WallStreetWeather.net Forecast For Week Of January 30, 2011: “Egypt Erupts Edition”

Summary Of Last Week’s Influences:
After surpassing the 12,000 level intraday on Wednesday with weaker follow up attempts on Thursday and Friday, the DJIA closed the week at 11,823.70. The S&P followed suit, breaking through the 1300 level Thursday and Friday before ending the week at 1,275.10.

Last week started out strong and ended weak, with intraday reversals amongst the three indices occurring throughout most of the week. In the Forecast for the Week of January 16 I wrote that the combination of Jupiter in Aries with Aries’ planetary ruler Mars in Uranus-ruled Aquarius until February 22 would increase the potential for unexpected market moves as well as geopolitical eruptions that could affect the market. That was a follow-up to what I wrote in the Capricorn New Moon cycle about the potential for a brief pullback later in January (and February). I had noted then that “geopolitical turmoil could erupt in the Middle East” during the time of the January 26 Last Quarter Moon. The planetary influences present at the Winter Solstice showed that geopolitics would dominate the winter season; I wrote then about “the potential for a military coup that could topple at least one of the many dictatorships in the world.” (In Tunisia, the military went against their orders to fire on the protesters which ended up forcing the corrupt Tunisian president to flee the country.)

Eclipses are harbingers of major change; the ancients believed that the countries in the path of the eclipse would experience the greatest changes. As you can see from this NASA map, the path of the January 4 Solar Eclipse (the current lunation cycle), crossed northern Africa and the Middle East and on to China and Mongolia. The Solar Eclipse in Saturn-ruled Capricorn raised the potential for changes in government leadership and structure in those countries along the eclipse path – the most vulnerable countries for a change in leadership (Sun) are those countries run by dictatorial leaders who have been in power for many years and are unwilling to relinquish control (the Solar Eclipse squared Saturn).

With the eclipse in the earth element, the focus is on economic concerns which reached a boiling point at the Full Moon in Cancer (food/liquids; general public). Jupiter and Uranus conjoined in Pisces at the Solar Eclipse. Inflation spikes, especially in food and fuel prices (Pisces rules oil and gas), are especially affecting the “emerging market” nations thanks to the Federal Reserve’s campaign to reflate asset prices to rejuvenate the U.S. economy. The U.S. is exporting inflation (and in the global economy what goes around, comes around).

The transformative process of Pluto in Capricorn will impact EVERY government in the world before its transit is completed in 2024. In the U.S. and the West, Pluto in Capricorn has so far been an economic transformation as the government intervened to rescue the financial system from collapse. Recovery has been heavily dependent upon fiscal and monetary stimulus. As the wealthy lord of the underworld, Pluto in Capricorn reflects the rapid increase in prices of commodities extracted from underground and grown in the earth’s soil.

When people face such high inflation that it’s difficult for their daily needs to be met coupled with stagnant wages and high unemployment, it reaches the point where they are no longer willing to tolerate living under an autocratic regime where they see no signs of the leadership willing to alter the status quo. Jupiter in Aries until June 4 and more importantly, Uranus in Aries for the next eight years (especially when it squares Pluto in Capricorn during 2012-2015) reflects that revolutionary change must begin at the individual level so outmoded government and societal structures can disintegrate so that something new can emerge from the ashes.

This is the lowest expression of Saturn’s energies. As described in last week’s Forecast, Saturn’s energies were particularly pronounced Tuesday and Wednesday as from Earth’s vantage point it appeared to turn retrograde.

Uranus is the planetary energy of rebellion and revolution which can be assisted by technological innovation as Uranus (and the sign Aquarius) rule electronics and the internet. Uranus/Aquarius represents people gathering together for a common cause. The internet’s social networks (Twitter, Facebook) helped spread the message. And even when the internet and mobile phone lines were shut down, people could still see what was happening on TV.

The Republic of Egypt came into being on June 18, 1953 following a military coup on July 23, 1952. Saturn in Libra exactly squared the Republic’s natal Uranus in Cancer as well as the 1952 revolution’s progressed* Uranus when Saturn turned retrograde last week. The high cost of living was the last straw that for too long had tilted Libra’s scales way too far in favor of the status quo and against the benefit of the people. The Solar Eclipse opposing Egypt’s progressed Venus in Cancer confirms the cost of food and necessities was the motivating factor.

This had really been building up since the December 21 Lunar Eclipse that conjoined Egypt’s Sun in Gemini, followed by Jupiter, and now Uranus in Pisces squaring the Sun in Gemini (and opposing the 1952 progressed Sun in Virgo), indicating the people want to break free from the nearly 30 year rule of President Hosni Mubarak.

I have previously pointed out that a planetary alignment in the sky tends to bring out people and entities with this same configuration in their chart. The Sun conjoins Mars in Egypt’s chart, indicating the strong military influence. The Sun and Mars have been traveling close together in the sky since December. Now the pair will exactly conjoin in the middle of Aquarius on Friday, indicating a rebellion against the leadership which pushes the leader out. Around the same time, Jupiter in Mars-ruled Aries squares Egypt’s Mars in Cancer, reinforcing the push for freedom from the current leadership.

Born with the Sun conjoining Mercury in Venus-ruled Taurus, Hosni Mubarak has remained stubbornly fixated on remaining Egypt’s leader. His longevity as leader is attributed to his Sun and Mercury conjoining Egypt’s natal Venus in Taurus. Mubarak’s Sun and Mercury favorably aspects Pluto in Cancer; all three planets favorably align with the USA Sun in Cancer, reflecting his relationship with the U.S. has helped keep him in power.

The eclipse opposing the USA’s Sun reflects the delicate balancing act the U.S. faces in wanting Egypt to emerge into a secular democracy but concerned a change from Mubarak could create instability if the Muslim Brotherhood dominates the political process. This is a legitimate concern as the Muslim Brotherhood was founded in March 1928 which was the last time when Jupiter and Uranus conjoined in Aries and when Aries’ ruler Mars was in Aquarius. Neptune was in Leo then and now Neptune is in the opposite sign Aquarius, reflecting the public is likely to be more interested in obtaining true democracy rather than replacing one leader for leadership that enforces religious propaganda.

A Solar Eclipse can bring about a change in leadership. The January 4 eclipse exactly opposed Mubarak’s progressed Mercury in Cancer and natal Pluto, indicating that if he failed to grasp the message the public was sending to him through their protests, he runs the risk of being forced to relinquish his power this week as Wednesday’s New Moon which conjoins Mars in Aquarius exactly squares his Sun and Mercury. Jupiter in Aries conjoins Mubarak’s natal Uranus in mid-February, further indicating it’s time for him to embark on a new life.

Mohamed ElBaradei won the Nobel peace prize in his capacity as the former head of the IAEA. His natal Sun and Jupiter conjoin Egypt’s Sun and Mars. Uranus in Pisces squaring his Gemini Sun last February led him to lead the National Association for Change. Uranus now opposing ElBaradei’s natal Neptune in Virgo reflects his comments that the country is in “total chaos” as the current regime must be dissolved so free and fair elections can be held.

With the Moon (sentiment) in Jupiter-ruled Sagittarius Friday, investors were focused on the events in Egypt. The indices deteriorated as the day progressed while gold and oil which had been falling, sharply reversed. Crude oil jumped 4.3% to $89.34, its biggest one day gain since September 2009 on concerns that the unrest could affect energy shipments getting through the Suez Canal and the Sumed pipeline. Saturn turning retrograde exactly opposite natal Neptune in Aries when the Suez Canal opened on November 17, 1869 reflects the fear that oil and shipping (Neptune) could be blocked. This is further reinforced as Saturn exactly opposed and squared the progressed Sun in Aries which exactly squares Uranus in Cancer also reflects the concern of a public rebellion affecting movement through the Canal. These concerns do not appear to be a problem at this time but rather reflect the sudden spike in oil and the stocks of certain shippers.

The indices reaching their highest closing levels since the summer of 2008 as Saturn turned retrograde with Mercury in Saturn-ruled Capricorn squaring Saturn Wednesday can represent the market is temporarily peaking out as Saturn and Capricorn symbolize the top of the mountain/height of one’s career.

Temporarily is the key word as Wednesday’s FOMC statement made it clear the Fed is going to continue to pull out all the stops to push investors to take on more risk. While the FOMC statement acknowledged that “commodity prices have risen,” the Fed remains defiant that “measures of underlying inflation have been trending downward” based on their obsolete economic theories.

Other news that strongly reflected the strong Mercury/Saturn influence during the Last Quarter Moon in Pluto-ruled Scorpio was the CBO’s announcement that the tax cuts will increase the 2011 deficit $500 billion to $1.5 trillion. And the Financial Crisis Inquiry Commission released its long awaited 600+ page report on the causes of the financial crisis. (More on this interesting stuff at another time, but the ultimate bottom line synopsis is none of it could have been made possible without the ultra accommodative policies of the Federal Reserve.)

Summary Of This Week’s Influences:
After all that I said about Saturn, the week begins with the Moon in Capricorn Monday and Tuesday. With only very minor exact planetary activity, Monday’s market could trade in a more narrow range.

The Moon in Aquarius Wednesday and Thursday, together with Venus in Sagittarius squaring Uranus in Pisces, can bring sudden reversals that could be biased to the upside. Mercury favorably aspecting Uranus could bring news favoring tech and pharma/biotech.

The New Moon in Aquarius occurs at 9:30 PM EST Wednesday. The New Moon and Mars oppose the NYSE’s natal Uranus in Leo will likely increase volatility, especially as the New Moon and Mars (and Neptune) are in the sector of the New Moon chart for the USA representing the stock market with wild and crazy Uranus ruling this sector. This can bring sharp and unexpected reversals that have the potential to break through support and resistance levels within the same day. Geopolitically, tensions could be rising in Algeria and Libya as well. There is a potential at this time for a pipeline disruption in Nigeria. Geophysically there is an increased potential for damaging high winds, earthquakes, and another east coast snowstorm impacting Northeast.

Mercury enters Aquarius until February 21 and Venus enters Capricorn (to March 1) before the market opens Friday which could bring a reversal in one or more of the world’s major currencies. These influences are likely to further increase volatility as investors switch sectors. The Sun conjoins Mars in Aquarius Friday morning, speeding up market action.

Consensus estimates for Friday’s employment report are for a gain of about 150,000 jobs as the unemployment rate creeps up to 9.5%. While I think the overall report could be inline or exceed expectations, the market could be more in the mood to sell.

Monday, January 31, 2011
Choppy/mixed to positive bias.

Tuesday, February 1, 2011
Reversal potential; negative bias.

Wednesday, February 2, 2011
Strong reversal potential; positive bias.

Thursday, February 3, 2011
Choppy/mixed to positive.

Friday, February 4, 2011
Negative.

* A mathematical calculation that moves the planets forward in time as a method of prediction.

Hosni Mubarak: May 4, 1928 time unknown Kafr-El-Meselha, Egypt
Mohamed ElBaradei: June 17, 1942 Cairo

Federal Reserve’s Economic Theories Obsolete In Today’s Economy

Published by WallStreetWeather.net

In the global economy, how can inflation that is largely commodity driven overheat in the rest of the world while the Federal Reserve doesn’t see enough inflation in the U.S.?

Perhaps Ben Bernanke and his cohorts on the Federal Open Market Committee need to get their eyes examined.

The Fed Chairman takes pride in being a scholar of the Great Depression. Bernanke believes the reason why the Great Depression was so deep and went on for so long was because the Fed tightened monetary policy too soon. So Bernanke thinks the fastest way to steer the economy out of the Great Recession is to do the opposite by keeping monetary policy as accommodative as possible for as long as possible.

The Fed views inflation through the lens of the Great Depression which has created tunnel vision as it has obscured the central bank’s ability to see that intellectual property is the primary economic driver of the U.S. economy today.

During the Great Depression, a greater portion of the products consumed were variable cost as the intellectual property content was small. Today it’s the exact opposite. The traditional methodology used to calculate inflation doesn’t take into account that certain sectors of the economy such as electronics and technology are permanently deflationary and therefore should be excluded from inflation measurements.* Yet the Fed treats technological innovation as something to be concerned about even though this “deflation” is considered business as usual in Silicon Valley!

This is why inflation should be measured only in sectors where commodities and labor are the primary cost drivers. Any industry with a gross margin under 25% would be most susceptible to inflation vs. industries with gross margins exceeding this.

True deflation only exists if a product is selling for less than its variable cost. For example, before higher gas prices revived the market in small cars, automakers were selling these vehicles for less than it cost to produce them.

In most situations where fixed costs are high relative to variable costs, monetary policy will have little immediate effect on employment. Employment in these businesses will only change as plants open, expand, or close - events which do not occur smoothly or quickly based upon Federal Reserve policies. They occur in fits and starts with little sensitivity to monetary policies in the short term.

Given the fungibility of money, the Fed’s excess liquidity will be driven to asset inflation rather than increasing employment in industries with low variable costs.

Instead of wasting time deciding whether to formalize an inflation target (when the Fed has been pretty blatant that it’s “informal” target is between 1.5% and 2%), the Fed should thoroughly analyze which industries to target and how employment is driven by liquidity in order to prevent excess asset inflation.

The Fed can exclude food and energy costs from its economic models, but consumers and businesses cannot. Companies loved the Fed’s cheap money but now that many of them are having trouble fully passing through the higher commodity costs, that cheap money is not looking so cheap after all.

In this interconnected global economy of the 21st century, outsourcing asset inflation to emerging markets creates a boomerang effect as labor and material costs rise in these economies which ultimately increases the costs of these products in the U.S. Once again the Fed is asleep at the wheel back in the previous century.

I don’t assume for one moment that the Fed does not realize all the points I have brought forth. I believe the Fed is simply constructing its measurements to justify the policy it is pursuing.

*Healthcare and drugs should fit the deflationary electronics/tech model with its high intellectual property, but does not because it is a rigged market in three respects:

1. The consumer cannot directly choose which medical products and services to buy as the doctor enforces a structure that forces the consumer to purchase a group of services rather than individual services.

2. The majority of consumers participate in structured purchases through health insurance, leaving cash paying customers at a disadvantage. Cash paying customers face a “take it or leave it” environment as they have no leverage.

3. Consumers have no choice but to buy medical services, therefore they cannot protest the rules of the game.

WallStreetWeather.net Forecast For Week Of January 23, 2011

Summary Of Last Week’s Influences:
With his progressed Sun in Libra the sign of partnerships and harmony, President Obama continued his courtship of the business community.

Mercury conjoined Pluto in Capricorn for the third and final time Tuesday, completing the cycle begun at the Sagittarius New Moon. This was when President Obama announced he had cut a tax deal with the Republican leadership. In an op-ed piece in The Wall Street Journal, the President outlined the purpose of an executive order issued Tuesday to review and streamline government regulations affecting businesses, explaining that “sometimes those rules have gotten out of balance.” (More on the influence of Saturn in Libra in the next section.)

In the USA’s uneasy partnership with China, President Obama invited the nation’s top CEO’s to meet and dine with President Hu Jintao at the White House. President Obama told Hu: “We want to sell you planes, we want to sell you cars, we want to sell you software.” By the end of the visit, China had committed to purchase U.S. goods valued at $45 billion.

The Sun represents leaders and leadership. As the Sun shifted into Aquarius (technology) Thursday, Google (GOOG) CEO Eric Schmidt who had served as “den mother” to the company’s two founders tweeted: “Day-to-day adult supervision no longer needed!” Larry Page will be in charge of the company, and co-founder Sergey Brin will focus on “strategic projects.”

Born with his Sun conjunct Venus in take charge Aries, along with Aries’ ruler Mars in ambitious Capricorn, it is not surprising that Page would want to be in the #1 slot at the company. Aries energy is impatient and wants to accomplish things quickly to be able to move onto something new. Aries energy is also fiercely competitive. Last summer’s transits of Jupiter and Uranus in Aries conjoining Page’s natal Sun and Venus together with Saturn in Libra conjoining natal Pluto and opposing his Sun/Venus, likely increased Page’s level of frustration with the speed of decision making within Google’s management structure that Schmidt refers to in his statement.

With Jupiter in Aries until June 4 and Uranus (Aquarius’ planetary ruler) in Aries from March 11 until 2019, Page no doubt wants to ensure that Google is the leader in mastering access to the world’s information.

It is interesting that the leadership change will take effect on April 4, the first business day after the New Moon in Aries (new beginnings). Mercury will be retrograde then, reflecting that Page is making a new start in returning to his role as CEO. Mars and Uranus in Aries will conjoin his Sun and Venus, indicating that Page will be more than ready to hit the ground running.

A symbolic rather than substantive leadership shift took place Friday when President Obama announced CEO Jeffrey Immelt will head the President’s Council on Jobs and Competitiveness. This is the new name for the Economic Recovery Advisory Board which Immelt was a member of and was chaired by former Federal Reserve Chairman Paul Volcker who recently resigned. Mercury represents the workforce, and the Sun conjoining Immelt’s natal Mercury in Aquarius reflects the appointment.

Summary Of This Week’s Influences:
Jupiter (expansion) and Saturn (contraction) are the largest planets in our solar system and represent the overall business cycle. These two giants that will oppose each other for the third and final time in March are the two dominant planetary influences this week.

Monday is the first market day that Jupiter will be in Aries, a sign it briefly transited from June 6 – September 9, 2010. Jupiter at the beginning of Aries indicates it’s time for a completely new economic philosophy. Aries is ruled by Mars and with the Sun conjoining Mars in Aquarius (exact February 4) as Jupiter enters Aries, current economic beliefs must be shaken up rather than stirred around in circles.

Saturn rules history which serves as a foundation to help practitioners of the dismal science formulate current and future economic forecasts. Soon Uranus will be in Aries and will start shaking up the USA’s values (Venus) and beliefs (Jupiter) as Pluto in Saturn-ruled Capricorn has the first phase underway, digging beneath the foundation to expose all the toxic elements that have permeated the nation’s economic and societal structures.

The Moon (sentiment) is in Aries’ opposite sign, Libra Monday and Tuesday. Alliances, arrangements, and all types of relationships are in focus when the Moon is in Libra, the sign of harmony and balance in all things. Saturn rules government, big business, and the status quo. Saturn in Libra in its most positive manifestation represents a polite and civil society with laws, rules and regulations applied equally to all for the good of the entire nation.

Saturn’s energies are strong this week as from Earth’s vantage point it appears to be stationary in the sky as it turns retrograde until June 12. On Tuesday at 9:00 PM EST when President Obama gives his State of the Union address, some Democrats and Republicans intend to break with tradition and sit together as a gesture to help inject some desperately needed civility.
The Moon will be in Libra and in a sort of limbo-land until 9:15 PM* when it enters Scorpio (through Thursday evening). Of course with all the time usually wasted on the President’s arrival and the endless clapping, the speech may not get started until 9:15 anyway. And there is usually not anything important said at the very beginning of the speech. Notice if President Obama becomes more intense as the speech progresses.

The Moon in the sector of the S.O.T.U. chart representing the economy indicates that the public is most concerned about economic security. Mercury in Saturn-ruled Capricorn is in the sector representing home/family, infrastructure, and national security. Mercury is the ruler of the S.O.T.U. chart and squares Saturn. The speech is serious in tone, reflecting the work that must still be done to ensure the economy continues on a solid and sustainable path. Words and phrases such as “economic imbalances”, “balanced economy”, how government can be an ally and partner rather than the enemy, “fairness”, “civility”, etc. would describe these energies.

The Sun conjoining Mars and Mars ruling the sector of the chart that is Scorpio’s natural domain reflects the President’s energy and focus will be on working with Congress on an overhaul of the tax code and deficit reduction. He will likely be more assertive and have a new strategy on promoting the goals of the healthcare bill, although in Tuesday’s speech he might choose to primarily focus on individuals who have suffered under the current system.

Mars is conjoining Rep. Paul Ryan’s Sun and Venus in Aquarius as he gives the Republican response to the S.O.T.U. (Let’s see if he has the guts to explicitly explain to the public about his radical agenda for Medicare.**) Although Republicans were able to remain united when they were the opposition, Tuesday night’s upstaging of the House Budget Committee Chairman’s response by Rep. Michele Bachmann who will air her own response on a Tea Party website, highlights the distinct and diverse factions within the Republican Party.

With Saturn stationing opposite her Sun and Mercury in Aries, Rep. Bachmann has taken it upon herself to be the self-appointed authority of the Republican Party by attempting to compete with the person selected by the Republican leadership.

Now it’s time for President Obama and the Democrats to stand firm and let the Republicans take the lead and raise the debt ceiling in March. Saturn retrograde station now reflects that although Republicans criticized the Democrats during the midterm election for not focusing enough on job creation, Republicans have so far spent all their time in charge of the House attempting to turn back the clock to 2008 before Obama was elected President. (They seem to believe 2008 was so wonderful it should be experienced more than once.) Last week’s crowning achievement was the symbolic vote in the House to repeal the healthcare bill. On Wednesday, the House Committee on Oversight & Government Reform will begin a series of investigative hearings probing major legislative actions passed during the last two years. The first hearing will focus on TARP which was created by the Bush Administration.

The Last Quarter Moon occurs early Wednesday morning as the World Economic Forum opens in Davos and the FOMC concludes their two day meeting with the release of their statement at 2:15 PM. Both are focused on which is the greater risk – inflation or deflation. Tomorrow’s post will solve their quandary.

Monday, January 24, 2011
Negative trend bias.

Tuesday, January 25, 2011
Choppy/mixed to positive.

Wednesday, January 26, 2011
Negative.

Thursday, January 27, 2011
Choppy/mixed to positive.

Friday, January 28, 2011
Negative trend bias; weakens as the day progresses.

*The Moon is Void-of-Course, meaning since 5:04 PM Tuesday it has ceased to make any major relationships (aspects) with any of the other planets.

**Ryan proposes that individuals currently 55 and under will receive a voucher when they become eligible for Medicare that they will designate to the health insurer of their choice. The vouchers will be means tested. Seniors of higher income will receive less assistance to purchase health insurance than lower income Seniors. Also, Seniors deemed to be higher insurance risks will receive larger vouchers than Seniors considered to be lower risks. Seniors could end up paying a lot more in medical costs, and there is no guarantee that insurers must issue every Senior a policy. (Ryan’s general healthcare proposal is just as ambiguous.)

This is the beginning of the end of Medicare because people of higher income during their working years will be reluctant to contribute to a system they will see little or no benefit from. The reason that Social Security and Medicare are popular programs is because people of all income levels (while making different contributions during their lives), are guaranteed a minimum benefit.

Jeffrey Immelt: February 19, 1956 time unknown Cincinnati, Ohio
Larry Page: March 26, 1973 time unknown East Lansing, Michigan
Paul Ryan: January 29, 1970 time unknown Janesville, Wisconsin
Michele Bachmann: April 6, 1956 time unknown Waterloo, Iowa

WallStreetWeather.net Forecast For Week Of January 16, 2011

Mars is the planet of physical energy, aggression, and what stimulates action. Tuesday is the first day the market is open since Mars entered Aquarius Saturday until February 22. Mars is where attention and energy are drawn to; in Aquarius the focus is on technology and innovation.

Mars transits the same sign about every two years (Mars was last in Aquarius February 4 – March 14, 2009), and just finished its sojourn in Capricorn (December 7 – January 15), which reflected the market’s slow and steady climb back up to levels last seen over 2 years ago. The do it/buy it now energies of Mars work well in ambitious Capricorn, reflecting that the market is being propelled upward by government policies and profits by the largest corporations.

Mars in Aquarius is an erratic energy since it is ruled by Uranus which tends to be anything but steady and predictable. With Uranus in Pisces still in close conjunction with Jupiter until February, the overall bias of Mars in Aquarius is still to the upside, but there is an increased potential for sudden and unexpected moves that can break through support levels even if it is only intraday. And when things appear to be bleak, there is greater potential for an upside surprise.

Jupiter moving into Mars-ruled Aries on Saturday can further accentuate the energy of Uranus while Mars transits Aquarius. Geopolitical eruptions and data breaches/system malfunctions can have a greater impact on market moves. Jupiter was briefly in Aries June 6 – September 9, 2010 and will finish wrap up its transit of Aries on June 4. Jupiter expands what it comes in contact with and many of the things that are ruled by Aries have already increased in value: heavy industries, iron/iron ore, steel, and weapons (Jupiter in Aries reflects we have an excess supply of guns!)

The abbreviated work week begins with the Moon (sentiment) in its “home” sign Cancer, culminating with Wednesday’s Full Moon. Cancer is all about what we need to feel emotional and physically secure. Real estate, food, water, and domestic security are in the spotlight now. The Full Moon occurring at the end of Cancer signifies that now is the time to reach decisions to resolve issues that have been outstanding for too long and are blocking the ability to move forward.

Cancer is symbolized by the crab that carries its home around with it and uses its pincers to lash out if it feels its turf is under siege. The light of the Full Moon conjoins the Federal Reserve’s natal Neptune and opposes the USA Pluto which is located in the sector of the USA chart representing the economy and financial system. The Federal Reserve is in denial that there is a dark side to monetary policy that no one wants to acknowledge.

The strain of negative interest rates on money managers, insurance companies, and pension plans, along with ever tightening net interest income for banks cannot be sustained until employment and inflation rise to the Fed’s comfort level. For the past two years the loss of positive interest income has caused higher expenses to make up for the deficit. The cost of all types of insurance premiums have to be higher, contributions to pension plans have to increase, money managers have to reduce their fees, and banks have to charge higher fees to make up for the lost revenue. The question that needs to be asked is with monetary policy unchanged since December 2008 which was during the depths of the financial crisis, when does the stress of zero interest rates exceed the economic benefits?

Since Cancer and the Moon rule our emotional outlook and instinctive behaviors, the Cancer Full Moon can be a very emotionally charged time, bringing tears (and precipitation/snow). On Wednesday the House is scheduled to vote on the “Repeal the job-killing health care law” that had been postponed from last Wednesday following the shootings in Tucson. (The chart for the First Quarter Moon set for Washington did not reflect a vote on this bill but the Full Moon chart does which means that if the House doesn’t vote on Wednesday, a vote is likely to occur by January 26.)

After the CBO estimated that repealing the healthcare legislation would increase the deficit by $145 billion through 2019, the GOP leadership specifically excluded their repeal bill (as well as all tax cuts) from their “cut-as-you-go” provision (every item that adds to the federal deficit must be matched with a cut at least equal to the amount added).

To make a long story short, this vote is nothing more than an exercise solely designed to appease the GOP’s base/Tea Party. All the elements of the healthcare bill that benefit consumers now and in the future as more provisions of the bill take effect will likely remain in place.

The chart for the Full Moon in the USA shows President Obama putting all his energy now into diplomacy and trade, reflecting the state visit of China’s President Hu Jintao. The January 4 Solar Eclipse opposed the USA Sun which is altering the balance of power between the US and other nations it chooses to do business with. The Full Moon falling in the sector of the USA chart representing debt indicates the Chinese government wants to be assured that their large investment in U.S. government debt maintains its value.

The Sun (speculation) enters Aquarius Thursday until February 18 as the Moon transits Sun-ruled Leo Thursday and Friday which could bring a bit of sector rotation and focus on very short term trading rather than investing strategies.

Tuesday, January 18, 2011
Negative conditions improve as the day progresses; closes mixed.

Wednesday, January 19, 2011
Positive open and close, but choppy to negative intraday.

Thursday, January 20, 2011
Negative.

Friday, January 21, 2011 (Options Expiration)
Choppy/mixed to positive.

WallStreetWeather.net Forecast For Week Of January 9, 2011

Summary Of Last Week’s Influences:
The bulls ran out the gate Monday to welcome in 2011 but became a bit fatigued by Friday. The slight gains made by the major indices last week were largely due to economic data that for the most part continued to exhibit signs of growth.

While the 103,000 jobs created in December was a big improvement from November's slight gain, the Labor Department’s report was a bit of a letdown for the market as it did not come close to the big upside surprise of 297,000 private sector jobs reported by ADP which was the largest monthly number of jobs created since the company began the report in 2001.

As noted in last week’s Forecast, the Sun squaring Saturn Friday injected some caution about how strong economic fundamentals really are. Treasury yields declined as Federal Reserve Chairman Bernanke appeared before the Senate Budget Committee, emphatically reiterating the points he made in an interview on “60 Minutes” last month.

The influence of the Sun square Saturn reversed the market’s happiness on Monday when Bank of America (BAC) agreed to a settlement with Fannie Mae (FNM) and Freddie Mac (FRE) over mortgages Countrywide sold to the government. Friday’s ruling by the Massachusetts Supreme Court which upheld a lower court’s decision that a foreclosure by U.S. Bancorp (USB) and another by Wells Fargo (WFC) was not valid as the banks failed to prove they owned the mortgages raised concerns that it could become more difficult for banks to foreclose if the documentation is not complete.

Summary Of This Week’s Influences:
The week begins with the Moon (sentiment) in Pisces before things speed up when the Moon moves into Mars-ruled Aries mid morning Monday through Wednesday. As described in the Capricorn New Moon cycle, the energies of Jupiter and Uranus conjoining in Pisces are reinforced as Mercury (communication) and Mars (action) aspect last week’s conjunction of Jupiter and Uranus in Pisces.

The Moon in Venus-ruled Taurus Thursday and Friday puts the focus on bank stocks. Earnings season begins this week with JPMorgan Chase (JPM) being the first bank to report report on Friday, the day of the week ruled by Venus.

Monday, January 10, 2011
Positive.

Tuesday, January 11, 2011
Improving conditions as day progresses, closes positive.

Wednesday, January 12, 2011
Negative.

Thursday, January 13, 2011
Choppy/mixed to negative.

Friday, January 14, 2011
Deteriorates as day progresses; closes negative.

Capricorn Solar Eclipse New Moon Cycle: January 4 – February 1, 2011

Published by WallStreetWeather.net

Note to readers: I apologize for the lateness of this post. Since this month’s New Moon is a Solar Eclipse, the influences of this cycle will be felt over the next several months and beyond.

The word month is derived from the Moon. The new month actually begins when the Sun and Moon conjoin at the New Moon, a time of new beginnings. This month’s New Moon occurs on January 4 at 4:03 AM EST in Capricorn, the sign representing government, corporations, hierarchies, and people in positions of authority. Capricorn and its planetary ruler Saturn represent all types of structures, from the body’s skeletal system to infrastructure and societal structures.

Since Capricorn is an initiating (cardinal) sign that is part of the earth element (1), events during this cycle center around economic and societal structures which require practical solutions that are viable over the long term since there can be no quick fixes with this energy. Ambition, determination, time and effort are required to successfully achieve objectives.

Capricorn and Saturn rule time, and this cycle is likely to go down in the history books as the New Moon is a Partial Solar Eclipse. A Solar Eclipse is a “supercharged” New Moon whose influence will be strongly felt for at least the next six months, as the world needs time to process the highly charged atmosphere created by the eclipse energies that usually occur in pairs. Although the New Moon represents the beginning of the cycle, events that occurred during the December 21, 2010 Lunar Eclipse in Gemini will become more understood during this cycle as Gemini’s planetary ruler Mercury (communication/movement; commerce) completes its cycle through Sagittarius and Capricorn after being retrograde during most of December.

The Solar Eclipse conjoins ambitious Mars in Capricorn which accelerates the pace of change and launching of new initiatives. Both form a challenging alignment to Saturn in Libra that increases determination to overcome obstacles impeding progress. This exerts pressure to tackle structural imbalances which can create conflict with the status quo who prefer to keep Libra’s scales tilted in their favor.

While Capricorn and Saturn are a contracting influence, the New Moon marks the third and final time that expansive Jupiter conjoins Uranus the awakener, a cycle that began on June 8, 2010 when the two planets conjoined at the beginning of Aries for the first time since 1928. Their conjunction in Pisces on September 18 2010 is reflected in the high level of market optimism that has now reached euphoric levels. These energies create asset price inflation which is the rocket fuel to grow bubbles as the Federal Reserve floods the market with excess liquidity to reignite the wealth effect to spur spending and spike inflation.

Jupiter and Uranus have a tremendous need to break free to explore beyond the boundaries of Saturn’s rings. Jupiter and Uranus concluding their alignment at the Capricorn Solar Eclipse can help dissolve what is no longer functioning so a new and sustainable foundation can be established.

Because Pisces operates behind the scenes, events occurring now might not be fully absorbed until March when the Full Moon opposes the Jupiter/Uranus conjunction on the 19th and Mars in Pisces conjoins the conjunction on the 28th, the same day Jupiter opposes Saturn. Likewise, the technological breakthroughs and discoveries announced at a later date could emanate from this time. The conclusion of the Jupiter/Uranus cycle serves as the prelude for Neptune taking a test drive in its home sign Pisces April 4 – August 4 before beginning its 13 year sojourn on February 4, 2012.

Pisces is ruled by Neptune which was conjoining Saturn when Neptune was discovered in 1846. This reinforces Capricorn’s portrayal as the sea goat that is half goat and half fish which symbolizes the death of the lower mind (and its myopic focus only on material concerns) and the birth of the fish (the higher mind that transcends all boundaries). The sea goat moves onto land and becomes the mountain goat, gradually ascending (achieving its goals/developing higher consciousness) as it climbs to the top of the mountain (peak of one’s career/earthly status) where the earth becomes closer to the cosmos, unifying human and cosmic consciousness.

In the chart for the New Moon calculated for Washington, DC which influences the entire lunar cycle, the focus centers on the economy and the banking system. Economic and market conditions appear to continue to expand during the first half of the cycle but concerns about the economy stalling and the government not meeting its fiscal responsibilities could surface during the latter half as Saturn’s cautious influence increases.

Wall St. touted that the GOP’s gains in the midterm election would decrease “uncertainty” for corporate America, yet the New Moon squaring Saturn in the sector of the chart representing Congress reflects that the Republicans agenda to turn the clock back to 2008 could cause selling pressure if they continue to act hypocritical when it comes to deficit reduction and block raising the federal debt ceiling. Selling pressure could also be the result of a prominent institutional investor selling to meet margin calls. Although I think the market’s performance will be strongest during the first half of the year, there could be brief pullbacks later in January and February and a correction could occur in late March/early April before the market moves higher.

As described in the Weekly Forecast, this Solar Eclipse will be especially memorable for the USA as it exactly opposes the USA’s natal Sun in Cancer and the Sun square Saturn recreates the same planetary configuration in the USA’s natal chart. In the USA chart, the Sun in Cancer resides in the sector representing our allies and enemies, squaring Saturn in Libra in the sector describing our reputation (how the world views America). This alignment explains why the U.S. is called the world’s policeman, and also reflects one of the nation’s aspirations that anyone can reach the top in America if they work hard enough.

Starting late last year through September 2011, the USA is undergoing its eighth Saturn return since its birth. (2) The Saturn return tests whether the nation is living up to the reputation it desires to project vs. reality. The USA’s Sun square Saturn reflects that not everyone or every industry in America is given equal treatment under the law. It depends on whether you are part of the status quo that is able to bend Saturn’s rules and regulations. In our "uniquely American” healthcare system, seniors (Medicare), veterans, the poor (Medicaid), and most employees compromise the status quo of this system while the rest of the population that doesn’t fit into any of these categories must pass medical underwriting and pay exorbitant premiums if they’re lucky enough to even be offered a policy. Health insurance companies are the only industry in America exempt from antitrust laws. The Supreme Court has tipped Libra’s scales of justice in favor of corporations over the general public.

While the Sun in Cancer squaring Saturn in Libra reflects the USA came into being when its colonial leaders (Sun) rebelled against the tyranny of the fatherland/Britain’s monarch and government (Saturn), this planetary influence in the USA chart describes the nation’s underlying resentment of government and authority figures. Especially since the USA’s Sun, Mercury, Venus, and Jupiter is in Moon-ruled Cancer and the USA’s Moon is in freedom-loving and rebellious Aquarius (which again reflects the circumstances of how the USA came into being).

Pluto is the planetary ruler of the New Moon chart for the USA and is located in the sector representing the economy/financial system (which is also where it is located in the USA’s natal chart). (3) Since Pluto entered Capricorn in January 2008, the weight of excess debt accumulated during Pluto’s sojourn in Jupiter-ruled Sagittarius (1995-2008) began to create cracks in the world’s financial structures.

Pluto ruling the chart together with Venus in Pluto-ruled Scorpio (money; banking) conjoining the Ascendant (4) indicates the nation must start making some momentous decisions on money matters that it keeps attempting to sidestep or postpone. From government debt to personal debt, foreclosures, the tax code where one individual or company’s tax break is another individual/company’s tax increase, health insurance and healthcare, to pensions and retirement programs, Pluto in Capricorn brings all the financial stuff that no one wants to talk about to the surface.

Capricorn and Saturn rule the elderly and Pluto rules death (before Pluto was discovered there was Saturn the grim reaper). The government will have to follow the health insurers and start refusing to cover medical treatments that do not work, as well as those that might only prolong a terminally ill person’s life for a month. As the wave of baby boomers retires, they will start collecting Social Security and going on Medicare, while the working population gradually decreases. Wall St. doesn’t talk about that as the wave of boomers retire, they’ll start withdrawing money from the stock market.

Weather conditions during this cycle reflect what I wrote in a post on the Winter Solstice, as cold Capricorn meets the watery excess of Jupiter combined with the high winds and record breaking conditions of Uranus that can result in power outages. The only difference being that with Mercury no longer retrograde, for the most part local governments and transportation will be better able to cope with the storms. (The February 2 Aquarius New Moon does not look to bring any relief to the cold and harsh snowstorms, particularly for the East Coast and the Northeastern corridor/eastern New York/NYC/Long Island areas in particular.)

Mercury completes its transit in Jupiter-ruled Sagittarius by making its third and final square to Uranus (January 10) and Jupiter (January 11). These influences can bring news related to international disputes and trade, major court cases, ethical issues involving technology, and new discoveries from the depths of the sea to the outer reaches of the solar system. Look for new developments around this time concerning issues that surfaced during Mercury’s previous squares to Jupiter and Uranus (November 25/27 and December 20/21). Some of the big issues in the news during those times involved North Korea, an EU/IMF bailout for Ireland, the huge WikiLeaks release of State Dept. cables (with Julian Assange scheduled to appear in a London court on January 11), the FCC passed its faux net neutrality act, and the Fed extended its dollar liquidity swap arrangements with five central banks through August 1.

Mercury in Sagittarius conjoins the December 21 Lunar Eclipse on the day of the January 12 First Quarter Moon at 6:31 AM EST. The midpoint between the New and Full Moon is known as the “crisis in action” (5) phase of the cycle as there’s a sense of urgency to act before events culminate at the Full Moon. This is particularly acute now with the Moon in Mars-ruled Aries and Mars in Capricorn favorably aspecting Jupiter and Uranus.

In the USA chart, Venus conjoins Jupiter, reflecting the nation’s wealth and abundant resources. Pluto first opposed the USA Venus on March 8, 2009 (6) as the stock market bottomed to 12+ year lows. On January 17 as Mercury in Capricorn opposes the USA Jupiter again, Pluto will oppose the USA Jupiter for the first time in history (7). Pluto will expose the truth about all the corruption and excess spending on off budget items and corporate welfare; the hypocrisy that “free market capitalism” is really not free but stands for transferring public money back to the most powerful corporate and special interests at the public’s expense.

These themes are followed up the next day when Mercury conjoins Pluto. News concerning all types of debt (especially government), insurance, mining, nuclear issues, and government/corporate espionage could be the focus now. Other Pluto/Capricorn themes occurring around the time when Mercury previously conjoined Pluto was Bernanke defending QE2 on “60 Minutes” and President Obama announcing a tax cut deal with Republicans (December 5), and multiple merger announcements (December 13).

Mortgages are Pluto’s domain and the Moon rules real estate. The Full Moon represents a culmination point in the lunar cycle which is why this period each month becomes emotionally charged. The January 19 Full Moon occurs at 4:22 PM EST in the Moon’s home sign Cancer. Emotional, physical, and material security is paramount now.

The Full Moon is when a New Jersey Supreme Court justice has scheduled a hearing for Ally Financial, Bank of America (BAC), Citibank (C), OneWest Bank (IndyMac), JPMorgan Chase (JPM), and Wells Fargo (WFC) to prove why New Jersey should not suspend banks proceeding with foreclosure processing. It appears that the banks will reach a settlement that is viewed favorably by Wall St.

The Full Moon favorably aspects Jupiter which is ending its transit of Pisces. Jupiter squaring the December 21 Lunar Eclipse portends major court rulings and lawsuits. Old measures of security and the value of home ownership are giving way to the realization that unencumbered mobility is the new security to be able to take advantage of the best professional opportunities as Jupiter moves into Aries January 22 until June 4.

The January 26 Last Quarter Moon occurs at 7:57 AM EST in Pluto-ruled Scorpio squaring the Sun and Mars in Aquarius which could result in unexpected actions taken by leaders that could upset the public. Geopolitical turmoil could erupt in the Middle East, and particularly in Iran and the Korean Peninsula.

Saturn’s energies are particularly pronounced now as it appears from Earth to turn retrograde until June 12. Mercury in Capricorn squaring Saturn today reinforces Saturn’s cautious outlook. The FOMC statement is released this afternoon which could emphasize the downside risks to economic growth. Bond yields have a tendency to fall when Saturn energies are strong in a flight to safety, although the overall trend for longer-dated maturities is for yields to move higher.

(1) Taurus and Virgo are the other signs comprising the earth element; the other cardinal signs are Aries, Cancer, and Libra.

(2) At the signing of the Declaration of Independence on July 4, 1776 at 5:10 PM in Philadelphia.

(3) Pluto is transiting the sector of the USA chart which represents the nation’s outlook. Pluto will move into the financial sector of the USA chart from 2016-2040, with the USA experiencing its first Pluto return during 2022. To say the USA’s financial values will undergo a profound transformation is probably an understatement.

(4) The zodiac sign rising on the eastern horizon when GM’s shares began trading.

(5) As described by Dane Rudhyar in “The Lunation Cycle.”

(6) Transiting Venus in Aries had just turned retrograde March 6, the day the stock market bottomed to 12+ year lows, an indication that the market was about to reverse course as Venus shifted from being an evening to a morning star. With Pluto in the sign ruling government, massive fiscal and monetary stimulus was the catalyst for the market’s snap back rally since then. Pluto’s subsequent oppositions to the USA Venus corresponded to other major financial turning points that occurred at or around these times: May 2, 2009/the stress test results on the nation’s largest banks, December 26, 2009/the Senate passed the healthcare bill (Venus rules the sector of the USA chart representing healthcare; Pluto rules insurance), August 9, 2010/the Fed announced the prelude to QE2, and October 18, 2010 put the spotlight on faulty foreclosure documentation.

(7) Pluto will again oppose the USA Jupiter July 8 and November 20, 2011.

WallStreetWeather.net Forecast For Week Of January 2, 2011: “New Year Edition”

Summary Of Last Week’s Influences:
While the Dow and S&P 500 reached their highest levels of 2010 last week, most of the attention focused on the weather that created havoc throughout the nation, causing numerous accidents and travel delays and cancellations that I warned about in the Sagittarius New Moon cycle and Winter Solstice posts.

Reflecting the energies of Jupiter conjoining Uranus in Pisces (see below), gains in the energy sector last Wednesday was one of the factors helping to fuel the Dow and S&P back to late August 2008 levels following the announcement that Noble Energy’s (NBL) Leviathan gas field off the coast of Israel contains 16 trillion cubic feet of gas which makes it the world’s biggest deepwater gas find in 10 years, providing enough reserves to supply Israel’s gas needs for 100 years. (It should be noted that the December 21 Lunar Eclipse opposed Israel’s natal Jupiter in Sagittarius; now Israel needs to discover a major source of oil which would really tilt the balance of power in the Middle East!)

Summary Of This Week’s Influences:
A new calendar indicates another year has begun and with it the hope each year that the year ahead is better than the year just passed. My wish is that everyone reading this post has a happy, healthy and prosperous 2011!

Many readers of this blog understand that there are really two New Years: January 1st and the original New Year that begins at the Vernal Equinox on March 20 when the Sun enters Aries, the first sign of the zodiac. Although it is quite appropriate that the first day of the calendar year always begins when the Sun is in Capricorn, a sign ruled by Saturn (“Father Time”), Capricorn/Saturn better represents the ambitions and goals of the collective and what is promoted by business rather than individual achievement.

For example, there’s no bigger business at the start of every calendar year than “losing” weight. (Capricorn/Saturn is a contracting energy; individuals with strong Capricorn/Saturn energies in their chart tend to be thin.) Most of the methods promoted are geared to ensure that the only thing permanently “lost” is the money spent on eating the wrong foods, diet books, popping pills, etc. Ways to permanently release excess weight are not promoted since the food and liquids that are beneficial are not highly profitable since they’re unprocessed (although they would tremendously reduce healthcare costs!). Keeping the body toned and fit doesn’t require spending money on equipment or a gym membership.

Basically the Capricorn New Year represents the reputation you want to project this year (the reputation you think society approves of) whereas the Aries New Year is the time to initiate your personal goals and objectives. Of course the most personal “New Year” of all is when the Sun returns to its natal position. (The birthday is called a Solar Return and is where the expression, “many happy returns” is derived from.)

While the Sun represents who we are and rules speculation, the Moon is our emotional barometer and reflects market sentiment. Reinforcing the ambitions of the Sun in Capricorn is that the first business and trading day of 2011 begins with the Moon in Capricorn. There’s no excuses not to get a move on since all the planets are in forward motion until Saturn turns retrograde* January 26!

Monday is the time to tie up all loose ends as well as finalize plans to be implemented after Tuesday’s New Moon, and eliminate what you no longer want (physically and figuratively). Helping out is the Moon conjoining Pluto around midday. This influence relates to matters related to debt (especially sovereign debt) and government efforts to sort out the mortgage mess. It could also bring takeover news and more information on government investigations of the financial industry.

New Moons represent new beginnings and the time to initiate plans into action. The Capricorn New Moon occurs Tuesday at 4:03 AM EST, conjoins ambitious and determined Mars in Capricorn and squares Saturn in Libra. Now is the time to take action to address all types of structural imbalances whether it is in relationships among nations, between the public and private sectors, and most importantly the deficiencies in the nation’s physical and economic infrastructures that is impeding a meaningful economic recovery from taking place.

The Solar Eclipse is exactly opposite the USA’s Cancer Sun which impacts the nation’s identity. Circumstances could arise that don’t go exactly the way leaders planned. From President Obama’s economic plans and military strategies with the wars, the GOP leadership’s promises to rein in the deficit, to Fed Chairman Bernanke’s strategy to control long term interest rates – none are likely to turn out as anticipated. With the Solar Eclipse squaring China’s natal Mercury and Neptune in Libra and Saturn conjoining Mercury/Neptune, U.S. investors’ infatuation with selling to billions of Chinese consumers will lead to disappointment when the Chinese government is forced to rein in their economy to control inflation.

This is a “supercharged” New Moon since as it is a Partial Solar Eclipse. Since the eclipse blocks the light from fully coming through, it symbolizes that we do not have all the information or understanding at this moment to fully digest what is happening now but we will begin to during the second half of the month. Things will become really clear between mid March and the end of April when Mercury, Mars, Jupiter, Saturn, and the April 3 Aries New Moon re-activates the energies of this eclipse. This will likely increase volatility and the potential for a pullback that is followed up by a correction in the late winter/early spring before the market resumes its upward trajectory that could peak for the year by early summer.

Overshadowing the Solar Eclipse is the final** conjunction between Jupiter and Uranus in Pisces that has taken market optimism beyond most people’s wildest dreams in comparison to economic fundamentals. Pisces reflects that the growth spike is the result of its addiction to an external source (a flood of fiscal and monetary stimulus) to inflate asset prices. Nowhere is the irrational exuberance reflected more than in the U.S. market since the U.S. is a Jupiter-ruled nation and the Jupiter/Uranus conjunction favorably aspects the USA’s Pluto in Capricorn and the Taurus Sun of the founding of the NYSE.

Reading “As Euphoria Abounds, Some Warning Signs" by Kelly Evans does a good job of describing these energies right down to the eggnog, the “glass-overflowing mentality,” and the spike in gas prices. Jupiter/Uranus can also bring unexpected reversals; Evans concludes that “the coming year could turn out to be the reverse of 2010.” I agree since the conclusion of Jupiter conjoining Uranus at the end of Pisces greatly raises the potential of a sudden and shocking event in the market that once again demonstrates how interconnected everything is.

Imagine if gold (which is ruled by the Sun and the sign Leo) made a very sharp and unexpected reversal. The conventional wisdom would surmise that as money flows out of gold it will flow into stocks. In fact the opposite scenario could occur as investors faced with margin calls sell what’s most liquid to quickly raise cash. This could cause a sharp and unexpected decline, especially in the most liquid equities.

But with Venus in Scorpio harmonizing with Jupiter and Uranus at the same time Jupiter conjoins Uranus, people are unlikely to be interested at this time in reading about potential “black swan” type scenarios. Venus squaring Neptune in Aquarius indicates rumors are preferred to reality. There could be more incidents of financial fraud and scandal; the Justice Department’s investigation of consultants at expert network firms being paid by hedge funds for insider information on publicly traded companies is likely to expand to catch some bigger fish.

The Moon enters Uranus-ruled Aquarius later Wednesday morning for the rest of the market week which can bring unexpected surprises and discoveries as it emphasizes the Jupiter/Uranus conjunction. The Moon here can tend to make the market more choppy and prone to intraday reversals.

After a long sojourn in Scorpio, Venus enters Jupiter-ruled Sagittarius Friday until February 4 which puts the focus on foreign banks and investments, and income derived from exports. Major currencies could reverse their current trend.

Planets aspecting Saturn can represent the market is about to peak for the time being. The USA is particularly affected by this aspect as it was born with the Sun square Saturn which reflects its longstanding role as the world’s policeman. The USA’s natal Moon-ruled Sun in Cancer square Saturn in Libra also explains why economic policies are tilted more in favor of the most powerful individuals and corporations instead of policies benefiting the public at large.

The Sun squares Saturn Friday just after the release of the December employment report which could surprise to the upside not only for December but also in prior month revisions. This aspect also indicates that authority figures and government regulators could continue to express a cautious view of economic conditions in light of all the unresolved structural issues that continue to loom large over the economy. Fed Chairman Bernanke will testify before the Senate Budget Committee this morning about the economic outlook. Bernanke could be on the defensive, emphasizing the risks to economic growth if the Fed didn’t embark on QE2.

More on these and other planetary influences in my post on the Capricorn New Moon cycle to be posted by Tuesday.

Monday, January 3, 2011
Strong early, weakest around midday; positive close.

Tuesday, January 4, 2011
Positive.
Happy Birthday, Mom!

Wednesday, January 5, 2011
Choppy/mixed to positive.

Thursday, January 6, 2011
Positive trend bias could weaken and turn mixed going into the close.

Friday, January 7, 2011
Negative conditions improve as the day progresses.

*Planets do not really move backwards but appear to from Earth’s vantage point. The energies of retrograde planets can be more internally experienced as retrograde planets are at their closest approach to the Earth.

**Jupiter and Uranus last conjoined in Pisces on September 18. Jupiter and Uranus were briefly in Aries last year; the first conjunction of Jupiter and Uranus occurred in Aries on June 8.