WallStreetWeather.net Forecast for Week Of August 8, 2011

Summary Of Last Week’s Influences:
Last week began with an agreement to raise the debt ceiling and cut spending, and ended with S&P downgrading the USA’s long-term credit rating Friday evening. (See my post, “Debt Deal and Debt Downgrade Highlights the USA’s Fiscal Imbalances at its Saturn Return”.)

In between these two “bookends,” the indices became extremely volatile, making moves not seen since the height of the financial crisis. By week’s end, the indices had fallen into corrective territory and are now negative for the year.

Mercury turning retrograde as it opposes Neptune signifies the “veil of illusion” is being lifted as the market begins wakes up to the fact that fiscal and monetary stimulus is limited as fears arise the global economy is slowing down.

Summary Of This Week’s Influences:
As indicated in last week’s Forecast, volatility continues to increase as Mars squares Uranus and opposes Pluto. As noted in the Summer Solstice forecast, the largest moves this week could occur on Monday, Tuesday, and Thursday.

The Moon in the global sign Sagittarius Monday and Tuesday tends to draw Wall Street’s attention to events occurring overseas. Ruled by Jupiter, the Moon in Sagittarius exaggerates sentiment positively or negatively.

Mercury retrograde re-enters Leo and opposes Neptune in Aquarius Monday morning. (Mercury opposed Neptune for the first time July 29 when Mercury was in Virgo and Neptune was in Pisces.) The market’s direction is dependent upon how confident investors feel about the message being conveyed by leaders at this time. What is being communicated now can be confusing, unclear, or even untrue which does not help to boost confidence. The Mercury/Neptune opposition can increase contagion concerns as Neptune’s energies usually do not stay within the confines of set boundaries. These energies can signal currency reversals.

Mars in Cancer squaring Uranus in Aries Tuesday can increase the potential for sharp and sudden moves that break through support and resistance levels while Uranus indicates the potential for reversals. Geopolitically, this combination can increase the tendency for violent and rebellious uprisings, shootings, explosions, tribal warfare, and kidnapping. The potential for violent thunderstorms, hail storms, hurricanes, volcanic eruptions, and earthquakes is elevated now.

The Moon in Capricorn Wednesday and Thursday and Mars opposing Pluto keeps the focus on sovereign debt. Mars opposing Pluto raises the potential for power grabs and action involving nuclear issues. Although the energies described can reflect multiple intraday reversals, market sentiment is likely to reverse on Thursday. The Moon in Uranus-ruled Aquarius Friday keeps volatility elevated.

Monday, August 8, 2011
Negative.

Tuesday, August 9, 2011
Negative conditions but strong reversal potential in the afternoon.

Wednesday, August 10, 2011
Negative.

Thursday, August 11, 2011
Positive.

Friday, August 12, 2011
Choppy/mixed to negative.

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