WallStreetWeather.net Forecast For Week of April 17, 2011

Add to Google

Summary Of Last Week’s Influences:


Monday was the first trading day following the Sun’s conjunction April 9 to Mercury retrograde. As noted in my post on Mercury retrograde and the Aries New Moon, the Sun rules speculation and when the Sun and Mercury retrograde conjoin at the midpoint of Mercury’s three week retrograde cycle, the chance for a market reversal increases as investors rethink trading strategies.


The market turned down on March 15 when Mercury conjoined Jupiter as worries about radioactive contamination from the Fukushima nuclear plant first surfaced. As Mercury conjoined Jupiter for the second time Tuesday and Mars squared Pluto (nuclear energy), Japan classified the Fukushima nuclear plant disaster on par with Chernobyl.


The front month gold contract closed at a nominal record high of $1,485.30 on Friday. Bloomberg reports that the University of Texas endowment fund (second only to Harvard’s), has taken physical delivery of close to $1 billion in gold bullion. Not only is the endowment not earning any interest on its investment, but it has to pay to store and insure the gold.


Gold is considered a hedge against inflation, yet once inflation is totally in everyone’s face and the Fed is forced to start raising rates, the cost to own gold becomes too expensive. More importantly, any sudden downturn in the market will cause investors to sell what they can to raise cash, so gold and other bubblicious mo players could be the first to sharply drop even while Bernanke is still fence sitting. Board member and hedgie Kyle Bass is so bullish, yet the big money has already been made. The gold trade is solely dependent upon the greater fool theory, yet I don’t hear even the most ardent gold bugs calling for gold to make the same size move it has made over the last decade. Universities hoarding gold is one of those things that you just know is going to end badly.


As predicted in the Mercury retrograde post, Congress reached agreement on the FY2011 budget by the April 8 deadline or shortly thereafter, and on Friday the House by a vote of 235 to 193 passed Paul Ryan’s FY2012 budget plan with no Democrats voting for the bill that seeks to end Medicare as we know it.


Summary Of This Week’s Influences:


Please see my post on the Libra Full Moon occurring now and influencing conditions over the next couple of weeks.


This will be an abbreviated week due to the long Easter holiday weekend and it looks like the major indices could be predominantly choppy and mixed.


Mars in Aries and Saturn in Libra in opposition Monday activates the Jupiter/Saturn opposition whose cycle has corresponded to the European sovereign debt crisis which is likely to be a focal point this week with the Moon (sentiment) in Pluto-ruled Scorpio Monday and Tuesday and then moving into the global sign of Sagittarius new. The Moon in Scorpio also emphasizes M&A activity, taxes, and insurance. Saturn tends to dampen Aries’ fiery enthusiasm for speculation except for commodities considered to be in tight supply. From a budget standpoint, this alignment can create a stalemate when it comes to cutting military spending. In countries where opposition forces are battling to overthrow the government, Mars opposite Saturn can help opposition forces gain ground that leads to their takeover of the ruling regime.


Wednesday the Sun (speculation) moves out of Aries in favor of Taurus’ greener pastures until May 21 while the Moon moves into Jupiter-ruled Sagittarius which can expand the size of the market’s moves. The Moon in Sagittarius puts the focus on foreign matters and interests such as imports and trade. Taurus is ruled by Venus which shifts from Pisces to Aries Thursday until May 15.


Although the U.S. and most major global markets will be closed Friday, Venus conjoining Uranus in Aries could bring a completely new financial event that takes the markets by surprise. (Planetary alignments involving Uranus tend to correlate to market reversals and moves that can break through support and resistance levels.) Since this alignment conjoins the Federal Reserve’s natal Sun, the central bank could begin laying the groundwork for taking action to reverse monetary policy when the Fed meets next week. Venus conjunct Uranus reflects that the April 27 FOMC meeting will break with tradition as for the first time in the Fed’s history the Chairman will preside over a press conference following the release of the FOMC statement.


Earth Day is celebrated on April 22 each year just after the Sun has entered Taurus, the first earth sign. It’s appropriate that this year Earth Day occurs with the Moon in Capricorn, an earth sign that represents government and the old line businesses pushing the politicians they helped elect to do their bidding. These companies view environmental stewardship as a burden since their industry is dying a slow death and they need to squeeze out as much profit as they can by severely relaxing environmental protections. Yet the companies of today and tomorrow that are largely in the tech sector view environmental regulations as a growth opportunity that helps to ensure a better quality of life.


Things begin to start moving forward again after Mercury turns direct early Saturday morning!


Monday, April 18, 2011


Negative.


Tuesday, April 19, 2011


Improving conditions as day progresses.


Wednesday, April 20, 2011


Swings between negative/mixed to positive.


Thursday, April 21, 2011

Choppy/mixed to positive bias.

No comments: