WallStreetWeather.net Forecast for March 6 – 14, 2011 “All About Oil” Edition

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Summary Of Last Week’s Influences:
Pisces is symbolized by two fish swimming in opposite directions which aptly describe the market’s behavior last week. In spite of all the gyrations, the major indices still managed to eke out a slight gain for the week and are up 5% year to date.

Oil together with gas and chemicals, and the sea and the fish are ruled by Pisces and its planetary ruler Neptune. These energies also represent beliefs, illusions, and the interconnectedness of all things as Pisces and Neptune dissolve all barriers and boundaries.

The foggy mist can become quite thick when Pisces/Neptune energies are strong that it can obscure all fundamentals. Beliefs are based upon feelings which are influenced by mythology and propaganda that can drown out Pisces and Neptune’s intuitive and visionary faculties.

Crude oil has closed at $80+ per barrel since October 1 and $90+ most of the time since December 22. WTI crude has risen around 16% since February 22 which was the first trading day in the U.S. since the Sun (speculation) and Mercury (communication) entered Pisces, followed by Mars (action; aggression) moving into Pisces that evening. Planetary conjunctions represent a concentration of energies and the start of a new cycle. Before Mercury and Mars moved into Pisces the two conjoined each other February 20 as both conjoined Neptune in Aquarius which triggered an increase in action (Mars) in oil (Neptune) trading (Mercury).

February 22 was when Uranus the planetary energy of the unexpected and extreme movements that can generate sudden price spikes in both directions and a tendency for market reversals, reached the final degree of Pisces. With four planets in Pisces increasing to five at the March 4 New Moon, the protests extending to the oil rich nations in northern Africa and the Persian Gulf have pushed crude oil prices back over $100 a barrel to pre-financial crisis levels.

A planet in the 29th degree of a zodiac sign represents a cycle that is ending. And no sign represents endings more than planets at the 29th degree of Pisces, the final sign of the zodiac. Uranus was last at 29 Pisces May 2-27 and August 14-September 11, 2010. The “flash crash” and the European sovereign debt crisis erupted during the former time period which contributed to the market’s decline, while markets rose during the second time period as the Federal Reserve began to take steps to prepare for QE2.

Since there are no boundaries when it comes to Neptune and Pisces, it is easy to see the connection between oil prices and monetary policy. Oil prices have been climbing since the anticipation of QE2, with only the last 16% move related to Libya. This implies that the rise in oil prices has been primarily due to monetary policy as opposed to geopolitical events. This means that any tightening or perceived tightening of monetary policy would likely bring down oil prices regardless of what was going on in the Middle East, along with a collapse in stock prices.

Jupiter inflates as it represents the principle of expansion. With Jupiter in Mars-ruled Aries (January 22 – June 4), the sign that Mars is in gives an indication to what is inflating which is why together with the planetary lineup in Pisces that oil is inflating into a Pisces-ruled bubble.
Nobody can create asset price bubbles better than the Federal Reserve, first under Piscean Alan Greenspan and superseded by Ben Bernanke. (With Mars conjoining Neptune in people pleasing and Venus (money; banking)-ruled Libra, Bernanke has steered the Fed to the most accommodative policy in the central bank’s history.)

With his Sun in Jupiter-ruled Sagittarius opposite Jupiter in Gemini, Bernanke told Congress last week that “the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation.”

Yet it is the Fed’s ardent desire to generate more inflation in order to (theoretically) make the cost of repaying debt (from their last bubble as Uranus in Pisces the sign of EZ credit transited the sector in the USA chart ruling real estate) cheaper. Monetary policy has spiked the cost of food and fuel (which the Fed excludes from its inflation calculations) in the U.S. and especially abroad. The high cost of daily necessities has become the tipping point for millions of people to protest for regime change.

Inflation will continue to rise here and abroad as winter melts into spring and inflation rises with the temperature. What is keeping the protests in the Middle East spreading is that most of the people feel the situation has become so bad in their country that they have nothing to lose. Uranus entering Aries March 11 until 2019 is likely to embolden that point of view and encourage more people to wake up and demand revolutionary change as many of the old beliefs are shattered as Uranus in pioneering Aries gives birth to something new and different.

Summary Of This Week’s Influences:
Neptune has been in Aquarius since November 29, 1998 and for the first time has reached the 29th degree of Uranus-ruled Aquarius. Since Uranus entered Pisces on March 11, 2003, the two planets have been transiting each other’s home signs which have spiked the price of crude above its trend line. This setup will end when Uranus enters Aries Friday and Neptune enters Pisces April 4 until August 5.*

As the new week begins, the Obama Administration indicated it is considering tapping the strategic petroleum reserves to lower oil prices even though doing so only works if there is a physical shortage of oil which is not the case right now.

Uranus began its transit in Pisces right before the U.S. invaded Iraq. We’re still there with no end in sight as well as Afghanistan. Yet some members of Congress such as Sen. John McCain (who never met a war he didn’t like) are pushing for the U.S. to institute a no-fly zone in Libya despite Defense Secretary Gates telling Congress that a no fly-zone would constitute “an attack on Libya.”

To elaborate what I wrote in last week’s Forecast, the First Quarter Moon in Gemini conjoining the USA Mars and squaring the USA Neptune raises the potential for news and action involving the U.S. military even though it appears that the protesters could take control of Tripoli between March 12 and 18. Republicans want to cut the federal budget yet virtually none of them have advocated slashing defense spending and an immediate withdrawal from Iraq and Afghanistan. And Democrats when pressured enough have went along with that as military involvement abroad can be a great distraction to avoid tackling the tough domestic issues.

Pisces and Neptune are about going with the flow rather than struggling to swim against the tide. Even though the Administration appears to be supporting the despots ruling Bahrain, Saudi Arabia where the protesters scheduled “day of rage” March 11 occurs as Uranus in Pisces squares natal Neptune in Gemini as the Moon (sentiment) is in Gemini, indicating people gathering in groups in their neighborhood, Yemen, etc. due to their oil and other U.S. national interests, these regimes will ultimately be toppled. And when Iran falls it will clearly show that the people there demanded freedom from religion!

While the market is fixated on the price of oil and the Middle East, the growing social unrest in China as Saturn in Libra conjoins China’s natal Neptune and Mercury and Jupiter opposes them later this month. Presenting to the world the illusion that all is peaceful in China while the government arrests journalists and cracks down all forms of communication is something the market might want to be paying closer attention to now as inflation threatens to ruin China’s Neptune “dream.” With Pluto in Capricorn turning retrograde in April as it squares China’s natal Sun in Libra at the same time Mars in Aries squares the Sun, followed by Uranus in Aries turning retrograde in July squaring China’s natal Uranus in Cancer, the Chinese government is unlikely to be successful continuing to suppress social unrest.

This week could play out similar to last week as the obsession with oil is likely to continue. The market could be predominantly choppy as it tries to figure out whether to move higher or start pulling back. (With Jupiter opposing Saturn for the third and final time later this month I think the latter scenario becomes more likely.)

Monday, March 7, 2011
Could reverse from Friday later today even though oil and most commodities are likely to rise.

Tuesday, March 8, 2011
Choppy; closes mixed.

Wednesday, March 9, 2011
Mercury conjoining Uranus at 29 Pisces raises the potential for a reversal on the 2 year anniversary of the market closing at multiyear lows.

Thursday, March 10, 2011
Choppy to negative bias.

Friday, March 11, 2011
Improves as day progresses.

*Neptune will re-enter Pisces February 3, 2012 until 2026 for the first time since the oil industry was born in 1859. Neptune in Pisces indicates a new cycle is underway that will develop viable energy alternative(s) to end our addiction to oil before Neptune leaves Pisces.

CORRECTION (added 3/7/11 at 11:30 AM): Thanks to an astute reader, I have made two italicized additions that were originally missing from this post which should clarify any confusion:
1. Neptune enters Pisces April 4.
2. The Administration is considering tapping the S.P.R. to lower oil prices.

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