Summary Of Last Week’s Influences:
The major indices ended the week higher, hopeful that the European sovereign debt crisis was now under control and Washington would reach agreement to raise the debt ceiling before August 2.
Contagion fears over Europe took the market down Monday. The indices kept climbing Tuesday, experiencing their biggest one day point and percentage all year after IBM’s strong earnings and President Obama’s remarks that a deficit reduction proposal from the bipartisan “gang of six” Senators represented a “very significant step” in the debt ceiling talks. (Before Tuesday, the biggest one day gain this year occurred on March 3 when the Moon was also in Pisces.) Wednesday was time to worry about the dueling debt issues facing the U.S. and the Eurozone.
As Mars in Gemini conjoined the USA natal Mars and squared the USA Neptune in Virgo, investors rushed back into the market again after European leaders announced they agreed to (but had not worked out the details) for a new 3 year 109 billion Euros loan for Greece at 3.5% interest. (Loans to Ireland and Portugal were also reduced to 3.5%.) The deal would force private creditors of Greek debt to take haircuts by exchanging their bonds for lower rated ones for longer maturities. Should the haircut trigger a ratings agency downgrade, the Eurozone will guarantee the debt to ensure it is still accepted as collateral by the ECB.
Since Gemini and Virgo are ruled by dualistic Mercury (news) and Neptune represents rumors that can be masquerading as news, the secondary factor driving Thursday’s market was a New York Times report that President Obama and House Speaker Boehner were close to a “major deal” on the debt ceiling.
House Republicans passed “cut, cap, and balance” Tuesday along party lines while Democrats defeated the measure in the Senate Friday. By early Friday evening it was evident that my catchphrase “cut, crap, and copout” more accurately sums up the entire debt debate. Neither party can agree on what to cut, the idea of a balanced budget amendment is a load of crap because the debt ceiling being reached connotes you would have to have a balanced budget going forward from here. Obviously this is unattainable which is why it is a copout. If both parties fail to reach agreement, it becomes more likely they will copout and pass a “clean” bill that raises the debt ceiling without any deficit reduction.
President Obama said he wanted a “balanced approach” of spending cuts and revenue enhancements to achieve deficit reduction, but was willing to tilt Libra’s scales of balance more in favor of the cuts Republicans wanted, even going so far as to cut entitlement benefits such as raising the eligibility age for Medicare from 65 to 67. But as Saturn in Libra exactly squared Speaker Boehner’s natal Venus in Saturn-ruled Capricorn Thursday, instead of “closing the sale,” Boehner pressured the President for more spending cuts.* With Mars in Gemini squaring his natal Mars in Virgo, President Obama convened a hastily arranged news conference early Friday evening that showed the world he had had enough after Boehner had walked out of the White House.
What would it take for both sides to come to an agreement? The key to success is allowing each side to be able to claim an ideological victory with a bill that can pass Congress. Republicans need to be released from their pledges by having the pledge holders give their Republican puppets some leeway while still upholding their ideology so closing a tax loophole is not branded as raising taxes. Democrats could propose trading an extension of unemployment benefits and the payroll tax reduction for minor reductions in corporate tax loopholes. This will allow both parties to save face by claiming they forged a fairer plan with no net tax increase.
Summary Of This Week’s Influences:
The Sun is our life force and represents self-identity. Viewed from a political and financial perspective, the Sun represents leaders, courage, and confidence. The Sun rules all forms of speculation. The more courageous, confident and self-assured people are, the more inclined they are to take risks.
The Sun’s energy is strong now as the Sun entered its home sign Leo Saturday until August 23. With the Sun and Mercury currently in Leo, the market’s level of confidence is even more dependent on what leaders are saying.
This has been the first time since the height of the financial crisis that Congressional leaders resurrected the term made famous by then Treasury Secretary Hank Paulson that Washington must take action “before Asia opens” Sunday night to prevent the markets from tanking. Yet unlike the extreme volatility of those days when the market would frequently rise and fall by several hundred points, the market appears to believe an agreement to raise the debt ceiling will get done in time.
Although the Sun is at home in Leo and the Moon is quite comfortable in Taurus, these are fixed energies which reflect the stubborn pride of neither side wanting to give an inch to the other. Monday was listed in my Summer Solstice post as a pronounced market moving day primarily because Mars in Gemini reactivates the energies of the June 15 Sagittarius Lunar Eclipse. Interestingly, the market was bearish then because EU officials failed to reach agreement on another bailout for Greece. Now the week begins with no agreement to raise the debt ceiling which could make it the third Monday in a row the market is sharply negative.
The Moon entering Gemini at 12:35 PM EDT Monday through Wednesday evening could bring multiple debt ceiling plans. The Sun in Leo harmonizing with Uranus in Aries Wednesday can bring a surprise that emboldens investors to take on risk.
The Moon will be in its home sign Cancer Thursday and Friday as Venus (money/banking) moves from Cancer into Leo Thursday morning until August 21, while Mercury leaves Leo temporarily for Virgo in the early afternoon. The Sun, Mercury and Venus will conjoin in Leo on August 16, a day when the market is likely to be celebrating something then.
Mercury will be in its home sign Virgo until August 8 due to Mercury turning retrograde August 2. Mercury in Virgo demands details as it opposes Neptune in Pisces now. Mercury opposite Neptune represents the “Full Moon” phase in their cycle that began when the two planets were conjoined in Aquarius on February 20.
Full Moons help to ensure we’re “fully aware” of the situation which has reached a culmination point. Mercury and Neptune will oppose each other three times (July 29, August 8, and September 8). This first pass occurring with both planets in their home signs can indicate situations where the numbers and data fail to add up as hype is more important than reality. This is where intuition comes in handy as it can lift up the veil which is the true meaning of the word “apocalypse.” Rumors, deceptions, and news of behind the scenes activities contrasting with what’s being reported can be quite common now.
Monday, July 25, 2011
Tuesday, July 26, 2011
Negative bias; Dow strongest.
Wednesday, July 27, 2011
Thursday, July 28, 2011
Choppy/mixed to positive early, then weakens to negative in early afternoon before improves going into the close.
Friday, July 29, 2011
Choppy/mixed conditions dominate; mixed close.
*It should be noted that Speaker Boehner’s progressed Sun conjoins his natal Jupiter in Capricorn; both exactly conjoin the USA natal Pluto in Capricorn which explains why he has been adamantly against closing tax loopholes on corporations and the wealthiest Americans (plutocrats). His reputation and career as Speaker of the House depends upon his ability to resolve the debt issue in a way that casts his party in a favorable light.
John Boehner: November 17, 1949 time unknown Cincinnati, OH
Barack Obama: August 4, 1961 7:24 PM AHST Honolulu, HI