WallStreetWeather.net Forecast For Week Of February 27, 2011

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Summary Of Last Week’s Influences:
In the Forecast for the Week of February 13, I explained why I thought the February 18 Full Moon indicated a temporary market top that could lead to taking some profits as volatility began to rise.

Although the indices were negative for last week, market action remained pretty lame as the major indices have only slid back to where they were about three weeks ago after being on a tear ever since the Federal Reserve hinted last summer it would do a second round of quantitative easing.

Oil and gas is ruled by Pisces and its planetary ruler Neptune. Since the market’s close the previous Friday, the Sun, Mercury, and Mars had moved into Pisces which reflected a change in direction was possible following the usually bearish alignment of Mars conjoining Neptune February 20.

In the February 13 Forecast I wrote that “the push to dissolve autocratic regimes will continue at full force,” a theme that was originally echoed in my post on the Winter Solstice. As Egypt erupted, I cited the “rising tensions in Algeria and Libya as well.”

All of these protests and the overthrow of the leaders of Tunisia and Egypt are unlikely to have spread so quickly now without the protesters reliance on the internet which was born less than two months after Muammar Gaddafi took over Libya in a military coup. Jupiter conjoined Uranus in Libra and now as Jupiter and Uranus transit Libra’s opposite sign Aries, the public will have their opportunity to overthrow Gaddafi who behaves as if he’s playing a villain in a Hollywood movie.

With his Mercury and Jupiter in Gemini squaring Neptune in Virgo, Gaddafi blurs the line between fantasy and reality which is why he’s accused the protesters of taking drugs (Neptune) in Nestle mixed with milk. Gaddafi’s Mars conjunct Pluto reflects the brutality and aggression he will resort to in order to retain his power. But Gaddafi could be overthrown by the people by the end of this week (March 5).

The market seems to be convinced that $35 billion in stimulus is enough to keep the people of Saudi Arabia placated enough to not want to rebel. Yet over the next month Saudi Arabia and all the areas that have already experienced protests will only increase and expand further into Africa to encompass Nigeria. The market is underestimating the rising protests and increasing social unrest in China.

The uprising to overthrow the Gaddafi regime got underway February 15 – the same day protesters in Wisconsin demonstrated at the state capital over Gov. Scott Walker’s budget proposal to eliminate collective bargaining rights for most state and local employees. In a previous post I explained why Gov. Walker’s proposal had nothing to do with the budget and everything to do with enhancing his own star power through enacting the agenda of his political benefactors.

Pisces and Neptune describe fraud and deception. With the Moon in secretive Scorpio last Wednesday and Jupiter in Aries squaring Pluto in Capricorn, Walker and his chief of staff were deceived by blogger Ian Murphy pretending to be billionaire David Koch of Koch Industries, the second largest political contributor to his campaign. Jupiter in Aries squaring Pluto in Capricorn reflects that the plutocrats and the corporations have become so emboldened using their wealth to buy the system that they no longer feel the need to operate below the surface.

Gov. Walker held a news conference Wednesday afternoon claiming there was nothing that he said during the phone conversation that he hadn’t already said in public. Yet why was the governor discussing his strategy to destroy the unions with a private individual? Gov. Walker acted as if he was an agent of David Koch and not as the public servant to the people of Wisconsin. And if the financial situation in Wisconsin is so “dire,” why does Walker have 20 minutes to excitedly b.s. with “Koch” and appear on all the TV news shows?

Not only did the governor admit that his standoff with the unions is not about the budget, but he told “Koch” he had considered planting troublemakers in with the protesters but decided against it. Gov. Walker’s change of heart was not because it was immoral, but because of his concern that it might backfire on him.

By missing the deadline of getting the state’s budget approved last Friday, Gov. Walker forfeited the opportunity for substantial savings through refinancing state debt. The longer he refuses to negotiate solely on matters that directly impact the budget, the more money it will cost the state to finance their debt. This is why I wrote that things look difficult for Gov. Walker.

Summary Of This Week’s Influences:
The work week begins with the Moon (sentiment) in Saturn-ruled Capricorn, putting the focus on government and corporate structures. Since Capricorn rules history, the focus today could turn to past issues. This is appropriate since Uranus in Pisces squares the December 21, 2010 Lunar Eclipse in Gemini which can re-activate the energies and events in the news (Gemini) that occurred then. This energy is especially strong as Uranus is in the final degree of Pisces. The final degree of a sign represents things that are coming to an end and this is particularly true in Pisces, the final sign of the zodiac. Pisces absorbs all energies like a sponge. Now it is time to cleanse the sponge of everything it has absorbed as a new cycle is about to begin.

Uranus squaring the eclipse raises the potential for increased volatility from unexpected events that are connected to or in some way relate to events that occurred at that time. Markets could move outside the range of expectations; unexpected reversals are possible.

With all the attention drawn to the protests spreading through northern Africa and the Middle East, it is not surprising that North Korea is once again engaging in sabre-rattling to attract attention. As the U.S. and S. Korea begin 11 days of joint military exercises, the North says it will fire and destroy S. Korea border towns unless the South stops dropping leaflets over the North which criticize the government and mention the protests taking place in Egypt. The December 21 eclipse conjoined the North and South’s natal Uranus, indicating more surprises are underway that are likely lead to the reunification of Korea.

December 21 was when then NY AG Cuomo filed a lawsuit against Ernest & Young for civil fraud over helping Lehman Brothers disguise their debt as sales. Jupiter in Aries opposing E&Y’s natal Sun and Mars in Libra, squaring Saturn and Neptune in Capricorn and Jupiter in Cancer (together with Uranus in Aries about to square natal Uranus in Capricorn), could indicate new developments in the legal case that E&Y is likely to lose.*

Uranus can bring high winds, tornadoes, and earthquakes and in Pisces, flooding. On December 21 Australia declared a natural disaster zone in over 100 regions after experiencing the worst flooding in more than 20 years. The potential for earthquakes was strong at the Leo Full Moon in the current lunar cycle (February 18-25). Now Christchurch New Zealand has become a disaster zone after a deadly 6.3 quake struck on February 22.

Uranus rules electricity, electronics, and technology. The FCC passed net neutrality December 21, barring internet providers from discriminating against internet traffic but at the same time permitting broadband providers to charge more to companies requiring faster service to download movies, games, and other large files. On February 16 the House passed an amendment to the bill to fund the federal government through September 30 that blocks the FCC from enforcing the rules.

On December 21 the last Congress passed $250 billion in stopgap funding to keep the federal government running through this Friday, the day of the New Moon. For the moment, Republicans appear to be backing away from pushing for a government shutdown by proposing to spread out $4 billion in budget cuts during the remaining fiscal year rather than over the next month as part of a proposal to fund the government through the March 18 Full Moon.

It is interesting that March 4 marks the 222nd anniversary of the founding of the federal government. As I have previously written, the U.S. was born when Mercury (communications; legislation) was retrograde, and Mercury was retrograde when the federal government was established. This factor along with the federal government’s Mercury in Pisces exactly opposing the USA Neptune in Mercury-ruled Virgo explains why so much legislation enacted into law ends up being revised, repealed or becomes effective retroactively. (Neptune rules Pisces and in the federal government chart, Mercury forms a challenging alignment to Neptune in Libra which only increases the potential for legislation that is confusing and unwieldy from all the accommodations that were required to reach consensus in order to pass the legislation.)

A government shutdown last occurred during November 14-19, 1995 and December 16, 1995 – January 6, 1996 which backfired on the Republicans led by then House Speaker Newt Gingrich. Venus (money), Mars (action), and Jupiter (political philosophy) were transiting optimistic Sagittarius then, as Saturn the ruler of government (and blockages/delays) had turned direct in Pisces on November 21, 1995 right on the federal government’s Mercury which indicated the two political parties had reached an impasse. (The federal government experienced a Saturn return** in February 1995, a harbinger of the upcoming government shutdown.)

Jupiter (expansion) and Saturn (contraction) were sparring (squaring) each other during the last budget showdown, reflecting the Republicans losing the budget battle. Now Jupiter and Saturn are in opposition to each other (exact March 28) for the third and final time as the USA is experiencing a Saturn return. In 1995, the federal government’s progressed Sun in Libra was squaring the USA’s natal Venus and Jupiter in Cancer; now the progressed Sun squares the federal government’s natal Jupiter in Cancer.

Jupiter opposite Saturn reflects the opposing ideologies of the two political parties and the compromise required by both sides to avoid a shutdown. The Republican Party’s natal Neptune conjoins the federal government’s Sun, reflecting in this context that the Republican Party is prone to falling prey to the illusion that a government shutdown can help promote their agenda. The Republican Party’s progressed Saturn in Gemini squares natal and Progressed Neptune in Pisces and exactly squares the federal government’s natal Sun. Saturn is history and learning life’s lessons, as those who do not learn from history are apt to repeat it. A government shutdown proved to be detrimental to Republicans then and potentially could do so again.

I hope readers find it as interesting as I do that this budget funding process is following the lunar cycle. The current funding expires during the March 4 New Moon and the two parties are currently working on a bill to fund the government for another two weeks which would expire at the March 18 Full Moon in Virgo. Sandwiched in between is the March 12 First Quarter Moon in Gemini, the “crisis in action” phase of the lunar cycle. The quarter Moon conjoins the USA Mars and squares the USA Neptune, indicating things are likely to get overheated here and in our military endeavors abroad.

The Full Moon represents the peak of the lunar cycle when emotions are running highest, especially with the Moon at its closest point to the Earth now (perigee). The Full Moon in Virgo the sign of service and employment could reflect that certain government services and workers are being cut, eliminated, suspended or furloughed. The Virgo Full Moon re-activates the fourth and final opposition of Saturn in Virgo and Uranus in Pisces which occurred on April 26, 2010. The indices reached new highs from their March 2009 lows, and then began their descent as the Dow broke the 10,000 level just after Jupiter opposed Saturn for the first time May 23. Virgo rules health, and many market analysts keep saying the market could use a “healthy correction” and they could very well get their wish during the next month before the market resumes its upward trajectory.

The Moon will be in Uranus-ruled Aquarius Tuesday and until 11:47 AM Wednesday when the Moon enters Pisces through Saturday evening as the Pisces New Moon occurs at 3:46 PM. Venus (money; banking) enters Aquarius Tuesday evening until March 27 which can increase the potential for currency reversals and unexpected alliances and breakups.

Unusually uncertain” describes Uranus, and Fed Chairman Ben Bernanke helped make it into a mantra last summer until the Fed formally announced QE2 and Congress passed tax cuts. Bernanke will appear before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday to give his semiannual monetary policy report to Congress just as Jupiter and Uranus will be transiting the Federal Reserve’s Sun, Pluto, and the sector of the Fed’s chart representing its public image.

To add to the description of these transits I wrote about last November, Uranus in Aries is challenging the Fed’s power and is likely to demonstrate in one form or another that monetary policy can easily be overshadowed by other shocks beyond the Fed’s ability to control. While these energies could indicate a sudden and unexpected shift in monetary policy, there is greater potential for the politicians and the public to protest Fed policy. The Fed is likely to undergo a radical revamp as it faces greater scrutiny in how it conducts its operations.

Both the Fed and Bernanke have Mars conjoining Neptune, reflecting their actions inflate asset prices to create the illusion of wealth. With Neptune squaring his progressed Mars in Scorpio now, Bernanke will even more adamantly deny that monetary policy is causing inflation in food and energy prices. Yet oil and gasoline prices (Neptune/Pisces) have been increasing in spite of plentiful supplies and well before any of the protests began to erupt in the Middle East. I suppose there's no coincidence that the increase in food and energy costs in the U.S. and throughout the world just so happened to coincide with the second round of quantitative easing.

Monday, February 28, 2011
Negative early; reverses to positive but begins to weaken the afternoon; mixed close.

Tuesday, March 1, 2011
Positive.

Wednesday, March 2, 2011
Disappointing economic news keeps the market negative.

Thursday, March 3, 2011
Improving conditions as day progresses; positive close.

Friday, March 4, 2011
Positive.

*Advice to accounting firms: Although E&Y represents the merger of two old existing accounting firms (Arthur Young and Ernest & Whinney), Mercury retrograde is definitely not a good time to merge a business that is ruled by Mercury! A lack of planetary relationships to Mercury in E&Y’s merger chart means that Mercury’s energies can operate like a loose wire in either extreme. This can positively manifest as auditors who thoroughly scrutinize the company’s books (E&Y does have Mercury in its home sign Virgo). But taken to the opposite extreme it would describe some very liberal auditing. The Sun and Mars in Libra squaring Saturn and Neptune in Capricorn raises the potential for blurring the boundaries of generally accepted accounting principles to keep what was then one of its most profitable clients satisfied.

**A Saturn return is when Saturn returns to its natal position which occurs about every 29.5 years.

*** A mathematical calculation that moves the planets forward in time as a method of prediction.

Federal Government: March 4, 1789 12:01 AM New York City (The birth of the federal government represents the date the U.S. Constitution officially went into effect.)
USA: July 4, 1776 5:10 PM Philadelphia, PA
Libya: September 1, 1969 Tripoli
Muammar Gaddafi: June 7, 1942 time unknown Sirte, Libya

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