury conjoining Egypt’s natal Venus in Taurus. Mubarak’s Sun and Mercury favorably aspects Pluto in Cancer; all three planets favorably align with the USA Sun in Cancer, reflecting his relationship with the U.S. has helped keep him in power.
The eclipse opposing the USA’s Sun reflects the delicate balancing act the U.S. faces in wanting Egypt to emerge into a secular democracy but concerned a change from Mubarak could create instability if the Muslim Brotherhood dominates the political process. This is a legitimate concern as the Muslim Brotherhood was founded in March 1928 which was the last time when Jupiter and Uranus conjoined in Aries and when Aries’ ruler Mars was in Aquarius. Neptune was in Leo then and now Neptune is in the opposite sign Aquarius, reflecting the public is likely to be more interested in obtaining true democracy rather than replacing one leader for leadership that enforces religious propaganda.
A Solar Eclipse can bring about a change in leadership. The January 4 eclipse exactly opposed Mubarak’s progressed Mercury in Cancer and natal Pluto, indicating that if he failed to grasp the message the public was sending to him through their protests, he runs the risk of being forced to relinquish his power this week as Wednesday’s New Moon which conjoins Mars in Aquarius exactly squares his Sun and Mercury. Jupiter in Aries conjoins Mubarak’s natal Uranus in mid-February, further indicating it’s time for him to embark on a new life.
Mohamed ElBaradei won the Nobel peace prize in his capacity as the former head of the IAEA. His natal Sun and Jupiter conjoin Egypt’s Sun and Mars. Uranus in Pisces squaring his Gemini Sun last February led him to lead the National Association for Change. Uranus now opposing ElBaradei’s natal Neptune in Virgo reflects his comments that the country is in “total chaos” as the current regime must be dissolved so free and fair elections can be held.
With the Moon (sentiment) in Jupiter-ruled Sagittarius Friday, investors were focused on the events in Egypt. The indices deteriorated as the day progressed while gold and oil which had been falling, sharply reversed. Crude oil jumped 4.3% to $89.34, its biggest one day gain since September 2009 on concerns that the unrest could affect energy shipments getting through the Suez Canal and the Sumed pipeline. Saturn turning retrograde exactly opposite natal Neptune in Aries when the Suez Canal opened on November 17, 1869 reflects the fear that oil and shipping (Neptune) could be blocked. This is further reinforced as Saturn exactly opposed and squared the progressed Sun in Aries which exactly squares Uranus in Cancer also reflects the concern of a public rebellion affecting movement through the Canal. These concerns do not appear to be a problem at this time but rather reflect the sudden spike in oil and the stocks of certain shippers.
The indices reaching their highest closing levels since the summer of 2008 as Saturn turned retrograde with Mercury in Saturn-ruled Capricorn squaring Saturn Wednesday can represent the market is temporarily peaking out as Saturn and Capricorn symbolize the top of the mountain/height of one’s career.
Temporarily is the key word as Wednesday’s FOMC statement made it clear the Fed is going to continue to pull out all the stops to push investors to take on more risk. While the FOMC statement acknowledged that “commodity prices have risen,” the Fed remains defiant that “measures of underlying inflation have been trending downward” based on their obsolete economic theories.
Other news that strongly reflected the strong Mercury/Saturn influence during the Last Quarter Moon in Pluto-ruled Scorpio was the CBO’s announcement that the tax cuts will increase the 2011 deficit $500 billion to $1.5 trillion. And the Financial Crisis Inquiry Commission released its long awaited 600+ page report on the causes of the financial crisis. (More on this interesting stuff at another time, but the ultimate bottom line synopsis is none of it could have been made possible without the ultra accommodative policies of the Federal Reserve.)
Summary Of This Week’s Influences:
After all that I said about Saturn, the week begins with the Moon in Capricorn Monday and Tuesday. With only very minor exact planetary activity, Monday’s market could trade in a more narrow range.
The Moon in Aquarius Wednesday and Thursday, together with Venus in Sagittarius squaring Uranus in Pisces, can bring sudden reversals that could be biased to the upside. Mercury favorably aspecting Uranus could bring news favoring tech and pharma/biotech.
The New Moon in Aquarius occurs at 9:30 PM EST Wednesday. The New Moon and Mars oppose the NYSE’s natal Uranus in Leo will likely increase volatility, especially as the New Moon and Mars (and Neptune) are in the sector of the New Moon chart for the USA representing the stock market with wild and crazy Uranus ruling this sector. This can bring sharp and unexpected reversals that have the potential to break through support and resistance levels within the same day. Geopolitically, tensions could be rising in Algeria and Libya as well. There is a potential at this time for a pipeline disruption in Nigeria. Geophysically there is an increased potential for damaging high winds, earthquakes, and another east coast snowstorm impacting Northeast.
Mercury enters Aquarius until February 21 and Venus enters Capricorn (to March 1) before the market opens Friday which could bring a reversal in one or more of the world’s major currencies. These influences are likely to further increase volatility as investors switch sectors. The Sun conjoins Mars in Aquarius Friday morning, speeding up market action.
Consensus estimates for Friday’s employment report are for a gain of about 150,000 jobs as the unemployment rate creeps up to 9.5%. While I think the overall report could be inline or exceed expectations, the market could be more in the mood to sell.
Monday, January 31, 2011
Choppy/mixed to positive bias.
Tuesday, February 1, 2011
Reversal potential; negative bias.
Wednesday, February 2, 2011
Strong reversal potential; positive bias.
Thursday, February 3, 2011
Choppy/mixed to positive.
Friday, February 4, 2011
* A mathematical calculation that moves the planets forward in time as a method of prediction.
Hosni Mubarak: May 4, 1928 time unknown Kafr-El-Meselha, Egypt
Mohamed ElBaradei: June 17, 1942 Cairo
Posted 1/30/2011 11:39:00 PM