Summary Of Last Week’s Influences:
Just as the major indices were getting close to their April 29 closing highs for the year on Thursday when the Dow Jones Transportation index closed at a record high of 5,618.25, Friday’s employment report abruptly reversed their winning streak.
Unexpected events, reversals, and prices that sharply break through support or resistance levels describe the energy of Uranus. These are the only characteristics that are predictable about the totally unpredictable nature of Uranus.
The energies of Uranus have been particularly strong since the Sun (speculation) squared Uranus in fast moving Aries June 26. Aries is ruled by Mars, and with Mars in Gemini favorably aspecting Uranus then, it appears the market wanted to get ahead of the gains it believes will follow by attempting to “front run” Uranus ahead of its July 9 retrograde station.
After the major indices fell to their lowest levels of 2010 on July 2 as Uranus from Earth’s vantage point appeared to reverse from direct to retrograde motion July 5, the market sharply reversed its decline and with the exception of a few pullbacks, has continued to rapidly move higher.
One year later as Uranus turned retrograde, the same global economic conditions (unemployment concerns; European sovereign debt crisis) remain at the forefront. Yet for all the "uncertainty" caused by Washington’s failure so far to raise the debt ceiling and an almost zero chance of the Fed doing a third round of quantitative easing, investors are buying, holding, and folding (short covering) which has moved the market sharply higher during the last two weeks of very low volume pre/post Independence Day holiday trading. A lack of selling in this type of environment pushes the market higher similar to the ultra long ETFs that can double or even triple the gains of the major indices. Now that investors have attempted to anticipate Uranus’ moves in advance, this erratic energy could decide to change course and do the reverse of last year.
With the exception of Friday's employment report, Jupiter in Taurus making the first of three harmonious alignments to Pluto in Capricorn last Thursday brought a wave of optimism as various economic reports modestly beat expectations. Adding to the optimism was Venus in Cancer returning to its natal position in the USA chart, reinforcing its conjunction with the USA natal Jupiter.
Jupiter/Pluto together with Venus in Cancer opposing Pluto increases the potential for M&A activity. Interestingly, Deutsche Borse Group and NYSE Euronext (NYX) announced their merger agreement on February 9 as Venus conjoined Pluto. Last week as Venus opposed Pluto brought the merger to a culmination as shareholders of the two stock exchanges voted to approve the merger. (The merger will still have to be approved by the Justice Department.)
Summary Of This Week’s Influences:
In “President Obama: Don’t Count On U.S. Paying Debt Interest First,” I wrote:
“When the energies of Uranus the great awakener are strong, there is a tendency for sudden reversals. While Uranus turning retrograde could coincide with Republicans beginning to reverse their current stance, it can also motivate the most extreme ideologues of the party to refuse to cooperate.”
As Uranus turned retrograde Saturday evening, House Speaker Boehner in a “major reversal” described by The New York Times, announced he wants to shrink the Democrats $4 trillion in deficit cuts in half and return to the deal originally negotiated with Vice President Biden.
The Moon is our emotional barometer and indicator of sentiment. Issues related to the debt have been emotionally intense all weekend with the Moon in Pluto-ruled Scorpio. A 6:00 PM meeting Sunday between President Obama and Congressional leaders was assumed to have made little to no progress since the meeting only lasted 75 minutes according to Reuters when it had been anticipated to last for 4-5 hours. The Moon had finished making any major relationships to the other planets and was “void-of-course” (VOC). These periods occur about every 2.5 days before the Moon is about to change signs and do not usually result in the outcome originally intended. Although VOC times are best suited for handling routine matters rather than important ones, the time left to resolve the debt ceiling is rapidly running out.
The Moon enters Jupiter-ruled Sagittarius early Monday morning, putting the spotlight on global financial matters with Jupiter in Taurus. According to Reuters, the EU will hold an emergency debt crisis meeting Monday morning and also discuss concerns that the European debt contagion could migrate to Italy. Jupiter does everything on a large scale which explains why that the market is prone to make outsized moves during the next 2.5 days the Moon is in Sagittarius.
President Obama is scheduled to hold a news conference Monday at 11:00 AM EDT. The Moon in Sagittarius combined with Mercury in Leo favorably aspecting Mars in Gemini can indicate the President will be even more blunt than he was during his June 29 news conference when the Moon was in Sagittarius’ opposite sign Gemini.
Earnings season officially gets underway when Alcoa (AA) reports after the close Monday. The Moon in Sagittarius and Jupiter harmonizing with Pluto suggests that investors have become too reliant on China and other emerging markets that are now experiencing a slowdown in growth and a sharp increase in inflation.
Although the market is a forward looking indicator, there are too many fundamental issues affecting employment that make it difficult for the market to continue to accelerate at the current pace beyond this time.
Back in February as Venus in Capricorn was squaring Saturn in Libra at the February 18 Leo Full Moon, I wrote that this signature indicated a temporary market top. On Wednesday Venus in Capricorn’s opposite sign Cancer will square Saturn as the Moon enters Saturn-ruled Capricorn at 10:14 AM until Friday at 4:30 PM. This time a temporary top going into the Full Moon might not be temporary but instead could represent the market peaking out for the year. Venus has now disappeared from the morning sky, a period that tends to correlate to the market’s strongest performance of the year. Having the planets of economic expansion (Jupiter) and contraction (Saturn) in the signs ruled by Venus can weaken the market’s ability to continue to make gains.
The Moon in Capricorn combined with Venus squaring Saturn emphasizes fiscal and monetary policy and financial regulation. Fed Chairman Ben Bernanke will appear before the House Financial Services Committee at 10:00 AM Wednesday to give his semi-annual testimony. (It was during his testimony last year that Bernanke said the economic outlook was “unusually uncertain” which set the stage for QE2. Wednesday’s energies suggest Bernanke will be asked to explain the factors impeding economic growth.
Last Friday’s First Quarter Moon (influencing the period July 8-14) conjoined Saturn as well as the October 7, 2010 Libra New Moon which also conjoined Saturn. As I described in “The Fallout From Toxic Mortgage Processing,” it was during this time that state Attorney Generals joined in a lawsuit against the big banks for the banks and mortgage servicers lack of proper documentation and procedures in the foreclosure process.
Venus in Cancer the sign ruling real estate squaring Saturn, together with Pluto exactly opposing the USA Jupiter Friday indicates a major legal settlement could be reached Wednesday which might cost the banks at least $20 billion to establish a fund for states to resolve civil lawsuits in addition to a federal fund to provide financing relief to borrowers.
OECD data released last Tuesday showed that consumer prices in 34 developed economies grew at the fastest pace since October 2008, up 3.2% May/May, with 2.9% of that gain this year. U.S. inflation rose to 3.6% from 3.2% in May, second biggest jump among the 34 developed nations after Canada. This is why the OECD is urging central banks to raise interest rates! The ECB heeded the call by raising rates another 0.25% to 1.50%, as China raised its lending rate 0.25% to 6.56%.
Thursday’s PPI report and Friday’s CPI together Michigan Consumer Sentiment will show the difference between how the government calculates inflation compared to consumers’ inflation expectations. (I wonder if the government considers a downgrade in clothing fabric to be inflationary? While shopping Saturday I noticed many clothes that were 100% cotton are now a blend that is 60% cotton and 40% polyester with the prices higher than the clothes that were 100% cotton.)
The Full Moon in Capricorn at 2:41 AM Friday shines the spotlight on creating greater emotional security by balancing personal needs with professional responsibilities.
Monday, July 11, 2011
The first trading day of Uranus retrograde increases the potential for the market to reverse from Friday. Negative, then starts improving in the afternoon which could bring a late day turnaround.
Tuesday, July 12, 2011
Wednesday, July 13, 2011
Choppy/mixed to positive.
Thursday, July 14, 2011
Positive open, then turns choppy to negative before reversing going into the close.
Friday, July 15, 2011 (Options expiration)
Choppy/mixed to moderately positive.