WallStreetWeather.net Forecast For Week Of May 22, 2011

Summary Of Last Week’s Influences:
Since closing at their highest levels prior to the financial crisis at the end of April, the major indices have yet to close positive for the week in May. (Apparently many investors are following the old “sell in May and go away” mantra.)

Disappointing forward earnings guidance from the likes of Hewlett-Packard and Wal-Mart, the high cost of food and fuel impacting spending except at the high end, concerns about the debt ceiling, and the ongoing European sovereign debt crisis are weighing on the market on days when the news fails to beat expectations.

The Moon is our emotional barometer and represents the mood of the market. Emotions tend to be most intense during the time of the Full Moon as the light of the Moon shines like a spotlight on issues requiring our full attention. No Full Moon is as emotionally intense as the Full Moon in Scorpio as what has been kept secret and hidden gets propelled into the spotlight. The Full Moon in Pluto-ruled Scorpio reveals secrets and focuses on issues related to debt, lending, taxes, subsidies/entitlements, insurance, M&A, shared assets, power plays, and sex. There is a greater tendency for people, countries, and institutions to be prominently featured in the news who relate to the Full Moon in some way.

For countries in trouble the International Monetary Fund (IMF) is the lender of last resort, imposing austerity measures in exchange for bailout as reflected by its Mars/Saturn conjunction. Pluto in Capricorn has been conjoining the natal Sun of the IMF chart. This reflects its leader being charged with attempted rape which has brought to the surface past instances of women who have said they were sexually assaulted by Dominique Strauss Kahn (DSK).

Scorpio generates more money through lending the money provided by its opposite sign Taurus, the sign ruled by Venus the planetary ruler of money. DSK was born with the Sun conjunct Venus in Taurus, reflecting his now former position as the leader of the IMF, an organization also born with the Sun (in Capricorn) conjunct Venus (in the international sign of Sagittarius). The Full Moon squaring DSK’s natal Saturn in Leo reflects his arrest and sexual assault charges and how his behavior has adversely impacted his career.

The Full Moon squaring the IMF’s progressed Moon in Aquarius reflects how DSK’s sex attack on a hotel chambermaid has cast the IMF’s public image in an unflattering light. But it also describes the effort to elect French finance minister Christine Lagarde to lead the IMF. Lagarde’s Sun in Capricorn conjoins the IMF’s Sun and the Full Moon conjoined her natal Saturn in Scorpio and squared natal Pluto in Leo which can represent an increase in power and responsibility in her career (and Saturn in Scorpio can be a career dealing with debt and loans). Neptune in Pisces opposing her natal Jupiter in Virgo is a further indication that the boundaries of her duties could extend beyond the borders of France to international finance.

Born with the Sun, Mercury, Venus, and Mars in Scorpio, former Federal Reserve Vice Chairman Donald Kohn admitted on the Full Moon that “the regulators (i.e. the Fed) were not as
alert to the risks as they could have been and, to the extent they saw the risks, were not as forceful in bringing them to the attention of management, or taking actions, as they could have been. All this with 20/20 hindsight, obviously."
His wimpy pseudo mea culpa only came about as Kohn testified before a Parliamentary committee prior to becoming a member of the Bank of England’s new Financial Policy Committee. (Apparently the UK government is no different than the US government in that it likes to keep putting people in positions of power who were part of the problem.)

The indices kept climbing Wednesday after investors choose to fixate on the statement in the FOMC Minutes that the Fed’s move toward monetary policy normalization did not mean it would begin soon. The Minutes indicated the first step toward normalization would be to stop reinvesting maturing mortgage securities.

In M&A activity, Nasdaq OMX Group and ICE withdrew their offer to buy NYSE Euronext (NYX) after the Justice Department said the deal wouldn’t pass antitrust regulations. Well what do you expect when as I predicted you make a new offer during Mercury retrograde when the Moon is in dreamy Pisces and not forming any relationships to other planets AND the offer is made on April Fool’s Day no less! How did they expect to be taken seriously?! As previously described, Deutsche Bourse made their merger offer with NYX on February 9 when Venus conjoined Pluto.

Tuesday’s Full Moon occurred on the 219th birthday of the founding of the New York Stock Exchange. Born with the Sun, Mercury, and Venus in Taurus the sign of the bull it is quite fitting that the first bull sculpture resides near the NYSE. (However, the bull should be copper rather than bronze since copper is ruled by Venus and it turns green the color of money.) Full Moons can represent a market top and the Full Moon opposing the NYSE natal Sun could be an indication the market might have already reached its peak for the year. The NYSE’s progressed Sun conjoining the Federal Reserve’s natal Sun in Capricorn reflects that monetary policy has been the biggest driver of the 26 month old rally. With QE2 ending next month, investors are concerned that the market will decline and have been slowly taking some money off the table.

Of course the biggest Full Moon issue in the U.S. was that the federal government had reached the debt limit. In “May 17, 2011 Scorpio Full Moon Over the Debt Ceiling” I described the issue
from a planetary perspective. I mentioned in that post that corporate America is getting worried about getting paid since every major U.S. company does some type of business with the federal government. Last week JPMorgan Chase CEO Jamie Dimon said it would be a “moral disaster” if Congress failed to act. Banks are concerned that failure to raise the debt ceiling could decrease the value of the Treasuries they hold which could then affect banks’ ability to meet minimum capital requirements which could force banks to have to raise additional capital.

If I were President, I would not agree to raise the debt ceiling because then the President is in charge of the money! :-) The first thing I would do is move all the seniors in Medicare Advantage back into traditional Medicare which would save about 15% in extra medical costs that go to enrich the health insurance companies. This is the moment to put the entire country on traditional Medicare so everyone in America has healthcare coverage and the government can control over medical costs.

Other than defending our home turf, there would be no money available for the wars and all our other foreign entanglements. All tax deductions, subsidies, and corporate welfare would end as my “free market solution.” Note to Republicans: Since the Consumer Financial Protection Agency is fully funded by the Federal Reserve, the agency can continue to operate even if the debt ceiling is never increased! :-)

And while I’m on my soapbox, I would like all the economists and anal-ysts who are now using this ridiculous term called “financial repression” to take their idea that you can keep interest rates at
record low levels so the government can repay debt with cheaper dollars and stuff it. That can only work if the government does not raise the debt ceiling AND there is wage inflation to bring in more tax revenue as you cannot inflate your way out of a deficit without the added tax revenue from increasing wages!

The last time Jupiter was in Aries it was all about eyeballs. One Jupiter cycle later, social networks are all the rage. Unlike many of the now defunct dot coms that debuted in the late 1990s, LinkedIn (LNKD) did earn money in 2010 but does not expect to be profitable this year. But with Jupiter in enthusiastic, fast-moving Aries does anyone really care? After making its public debut Thursday when the Moon in Jupiter-ruled Sagittarius was harmonizing with Jupiter in Aries, LNKD finished its first day of trading up $49.01 to $94.25, up 109%. This values the company at $8.9 billion.

The social networking craze could be over by the time Facebook gets around to going public. But since Facebook’s shares are privately traded, the only people who will get hurt when the social network craze crashes are wealthy investors. Planets in Aries tend to soar and then crash and burn.

The influence of the Sun squaring Neptune (exact May 22) was evident not only in the speculative bubblicious euphoria of LNKD’s debut, but also in the illusions (Neptune) of leaders (Sun). The IMF was born with the Sun in Capricorn square Neptune in Libra which at this time in its history (Capricorn) is indicative of its former leader blurring the boundaries in having a relationship with a subordinate not long after DSK became its leader in September 2007. The IMF preferred to look the other way, deciding not to censure him since the IMF Board felt that DSK had already been embarrassed enough.

President Obama was born with the Sun in Leo squaring Neptune in Scorpio. Neptune is anything but clear which is why the President often peppers his speeches with “let me be clear.” Like all Presidents who dream of being the one to achieve peace in the Middle East, President Obama is no different in believing that he will be the one. When the going gets tough on the home front, Presidents then turn their attention to foreign matters.

How you can have peace talks when one group refuses to recognize Israel’s right to exist is beyond me. So for President Obama to give a major Mid East speech Thursday calling for a Palestinian state based on the borders that existed before the 1967 Six Day War is premature at best.

Although being born with the Sun together with Mercury conjoining Neptune in Libra confers the ability to be charming and diplomatic, Netanyahu was born with Libra’s planetary ruler Venus in the very frank sign Sagittarius. Additionally, his Mercury squares Uranus in Cancer. He will put all diplomatic niceties aside if there’s anything that in his mind could potentially put the safety and security of Israel at risk.

With President Obama’s natal Uranus in Leo conjoining Prime Minister Benjamin Netanyahu’s natal Mars in Leo, the President’s unexpected last minute stance surprised and angered the Israeli Prime Minister. Reflecting the influence of the Sun square Neptune, Netanyahu told the President the following day at an Oval Office photo op that:
“Israel wants peace. I want peace. What we all want is a peace that will be genuine, that will hold, that will endure. And I think that the -- we both agree that a peace based on illusions will crash eventually on the rocks of Middle Eastern reality, and that the only peace that will endure is one that is based on reality, on unshakeable facts.”
With Saturn in Libra turning direct on Israel’s natal Neptune June 12 and the July 1 Solar Eclipse
in Cancer squaring Israel’s natal Neptune, the pressure by the U.S. and other governments to forge peace by trying to get Israel to sacrifice territory it gained in the past is not likely to disappear anytime soon.

Summary Of This Week’s Influences:
The Sun entered Mercury-ruled Gemini Saturday until June 21 and squares Neptune in Pisces today. President Obama addressing AIPAC today attempted to clarify what he meant by pre-1967
borders before departing for a trip to Ireland, England, France, and Poland this week. While PM Netanyahu will address AIPAC on Monday and address a joint session of Congress on Tuesday, the President will meet with British PM David Cameron on Tuesday and address a joint session of Parliament on Wednesday before attending the G8 summit in Deauville Thursday and Friday where Mid East peace will be among the topics discussed.

The Sun in Gemini with Gemini’s ruler Mercury finishing its transit in Taurus indicates changes happening between now and the June 1 Solar Eclipse in Gemini and Mercury entering its home sign Gemini the following day. By that point, Mercury is moving very fast as it will only spend two weeks in Gemini, overloading us with information leading up to the June 15 Lunar Eclipse in Sagittarius. Mercury moving into Gemini and squaring Neptune June 3 the same day Neptune turns retrograde can generate a lot of trading on rumors and hype along with foggy thinking. There could be more announcements of charges of insider trading. These energies also spark creative ideas.

Events that seem to take the market higher or lower than expected can be more likely to occur with the Moon in quirky Aquarius until early Tuesday morning. Volatility could increase. Venus conjoining Mars in Taurus Monday can bring people together but doesn’t tend to be good for the market.

The Moon enters Neptune-ruled Pisces Tuesday morning until Thursday evening which can put the focus on credit, euphoric bubbles, and activities taking place behind the scenes. The Sun favorably aspecting Uranus in Aries Wednesday provides an opportunity for new breakthroughs.

The Moon leaving dreamy Pisces for Mars-ruled Aries Thursday evening until early Sunday morning speeds up trading activity (as well as driving speed so be extra careful over the Memorial Day holiday weekend).

Monday, May 23, 2011

Tuesday, May 24, 2011
Choppy/mixed conditions improve approaching the close.

Wednesday, May 25, 2011
Choppy/mixed to negative bias.

Thursday, May 26, 2011

Friday, May 27, 2011
Negative conditions could reverse to close mixed to positive.

IMF: December 27, 1945 Midnight EST Washington, DC
DSK: April 25, 1949 11:10 AM MET Neuilly-sur-Seine, France
Christine Lagarde: January 1, 1956 time unknown Paris, France
Donald Kohn: November 7, 1942 time unknown Philadelphia, PA
Barack Obama: August 4, 1961 7:24 PM AHST Honolulu, HI
Benjamin Netanyahu: October 21, 1949 time unknown Tel Aviv, Israel (Note: Most sources cite this day as the PM’s birth date (October 19 has also been cited).

1 comment:

Anonymous said...

Re your remarks on 'financial repression' peddlers: Hear! Hear! The zodiac taskmaster Saturn's learning curve cannot be evaded via pie-in-the-sky dogma.
Thanks once again for excellent insights and compelling commentary.
Your column is always a must-read on both sides of The Pond.
Congratulations and long may it continue.