WallStreetWeather.net Forecast For Week Of May 29, 2011

Summary Of Last Week’s Influences:
Even though the major indices closed positive Wednesday through Friday, last week marked the fourth consecutive week the major indices finished negative. The market’s worst performance last week occurred on Monday as the Sun (speculation) in Gemini squared Neptune in Pisces.

Neptune-ruled issues dominated the early part of the week as Goldman Sachs declared it is “bullish” on oil, projecting $135 barrel oil by the end of 2012, while JPMorgan and Morgan Stanley also lifted their price targets for oil to around $120 a barrel. (So much for the Fed’s comments of oil prices being “transitory!)”

The CFTC took civil enforcement action against three hedge funds and two traders who it accuses made at least $50 million by cornering the crude oil supply at Cushing in a “manipulative cycle” that drove the price up to artificial highs and then back down.

Nestle Waters raised the price of its bottled water brands (Poland Spring, S. Pellegrino, Nestle Pure Life) 10% due to cost of plastic rising 40% since last October.

Inflation relates to Jupiter as well as Neptune – especially when its existence is denied. The “real yield” (the difference between the 10 year U.S. Treasury note and the rate of inflation) turned negative this month for the first time since late 2008 during the midst of the financial crisis.

The Organization of Economic Cooperation and Development (OECD) in their semi-annual report declared central banks should raise rates as they fear commodity prices are creating inflation with very low growth. The OECD is calling on the Fed to raise interest rates to between 1 and 1.25% by the end of this year and to 2.25% by the end of 2012.

Summary Of This Week’s Influences:
The Sun squaring Neptune last week kicked off planets in Mercury-ruled Gemini squaring Neptune in Pisces. Now Mercury the planetary energy of communication, movement, and commerce will square Neptune early Friday at the same time Neptune turns retrograde.

One of the reasons attributed for the market’s bearish sentiment May 23 was that in true Neptunian fashion the market focused on European sovereign debt concerns which could create a contagion affect that spreads beyond the boundaries of Greece.

The mythological Mercury is known as the trickster for his love of engaging in clever wordplay. As described in The Wall Street Journal (“New Greek Debt Risk: Word Games”), EU regulators last week were trying to come up with the magic words that could allow Greece’s debt to be restructured without triggering payouts on credit default swaps.

Mercury will enter its home sign Gemini June 2 at 4:03 PM EDT until June 16. The Moon in Gemini together with Mercury squaring Neptune as Neptune turns retrograde raises the potential for communications that are confusing and/or misleading in some way. Rumors, deception, lies, and fraudulent activities could be more abundant than facts. Which is why Friday is better suited for creative pursuits and playing magic word games than getting tricked.

Whether the EU regulators wizardry can make the magic happen without causing a default, there is a good chance that Greece could at least end up extending the time when the debt becomes due. Pluto rules debt and Saturn represents structure and delays. The June 1 Gemini Solar Eclipse opposes Greece’s natal Neptune in Sagittarius indicating that some sort of “word magic” is afoot to prevent the spread of a global contagion if any of the current agreements are altered.

Saturn’s energies will be particularly pronounced June 9-16 which reinforces all Saturn ruled issues as Saturn in Venus-ruled Libra turns direct June 12. (Saturn turned retrograde January 26.) The Moon will be at its closest approach to the Earth for the month (perigee) in Pluto-ruled Scorpio. The Sun will conjoin Mercury in Gemini which can indicate leaders making important announcements that could relate to these issues. Venus in Gemini favorably aspecting Uranus in Aries raises the potential for new initiatives being taken that alter financial agreements. Such arrangements are likely to favor the government (Saturn) over the creditors.

Saturn stationing direct squaring Greece’s natal Mercury and Saturn in Cancer further reinforces the theme of changing words to delay the debt without exacerbating the crisis further. Cancer is ruled by the Moon and the Moon is the ruler of Greece’s chart and conjoins Pluto in Libra. Uranus in Aries exactly opposing Greece’s Moon as it stations retrograde July 8 (until December 10) could inflame more social unrest. The July 1 Cancer Solar Eclipse conjoining natal Mercury and Saturn could reflect Greece’s leadership agrees to a “wordplay restructuring delay.” However, with the unpredictable energies of Uranus in Aries pronounced as it stations retrograde in exact opposition to Greece’s natal Moon/Pluto, a sharp increase in social unrest could result.

Naturally the energies of June and July strongly indicate action in the birthday chart for Europe.
The June 1 Solar Eclipse squares natal Saturn in Mercury-ruled Virgo, the June 15 Sagittarius Lunar Eclipse squares Mars in Virgo, and the July 1 Solar Eclipse squares Mars in Libra. Taken together, these energies can relate to taking action to surgically substitute words that change the time frame of Greece’s plan that avoids triggering the CDS. Uranus stations retrograde on Europe’s natal Venus in Aries, the same day the First Quarter Moon conjoins Europe’s natal Neptune in Libra and squares Europe’s progressed Sun and Mercury in Cancer.(1) Again this returns to the emotional instinct to engage in wordplay to pretend a debt restructuring does not appear to be happening.

The cardinal signs (Aries, Cancer, Libra, Capricorn) are the initiators. Jupiter and Uranus in Aries, Saturn in Libra, Pluto in Capricorn, and eclipses/planets all in the beginning degrees of these signs are what has set off key planets and points in the charts for Europe, Greece, the other “PIIGS” in trouble. The USA is certainly not immune from fiscal challenges during this time, as elaborated on in my post on the debt ceiling. The July 8 First Quarter Moon in Libra conjoins the USA’s natal Saturn as Venus opposes Pluto in the sky at the same time Pluto exactly opposes the USA’s natal Jupiter as Uranus in Aries stations retrograde squaring natal Venus/Jupiter conjunction in Cancer. Unfortunately it’s likely that Congress has not yet resolved the issue and the public (especially the elderly) could be getting worried.

Although this is a shorter week due to Monday’s Memorial Day holiday, from a planetary perspective it is an active one. With Neptune’s energies prominent now through June 8, oil, gas, inflation, and more about insider trading is likely be in focus. Neptune-ruled industries (chemicals, drugs, hospitals, advertising, arts, entertainment) are likely to be more pronounced now.

Tuesday begins with the Moon (sentiment) in Taurus, emphasizing the banking sector and the week will end with expansive Jupiter entering Venus-ruled Taurus (money; net worth) Saturday until June 11, 2012. Jupiter’s enthusiastic and optimistic energies are tempered Taurus. Valuations have to be grounded in reality and show genuine growth for the rush into risky assets to continue to move higher, as Taurus energy tends to be more risk averse. Although Jupiter in Taurus can be greedy (and watch gains disappear as this energy can hold onto investments past their prime), this energy is about slow and steady asset accumulation/appreciation rather than risk and momentum. Jupiter in Taurus will demand a feast of fat and juicy dividends and higher savings interest rates. (More on Jupiter in Taurus in a post later this week.)

The new month begins with the New Moon in Gemini which is a Partial Solar Eclipse. (More on the Gemini New Moon cycle in a separate post.) Gemini is ruled by Mercury which is at the end of Taurus, indicating that thoughts about money and valuations are paramount. Mercury squaring Neptune in at the New Moon indicates a foggy financial picture now. The Gemini New Moon and the shift of Mercury moving into Gemini Thursday could bring currency reversals. Eclipses are harbingers of major change, and the Solar Eclipse in Gemini emphasizes the need to be flexible and easily able to adapt to a changing financial landscape.

The Moon moves into Cancer Friday morning which can put the emphasis on the consumer sector. The Moon is at home in Cancer and so are Mercury in Gemini and Neptune in Pisces. But since Mercury is squaring Neptune, the market might be in denial regarding the message.

Tuesday, May 31, 2011
Choppy/mixed conditions as swings between moderately negative to positive. Improves going into the close.

Wednesday, June 1, 2011
Negative conditions become choppy intraday; closes positive.

Thursday, June 2, 2011
Positive.

Friday, June 3, 2011
Reverses trend; negative.

(1)A mathematical calculation that progresses the planets forward in time as a method of prediction.
Greece: July 24, 1974 4:00 AM EET Athens
Europe’s Birthday (Schuman Declaration): May 9, 1950 4:00 PM CET Paris
USA: July 4, 1776 5:10 PM Philadelphia, PA

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