Wall Street Weather

The General, Economic and Geopolitical Influences of the March 20, 2010 Vernal Equinox

2010-03-19T23:34:00.010-04:00

Published by WallStreetWeather.net

The Sun is our life force; its movement into Aries on March 20 at 1:33 PM EDT marks the start of Spring in the northern hemisphere. At the Vernal Equinox the Sun shines directly on the equator and the hours of day and night are equal in length. Each day the Sun will move higher in the sky and the hours of daylight will increase until the June 21 Summer Solstice.

As the first sign of the zodiac, Aries represents the start of something new. In ancient times the Vernal Equinox was celebrated as the New Year and is still celebrated as a national holiday in many countries, including Japan and Iran. Christianity created Easter and the resurrection of Jesus as a substitute for the ancient celebrations of nature’s rebirth. Rabbits and Easter eggs symbolize the fertility and abundance of spring and the opportunity to begin anew.

Aries is ruled by Mars, the planetary energy of action. The confidence and creativity of the Sun synergizes well with the courage and boldness of Aries to birth new initiatives. The Sun and Aries represent the self, and the Sun in Aries (March 20 – April 20), is a powerful time to take ownership of your life and initiate personal objectives.*

The Sun and Mars are the most important planets at the Vernal Equinox and they are particularly powerful for personal achievement as the Sun in Aries is harmonizing with Mars in Sun-ruled Leo (March 21). Aries energy can move too quickly and become impatient to see things through to completion, but Mars favorably aspecting Saturn in Libra (March 22) provides the discipline to structure an ambitious agenda into a realistic and manageable timetable of smaller goals.

The Sun represents leaders. As the Sun in Aries opposes Saturn (March 21) and squares Pluto (March 26), there will likely be instances of current and former leaders being held accountable under the law for their actions that kept a corrupted hierarchy in place in order to solidify their own power and influence. Uranus in Pisces (which will move into Aries May 27) and Mercury in Aries conjoining the Sun and squaring Pluto at the Vernal Equinox describe a growing vocal opposition against leaders who resist calls to transform economic, governmental, and societal structures that have failed to serve the majority outside the boundaries of the status quo.

The Moon represents the emotional mood of the public. Reinforcing the positive influences to enact transformative change at a personal and geopolitical level is that the Moon is waxing (increasing) in light at the Vernal Equinox. Like the Sun in Aries, the Moon functions well in Venus-ruled Taurus. The Moon in Taurus forming supportive aspects to Uranus and Saturn (after the Moon enters Mercury-ruled Gemini March 20) offers the opportunity for pragmatic solutions within the existing framework and laws to bring reform and innovation. As a fixed earth sign, the steady influence of Taurus will carry through to finish the work that Aries is too quick to abandon to something more exciting. The Taurus Moon reminds us to take time out to smell the flowers, as events will unfold rapidly over the next three months with half of the planets in initiating cardinal signs.

The Sun, Mercury, and Uranus conjoin at the apex of the chart set for Washington DC, indicating that President Obama will be signing legislation he actively campaigned Congress to enact. Sundays are ruled by the Sun which strengthens the powerful energies of the Vernal Equinox to take bold action and overcome tremendous obstacles to pass the healthcare bill for President Obama to sign just as the window of opportunity was about to close. The Sun opposite Saturn and square Pluto reflects the fear and delaying tactics used by opponents of the legislation. Aries is symbolized by the Ram, and all the endlessly repeated rhetoric of “ramming the bill through” is going to manifest the healthcare bill enacted into law at the Vernal Equinox! (And House Speaker Nancy Pelosi was born with the Sun in Aries.**)

Pluto rules insurance, and in the sector representing healthcare and employment shows how transformative this legislation will become for the domestic economy and beyond as the U.S. in the next few years will no longer be subsidizing the world’s pharmaceuticals.

The Moon ruling the chart indicates that the nation’s mood and circumstances will fluctuate and be affected by what happens in Congress which is influenced by the Executive Branch. The Moon in Taurus puts the focus on the banking sector and valuations of all kinds. With the Moon squaring Neptune in Aquarius in the sector representing debt, there are likely to be more surprises about debt that had been camouflaged (off the books). Consumer credit costs will increase, along with the cost of goods and services needed for daily living.

Mars in Leo reflects the public wants Washington to take action to reform the financial sector. The Federal Reserve will probably utilize every creative maneuver it can think of to avoid having to raise the fed funds rate through raising the discount rate and contracting excess liquidity.

Venus ruling the sector representing real estate conjoined by Saturn reflects that home values are still under pressure. As more higher priced homes are being forced into distressed sales, average selling prices will deceptively increase. It is unlikely that the Fed will break its commitment to end GSE mortgage security purchases.

Mars and Pluto rule the sector of the chart representing the stock market. The enthusiasm of the Sun conjoining Mercury and Uranus, Venus in Aries, and Mars in speculative Leo will likely contribute to keeping the market for the most part in an uptrend over the next three months, helped by corporate earnings and merger speculation. The Moon in Taurus conjoins the NYSE’s Sun; market sentiment stubbornly resists the urge to sell or go short. The Moon’s square to Neptune in Aquarius conveys the hope that the market can make a steady retracement back to the record highs of October 2007, an unlikely fantasy.

Financial markets have a greater potential for more pronounced moves or a shift in direction on or around the following dates:
March 22, 25, 29
April 6-7, 14, 19-20, 23, 26, 28
May 3-4, 11-13, 17-20, 24, 26-27
June 3-11, 14-15

Hot and dry conditions reflected by the Sun, Mercury, Venus, and Mars in the fire element are tempered by the moderating influence of the Moon in Taurus. Warm and dry weather unexpectedly shifts, bringing severe thunderstorms and flash floods, and the potential for hailstorms and tornadoes.

Areas with greater potential for increased news and weather activity include the entire U.S. East Coast (especially VT, NH, MA, NY, OH, PA, VA, NC, FL), Minnesota, Iowa, Arizona. Baja Peninsula, Cuba and Guantanamo. Earthquake potential for Cuba, Costa Rica, Panama, Colombia, Ecuador, Peru, Chile. Norway, Sweden, Denmark, Germany, Switzerland, Italy, Russia, Georgia. Turkey, Iraq, Saudi Arabia, Yemen. Africa (Algeria, Tunisia, Libya, Niger, Nigeria, Cameroon, Gabon, Ethiopia, Somalia, Madagascar). Afghanistan, Pakistan. Social unrest and/or earthquake potential for Burma, Thailand, Malaysia, Singapore, Sumatra, and central China.

Upcoming posts will describe the trends over the next three months in greater detail.

*The other powerful time of the year to do this is on your birthday.
**Nancy Pelosi: March 26, 1940 time unknown Baltimore, MD

Related Posts: “Anger Management as Mars Moves Forward” and “Time, Money, Politics, and the Body’s Solar Clock”

Anger Management as Mars Moves Forward

2010-03-09T22:01:00.008-05:00

Published by WallStreetWeather.net

Once again the “as above, so below” principle correlating planetary influences to human affairs is evident in “When Anger Is An Illness” by Melinda Beck in today’s Wall Street Journal.

Mars represents anger and aggressive behavior. As described in this week’s Forecast, Mars energy is prominent now as from Earth’s vantage point Mars gives the appearance of being stationary in the sky as it begins to move forward again after being retrograde since December 20.

When a planet appears to be retrograde, its energies become more internally focused. Mars energy is action-oriented and moves quickly, but during its retrograde period about every two years frustration can result when embarking on new endeavors as the Mars retrograde period (December 20, 2009 – March 10, 2010) is best suited for acting on established issues.

With Mars in Leo (October 16, 2009 – June 8, 2010), anger and aggression can become a melodrama. Or the energy can be channeled productively into creative outlets that can enhance your career, investing, romantic relationships, children, and help to keep your heart healthy as these are all ruled by the Sun and Leo.

“Demand for anger management programs is exploding.” The Journal cites companies concerned about litigation (with some professions offering “pre-emptive anger management”), courts seeking alternatives to jail sentences, and “civility training” for lawyers renewing their licenses.

Mars rules war and the military, and the “war on terror” put I.E.D. (“improvised explosive device”) into the lexicon. I.E.D. also stands for something else: “intermittent explosive disorder,” defined as “episodes of aggression against people or property out of proportion to any provocation.” And now there’s “temper dysregulation disorder” (a disorder that has yet to be recognized by Microsoft Word).

With every passing year, studies surface showing greater numbers of the population falling under the label of some form of mental illness created by the medical industrial complex such as attention deficit and bipolar disorder which they preach drugs and psychotherapy could possibly cure. Neptune and Pisces rule mental illness, sleep, all types of addictions, hospitals, drugs, and the art of illusion. The Journal cites “2006 studies from Harvard and the University of Chicago estimating 1 in 20 Americans (mostly men) may fit the criteria for I.E.D.” (Bold emphasis mine.) While there are people who genuinely suffer from mental illness and require treatment, the vast majority of the population would be fine without psychiatric help and especially without drugs.

I.E.D. by either definition would describe a challenging alignment between Mars and Uranus, the planetary energy of explosions, shocks, and rebellious and unexpected behavior. On July 30, 2010, Mars in Libra will oppose Uranus in Mars-ruled Aries, kicking off an action-packed and volatile week on a global level as Mars conjoins Saturn in Libra (July 31) and opposes Jupiter in Aries and squares Pluto in Capricorn August 4. This could be a long, hot angry and violent summer that is as intense as the potential for more powerful earthquakes, erupting volcanoes, hurricanes, and severe storms that affect large geographic areas. Or these tensions can be reduced through cooperative action that benefits the greater good and not just the status quo as economic, physical, and societal infrastructures undergo massive transformation.

An “anger inventory quiz” and “Tips to Help Keep A Temper in Check” serve as an adjunct to the Journal article. One thing that’s missing amongst the tips is to avoid reading about topics that tend to make you angry. Replace the news and violent TV and movies with entertainment that will help to put a smile on your face and make you laugh.

While certain medical conditions can increase irritability, the article should have also noted that medications, medication interactions, and even antidepressants can intensify aggressive behavior. No drug or surgical procedure will prevent heart dis-ease if your heart is filled with rage rather than love and compassion towards yourself and others. The Journal quotes a 2004 Harvard study that estimates some 30,000 heart attacks each year are triggered by momentary anger. And if you have a heart attack, do you really want to be operated on by the surgeon described in the article who lost control of his anger and “reamed out someone via cell phone while performing open heart surgery”?! Hospitals are now required to have anger management programs for “disruptive” physicians as a condition of accreditation.

Since Mars is a highly physical and active energy, my favorite tip on the list is to “get physical without fists.” Exercise, step outside for a quick walk, do some cleaning or other physical task (refrain from working with sharp tools or equipment until you have sufficiently calmed down).

Mars is an impulsive energy; action taken too quickly can be regretted later. Invoke Saturn’s energy by having a “time-out” before any encounter or communication with the person or situation that raises your ire. Saturn is about taking a long term view; things that seem annoying right now could be less upsetting or even insignificant tomorrow morning. Anger is an expression born out of fear.

Mercury represents communication. Writing down when you get angry and what triggers it can help you identify and change the pattern. Replace negative self-talk with positive phrases and think how much better you feel when you are calm. Making excuses in order to give yourself “permission” to behave badly will only bring more people and situations into your life that make you angry. Free yourself from the illusion that you are a victim of your genetics and cannot control your behavior.

Although every day offers an opportunity to make a fresh start, the March 15 New Moon in Pisces, followed by the Sun conjoining Uranus in Pisces, along with the Moon in Aries and Mercury in Aries harmonizing with Mars in Leo on March 17 can make it easier to leave negative family patterns behind and set foot in a new direction.

The Sun moving into Aries and harmonizing with Mars in Leo on March 21 - the same time Mars makes a favorable aspect to Saturn in Libra offers the opportunity to let go of the past and take control of your anger. As more people are calm and in control of their emotions, the more peace we create in the world.

The image represents the symbol for Mars, depicted by the shield and the lance which represents male virility. This is also the ancient symbol for iron which is what most weaponry was made of. Mars also rules steel.

Related Posts:
“Guerrilla Warfare Is The Key To Win Afghanistan”
“Uranus, Mars and the Supreme Court’s Gun Control Ruling”

WallStreetWeather.net Forecast For Week Of March 8, 2010

2010-03-07T20:58:00.001-05:00

Summary Of Last Week’s Influences:
The Sun conjoining Jupiter in Pisces last Monday marked the start of a positive week for stocks and major commodities.

In last week’s Forecast I wrote that the Sun/Jupiter alignment could bring news relating to the drug industry. Jupiter reflects drug industry deals with foreign companies. Merck (of Germany) agreed to buy biotechnology equipment supplier Millipore (MIL) for $7.2 billion, and Japan’s Astellas Pharma made a $3.5 billion/$52 a share unsolicited bid for OSI Pharmaceuticals (OSIP). Monday’s Sun/Jupiter conjunction occurred at the same time OSIP’s stock chart was experiencing a Jupiter return, pushing the stock up $19.23 to $56.25. Pluto in Capricorn opposing OSIP’s Neptune now reflects the takeover bid and OSIP’s and the market’s belief that a higher offer could materialize. Jupiter rules legal issues, reflecting Astellas’ lawsuit that OSIP’s board is not acting in the best interests of its shareholders.

The week ended with the Dow at 10,566.20, posting its best one day point and percentage gain since February 16 - the day Venus conjoined Jupiter. The Nasdaq hit an 18 month high at 2,326.35; while the S&P closed at 1,138.70, slightly under its 52 week high of January 19. A better than expected February employment report and retail sales numbers got the market excited that there are starting to be signs of economic recovery.

Summary Of This Week’s Influences:
Venus enters Mars-ruled Aries today until March 31, and Mars begins moving forward again, releasing a lot of pent up energy after being retrograde since December 20.

Venus rules money, banking, financial arrangements/partnerships, copper, and sugar. Venus is the principle of attraction. Venus in Aries harmonizing with Mars in Leo now creates fiery enthusiasm for financial, artistic, and romantic pursuits.

Venus in Aries challenges the Federal Reserve’s natal Sun in Capricorn opposite Pluto in Cancer. Fed Governor Kevin Warsh (who was born with the Sun in Aries) will speak on “the Fed at a crossroads” at the Hedge Fund Institutional Forum Monday morning. (Another reason why the Fed should not be the nation’s banking and consumer finance regulator!)

Mercury (thoughts) conjoins expansive Jupiter in Pisces at the Last Quarter Moon (sentiment) in Jupiter-ruled Sagittarius today. Jupiter and Sagittarius squarely put the focus on global issues and is likely to bring more news about a rescue (Pisces) package for Greece, particularly as the Sun conjoins Greece’s natal Jupiter in Pisces as Jupiter is about to return to where it was in the chart for the founding of modern Greece (this last occurred in 1998).

Mars in Leo stationing direct on Greece’s natal Sun reflects a central authority (EU, IMF) taking action to support Greece’s finances. Greece and other nations such as the US and UK with key natal planets in cardinal signs* could face their biggest crisis yet over the summer when Jupiter and Uranus in Aries oppose Saturn in Libra and square Pluto in Capricorn. This challenging planetary lineup could precipitate circumstances that force governments to take actions they have preferred to sidestep or postpone into the future in order to avoid making difficult decisions on matters relating to debt, taxes, spending, and financial regulatory reforms.

Mercury conjoining Jupiter in Pisces follows on the heels of the conjunctions of Venus and the Sun to Jupiter. These alignments were bullish for the stock market and Mercury/Jupiter is likely to also be positive but could be somewhat less enthusiastic.

Venus rules Libra, and the brash and impatient do it now attitude of Aries conflicts with Libra’s indecisive tendencies that result from a desire to accommodate all parties and viewpoints. Venus opposing Saturn in Libra on Tuesday could put pressure on valuations, especially with the Moon in Saturn-ruled Capricorn. Capricorn and Saturn rule government, and Pluto rules debt. As Venus in Aries opposes Saturn Tuesday and squares Pluto in Capricorn on Thursday, it could reinforce the caution and fear of Saturn squaring Pluto that began in November and was particularly prominent from the latter part of January to mid February.

When a planet from Earth’s vantage point appears to be stationary in the sky, its influence is more pronounced. Mars represents action and military matters. Mars retrograde periods tend to slow down trading volume, particularly with Mars in Leo, the sign of speculation that especially rules the stock market and gold. Planets changing direction can equate to at least a temporary reversal in market direction. Mars officially turns direct at 12:09 PM EST Wednesday but will not begin to slowly move forward until Friday. Trading volume should begin to increase along with volatility as the month progresses. Leo and the Sun represent leaders; their actions will drive the market now.

Mars represents aggression. As Mars turns direct on Toyota’s progressed** Pluto in Leo, Toyota “is planning an assault on its critics” by discrediting a study pinpointing the sudden acceleration problem as an electronics issue and attack a former Toyota lawyer who provided documents to Congress that he believes portray Toyota’s “culture of withholding crucial evidence” (Pluto) about vehicle problems, according to a Wall Street Journal article. As I predicted in my post about Toyota, customers are already reporting incidents of sudden acceleration after having the recall repairs done on their vehicles. Since Toyota’s problems are not going to go away anytime soon, it would be far better for Toyota to channel their energy and money into fixing the problem instead of fighting it.

Mars moving forward is a reminder for most of the USA to move clocks forward one hour on Sunday as Daylight Savings Time officially begins at 2:00 AM until November 7. (Neptune, the planetary ruler of dreams and the unconscious turns direct on November 7, so people will particularly savor getting back that extra hour of sleep!)

Monday, March 8, 2010
Positive: strongest in the morning, but could begin to lose steam in the afternoon.

Tuesday, March 9, 2010
Negative.

Wednesday, March 10, 2010
Negative.

Thursday, March 11, 2010
Negative conditions improve as the day progresses, turning choppy/mixed to positive.

Friday, March 12, 2010
Choppy/mixed to negative as market weakens as the day progresses.

*The cardinal (action-oriented, initiating) signs are Aries, Cancer, Libra, and Capricorn.

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

OSI Pharmaceuticals: April 3, 1986

No disclosures.

WallStreetWeather.net Forecast For Week Of March 1, 2010

2010-02-28T21:27:00.005-05:00

Summary Of Last Week’s Influences:
Despite the major indices closing lower last week for the first time in three weeks, the Dow and the S&P made the strongest gains in February in 12 years – the last time Jupiter was in Pisces. Jupiter is the traditional planetary ruler of Pisces. Venus in Pisces conjoining Jupiter in mid February combined with the pair’s harmonious alignment to the USA’s natal Venus and Jupiter, helped the Nasdaq make its first monthly gain in February since 2003. Venus operates well in Neptune-ruled Pisces which helped boost the value of crude oil, up 9.3% in February to just under $80.00 despite an abundance (Jupiter) of supply.

Underneath the largely benevolent influence of the Sun, Jupiter, Venus, and Uranus in Pisces remains the bigger influence of Saturn in Libra squaring Pluto in Capricorn. Pisces creates confusion and uncertainty, while Saturn creates pressure and fear in the market over debt (Pluto) concerns. Saturn is creating freezing conditions - from freezing temperatures to proposals to freeze government (Saturn) spending. And Pluto is on a mission to expose the mountain of debt that governments at all levels have amassed. Saturn creates blockages, whether caused by snow and ice covered roads, or politicians blocking legislation to advance own agenda.

Wall St. is blaming the snowstorms for light trading volume, but this is reflected by Mars being retrograde since December 20. This is particularly true as Mars is retrograde in Leo the sign of speculation until March 10. Mars retrograde in Leo can stall action as leaders can let their egos get in the way of moving forward. From now until March 21 Mars is at the beginning of Leo which can bring action related to events from mid-October. On March 21 the Sun in Aries will harmonize with Mars in Leo as Mars starts its march forward and events begin to move at much more dynamic pace.

To quote the title of an article in yesterday’s Financial Times, if nervous investors are waiting for uncertainty to clear, they might want to hibernate for the rest of the year (which will be the primary focus of upcoming posts). The article quotes Stephen Jen, managing director of macroeconomics and currencies at BlueGold Capital, who says “the upshot is a more difficult market for investors who trade on economic fundamentals rather than so-called technicals such as specific market levels.” Jen equates “this to a switch in focus from astronomy to astrology.” :-)

Summary Of This Week’s Influences:
The Sun conjoins Jupiter in Pisces today for the first time since February 23, 1998 on the day of the Full Moon (emotional awareness) in Virgo-ruled Mercury. The Sun represents speculation and Jupiter optimism and expansion. Combined they can represent large market moves, usually to the upside as these planetary energies favor risk-taking.

The Sun/Jupiter alignment describes large scale global events. In Pisces this can relate to credit conditions and aid packages. News relating to drugs, hospitals, R&D, chemical, and the oil and gas industries could be prominent now. Neptune-ruled Pisces is an elusive kind of energy where things are not usually what they might initially appear to be. The Full Moon in Virgo is a time to shine the light through the haze of confusion by analyzing whether the information and numbers presented add up.

This Full Moon is particularly powerful as the Moon is perigee (closest to Earth), exerting a tremendous influence on the tides. Neptune/Pisces rules the oceans, and the Full Moon opposing the Sun and Jupiter greatly increased the tidal force, creating high waves and tsunami warnings for several countries including the U.S. after an 8.8 earthquake struck Chile early Saturday morning. The Full Moon in earth element Virgo increases the potential for geophysical events such as earthquakes, especially as Mercury was exactly conjoining Neptune in Aquarius (shockwaves). Mercury rules communications and its conjunction to Neptune describes the extensive use of the tsunami warning system. In the Northeast, these planetary combinations created an excessive amount of moisture that resulted in yet another big blizzard. The Full Moon in Virgo highlights how these events have disrupted schedules and obtaining food and basic necessities.

Mercury will enter Pisces Monday until March 17, bringing the total number of planets in Pisces to five until March 7. Mercury in Pisces together with the Sun conjunct Jupiter could create large market moves on Monday.

The Moon will be in Venus-ruled Libra on Tuesday and Wednesday, emphasizing financial arrangements. The annual conjunction of Venus conjoining Uranus in Pisces midweek could create currency reversals and sudden sector shifts. With the Moon shifting into Scorpio Thursday and Friday and Mercury making a favorable aspect to Scorpio’s planetary ruler Pluto on Thursday, previously undisclosed news (probably related to debt) is revealed. These influences are a good time to do research and investigation.

Looking back one month from now, this week’s influences could seem pretty sedate compared to the rest of March as volatility is likely to rise approaching the March 15 New Moon.

Monday, March 1, 2010
Positive.

Tuesday, March 2, 2010
Strongest in the morning, then weakens and becomes choppy in the afternoon, closing negative.

Wednesday, March 3, 2010
Positive early, then becomes choppy/mixed to negative in afternoon.

Thursday, March 4, 2010
Market improves as day progresses; ends positive.

Friday, March 5, 2010
Choppy/mixed to positive trend bias.

WallStreetWeather.net Forecast For Week Of February 22, 2010

2010-02-21T21:02:00.001-05:00

Summary Of Last Week’s Influences:
As explained in last week’s Forecast, the combination of Venus conjoining Jupiter in Pisces harmonizing with the USA’s natal Venus/Jupiter conjunction in Cancer reflected Wall St’s optimism over indications the U.S. economy is expanding.

Oil had a big move last week, closing just under $80 a barrel. Copper is ruled by Venus which saw its biggest gains since last October thanks to the Venus/Jupiter conjunction in Pisces.

The biggest news last week caught the market off guard when the Fed issued a 4:30 PM press release Thursday announcing the rate charged to banks who borrow from the Fed’s discount window would increase 0.25% to 0.75% as part of the Fed’s “exit strategy” outlined by Chairman Bernanke on February 10. Fed heads were out in force on Friday seeking to assure the market that this was a “technical” move and not the start of Fed tightening. As I’ve been writing since last fall, I think circumstances will arise that will force the Fed to raise interest rates at the June 23 FOMC meeting.

Summary Of This Week’s Influences:
The First Quarter Moon in Gemini today at 7:42 PM EST reflects that Washington is back to business this week. The week between the New and Full Moon is known as the “crisis in action” phase. With the Moon in dualistic Gemini, Washington is holding multiple hearings on two controversial issues.

Gemini and Mercury rule motor vehicles. There will be two hearings this week to investigate Toyota’s problems with unintended acceleration and the NHTSA’s handling of the matter. The House Energy & Commerce Committee will hold a hearing Tuesday at 10:00 AM. Wednesday at 10:00 AM Akio Toyoda and Transportation Secretary Ray LaHood will appear before the House Oversight Committee.

Rather than the usual dog and pony show that these hearings tend to be, it would be helpful if the Committee pushed Congress to revamp the NHTSA and allocate more funding and resources to the agency that has a staff of around 56 people to investigate consumer vehicle safety complaints. Other automakers should not gloat over Toyota’s troubles but view it as a wakeup call to thoroughly scrutinize their own quality control measures and response to consumer problems with their vehicles.

In the USA, the Sun, Jupiter, Venus, and Uranus in Pisces lined up in the sector of the First Quarter Moon chart representing healthcare reflects President Obama finally releasing his vision of healthcare reform on the White House website Monday prior to his healthcare summit with Republicans on Thursday.

On Wednesday at 10:00 AM the House Energy & Commerce Subcommittee on Oversight and Investigations will hold a hearing on the decision by Anthem Blue Cross (a subsidiary of WellPoint) to raise premiums on individual health insurance policies by 39% in California. In a letter to Wellpoint (WLP) CEO Angela Braly asking her to testify at the hearing, Committee Chairmen Waxman and Stupak requested that Wellpoint provide information for all premium increases in all states that WellPoint and its subsidiaries do business.

Wellpoint had to postpone their February 23 Investor Day with analysts to prepare for the hearing which will make a good warm up act for President Obama’s healthcare summit with Republicans on Thursday. Wall St. should view what goes on in Washington this week as “investor days” for the health insurance sector whose business model is dying even if Republicans could have their wish granted and get Democrats to “start from scratch.”

Committee members should ask Ms. Braly whether the private sector has failed to provide a health insurance product that the average consumer can afford to buy, and is it the government’s responsibility to do so? The questions need to be carefully targeted so Braly is backed into a corner and forced to admit that the only viable solution is to have a health insurance pool that includes everyone. Now that Saturn is opposing Uranus for the first time since Congress enacted Medicare in 1965, Americans under 65 are in the exact same situation as seniors were then. If the entire nation was covered under Medicare, the risk pool would be spread out which is the most import way to lower healthcare costs.

Democrats need to counter Republican arguments by asking Ms. Braly to break out the dollar and percent amounts of monthly premiums that go towards mandated coverage imposed by each state as well as the amount Wellpoint allocates in premiums toward malpractice litigation so the public understands this is has been greatly exaggerated by Republicans and The Wall Street Journal editorial board. However, Democrats do need to get on board with tort reform so they can do what the Republicans only talk about yet did nothing about when they were the party in power.

While we’re on the subject of accounting, Braly needs to be questioned how Wellpoint allocates expenses between plans. Specifically, corporate overhead allocated to the individual market vs. the large group market. The only way to determine Wellpoint or any other health insurance company’s true medical loss ratio is to account for only payments made to outside medical service providers. I think that what will come out of the hearing is that Wellpoint will need a medical loss ratio far south of 80% (as required in the Senate bill) to cover their bloated administrative costs and profit requirements. It will be hard to justify these inefficiencies to Congress and the public.

Republicans act as if allowing health insurers to sell policies “across state lines” would solve everything. This is a misnomer since health insurers already sell policies across state lines to groups - policies no cheaper than ones issued by insurance companies who are state regulated to offer a policies in that state! What the Republicans really mean is if one state has few regulations, an insurance company should be able to offer that state’s policy in a state that has stricter regulations.

In a previous post I wrote that the Republicans might regret Scott Brown’s win. There are small signs that President Obama and the Democrats are finally starting to view what appeared to be a loss as a liberating opportunity to use reconciliation just like Republicans did when they were the majority. (I also think that something previously undisclosed is going to surface with Brown that will embarrass the GOP.)

Sandwiched between Toyota and healthcare reform is Ben Bernanke who will appear before the House Financial Services Committee at 10:00 AM Wednesday and the Senate Banking Committee the following morning as part of the Fed’s semi-annual testimony to Congress postponed from the snowstorm two weeks ago. Other “Fed heads” will be speaking throughout the week and at a U.S. monetary policy forum on Friday.

Monday, February 22, 2010
Choppy/mixed conditions; swings between moderately positive to negative.

Tuesday, February 23, 2010
Negative.

Wednesday, February 24, 2010
Negative.

Thursday, February 25, 2010
Improving conditions as day progresses to choppy/mixed to moderately positive.

Friday, February 26, 2010
Positive trend could weaken going into the close.

Demoting Pluto Did Not Prevent the Financial Crisis

2010-02-18T23:51:00.008-05:00

Published by WallStreetWeather.net

It is ironic that the world’s first major financial crisis involving sovereign debt is in Greece whose ancient civilization paved the foundation for modern math, science, medicine, architecture, philosophy, and democratic principles.

In Greek mythology Plouton was known as “the rich one.” The Greek god of wealth was also called Hades (“the unseen”), as Plouton’s riches derived from wealth that lies beneath the surface.

The Romans called the lord of the underworld Pluto, derived from the Greek ploutos (“wealth”). Wealth accumulated under the surface - from mining Earth’s natural resources, the underground economy, or trading opaque financial instruments, is all part of Pluto’s domain.

Pluto rules debt which if properly used can increase wealth or result in bankruptcy and poverty. A mortgage is French for “dead pledge,” meaning the debt does not die just because the borrower turns in the keys to the lender. Welfare makes the individual or company beholden to the person or group with the wealth and power to control them.

Pluto was discovered 80 years ago today – less than four months after the stock market crash of 1929 and the Great Depression that followed it. Pluto was in Cancer, a sign ruling food, real estate, and personal security. People lost their savings from banks going under, their homes, and crops destroyed by draught. Pluto represents catastrophic events of human or natural origins that have an effect on a massive scale as a way of forcing transformation that is long overdue.

By the time NASA launched the New Horizons probe to Pluto in early 2006, the economy was in a real estate bubble fueled by ultra low interest rates and easy credit. Pluto was in Jupiter-ruled Sagittarius, and as real estate and stock prices climbed higher and higher, the leverage expanded.

Pluto represents deep seated issues, things we’d rather keep suppressed because we’re afraid the energy is just too intense to handle (Pluto rules nuclear energy). Maybe that’s why the International Astronomical Union on August 24, 2006 voted to “demote” Pluto to a “dwarf” planet, hoping the action would prevent the bubble based on real estate collateral from bursting. The vote occurred one week before Saturn in Leo made the first of three oppositions to Neptune in Aquarius, indicating credit (Neptune) would begin to contract (Saturn).

When Pluto entered Saturn-ruled Capricorn in January 2008, the credit contraction led to a full blown crisis that began with losses related to adjustable-rate subprime mortgages. As Saturn in Libra began to square Pluto in November 2009, it became evident that Wall St. and Main St. weren’t the only ones who took on too much debt. Capricorn and its planetary ruler Saturn represent government. Saturn squaring Pluto in Capricorn reflects that belt tightening is required to get a grip on sovereign debt.

Pluto forces change by destroying what no longer works so it can be transformed and birthed into something more viable. Pluto in Capricorn until 2024 will not allow governments to postpone making hard choices regarding debt, taxation, retirement, and insurance benefits. On the 80th anniversary of Pluto’s discovery, President Obama signed an executive order establishing a new bipartisan commission on Fiscal Responsibility and Reform after the Senate failed to approve legislation that would force Congress to vote on these issues. Pluto in Capricorn is not the time to pay lip service to debt problems by keeping the real numbers hidden through accounting treatments or tax tricks. Governments who fail to act to create long term sustainability and instead focus on what they believe to be politically expedient will only prolong the pain and postpone an economic recovery. Pluto in Capricorn requires the courage to relinquish the failed policies of the past.

As astronomer Ken Croswell pointed out in an op-ed piece in today’s Wall Street Journal (“Ninth Rock From the Sun”), a 2009 CNN.com poll found an overwhelming majority of Americans favor returning Pluto to its full planetary status. The Moon represents the public and at the time of Pluto’s discovery, the Moon was in Pluto-ruled Scorpio in a harmonious relationship to Pluto in Moon-ruled Cancer. Americans are most passionate about the issue since the Moon in Scorpio at Pluto’s discovery exactly harmonizes with the USA’s Sun (self-identity) in Cancer.

For a 20 year period every 248 years, Pluto moves inside Neptune’s orbit. Neptune represents communism/socialism and fervent religious/spiritual beliefs. Pluto can turn Neptune’s beliefs into fundamentalism. From January 23, 1979 to February 11, 1999 Pluto was closer to Earth than Neptune. The Shah was overthrown and Iran became an Islamic Republic. Religious fundamentalist groups became far more involved in U.S. politics, seeking to erode individual rights in Pluto-ruled matters of sexuality, life, and death.

Pluto was closest to the Earth on November 4, 1989, just days before the fall of the Berlin Wall which was followed by the collapse of communism in the Pluto-ruled Soviet empire. Saturn was conjoining Neptune in Capricorn at the time, indicating not only that a physical barrier would dissolve that separated communism from capitalism, but the structure of the communist government (Saturn in Capricorn) would disintegrate as well.

The Saturn/Neptune conjunction during 1989-90 marked the start of a new economic cycle that as previously described peaked in mid-2007. The root origin of the financial crisis began with the Tax Reform Act enacted on October 22, 1986. Pluto rules taxes and loans. Interest paid on consumer loans were no longer deductible, while the limits on the home mortgage interest deduction increased.

Neptune exactly opposing the USA’s natal Venus (money, banks) in Cancer (real estate) and Pluto in its “home” sign Scorpio (lending) forming a harmonious aspect to the USA Jupiter in Cancer, sowed the seeds of using real estate to extract cash. The use of home equity loans extended beyond home improvements and began to be used to pay off other debt or take on more debt as the value (Venus) of the home increased.

In 2001 as Saturn in Gemini opposed Pluto in Sagittarius, the Federal Reserve (with its Sun in Capricorn opposing Pluto in Cancer and Moon in Scorpio) had an epiphany that they could restore the economy suffering from the collapse of the tech bubble and the 9/11 terrorist attacks by promoting real estate as a vehicle to generate more equity and subsequently more collateralized lending to consumers. People wouldn’t notice that wages were stagnant to deteriorating and the true cost of living was increasing as long as they could use their home as an ATM machine. As Saturn opposed Neptune and Pluto entered Capricorn, home values and credit began to contract, leaving borrowers with a mountain of debt.

During the housing boom, 70% of the U.S. economy was consumer driven. July and August 2010 mark the start of a new era in the U.S. economy as new technology (Jupiter conjoining Uranus in Aries) opposes Aries ruled Mars which conjoins Saturn in Libra with all of these planets squaring Pluto in Capricorn. Uranus was in Aries when Pluto was discovered and Saturn and Pluto are again in cardinal (action-oriented) signs that reflect the economic challenges that must be dealt with. The Federal Reserve and the government will be forced to wake up to the fact that the consumer driven economy is not a balanced economy and cannot be resurrected. Foreclosures will rapidly rise and consumers will learn the lesson that homes are used for utilitarian purposes rather than as a financial instrument. A new industrial revolution is about to begin that will lead to the rebirth of the U.S. as a technological and industrial leader.

Astronomy is considered to be a science. Yet science is supposed to require evidence in order for a theory to become a fact. The I.A.U. was too impatient to wait until 2015 for data from the New Horizons probe to support or discredit the theory voted on by a minority of astronomers that Pluto is not a planet.

Between 2010 and 2015 Uranus in Aries will square Pluto in Capricorn. These energies will bring about many new discoveries and technological advances as there’s a newfound eagerness to explore the unknown and break through the barriers of what is considered impossible or improbable. Astronomers demoted Pluto yet people are starting to recognize it is time to master Pluto’s energies by tapping the wealth and power inherent within each individual. This is not welcome news to the plutocrats who would prefer to keep the public debt dependent and in the dark.

Notes:
Pluto was discovered by astronomer Clyde Tombaugh at the Lowell Observatory in Flagstaff Arizona on February 18, 1930 at 4:00 PM MST.

NASA’s New Horizons space probe launched from Cape Canaveral on January 19, 2006 at 2:00 PM EST. New Horizons is scheduled to make a flyby of Pluto on July 14, 2015 at 11:47 UTC, and its Moons Charon (the ferryman), Nix (Charon’s mother, the Greek goddess of darkness and light that synthesizes with Pluto’s intense energy), and Hydra (the 9 headed serpent guarding the waters of the underworld).

The I.A.U. voted to demote Pluto on August 24, 2006 at 3:44:29 PM CEDT in Prague.

Saturn opposite Neptune: August 31, 2006, February 28, 2007, and June 25, 2007.

USA: July 4, 1776 5:10 PM Philadelphia, PA

WallStreetWeather.net Forecast For Week Of February 15, 2010

2010-02-14T21:10:00.002-05:00

This is an abbreviated forecast to match the abbreviated week on Wall Street.

With the Moon in Pisces and Venus conjoining Jupiter in Pisces Tuesday, the market expects that this week’s reports will show the U.S. economy is expanding. Venus and Jupiter tend to express themselves well in Pisces as there’s a tendency to make generous assumptions and view the glass as half full. There’s an emotional pull to temporarily escape from the global debt debacles of Saturn square Pluto for the moment and focus on what’s right in the world. Reinforcing this sentiment is that the conjunction of Venus and Jupiter in Pisces is harmonizing with the USA’s conjunction of Venus and Jupiter in Moon-ruled Cancer.

Pisces is ruled by Neptune which inflates conditions. Thursday’s Producer Price Index and Friday’s Consumer Price Index could come in slightly higher than expected. Oil and gas are ruled by Pisces/Neptune, which could experience large moves this week.

Monday, February 15, 2010
Markets closed for Presidents Day holiday.

Tuesday, February 16, 2010
Venus conjoining Jupiter tends to be bullish but can bring large moves that take the market in either or both extremes.

Wednesday, February 17, 2010
With the Moon in Aries, the market could begin with a strong start from industrial output gains. Enthusiasm could start to wane and the indices end mixed to moderately positive.

Thursday, February 18, 2010
Volatile, choppy moves in either extreme; negative bias.

Friday, February 19, 2010
(Options expiration) Choppy to volatile conditions as sentiment swings between negative and positive intraday, ending mixed to moderately positive.

WallStreetWeather.net Forecast For Week Of February 8, 2010

2010-02-07T21:43:00.003-05:00

Summary Of Last Week’s Influences:
Once again the stock market closed lower last week as the influence of Saturn square Pluto caused investors to fear the lack of fiscal discipline (Saturn in Libra) by global governments to reign in their debt mountain (Pluto in Capricorn).

Fears that certain countries sovereign debt could become the new subprime or Act II of the financial crisis caused global markets to tumble Thursday as the P.I.G.S. (Portugal, Ireland, Greece, Spain) in the EU are getting slaughtered over excessive spending during the Pluto in Sagittarius years (1995-2008) that has proven to be unsustainable. Saturn represents the law of cause and effect; what comes around, goes around. Rather than becoming more competitive as EU member nations, P.I.G.S. took advantage of the EU’s cheaper borrowing costs to load up on debt (Pluto), ignoring structural inefficiencies (Saturn) such as high labor costs relative to productivity.

Saturn in Libra squaring Pluto in Capricorn is putting the fiscal imbalances front and center. Ignoring the problem won’t make the energies of Saturn and Pluto any easier to deal with; quite the opposite in fact! Tilting the economic scales too much towards using real estate and its related consumer spending as a way to create a short term economic boom resulted in a global bust. The contracting energies of Saturn squaring Pluto (debt and taxes) in Saturn-ruled Capricorn (2008-2024) indicates that governments need to have the political will to make the hard choices that they would rather not make before even more draconian measures become necessary.

In last week’s Forecast I mentioned that Greece’s chart is (surprise surprise!) being affected by the Saturn/Pluto square. So are the other three countries. With Saturn/Pluto impacting Mars and Saturn in Cancer (real estate) and Pluto in Libra, Portugal is more affected than Ireland or Spain now.

The Euro hit an 8 month low against the U.S. Dollar, still considered to be the world’s reserve currency despite a warning from Moody’s Wednesday that the USA’s AAA credit rating could be downgraded if no actions are taken to address the $1.56 trillion budget deficit and/or economic growth remains weak.

In “Investors dazed by week of turmoil,” the FT’s Jennifer Hughes remarks that “if 2009 was about taking risk, this year has been about shedding it.” This reflects the market’s optimistic euphoria from Jupiter conjoining Neptune from the spring of 2009 thanks to global government stimulus measures and the E-Z money policies of central banks like the Fed and the Bank of England engaging in quantitative easing. (What normal people call printing money.)

The Fed and the BoE have stopped the presses and are gradually unwinding the special lending programs established during the financial crisis but have yet to prove that they’re willing to implement exit strategies to unwind the excess liquidity.

So far global governments are expressing the “lower vibration” of Saturn by trying to preserve the status quo at all cost despite the fact that Pluto is out to destroy what is no longer working as it should be. The longer we delay Saturn’s need to restructure and deny that Pluto is a very powerful planet in our universe, the longer our economic structures will decay into a slow and prolonged death. Only by forcing ourselves as a nation to face our deepest and most difficult issues can we transform our economy to achieve steady and sustainable growth instead of politically expedient quick fix boom and bust cycles.

The frictional (square) relationship between Saturn and Pluto is a call for action, not denial, delay and avoidance. Jupiter in Pisces this year represents that big sacrifices are required by all. Whether by cooperation or by bringing what has been kept in background to the forefront, those people and elements in our economy and society who seek to keep things as they are will be called out.

An example of this is when I wrote that President Obama is working behind the scenes to get healthcare legislation passed in spite of what media headlines would have the public believe. What the President was really telling Democrats last week is that they will pay the price on Election Day if they fail to pass a healthcare bill. The Aquarius New Moon on February 13 opposes Obama’s natal Uranus in Leo in the sector of his chart that represents diplomacy and open enemies. The Republicans are about to get a wakeup call as President Obama is launching a new initiative to force Republicans over the following two weeks to declare issue by issue which components of the House and Senate healthcare bills they support or oppose, no longer allowing them to hide behind the “let’s start over” mantra.

What President Obama will be doing at this time is harnessing the energies of Saturn square Pluto, balancing one side of Libra’s scales by passing legislation right away on what elements of the healthcare bill Democrats and Republicans agree on. The other side of the scales forces the Republicans to specify where they stand on each individual component of the House and Senate bills rather than generalizing.

I had written that if Scott Brown won the Massachusetts Senate seat, the Republicans would likely end up wishing that Martha Coakley had won. Losing the 60th vote in the Senate allows President Obama to force the opposition to responsibly govern (Saturn) instead of spewing endless rhetoric. Losing the supermajority in the Senate eliminates the ability of single Democratic Senators such as Ben Nelson and Joe Lieberman from holding the party hostage. Instead, either a negotiated deal with Republicans has to be achieved or else the Democrats can do what Republicans loved to do when they were the majority and take the reconciliation route with 50 Democrats.

Friday’s employment report was a mixed bag that resulted in a lot of market volatility. While the employment picture is not improving near as fast as anyone would like, it showed that the job losses are far less than they had been. It is also evidence that more stimulus spending “to create jobs” is unnecessary. What was needed from the start was accelerated depreciation or complete expensing of equipment purchases for businesses for a limited period of time, so that companies would have to act now. This would create jobs building and installing new equipment at a time when businesses would ordinarily be reluctant to spend money on capital purchases.

Summary Of This Week’s Influences:
The week begins with Venus conjoining Neptune in Aquarius. This planetary alignment can be bullish and ignore risk factors by donning a pair of rose colored glasses, or become bearish over financial rumors or deception involving credit issues. This alignment combined with the Moon in Jupiter-ruled Sagittarius on Monday can create large market moves.

Financial fraud is another way to describe Venus conjoining Neptune. This is what New York AG Cuomo has accused Bank of America (BAC), former CFO Joe Price, and former CEO Ken Lewis of by failing to disclose that Merrill’s losses were worse than the bank had disclosed prior to the shareholder vote of the merger. With the Moon in Sagittarius (Courts), Judge Jed S. Rakoff will rule on whether he will accept a revised settlement the bank reached with the SEC on the same day as Cuomo’s lawsuit after the Judge rejected the first one last year. The actual BofA/SEC trial begins March 1 and Ben Bernanke needs to be put on the witness stand.

Mercury the planet of communication and movement leaves its long sojourn in Capricorn since December 5 and moves into Aquarius on Wednesday until March 1. Mercury in Uranus-ruled Aquarius is a time for progressive thinking and inventive ideas. Aquarius rules protests, and public workers in Greece are set to go on a 24 hour strike against the government seeking to raise taxes and rein in government wages. Mercury entering Aquarius can create currency reversals and increased volatility.

Fed Chairman Bernanke testifies at 10:00 AM Wednesday before a House Financial Services Committee hearing on unwinding the Fed’s emergency lending programs. At 2:00 PM the House Oversight Committee holds a hearing on “Toyota Gas Pedals: Is the Public at Risk?” Since I wrote the post about Toyota’s Saturn/Pluto problems last week, the company will now have to recall the Prius to repair a software glitch in the hybrid vehicle’s braking (Saturn!) system.

Venus (money/banking) moves into Neptune-ruled Pisces Thursday until March 7. Venus here further emphasizes concerns about credit ratings and their effect on interest rates.

The Aquarius New Moon Saturday at 9:51 PM EST conjoins Neptune while Venus conjoins Jupiter in Pisces. This increases the likelihood of large market moves and volatile conditions that take the market from one extreme to the other as the underlying influence of Saturn and Pluto strongly in effect over the next month can cause the market to readily shift from euphoria to panic and back, causing investors to become unnerved.

Monday, February 8, 2010
Choppy/volatile as market swings from negative to improving conditions that take the market mixed to positive.

Tuesday, February 9, 2010
Positive but begins losing momentum to reverse gains as sentiment turns cautious in the afternoon.

Wednesday, February 10, 2010
Negative early then begins improving in late morning to become choppy/mixed to moderately positive.

Thursday, February 11, 2010
Negative conditions become choppy/mixed to positive as day progresses.

Friday, February 12, 2010
Choppy/volatile conditions that swing from bearish to bullish.

Toyota’s Accelerator Surge Slams the Brakes on its Global Growth

2010-02-03T12:26:00.008-05:00

Published by WallStreetWeather.net

Toyota announced February 1 it has a solution to fix the more than 6 million vehicles affected by a recall caused by “sudden unintended acceleration” (SUA). Toyota will insert a steel bar on the accelerator pedal assembly to eliminate excess friction that could cause the pedal to stick. Vehicle owners will be notified by mail to schedule an appointment with a Toyota dealer which will make the “sticky pedal” fix and take care of the floor mat recall also affecting certain models.

While there have been incidents with other auto manufacturers vehicles unexpectedly accelerating on their own, incidents involving Toyota vehicles have been far higher. At least 19 deaths and over 1,000 accidents have been reported since 2001 involving Toyota and Lexus brand vehicles. The NHTSA has largely dismissed most of these incidents, outlining in a March 2004 memo its position that a vehicle’s braking system would always overcome an engine and stop a car.

If this were actually true in the age of drive by wire, the computer software would stop acceleration the minute that the brake is tapped. A vehicle’s braking system was never designed to overpower the engine. In the days when manual transmissions prevailed, the driver could simply press the clutch which would disengage the engine from the transmission and no tragedies would have occurred. Electronic sensors have replaced the mechanical connection between the pedal and the engine to control acceleration.

Just as each part of the human body is ruled by a certain planetary energy, so are the parts of a motor vehicle. Mars rules the accelerator as it represents moving forward. The braking system is ruled by Saturn, a cautious and slow moving energy whose giant rings represents boundaries and constraints. The Sun rules the engine, the heart of the vehicle. Uranus rules the vehicle’s electronics and computer systems. Because computers control and coordinate the engine’s activities, Uranus has usurped the Sun as the center of the vehicle’s “solar system.”

Uranus describes events that occur unexpectedly, giving a strong indication that the source of the problem revolves around the vehicle’s computer systems and software. Jim Lentz, the president of Toyota USA told reporters Monday that “we have done exhaustive testing, and we have found no evidence of problems with the electronics.” The House Committee on Energy & Commerce which will hold a hearing on February 25, sent a letter to Lentz yesterday requesting full documentation to substantiate Toyota’s claims that the problem was not the result of a computer glitch. Reps. Waxman and Stupak’s letter notes that Toyota officials told committee staffers on January 27 that the causes of unintended acceleration are “very, very hard to identify” and sticky accelerator pedals are “unlikely to be responsible” in cases where cars accelerated above 60mph.

Transportation Secretary Ray LaHood said that Toyota issued the recalls after transportation officials flew to Japan in December “to remind Toyota about its legal obligations” and in January followed up with Toyota “to insist they address the accelerator issue.” The department is considering seeking a civil penalty from Toyota. So how did Toyota suddenly go from being the world’s most respected carmaker to fueling the public’s suspicions and apprehensions that they’re not being told the whole story?

Toyota’s series of recent recalls related to unexpected acceleration were spurred by the death of a California Highway Patrol officer and three family members in a 2009 Lexus ES350 that suddenly accelerated out of control on August 28, 2009. Toyota attributed the problem to floor mats. Mars (acceleration; accidents) was opposing Pluto then, indicating that the cause of the problem was deeper and more involved than Toyota’s explanation. During the previous Mars/Pluto opposition, Toyota issued a recall on September 26, 2007 for 2007-08 Lexus ES and 2007-08 Camry floor mats for possibly interfering with the accelerator returning to the idle position.

At the time of the 2007 recall Mars and Pluto were squaring Toyota’s founding chart’s Mercury in Virgo (communication and transportation), Saturn in Virgo conjoined Toyota’s Sun, and the Sun opposed Toyota’s Saturn in Mars-ruled Aries. At the time of the Lexus crash on August 28, Mercury, Mars and Pluto (death)were impacting Toyota’s Saturn in Aries. Two weeks later when Mercury was retrograde, the media leaked the family member’s 911 call made just before the fatal crash. These transits to Toyota’s founding chart reflect that normal braking (Saturn) was not able to control the vehicle’s sudden acceleration. Mercury describes a communications deficiency between the brake and the accelerator. Pluto in Saturn-ruled Capricorn was conjoining the progressed Sun* in the chart for the founding of Toyota USA indicating that the US market would be the primary source of Toyota’s troubles.

On September 29, 2009 Mercury stationed direct, conjoining Saturn in Virgo and opposing Uranus in Pisces, once again impacting Toyota’s Mercury while the Sun opposed Toyota’s Saturn. This was a wakeup call for Toyota to come clean what information it knew about potential electronics problems. Toyota announced an advisory affecting 3.8 million vehicles, telling owners to remove the driver’s floor mat until the company found a solution to the problem.

In October 2009 Saturn shifted into Libra and was about to make its first square to Pluto while both planets were affecting the Toyota founding chart’s Mercury/Saturn opposition and the Toyota’s USA chart’s progressed Sun in Capricorn. Akio Toyoda, the president of Toyota and the founder’s grandson, told reporters that “the days when you could classify Toyota as one of the winners are over” as Toyota had entered the fourth of the five stages of corporate decline described in Jim Collins’ book “How the Mighty Fall.”

Saturn and Pluto affecting Toyota’s Mercury and Mars and the Toyota USA’s progressed Sun reflects Toyoda’s remark that the company stood on the brink of “capitulation to irrelevance or death.” Saturn is about taking responsibility and being held accountable for actions taken. Pluto describes the decline and death that must occur in order to bring about transformation.

Despite Toyoda’s public admission, Toyota’s natal Mercury/Saturn opposition reflects the company’s rigid denial that the unexpected acceleration problem was caused by anything beyond floor mats and sticky accelerator pedals. Toyota issued a press release addressing “the growing suspicion by some Toyota and Lexus owners, that a glitch of some kind in the electronic engine management system was the cause of reports of unintended acceleration.” Toyota pointed out that this issue had been “one of the most thoroughly and repeatedly investigated issues by Toyota” and the NHTSA who denied a petition to investigate “unintended acceleration not caused by accelerator pedal interference.”

On November 25, Toyota announced it would alter the accelerator pedals on 4.26 million vehicles, provide new floor mats, and install a brake override system for certain Toyota and Lexus models beginning in early 2010.

Eclipses are harbingers of major change, and Saturn’s energies were particularly potent at the time of the January 15 Capricorn Solar Eclipse. As Saturn in Libra stationed retrograde and Mercury in Capricorn turned direct, both planets impacted Toyota’s natal Saturn in Aries. The eclipse squared Toyota’s founding chart Venus in Cancer and progressed Mars in Capricorn as well as Toyota USA’s Mars in Libra, indicating Toyota needed to take additional action to maintain consumer relations despite the cost. Toyota announced it was recalling an additional 2.3 million vehicles as part of its original recall of the sticky accelerator pedals.

Saturn and Capricorn represent freezing conditions and describe Toyota’s January 26 order freezing U.S. sales of eight Toyota models affected by the sticky accelerator pedal recall. Saturn and Pluto were about to exactly align for the second time on January 31 impacting Toyota’s Saturn in Aries and Toyota USA’s progressed Sun, affecting 1200 U.S. dealers. Pluto represents problems on a massive scale, reflecting there are more Toyota and Lexus models with the problem than Toyota is acknowledging in its current recalls.

These planetary energies affecting Toyota’s charts leading up to the second alignment of Saturn square Pluto describe Toyota’s fear of alarming the public if it acknowledged the possibility that the root cause of the unexpected acceleration could be emanating from a software bug that might still remain elusive to Toyota engineers. Saturn represents blockages and delays that tend to backfire as Pluto will dig deep to expose what’s being kept under the surface. It also describes various government investigations of Toyota now underway.

Pluto represents the massive scale of the problem and costly fallout from Toyota’s emphasis on global expansion over Toyota quality that began in 1995 under the leadership of Hiroshi Okuda. This was when Pluto entered the expansive and global sign Sagittarius. Toyota’s goal was to usurp GM’s status as the world’s biggest automaker by building a better Buick. Toyota succeeded in 2008 just as Pluto shifted from expansive Sagittarius to contracting Capricorn. The excesses of those years forced GM into bankruptcy and majority government ownership. And now Toyota is learning a costly lesson for being too dependent on computer simulations and rushing out products during those years without building prototypes.

“Why did we decide to take action now so suddenly? That’s because, to be honest, there was fear that if we continued our study on this any longer (our credibility could be questioned).” – Toyota chief quality officer Shinichi Sasaki to reporters in Japan February 2

Mars acts like a trigger, accelerating and accentuating other planetary energies. With Mars retrograde in Leo opposing the Sun and Venus last week leading up to the January 30 Leo Full Moon with Saturn square Pluto, Toyota’s acceleration problem was accelerating. Mars retrograde in Leo was squaring Toyota’s founding Uranus in Taurus, conjoining Toyota’s USA’s Uranus in Leo, and conjoining the sector of Toyota’s (TM) NYSE ADR chart representing its reputation and opposing Uranus in Aquarius. Beyond reflecting the minor selloff in Toyota’s stock, Mars in Leo to natal Uranus in these charts suggest action needs to be taken to investigate the engine’s (Leo) computer control system (Uranus). Mars and Uranus in fixed signs can make the problem difficult and slow to diagnose.

Saturn and Pluto reflect that Toyota faces a long road ahead under harsh weather conditions during 2010-11. These two planets are impacting Toyota’s stock chart Sun in Libra, keeping the stock under pressure. The stock’s reaction to these events reminds me of how the financials held up for awhile before collapsing into the single digits during the financial crisis. Saturn/Pluto and other planetary influences confirm James B. Stewart’s assessment of the stock in today’s Wall Street Journal.

Jupiter in Pisces opposing Toyota’s founding Sun in Virgo now describes the growing legal cases against the company. There could be a major announcement about the accelerator issue around the time of the February 28 Virgo Full Moon which squares Toyota’s founding Mars. The problems could expand to more countries. (This also coincides with the House Committee’s hearing.)

The Aries New Moon on April 14 squares the January 15 Solar Eclipse, reactivating the issues that led to the late January recalls and sales freeze. Mercury turns retrograde in Taurus on April 18, affecting Uranus in the three charts described above. This could represent a breakthrough in solving the problem or there could be a recurrence of sudden acceleration incidents in vehicles that underwent the recall fix. With Mercury in Taurus, the news will come at great cost to Toyota. Saturn opposes Uranus on April 26; both planets affect Toyota’s founding Mercury. This could represent a new recall to make the software fix that instructs the computer to override the accelerator and cut power to the engine so the brake will work if the vehicle unexpectedly accelerates. Other new developments in this saga could occur around the June 26 Lunar Eclipse in Capricorn.

Saturn square Pluto also reflects the NHTSA’s failure to recognize that computer problems with automobiles are just as serious a problem as mechanical issues. A positive outcome of Jupiter and Uranus conjoining in Aries in June would be for the government to require that all new vehicles have a brake override of acceleration to prevent loss of control in the event of a computer or mechanical malfunction. Another alternative would be to have a device similar to the mechanical clutch in cars with an automatic transmission. Following the lead of the commercial aviation industry, I believe that all new vehicles should have a black box so that investigators could examine the causes of mechanical or electrical failures.

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

Toyota Founded: August 28, 1937 time unknown Toyota, Japan
Toyota Motor Sales USA Founded: October 31, 1957 Torrance, CA
Toyota (TM) NYSE ADR: September 29, 1999 9:30 AM New York City

WallStreetWeather.net Forecast For Week Of February 1, 2010

2010-01-31T21:41:00.003-05:00

Summary Of Last Week’s Influences:
“As January goes, so goes the market” is what’s known as the “January barometer.” With the three major indices closing January in the red, the January barometer would suggest that 2010 will be a negative year for the stock market.

As outlined in a prior Forecast, 2010 does not have the optimistic euphoria of Jupiter conjoining Neptune that dominated the year from the spring forward. And the ultra accommodative monetary policies and government stimulus that drove the outsize gains are slowly ending or will be tightened.

The January 15 Solar Eclipse in Saturn-ruled Capricorn at the same time Saturn stationed retrograde and Mercury turned direct in Capricorn so close to Saturn in Libra exactly squaring Pluto in Capricorn for the second time while Mars retrograde in speculative Leo opposed the Sun and Venus in Aquarius last week, reversed the market’s upward momentum.

As the FT’s John Authers wrote yesterday, “After months when every risk appeared to be an opportunity, markets have suddenly started to treat interesting opportunities as risks.” In an earlier column last week, Authers noted the irony that China is driving a lot of the current concerns. Authers quoted Morgan Stanley’s Teun Draaisma who observes that history’s biggest “relief rallies” during a bear market have averaged about a 70% gain followed by a 25% correction. We’ve made the 70% gain, but are not yet near the minimum 10% drop that defines a market correction.

Saturn’s fear over the sovereign debt (Pluto) of other nations has strengthened the U.S. dollar. The Jan 15 Solar Eclipse conjoined the Euro chart’s Venus (currency) and squared its Saturn in Aries, putting pressure on its value over concerns about Greece’s debt and commitment to budget tightening. Like the U.S., Greece’s natal Venus is in Moon-ruled Cancer and is being impacted by the Saturn/Pluto square. Compounding the problem is that Venus in Cancer squares the Moon and Pluto in Venus-ruled Libra in Greece’s chart.

Crude oil experienced its biggest monthly decline since December 2008. Jupiter in Pisces reflects an abundance of oil and natural gas. Thanks to Saturn in Libra, sugar has been the only commodity that continues to gain due to severe supply constraints and increased global demand.

President Obama and the Democrats are still struggling to pass healthcare reform. The Senate confirmed Ben Bernanke to a second term as Fed Chairman but not without a lot of arm twisting. Toyota spend $1 billion in 2008 in the U.S. advertising “Toyota quality” which would have been better spent building vehicles that don’t unexpectedly surge out of control. Saturn, Pluto, and Mars brought Toyota’s massive problem front and center in the spotlight last week. In my next post I will explain how these influences are affecting three key charts for Toyota.

Summary Of This Week’s Influences:
The energies of Saturn in Libra and Pluto in Capricorn continue to dominate economic events this week. Congress and the Administration will continue to bicker about reaching an agreement on ways to rein in spending to lower the ever growing mountain of government debt.

Virgo is the bookkeeper and the efficiency expert ruled by dualistic Mercury. With the Moon (sentiment) in Virgo on Monday, the government will release the President’s budget for the FY2011 beginning in October which seeks to “freeze” spending. (Saturn and Capricorn represent cold and harsh weather conditions.) The Moon in Virgo harmonizing with Mercury in Capricorn Monday can help decipher the fine print and determine if the numbers add up.

Defense Secretary Gates will hold a news conference to discuss the Pentagon’s budget and long term national security vision. Mars represents military matters, and Mars in Leo exactly conjoins Gates’ Pluto Monday. Saturn and Pluto have been impacting Gates’ natal Mercury, Sun, and Neptune in Venus-ruled Libra while Pluto is harmonizing with natal Venus in Virgo. As an article in yesterday’s Wall Street Journal points out, Gates is determined to transform (Pluto) the structure (Saturn) of the military “to focus on smaller-scale guerilla warfare,” believing that the conventional strategy of being prepared to fight two major wars simultaneously “was outdated and overly focused on conventional warfare.”

With Mars conjoining natal Uranus in Gemini (which exactly conjoins the USA Uranus) and with Venus in Virgo squaring natal Uranus, Gates is attuned to the need for a flexible military that is equipped with the latest and most efficient technology. Gates is requesting more unmanned drones and helicopters. He also wants defense contractors to build more fuel efficient armored vehicles and aircraft to lower energy costs and the number of convoys needed to get supplies into remote and landlocked areas such as Afghanistan.

With the Pentagon’s progressed* Sun in Libra conjoining Gates’ Libra lineup, it appears that Robert Gates is the right person at the right time to lead this effort. Defense contractors and their friends in Congress will balk, but in the end it looks like Gates will have successfully negotiated to get much of what he wants.

According to the FT, At 6 foot 7 inches tall Paul Volcker “is too big to fail.” Like Gates, Volcker was also born with Venus in Virgo (along with the Sun, Mercury, and Mars). The former Federal Reserve Chairman and Chairman of President Obama’s Economic Advisory Board has an op-ed piece in today’s New York Times on “How to Reform Our Financial System.” Volcker will testify at 10:00 AM Tuesday before the Senate Banking Committee on what President Obama has dubbed the “Volcker Rule.”

Saturn is fear. If we allow our deepest fears to get the better of us they become our reality. The Bush Administration’s obsession with moral hazard ended up creating what they claimed they most feared: failures and takeovers that have created banks that are now too big to fail. Now the Obama Administration and other governments propose to create a “resolution authority” that would take control of any financial institution the government believes would pose a systemic risk to the financial system to facilitate an orderly liquidation or merger.

The UK (we have a pattern of copying them on these issues since the financial crisis) has proposed these systemically important financial institutions have a living will in place to provide guidance to the resolution authority. Institutions designated too big to fail would have to pay a tax that would go to a fund to cover the costs in the event of a failure of a systemically important financial institution.

While this is all sooo Saturn/Pluto, there is a simpler solution. Saturn/Pluto reflects it is time to return to a structure of plain vanilla banking. Enact the “Volcker Rule,” impose higher capital requirements, make banks get their funding through deposit taking, and establish the Consumer Financial Protection Agency to separate consumer regulations from commercial banking regulations.

Paul Volcker’s Mars opposes his Jupiter and Uranus in Aries. Transiting Uranus, Saturn, and Pluto are impacting these natal planets. Later this year and in 2011, Jupiter and Uranus will return to where they were when Volcker was born. A Jupiter return occurs about every 12 years; a Uranus return happens once in a lifetime (around age 84). Both occurring simultaneously is a liberating influence that allows Volcker to be free to speak his mind and be more assertive and influential in helping to take the financial system back to the future.

Consensus estimates call for a gain of 13,000 jobs in the January employment report to be released on Friday. I think there will be a gain but the prior month(s) revision could be what the market is more fixated on. Last week’s Employment Cost Index reflected that wages grew more slowly in 2009 than since the government began tracking data in 1982 when Saturn was last in Libra. Wages by people employed in the private sector rose 1.5% in 2009 while consumer prices increased 2.8%, resulting in a loss of real wages of 1.3%. Inflation will really overheat midyear when Jupiter conjoins Uranus in Aries.

The Last Quarter Moon in Pluto-ruled Scorpio occurs Friday at 6:48 PM EST. Mercury is the chart ruler and resides in the sector representing the stock market. Mercury is conjoining the January 15 Solar Eclipse now as the G7 finance ministers meet Friday and Saturday in Canada. Events that occurred then will be back in the news now. With Saturn in the sector representing the economy and the banking system and Mercury ruling this area of the chart, and Saturn ruling the sector representing the stock market with Pluto here, the market is focused on sovereign debt and tighter financial regulations. The public is concerned about their investments, particularly retirement accounts. There could be some surprising new developments related to credit conditions.

The indices have closed at or near session lows for the last 6 out of 7 consecutive sessions. This week appears to have a similar pattern.

Monday, February 1, 2010
The strong influence of Saturn square Pluto and the Moon in Virgo’s aspect to Mercury in Saturn-ruled Capricorn brings news that is viewed negatively by the market. (Indices strongest around midday.)

Tuesday, February 2, 2010
Choppy/mixed to moderately positive, but weakens to close negative.

Wednesday, February 3, 2010
The indices could have a hard time deciding which direction to go today. Negative early, then becomes choppy/mixed before turning positive. Loses momentum going into the close.

Thursday, February 4, 2010
Positive early then becomes choppy/mixed to moderately up, then weakens in the afternoon.

Friday, February 5, 2010
Volatile with large moves that swing from bullish to bearish.

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

The Euro: January 1, 1999 12:00 AM CET Frankfurt, Germany
Greece: July 24, 1974 4:00 AM EET, Athens, Greece
Robert M. Gates: September 25, 1943 time unknown Wichita, KS
Defense Dept: July 26, 1947 12:15 PM EDT Washington, DC
Paul Volcker: September 5, 1927 time unknown Cape May, NJ

The future of the Federal Reserve under a reconfirmed Bernanke

2010-01-29T17:29:00.005-05:00

Published by WallStreetWeather.net
Ben Bernanke has consistently cited the Federal Reserve’s “independence” every time members of Congress requested additional information about the central bank’s secret deals and special lending programs it established during the financial crisis. But when his nomination to be reconfirmed Fed Chairman appeared to be in jeopardy, Bernanke was anything but independent of the political process.

Bernanke made numerous visits to Senators seeking their support and was reported to have been still working the phones during the FOMC meeting. Several Republicans broke their filibuster of blocking anything the Democrats wanted, joining in the spirit of bipartisanship to please the corporate and Wall St. donors they enjoy trashing when the cameras are rolling. Warren Buffett who said on CNBC the week before to “let me know a day or two in advance if Bernanke is not confirmed so I can sell some stocks,” had been lobbying Senators. And so was GE CEO Jeffrey Immelt who serves on the board of the New York FRB “representing the public”; as the company has received beaucoup benefits from Bernanke’s Fed.

Resistance declined as the week progressed, and Ben Bernanke was confirmed at 4:12 PM yesterday to a second term as Fed Chairman by a 70-30 vote after Senators voted 77-23 to break the filibuster on his nomination. Bernanke is lucky that politicians are also driven by the fears they enjoy stirring up. Members of the Administration and Bernanke supporters were working feverishly to push Senators to vote for Bernanke for fear they would be accused of contributing to a market collapse. (This was the same excuse used by Buffett and other supporters to push Timothy Geithner’s nomination through even though other Obama nominees dropped out over tax issues.) Senators were instructed to imagine how much worse things would have been if Bernanke hadn’t been at the helm during the financial crisis.

While Washington, Wall Street, and corporate America largely support Bernanke, a majority of Americans do not. Only 18% of people surveyed in a January 23-25 Wall Street Journal/NBC News poll said they were “positive” about Bernanke; support for his reappointment had changed little since a June poll. More men favored his reappointment than women, probably because women are still predominantly responsible for grocery and other household expenditures and managing household budgets. Because of this, women (at least speaking for myself :-) ) tend to be more cognizant of inflation’s real world effect on purchasing power and how the Fed’s policy of zero interest rates create a negative return on interest income even before it is taxed. For all the political pandering to senior citizens on healthcare and other issues, Washington and advocate groups such as AARP have been stone silent about how the Fed’s policies have severely harmed seniors’ financial health.

“Beginning late this year and extending through 2009, Pluto will aspect the Fed’s Sun (identity/the Chairman), Midheaven** (reputation/status), and Pluto (transformation). This has never happened in the Fed’s history. What it means is that the Fed’s purpose and scope will be radically revamped from its current existence.

Chairman Bernanke’s Sun, Moon, Mercury, Venus, and Jupiter will face challenging energies in 2008-09 from Saturn and Uranus. High level people (especially government) will exert even greater pressure on him to do their bidding. At the same time, he will want to free himself from these restrictions to pursue a different course of action. (Or he could disagree with the new duties and structure of the Fed.) These energies also have the potential to create health challenges from high stress. Bernanke’s position as Chairman expires on January 31, 2010. He will not be re-appointed, and will probably resign before then.” – From my post on “The Fed’s Future”

I wrote that post on September 18, 2007 – less than one month before the Dow and the S&P made record highs and one year before the financial crisis erupted on Wall Street. Even when he was nominated for a second term on August 25 as part of President Obama’s agenda of “change that we can believe in,” virtually no one had any concerns that the Senate would fail to reconfirm him. Bernanke will go down in the history books as the Fed Chairman with the most “No” votes.

Pluto in Capricorn has already “revamped the Fed’s purpose and scope” as Bernanke has pushed the Fed’s powers to the limit. Now that Saturn in Libra is squaring Pluto, proposals are making their way through Congress that would limit or separate the Fed’s power and responsibilities. Saturn in Venus-ruled Libra reflects the movement in Congress to remove the Fed’s ability to regulate banks, while the Administration proposes the creation of a Consumer Financial Protection Agency to regulate consumer finance while the Fed would be in charge of regulating all financial institutions that could pose a systemic risk. Bernanke has made it clear that he opposes any legislation that would reduce the Fed’s authority and threaten its “independence.” The GAO is auditing the Fed’s handling of AIG, and Bernanke is not pleased that a bill to audit all of the Fed’s special lending programs is going through the Congress.

It is unfortunate that Bernanke still refuses to take responsibility for the Fed’s role in precipitating the financial crisis. His continued allegiance to the Greenspan doctrine of creating asset bubbles now and mopping up the mess later is not the way to create a steady and sustainable economy.

Wednesday’s FOMC Announcement contained subtle changes, reflecting that Bernanke runs the risk of waiting too long to embark on an exit strategy to tighten monetary policy. The only FOMC member who appears to realize the Fed is moving too slowly and wanted the “extended period” phrase dropped from Wednesday’s statement was Thomas Hoenig, president of the Kansas City FRB. This was really interesting to me as the intuitive impression (versus examining the planetary influences) that immediately entered my mind before I wrote the Weekly Forecast was “it’s time to take off the training wheels” regarding the “extended period” phase. It never dawned on me to think about any dissenters since the committee has been unified with Bernanke for so long.

I have previously written why I believe the Fed will raise interest rates no later than the June 23 FOMC meeting. The training wheels could come off at the March 16 meeting. The April 28 FOMC statement will prepare the market for the rate increases to follow. At the same time, the Fed will probably assure the market that mortgage liquidity will be available.

The stock market has always been fearful of change, especially when overly accommodative monetary policies were the primary source of Wall Street’s recovery. Monetary tightening does not signal the end of the world but is a welcome acknowledgement that economic conditions are gradually improving. There is the additional danger that inflation could quickly overheat if tightening does not occur.

As much as I disagree with the Greenspan/Bernanke doctrine, I object even more to those who would like to abolish the Federal Reserve System altogether. If Congress were in complete control of the Federal Reserve we would have an extremely accommodative monetary policy forever instead of for an “extended period” of time.

Because there will likely never be a Fed Chairman like Paul Volcker again, Congress should limit the Fed’s duties to focus on monetary policy. And then Congress should refrain from any attempt to interfere with the Fed’s independence.

Short Fuse on Healthcare and the Obama Presidency

2010-01-27T14:55:00.008-05:00

Published by WallStreetWeather.net

It was expected that Barack Obama would be celebrating his one year anniversary as President of the United States having passed healthcare reform. Instead the President and the Democrats received a stunning defeat as Republican Scott Brown won the election for the late Teddy Kennedy’s Senate seat.

The Democrat loss in Massachusetts seemed like a cruel twist of fate since Teddy Kennedy is portrayed as making healthcare reform “the cause of my life.” President Obama made healthcare reform a key part of his political campaign and his first year agenda, and has come closer than any of his predecessors to enacting healthcare reform. Having already passed the House and the Senate, Congressional negotiators were in the process of melding the two bills at the time of the Massachusetts Senate election.

Saturn represents the law of cause and effect.* What we put out, we get back. Saturn’s energy can seem harsh and restrictive, but this is Saturn’s way of reminding us that we must be accountable and take responsibility for our actions by investing the time and effort required to achieve our goals.

Massachusetts Attorney General Martha Coakley learned the hard way what happens when you don’t put enough effort into a political campaign. A lack of strong planetary influences to her natal chart during the campaign reflects her lack of motivation as evidenced by her refusing to campaign in front of Fenway Park in the cold.

Eclipses are harbingers of major change. The January 15 Solar Eclipse in Saturn-ruled Capricorn squaring Coakley’s progressed** Saturn in Libra reflected that Massachusetts voters gave her the cold shoulder for failing to make the effort to relate to them. Coakley and the Democratic Party committed a foul in Saturn’s playbook by acting as if Kennedy’s seat was reserved for Democrats only; failing to grasp Saturn’s no work, no reward mantra.

Saturn in Libra and Pluto in Capricorn squaring Scott Brown’s natal Mars in Libra motivated him to aggressively campaign for the Senate seat. And with Neptune in Aquarius squaring natal Jupiter, Brown fervently believed he could win by portraying himself as an independent even though he voted with Republicans a majority of the time as a State Senator. Libra is ruled by Venus and with his Venus conjoining Pluto in Virgo, Brown presented the image of a down to earth “regular guy” who kept his backing by the Republican party and powerful special interests in the shadows and never acknowledged the Party in his victory speech. Venus (banks) conjunct Pluto (taxes) and Venus squaring natal Jupiter in Pluto-ruled Scorpio reflects Brown’s opposition to proposals to tax bank profits to recoup bailout money and his opposition to taxing bank executive compensation.

The energies at an eclipse are influential over the next several months. Saturn’s energies were particularly powerful as the planet appeared stationary from Earth’s vantage point as it began moving retrograde until May 30, 2010. Saturn is a slow and cautious energy that presents delays and obstacles along the path in order to test our discipline and perseverance.

Saturn is fear. On the surface it appears that the Solar Eclipse exactly conjoining Obama’s natal Saturn in Capricorn has caused him to retreat from healthcare reform, fearing that the rejection of a Democrat to fill Teddy Kennedy’s seat served as a public referendum against healthcare reform. The influence of Mars retrograde in Leo exactly conjoining his Sun last week put the President in a fighting mood. With Saturn and Pluto impacting President Obama’s natal Venus in Cancer, he decided to channel his anger and frustration over healthcare reform into attacking the banks (Venus), feeling that his actions would resonate with public sentiment (Cancer).

The Sun/Leo and Saturn/Capricorn represents leadership. The characteristic of a true leader is a person who does not retreat from a setback, but instead is able to quickly reevaluate the situation and take the steps necessary to get the job done.

President Obama formally announced his objective to achieve healthcare reform on May 13, 2009 when Saturn was stationary and about to shift into direct motion. Saturn rules history. The President believed that by allowing Congress to craft the legislation and by seeking to get all the players in the healthcare industry on board, would avoid repeating the mistakes made by the Clintons.

Saturn can present basic facts and fundamentals that are easily understood or it can be highly structured, complex and bureaucratic. A big mistake made by Obama and the Democrats is that healthcare reform became too complex to be able to explain to anyone beyond policy wonks. This made it all too easy for opponents to attack it.

If the Democrat’s proposal had been straightforward in addressing the abuses of health insurance that people most feared, it would have been difficult for the Republicans to mount an aggressive attack against it. The first issue is that the public’s fear of insurance abuse was not high enough, and the second issue is that the public was convinced by the bill’s detractors that they would be worse off under reform. Complexity made defending the bill nearly impossible.

Saturn rules time. Obama and the Democrats allowed deadlines to be pushed back through the summer in the hope of garnering Republican support even though Republicans openly declared their strategy to destroy healthcare reform would be the President's “Waterloo.” By the time the House passed their version of the bill on November 7, Saturn had left Virgo (healthcare) and moved into Libra and was about to make the first of three challenging alignments to Pluto.

In the House, Saturn squaring Pluto the ruler of insurance and life and death issues reflected the House bill’s severe restrictions on insurance coverage of abortion. Pluto in Capricorn describes the powerful special interests that push their agenda at the expense of the general public. Saturn and Pluto impacting the USA natal Venus when the Senate passed their bill December 24 pushed the leadership into negotiating concessions to motivate a couple of Democratic Senators to support the bill.

The Unions played hardball and withheld their support for Martha Coakley, angry that the Senate bill would tax (Pluto) some union members high cost health insurance plans. Saturn square Pluto describes political pressures and power struggles. The Senate is telling the House to pass the Senate bill as is while House Speaker Pelosi is trying to use what little leverage she has to convince the Senate to pass a Corrections bill covering the House’s objections to the Senate’s version. Even though the Republicans during the Bush Administration used reconciliation a number of times to pass legislation, the Senate is afraid of being accused by Republicans of “ramming” a bill through to satisfy the House. With Saturn squaring Pluto and Mars retrograde in Leo opposing Venus and the Sun this week, the players would rather let their pride get in the way than agree to pass the Senate bill in the House, avoiding confrontation.

The Solar Eclipse conjoined President Obama’s Saturn in the sector of his chart representing activity taking place behind the scenes. The President’s recognition that time is not on his side is confirmed by the hiring of his former campaign manager David Plouffe as a political consultant. In an op-ed piece in Sunday’s Washington Post, Plouffe remarked that Democrats “own” healthcare since they already voted on it. Plouffe wants the House to pass the Senate’s version so Obama can sign the bill into law, giving the public enough time to see for themselves that the bill is not what opponents have made it out to be.

Challenging aspects between Saturn and Pluto represent economic contraction (Saturn) that usually follows a period of excess spending and debt (Pluto). The last time Saturn and Pluto were squaring each other in cardinal (action-oriented) signs was in 1930-1 when Saturn opposed Pluto. Saturn/Pluto influences tend to limit the party in power and have correlated to Presidents pushing healthcare reform.

The Medicare Act passed during the time when Saturn in Pisces opposed Uranus and Pluto in Virgo from 1965-66. During 2010 Saturn is opposing Uranus and both of these planets are squaring Pluto. In 1974 when Saturn was squaring Pluto in the waning part of its cycle as it is now, President Nixon introduced healthcare reform and worked with Teddy Kennedy and then House Ways & Means Committee Chairman Wilbur Mills. Saturn/Pluto describes how the power players tarnished reputations (Nixon's resignation over Watergate and Mills’ fall from power after being caught drunk with stripper Fannie Fox), brought an end to healthcare reform.

As Saturn conjoined Pluto in 1982, Republicans lost House seats to Democrats primarily over high unemployment. Saturn was in Libra as it is now. Saturn square Pluto in 1993 to early 1994 occurred during the Clinton's healthcare plan and the Republicans winning the midterm election with their "Contract with America." Saturn opposed Pluto in 2001-2 and marked the first election in several decades that the President’s party gained seats in Congress to become the majority party. Saturn/Pluto aspects relate to terrorism and natural disasters that cause destruction and loss of life on a massive scale.

President Obama is resonating with the energies of Saturn square Pluto by proposing a three year “freeze” (Saturn) affecting $447 billion of discretionary spending in the federal budget in an attempt to contract the $1.4 trillion budget deficit (Pluto). With the Moon in Cancer forming challenging alignments to the Sun in Aquarius and Mercury in Saturn-ruled Capricorn, the President will announce a grab bag of tax cuts and credits aimed at helping families with child and elder care at tonight’s State of the Union address. Jupiter in Pisces forming a favorable aspect to Pluto in Capricorn in the sector of the State of the Union chart representing the workforce and healthcare offers an opportunity to expand measures that relate to job creation and healthcare.

We all have a choice as to how we will respond to various planetary influences. President Obama could choose to repeat Teddy Kennedy’s mistakes by allowing the Unions and liberals to squash healthcare reform just because it’s not perfect OR convince them to be more pragmatic and learn the incremental approach from the antiabortion crowd. Teddy Kennedy’s biggest regret doesn’t have to be President Obama’s.

After the intense influences of Mars, Saturn, and Pluto start to slowly dissipate following Saturday’s Full Moon that conjoins President Obama’s Sun, he can release the fear and frustration felt over the last few weeks. He can tell the Unions to turn their tepid support for the Senate bill into letting House members know that it is better than no reform at all. If President Obama goes back to being the leader on healthcare reform that he was meant to be, then there’s a good possibility that he will be signing the Senate version of the healthcare bill during the Aquarius New Moon cycle (February 13 – March 15) as the New Moon exactly opposes his natal Uranus in Leo.

Aquarius and its planetary ruler Uranus represent progressive change as there’s a greater tendency to want to shakeup inertia and the status quo. Barack Obama was elected President the day Saturn opposed Uranus. His rise to become the Democratic presidential candidate is reflected by the USA’s natal Moon in Aquarius opposing his natal Uranus in Leo. Voters wanted a change from the status quo.

President Obama does not have much time left before Democrats will become too focused on the November midterm elections. If he fails to sign healthcare legislation into law by mid-March, healthcare reform is probably finished. And so is the presidency of Barack Obama and the Democratic majority as the public will consider them to be ineffective at bringing the change they voted for.

President Obama: August 4, 1961 7:24 PM Honolulu, HI
USA: July 4, 1776 5:10 PM Philadelphia, PA
Martha Coakley: July 14, 1953 time unknown Pittsfield, MA
Scott Brown: September 12, 1959 time unknown Kittery, ME

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

WallStreetWeather.net Forecast For Week Of January 25, 2010

2010-01-24T21:30:00.002-05:00

Summary Of Last Week’s Influences:
The major indices experienced their largest weekly decline last week since hitting multiyear lows last March. Markets chalked up the losses to China’s regulators cutting back on bank lending, fears over Greece’s sovereign debt, President Obama getting tough on the big banks after Republican Scott Brown won the Massachusetts Senate race, and concerns that the Senate might not confirm Federal Reserve Chairman Bernanke to a second term.

Regardless of the reasons, Saturn square Pluto is injecting caution over concerns that the market has went too far, too fast and is overdue for a correction.

Summary Of This Week’s Influences:
Mars in Leo pushes its way to the forefront to let Saturn and Pluto know that just because Mars has been retrograde since December 20 does not mean its energies are not influential!

Mars in Leo will form its third and final challenging alignment to Mercury in Capricorn on Monday,* oppose Venus in Aquarius Tuesday/Wednesday, and oppose the Sun in Aquarius on Friday. The Moon (sentiment) will enter Leo on Friday with the strong Mars influences culminating at the Leo Full Moon early Saturday at the same time Saturn squares Pluto.

Since Mars is the closest to the Earth it has been in two years, these aspects can quickly raise people’s level of frustration and anger, creating hurt pride and bruised egos. The Mercury/Mars alignment reflects the need to make adjustments in order to effectively get your message across. Venus opposing Mars can make it more difficult to relate to others and particularly create tension in romantic relationships. The Sun’s opposition to Mars can create a battle of wills as there is a strong need for self-expression and gaining control (Saturn) through manipulation and power struggles (Pluto).

From a financial perspective, the combination of these energies will likely increase volatility and fear in the market from concerns arising from news (Mercury) coming from the government and corporate earnings (Venus). In addition to the fears of tighter regulation, global stimulus measures coming to an end, and companies not exceeding lofty future earnings projections, the Mars aspects raise the possibility of violence and military actions resulting from geopolitical tensions.

With the Sun and Venus in Uranus-ruled Aquarius opposing Mars, volatility is likely to increase as market sentiment can quickly move from one extreme to the other. This also increases the possibility of intraday reversals as the market reacts to unexpected events.

Mars is action and Leo is speculation. Mars retrograde is a time to review past actions. As I wrote in the Mars in Leo post, Mars retrograde at the same time Saturn squares Pluto would motivate government leaders to restrict speculation on Wall St. President Obama’s amendment to his Financial Regulatory Reform proposal announced last week would prohibit banks from engaging in proprietary trading (trading for their own account). Banks would also not be able to invest, sponsor or own a hedge fund or private equity fund. Additionally the proposal seeks to restrict the combination of deposits and other funding sources whereas currently restrictions only apply to the bank’s deposit base.

Leaders are ruled by Leo and its planetary ruler the Sun. Mars retrograde in Leo brings back leaders from the past. President Obama named the new proposal the “Volcker Rule” after former Federal Reserve Chairman Paul Volcker who I said in the 12/20/09 Weekly Forecast “would be having an expanded role in shaping financial regulatory reform in 2010.” The next time Volcker’s chart will be particularly active is around the March 15 Pisces New Moon which occurs the day before the next FOMC meeting after this one. (I can dream can’t I that Volcker replaces Bernanke?!)

The “Volcker Rule” is a more modified version of The Banking Act of 1933 (“Glass-Steagall”) which separated commercial from investment banking. Mars in Leo reflects a Senate bill to repeal the 1999 repeal of Glass-Steagall which as I wrote in that 12/20/09 post is being affected by the Saturn/Pluto square.

Three leaders will dominate the news on Wednesday, and two have the Sun in Leo. Treasury Secretary Geithner will testify at a House Oversight Committee hearing investigating the government’s payment in full to AIG’s counterparties. (Former Treasury Secretary Hank Paulson and Stephen Friedman, the former Chairman of the NY Fed, have been invited to testify.)

In a November post I wrote that Geithner would come under questioning in early 2010 over AIG. The January 15 Solar Eclipse conjoined Geithner’s Saturn in Capricorn. Mercury conjoining Geithner's Saturn and Jupiter, and Jupiter in Pisces opposing his Pluto next month could raise ethcal issues that might lead to legal troubles. Neptune in Aquarius opposing his Sun/Uranus conjunction in Leo and the Full Moon squaring Geithner’s Neptune in Scorpio raise the potential Geithner was not forthcoming in his communications during the AIG crisis last March.

And if Geithner was not forthcoming, that doesn’t reflect well on Ben Bernanke who was his boss when the government took 79.9% control of AIG. Bernanke has been busy calling Senators while the Administration tries to shore up support to get 60 votes to break the filibuster on his nomination. Bernanke’s term as Chairman expires January 31. Fed Vice Chairman Donald Kohn will take over as acting Chairman of the Fed until he is confirmed or replaced.

The problem with Bernanke is that he continues to deny that the Fed did anything wrong, refusing to acknowledge that the public and many members of Congress are fed up with him for perpetuating the failed policies of Alan Greenspan. He has done nothing whatsoever to help consumers. Someone needs to ask Bernanke why banks are charging consumers up to 30% interest on credit cards while paying consumers less than 1% interest on bank deposits.

The Administration and Bernanke’s supporters are trying to make Bernanke into a hero for preventing Depression 2.0 when the Fed’s policies and lax regulatory enforcement created the crisis in the first place! And now they’re trying to convince the Senators to vote for Bernanke to prevent the stock market from declining further. Keeping Bernanke at the Fed or replacing him with another Greenspan devotee completely conflicts with the Administration’s financial regulatory reform proposals and shows the politicians care more about zero interest rates than a sound economy. Besides, Bernanke has been vigorously campaigning against any proposal that would diminish the Fed’s power and influence. The Full Moon opposes the Federal Reserve’s progressed Uranus in Aquarius, indicating some surprising developments might be in store over the next two weeks.

The FOMC will release its announcement at 2:15 PM Wednesday. While I do not anticipate major changes in the Fed’s direction at this time, the statement could show subtle signs of sympathy to the plight of workers and consumers as a reason to maintain the “extended period of time” phrase in the statement.

As we approach the Full Moon which opposes his Sun in Leo, President Obama will give his State of the Union address Wednesday night at 9:00 PM. (More about the President and his agenda in a separate post.)

Monday, January 25, 2010
Volatile; weak early but improves as day progresses, then declines going into the close.

Tuesday, January 26, 2010
Negative.

Wednesday, January 27, 2010
Negative, but improving conditions could turn the market positive in early afternoon only to retreat going into the close.

Thursday, January 28, 2010
Positive trend bias.

Friday, January 29, 2010
Volatile; market deteriorates as day progresses, selling into the close.

*This aspect previously occurred on December 21 and December 31, 2009.
** A mathematical calculation that moves the planets forward in time as a method of prediction.

Economic Trends During Jupiter in Pisces: January 17-June 6, 2010; September 9-January 22, 2011

2010-01-22T20:11:00.006-05:00

Published by WallStreetWeather.net

Jupiter, the planetary energy of expansion and abundance, began a new cycle in Pisces on January17, 2010.

Jupiter energy tends to be jovial and optimistic, preferring to view the glass as half full. As the largest planet in our solar system, Jupiter does everything in a big way. Usually considered the energy of luck and risk-taking, Jupiter also represents excess and exaggeration. Strong Jupiter energies tend to manifest as large stock market moves that are not always bullish.

Jupiter represents wisdom, truth, and ethical behavior. It is one’s personal philosophy which society categorizes as politics and religion. Jupiter rules long distance travel, global trade, foreign affairs, publishing, the courts/judicial system, and higher education.

Jupiter was the planetary ruler of Pisces until Neptune was discovered in 1846. Pisces represents interconnectedness, dissolving boundaries and barriers as it strives for inclusion and unity as Jupiter in Pisces is idealistic and believes in faith, hope, and charity. The motto for Jupiter in Pisces is “believing is seeing” since intuitive vision is the first step in bringing what has yet to come into being. Pisces rules the unconscious mind and the intuitive faculties. Getting a peaceful night’s sleep, working with dreams, and setting aside a short amount of time each day for meditation/reflection enhances intuition and sparks the imagination.

Pisces rules:
film, photography, music, the arts
alcohol, drugs, tobacco
oil, gas and chemicals
charities
prisons; hospitals, nursing homes, rehabilitation facilities
advertising and propaganda
mental health; the feet (as well as a vehicle’s tires)

Legal rulings are likely to be dominated by matters ruled by Jupiter and Pisces. The most positive manifestation of Jupiter in Pisces is political decisions and judicial rulings that focus more on the “greater good” rather than benefiting a select group of people. Overturning existing laws will also tend to be connected to Jupiter in Pisces themes. States allowing medical marijuana will continue to grow. And now the floodgates are opened to a tidal wave of political advertising after the Supreme Court ruled the government cannot restrict spending by corporations and unions in political campaigns.

Major ethics violations, scandal and fraud are more likely to be committed by individuals in charities, government, and corporations related to the themes above. Companies will increase their donations to charity and to organizations with charitable or patriotic sounding names that masquerade as a front to further their own agenda. Jupiter in Pisces blurs the line between reality and illusion.

Jupiter inflates and Pisces creates bubbles caused by easy credit. Government stimulus and zero interest rates have already spawned an asset price bubble in 2009 when Jupiter conjoined Neptune in Aquarius for most of the year. Jupiter in Pisces could inflate investments related to the movies/music, healthcare (pharmaceuticals; hospitals), and chemicals sectors. Since Jupiter tends to be indulgent and sensitive Pisces seeks an escape hatch from the harsh realities of the world, spas and spa type services (pedicures, reflexology, massage), short-term cruises and retreats could see a pickup in business as people with even a limited budget seek out a few hours or day of rejuvenation. Shoe sales could get a boost.

As far as the healthcare sector is concerned, the easy money has already been made as big pharma’s pipeline is waning and money for new drug development is redirected into advertising and growth through M&A. Jupiter in Pisces describes an abundant supply of oil and gas with major new discoveries found under the sea this year; any price spikes are likely to be temporary.

Jupiter aspecting Pluto (exact February 6) brings news related to issues that began around the time of the January 15 Solar Eclipse. Debt increases more than projected. Unexpected credit issues surface and major scandals and information about clandestine government activities could be exposed. This can be an opportunity to transform the tax code, but will probably result in tax measures being proposed or expanded upon. There could be a merger announcement in the healthcare sector. This could involve a big pharma company acquiring a one drug wonder biotech company.

The bursting of asset price bubbles in foreign markets such as China will create a ripple effect throughout the world. This is what happened the last time Jupiter was in Pisces* The Russian financial crisis precipitated the fall of hedge fund Long Term Capital Management on September 23, 1998 when Jupiter in Pisces was exactly opposing the USA’s natal Neptune and squaring the USA Mars. This is a sensitive degree area that coincides with the financial crisis in 2008 and the panic of 1907. Jupiter here can also bring increased military related action.

Jupiter in Pisces will pass over this degree area on April 22, around the same time Jupiter will oppose Saturn in Virgo (exact May 23) while Saturn opposes Uranus in Pisces (exact April 26). Virgo and Pisces represent cleaning up the errors of the past as these signs mark a transition from the closing of one cycle and the start of a new one. Jupiter expands and Saturn contracts, creating a mixed economic picture and a shift to more nationalistic policies. Saturn opposite Uranus reflects the status quo (Saturn) who are resistant to Uranus’ wakeup call to release fear so outworn conditions can dissolve to make way for new innovations.

Enthusiasm and optimism for new innovations and making a fresh start will begin when Jupiter and Uranus conjoin in Aries on June 8. This begins a shift back to engineering and manufacturing products in the U.S. and a push for developing real technology. The last time Jupiter conjoined Uranus at the beginning of a cardinal (action-oriented) sign** was on July 20, 1969 – the day Apollo 11 astronauts Neil Armstrong and Buzz Aldrin stepped on the Moon in “one giant (Jupiter) leap (Uranus) for mankind.” Jupiter and Uranus in Aries exactly opposing the 1969 Jupiter/Uranus conjunction in Libra can usher in that same pioneering sense of discovery.

Jupiter and Uranus will retrograde back into Pisces where they will conjoin on September 19 and January 4, 2011. Jupiter conjoining Uranus in Pisces will bring welcome developments for biotech companies as the truly innovative companies hit pay dirt. There could also be breakthroughs in the application of material science, such as paints and other coatings being used to collect solar energy. Innovative paints have already been shown to be self cleansing and glass for commercial applications is already in place that sheds dirt.

Pisces rules the oceans as it is part of the water element, and clean water could be a particular problem. Weather wise, there will be periods this year where excess water brings flooding and a lack of water brings draught. Crop damage will elevate food prices. It’s a good idea to have a supply of bottled water on hand as severe weather and contaminates in the water supply could temporarily make drinking water unsafe.

Jupiter in Pisces can bring forth a tidal wave of emotions. The wisdom of Jupiter in Pisces is to be flexible and go with the flow, having compassion for others as well as ourselves.

*Jupiter takes about 12 years to make a complete cycle around the Sun. Recent transits of Jupiter in Pisces:
February 4, 1998 – February 13, 1999
February 20, 1986 – March 2, 1987
March 8, 1974 – March 18, 1975 (Like now, Saturn squared Pluto.)
March 25, 1962 – April 4, 1963

**The cardinal signs are Aries, Cancer, Libra, and Capricorn.

WallStreetWeather.net Forecast For Week Of January 17, 2010

2010-01-17T23:02:00.003-05:00

Summary Of Last Week's Influences:
Last week’s planetary influences of the Sun conjoining Venus in Capricorn, Saturn in Venus-ruled Libra turning retrograde, Mercury turning direct the day of the Solar Eclipse in Capricorn, and all occurring as Saturn squares Pluto, put the focus on banks and bank CEOs, corporate earnings, proposed government taxes on financial institutions, China’s attempt to curb it asset price bubble as well as control the internet, and a massive earthquake in Haiti.

The major indices reflected these planetary shifts with the indices making 15 month highs Thursday before reversing course on Friday to close slightly lower for the week. The Sun conjoining Venus describes Wall St.’s expectations for Q4 S&P500 earnings to nearly triple year over year, but reports from Dow components Alcoa (AA) and JPMorgan Chase (JPM) disappointed as all roads right now lead to one path straight to Saturn indicating that the stock market is overdue for a reality check.

Summary Of This Week’s Influences:
With the stock market closed for Martin Luther King Jr. Day on Monday, the business week begins on Tuesday with three planets shifting into different signs.

Jupiter enters Pisces on January 17 until June 6 and again September 9 to January 22, 2011. As my next post will be about Jupiter in Pisces, I will focus here on how it relates to Tuesday’s special Massachusetts Senate election to fill the late Sen. Ted Kennedy’s seat.

Jupiter expands what it touches and Pisces and its ruler Neptune dissolve barriers. For the USA, Jupiter entering Pisces will finally bring passage of the healthcare legislation which will occur in an unexpected way. In the special Senate election, Martha Coakley the Democratic Massachusetts Attorney General is being challenged for the seat by Republican Massachusetts State Senator Scott Brown. Coakley has exerted virtually no effort to win the seat, reflecting that there is little planetary activity currently in her chart to motivate her. With Saturn and Pluto impacting his Mars/Saturn square and Neptune in Aquarius squaring his Jupiter in Scorpio, Scott Brown is aggressively campaigning on being “the 41st vote” in the Senate to preserve the status quo and vote against healthcare reform. Since it appears that Brown is more likely to win, the Democrats need to pass the healthcare bill within 15 days of the election in order to circumvent the bill returning to the Senate and being defeated by Brown’s vote. And if Brown is elected, the Republicans and Brown’s “Tea Party” supporters might end up wishing that Coakley had won.

Venus enters Aquarius Monday until February 11 and the Sun enters Aquarius late Tuesday evening until February 18. Aquarius is ruled by Uranus, the great awakener and the planetary energy of extremes and shocks and surprises. This could make for choppy trading this week as the market tries to hold on to the enormous gains made since last March. Turbulence could accelerate the following week as the Sun and Venus oppose Mars in Leo leading up to the January 30 Full Moon and Saturn’s second square to Pluto January 31.

Tuesday, January 19, 2010
Choppy session that closes negative.

Wednesday, January 20, 2010
Swings between positive and negative; closing mixed to negative.

Thursday, January 21, 2010
Positive, then becomes choppy/mixed to negative. The influence of Venus in Aquarius harmonizing with Saturn in Libra (exact early Friday morning) has a tendency to be either bullish or bearish.

Friday, January 22, 2010
Negative.

Scott Brown: Septemer 12, 1959 Kittery, ME
Martha Coakley: July 14, 1953 Pittsfield, MA

CORRECTION MADE: On 1/19/10 @ 8:16 AM I corrected a typo that listed Scott Brown's state of birth as MA (Massachusetts) and corrected it to ME (Maine).

Johnson & Johnson’s Tylenol: a Mercury Retrograde Problem

2010-01-17T21:18:00.008-05:00

Published by WallStreetWeather.net

Mercury is the planetary energy of communication, movement, and commerce. The three week period three to four times a year when Mercury appears to move retrograde from Earth’s vantage point tends to bring news of more product recalls as when Mercury slows down, our thought processes pick up on things that have been overlooked in order that past errors can be rectified.

Mercury is a dualistic energy and was particularly potent on January 15, 2010 as it stationed direct. Johnson & Johnson (JNJ) announced a second recall affecting about 50 million bottles of Tylenol, Motrin and some other OTC products sold in the Americas, the U.A.E., and Fiji that expanded on its recall of Tylenol arthritis products announced December 29 after Mercury went retrograde.

The two recalls expanded the original recall issued by J&J on November 6, 2009 for Tylenol Arthritis Pain caplets that were recalled after some consumers reported nausea, stomach pain, vomiting and diarrhea, along with a moldy odor emanating from the product. On September 24, 2009 when Mercury was retrograde in its own sign Virgo which rules health and hygiene, J&J recalled infant and children’s Tylenol liquid products after detecting bacteria in an inactive ingredient.

According to news reports, J&J’s latest voluntary recall was in response to a warning letter from the FDA* criticizing the drug company for its delay in not conducting a full investigation after it knew in 2008 it had an odor contamination problem related to the chemical 2,4,6-tribromoanisole (TBA) in wood pellets that were used to transport and store the product’s packaging material. In its latest recall announcement, J&J said “no serious events have been documented in medical literature” connected with contamination to TBA, but admitted that “the health effects of this chemical have not been well studied.”

The Wall Street Journal points out J&J’s response to its current problems with Tylenol and other OTC products contrasts with the company’s quick and decisive action to recall millions of Tylenol products on October 5, 1982 after seven people in the Chicago area died from taking Tylenol capsules that had been laced with cyanide.

Mercury was retrograde at the time of the original 1982 recall which occurred the last time Saturn was in Libra. Saturn represents economic contraction, and Pluto rules toxic conditions, what is hidden, and events on a massive scale. Saturn was conjoining Pluto in Libra during the 1982 recall. By J&J being accountable and quickly taking responsibility for the problem, the amount of money the company lost on the recall was more than recouped by earning the public’s respect and continued patronage.

Saturn and the sign Capricorn rule the elderly and the body’s bones and joints. At the time of the November 2009 Tylenol arthritis recall, Saturn in Libra was about to square Pluto in Capricorn. Saturn rules government and Pluto exposes what has been manipulated and kept secret. Saturn conjoining Pluto marked the beginning of a new economic cycle. Saturn squaring Pluto represents that this cycle is waning, coinciding with the decline of big pharma’s proprietary pipeline. Unlike the 1982 recall, J&J didn’t begin the November 2009 recall until FDA investigators were inspecting a plant.

Beyond the multiple recalls of the Mercury retrograde cycle in Capricorn, Saturn’s energy was pronounced last week as it stationed retrograde on January 13. Mercury turning direct on January 15 the day of the Solar Eclipse in Capricorn, reflected there was more news related to J&J related to the government and the elderly. The Department of Justice announced a lawsuit against J&J for paying millions of dollars in kickbacks to Omnicare, the nation’s largest pharmacy serving nursing homes and long-term care facilities. In what the two companies called the “Risperdal Initiative,” J&J would pay Omnicare to recommend patients be put on Risperdal, an anti-psychotic medication that has not been approved by the FDA for patients with Alzheimer’s or dementia. According to The Wall Street Journal, state and federal Medicaid programs are major Omnicare customers.

J&J will record costs connected to the recalls in its 2009 financial results which it is scheduled to report on January 26. J&J does not expect the loss to be material, but with the January 15 Solar Eclipse squaring J&J’s stock chart Venus in Libra, Saturn square Pluto affecting the stock chart’s Sun and Neptune in Libra and Moon in Capricorn, and Mars in Leo conjoining its Pluto, J&J’s earnings could be disappointing. Revenue or future revenue projections look to be contracting. The Moon represents the public and investor sentiment which unlike 1982 does not appear to be on J&J’s side.

J&J has a lot of work to do if it wants to avoid yet another recall during the next Mercury retrograde cycle April 18 to May 11, 2010.

*At the time of this writing the FDA warning letter to J&J does not appear on the FDA’s website. In related news Friday, the FDA began to reverse its stance that the chemical bisphenol A (BPA) that is used to harden plastics and is found in certain types of food containers, might not be safe for young children.

Johnson & Johnson stock chart: September 25, 1944 NYC

The January 15, 2010 Solar Eclipse Constrains Banks

2010-01-15T21:30:00.001-05:00

Published by WallStreetWeather.net
Proposed taxes and restrictions on bank bonuses, a bipartisan government committee investigating the cause of the financial crisis, financial regulatory reform legislation in Congress, the Federal Reserve and its Chairman fighting to retain power, and a “financial crisis responsibility fee” to recoup the cost of government bailouts are all dominating the news. They reflect the buildup in planetary influences over the last several weeks converging at today’s Capricorn Solar Eclipse.

A Solar Eclipse is a “supercharged” New Moon. What is in begun at this time will have ramifications particularly over the summer and in the years to come as this eclipse in Capricorn will be repeated on January 14, 2029. Capricorn is an ambitious and action oriented sign focused on professional achievement and the material rewards it brings to create a secure foundation. Capricorn and its planetary ruler Saturn represent economic contraction and consolidation. There are no shortcuts with Saturn; what you put out, you get back. As the ruler of time, Saturn requires that we be accountable and take responsibility for our actions.

The Solar Eclipse conjoining Venus puts the focus on self-worth and financial values. Saturn rules government and Venus rules money and banks. Saturn in Libra (2009-2012) reinforces this theme, representing the relationship between the government and the banks that have rebounded to record profits following the government’s bailout. The mission of Saturn in Libra is to balance out the scales too tilted in favor of Wall St and Washington special interests at the expense of the nation’s overall economic stability.

Pluto rules leverage, Wall Street’s fancy name for debt and all the opaque financial instruments that began turning toxic when Pluto entered Capricorn in 2008. As the planetary ruler of life and death, the government exerted its power by deciding which financial institutions would live and which ones would die before instituting financially friendly policies such as government guaranteed loans and zero percent interest rates which contributed to banks’ outsized gains in bonds, commodities, stocks, and mergers.

Saturn is squaring Pluto at the Solar Eclipse, seeking to put the brakes on Wall St.’s return to its old ways. While the square represents the motivation to restructure and transform the financial system, those in power in government and the plutocrats in the so-called free market system where handouts and special treatment is fine for them but not anyone else, will make every attempt to keep the status quo intact. Saturn square Pluto calls for deleveraging and curtailing wasteful spending; forcing individuals and governments to get their priorities in order and focus on the long term. Pluto rules taxes, and governments will look for various ways to tax and manipulate budgets as a way of indirectly dealing with the issue.

Mercury rules communications. Mercury has been retrograde in Capricorn since December 26, turning stationary direct just hours after the Solar Eclipse. Mercury retrograde brings back matters from the past. Most of the financial news during this retrograde period has focused on government proposals and legislation that seeks to restrict Wall St’s profits, re-examining the factors leading up to and the government’s conduct in handling the crisis.

Mercury squaring Saturn and conjoining Pluto now describes how the government and the media want the public to be focused on bank bonus compensation to conceal the deeper and more fundamental issues that need to be resolved. If banks are forced to return to basic banking and raise capital through deposits rather than wholesale borrowing, they would not be able to engage in the level of risk that generates the outsize profits that allow outsize bonuses. FDIC guaranteed deposits come with restrictions, such as not using the money to trade for the banks’ own account.

Saturn represents foundations and getting to the root cause. Saturn’s energy is particularly potent now as it turned retrograde on Wednesday, the day the Financial Crisis Inquiry Commission (FCIC) held its first hearing to investigate the cause of the financial crisis. Most of Chairman Phil Angelides questions were directed at Goldman Sachs chief executive Lloyd Blankfein. Angelides invoked Saturn and Pluto when he compared Goldman’s practice of selling mortgage-backed securities while shorting the subprime market to selling a car with faulty brakes and purchasing insurance on it. Basically it comes down to Chairman Angelides being “troubled” by Blankfein’s lack of deference to Saturn and Pluto by refusing to admit that the government rescued Goldman from its near death experience.

The Solar Eclipse conjoining Venus puts the focus on the leaders of the nation’s central bank and the Treasury. Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner who was president of the New York Fed when the government bailed out AIG, are both in the hot seat over their lack of transparency for using the insurance giant as a conduit to fully reimburse Goldman and other AIG counterparties at taxpayers’ expense.

Bernanke also refuses to give Saturn and Pluto the respect they deserve by denying the Fed’s policy of ultralow interest rates and lax regulation encouraged Wall St to take on excessive risk in the pursuit of yield. In speeches and in communications to Congress, Bernanke is conducting a vigorous political campaign to be reappointed Fed Chairman and to keep the Fed’s regulatory powers intact. Bernanke’s defense of the Greenspan doctrine of bubble now and fix later is incompatible with the energies of Pluto in Saturn’s sign until 2024. Contrary to the Greenspan/Bernanke doctrine, banks are not innovators. Nor do they produce any physical products. Banks are the backbone providing financial support to the real economy.

The government proposal that touches on all the planetary players involved in the Solar Eclipse has got to be President Obama’s “Financial Crisis Responsibility Fee” that first surfaced when Saturn went retrograde on Wednesday. Mercury retrograde describes how the proposal emanates from a provision in the TARP bill requiring the Administration to come up with a plan to recoup any losses from the $700 billion bailout by 2013. To make up for the currently estimated $120 billion shortfall primarily due to bailouts to the automakers who are exempt from the tax, the Administration has proposed a 0.15% fee on financial firms with $50 billion+ in consolidated assets, including General Electric’s GE Capital division and AIG. This is essentially a leverage tax as it will have a greater affect on banks that rely on wholesale funding as another way to discourage excessive risk taking.

Saturn is a cautious and pessimistic energy that is focused on fundamentals. Venus and the Solar Eclipse conjoin the USA Pluto in the sector of the USA chart representing the banking system and the nation’s wealth. And Mercury turns stationary direct exactly opposite the USA Jupiter in Cancer. Fears that JPMorgan Chase would be required to buy back faulty WaMu mortgage originations is just one of the factors that could contribute to a stock market decline as risks not previously revealed or fully accounted for rise to the surface.

Eclipses are harbingers of major change. The message of the Capricorn Solar Eclipse is that the factors causing the financial crisis have yet to be addressed despite the stock market’s race to return to pre-crisis levels. Wall St. will have to learn to make money the old-fashioned way as the government enacts various financial restrictions. And regardless of their “extended period of time” mantra, the Fed could be forced to raise rates by their June 23 meeting. It appears that the double dip recession that many analysts are concerned about is awaiting Wall St. as innovation returns to Main St.

Related Posts:
Chanos, China, and the Capricorn Solar Eclipse of January 15, 2010
The New Year’s Eve “Blue Moon” Lunar Eclipse
7.0 Haiti Earthquake: Saturn, Pluto and the Eclipses Create a “Catastrophe of Major Proportions”

Capricorn Solar Eclipse: January 15, 2010 2:11 AM EST
USA: July 4, 1776 5:10 PM Philadelphia, PA

7.0 Haiti Earthquake: Saturn, Pluto and the Eclipses Create a “Catastrophe of Major Proportions”

2010-01-13T13:38:00.007-05:00

Published by WallStreetWeather.net

As the poorest nation in the western hemisphere, Haiti could be described as “the land that time forgot,” crowded out in a world focused on exciting emerging economies and other countries such as Burma with higher profile human rights abuses.

From a planetary perspective, Haiti and Burma became independent nations when the Sun was in Saturn-ruled Capricorn. And while Haiti shares the same January 1 birthday with Britain, its history and its horoscope couldn’t be more different. As someone who is more interested in looking at the planetary influences from a financial perspective, Haiti unfortunately only becomes a news event when yet another tragedy befalls it.

Saturn rules all types of structures – from buildings and infrastructure, to government, financial, and societal structures. As I wrote in the Weekly Forecast, Saturn’s energies are particularly prominent this week as from Earth’s vantage point Saturn appears to be stationary as it turns retrograde today. With Saturn in Venus-ruled Libra for the next 2.5 years, the focus is on the need to restructure these systems that have become so out of balanced. Since Venus rules money and banking, doing this will come at tremendous financial cost because all global governments have cut corners and ignored basic building and infrastructure conditions to one degree or another.

In the chart for the moment the 7.0 earthquake struck Haiti at 4:53:09 PM EST yesterday, Saturn is conjoining the sector representing the country’s foundation and structure. With the majority of Haiti’s homes and buildings deemed to be of shoddy and unsafe construction, news reports have confirmed that the earthquake and its series of up to 30 aftershocks have destroyed a hospital, the UN’s 5-story headquarters, the World Bank’s offices in Petionville, and portions of the National Palace in Port-au-Prince.

Saturn rules the sign Capricorn. This is an earth energy, reflecting how the weather and geophysical events affect material concerns. Saturn and Capricorn represent economic contraction and hardship especially when individuals or nations sacrifice the long term for short term benefits.

“A catastrophe of major proportions” is how Fritz Longchamp, the Secretary General to the presidency of Haiti was quoted as describing the situation last night. Catastrophes and events that have a profound and transformative effect fall under the domain of Pluto. With Pluto in Capricorn, the sign ruled by Saturn and Saturn squaring Pluto from November 2009 through August 2010, the world is in a time period where economic contraction will bring about transformation of government, financial, and physical infrastructures.

With Pluto the mythological lord of the underworld in Saturn’s sign, Saturn squaring Pluto, and several planets in Capricorn right now, the pressure within the Earth increases which elevates the potential for earthquakes now and throughout 2010. According to USGS geophysicist Kristin Marano, yesterday’s 7.0 earthquake was the strongest to hit Haiti since 1770 which was the last time Pluto was in Capricorn.

Saturn in the sector of the earthquake chart representing communication and movement reflects that communications coming out of Haiti will likely be slow and delayed. This is exacerbated by the fact that Mercury rules this sector of the chart and Mercury is retrograde in Capricorn until January 15, as Mercury retrograde periods in an earth sign tend to correlate to increased geophysical instability. Mercury retrograde conjoins Pluto, reflecting that communications systems are down and it is near impossible to get around Haiti. It will take some time before the true situation in Haiti is revealed. Stories of corruption will surface.

With its Sun conjoining Mars in Capricorn and squaring Uranus in Libra, Haiti is a country that has a history of being run as a military dictatorship. Mars in Capricorn squaring Saturn in Libra and Venus in Capricorn squaring Jupiter in Scorpio reflects the struggles and hardships the Haitian people have had to endure and how the government has squandered the country’s resources to enrich its leaders.

From December 2009 through August 2010 Haiti is experiencing a Saturn return.* Saturn and Capricorn rule time. For individuals and nations, Saturn returning to its place of birth every 29.5 years marks a time of accountability to determine if the lessons of the past have been learned. If we fail to take responsibility by putting in the work necessary to build a strong physical and financial foundation, the Saturn return marks a time of upheaval and limitations in order to learn and grow from the experience. Hopefully this motivates us to make the necessary changes that can allow us to reap the rewards at the next Saturn return.

Eclipses are harbingers of major change and the period between eclipses can create an unstable environment literally and figuratively as too much energy is injected into the atmosphere. The December 31, 2009 Lunar Eclipse exactly opposed Haiti’s Sun indicating the nation could be facing an identity crisis over the next six months. At the January 7, 2010 Last Quarter Moon (representing the period January 7-15), Pluto in Capricorn was exactly conjoining Haiti’s natal Mars for the first time since the 18th century and the quarter Moon in Libra was overhead through Haiti and intersected by Pluto. This acted like a trigger, and the pressure of Saturn stationary squaring Pluto in the sky and impacting Haiti’s Mars square Saturn, proved to be too much to contain.

The January15, 2010 Solar Eclipse opposes Haiti’s progressed Mercury in Cancer and squares progressed Jupiter in Libra. The number of people who have lost their homes and entire neighborhoods will be huge. Haiti’s progressed** Mercury/Jupiter falls on the USA natal Pluto in Capricorn and Haiti’s natal Mars/Saturn falls on the USA natal Venus, among other shared planetary relationships between the two nations. Mercury turns direct, conjoining Haiti’s natal Mars. Beyond the economic aid and assistance extended to Haiti by the U.S., there will probably be a lot of news reports about the continuous corruption behind U.S.-Haiti relations.

While Saturn represents boundaries and structures, Neptune dissolves them to expose that no concrete foundation existed in the first place. Haiti’s poor infrastructure has been highlighted recently and Neptune in Aquarius exactly squaring Haiti’s Neptune in Scorpio at the January 15 eclipse reflects this known “catastrophe waiting to happen.” As the ruler of the oceans, Neptune represents flooding. The August 16, 2008 Lunar Eclipse squared Haiti’s Neptune, a year when the country experienced four hurricanes. On November 7, 2008 when transiting Mars in Scorpio squared the August 16 Lunar Eclipse and exactly conjoined Haiti’s natal Neptune, a school collapsed in Petionville, killing 93 and injuring over 150. Rev. Fortin Augustin, the owner of the church school admitted afterward the school lacked any structural steel or cement to hold its concrete blocks together.

The Moon rules food and shelter and is the ruler of the earthquake chart. Neptune can obscure our ability to see clearly and objectively and with the Moon in Jupiter-ruled Sagittarius and Jupiter conjoining Neptune in the earthquake chart, reports last night of a huge cloud of dust affected visibility caused by the concrete from all the structures collapsing. Neptune running below the Earth through Haiti and the Guantanamo Bay area of Cuba at the January 15 Eclipse raises the potential for tsunami warnings as well as flooding and mudslides.

The Lunar Eclipse of June 26, 2010 conjoins Pluto in Capricorn and opposes the Sun and Mercury in Cancer, all impacting Haiti’s natal Mars in Capricorn. In addition, Jupiter conjoining Uranus in Mars-ruled Aries will square Haiti’s Mars. All of these aspects create the potential for social unrest and uprisings that seek to overthrow the government.

Jupiter, Saturn, Uranus, and Pluto in the fire, air, and earth elements forming stressful alignments to each other during the Summer of 2010 greatly raise the potential for unexpectedly harsh and severe weather conditions throughout the world. Earthquakes, volcanoes, hurricanes, tsunamis, and fires caused by lightning strikes are likely to be above normal. Water is the missing element among this planetary lineup, indicating that a lack of water will be an overall global problem while parts of the world could be flooded with water caused by severe weather patterns.

*The Saturn return affects individuals, countries, and corporations around ages 28-30, 58-60, 86-88, etc. The USA will experience a Saturn return in late 2010-2011.

** A mathematical calculation that moves the planets forward in time.

Haiti: January 1, 1804 time unknown Gonaives, Haiti
USA: July 4, 1776 5:10 PM Philadelphia, PA

WallStreetWeather.net Forecast For Week Of January 11, 2010

2010-01-10T21:18:00.005-05:00

Summary Of Last Week’s Influences:
The Sun represents self-identity and Capricorn rules high places such as mountains. The Sun conjoining Mercury in Capricorn last Monday marked the opening of the Burj Dubai, the world’s tallest tower (2,717 ft). With Mercury retrograde, the tower was immediately renamed the Burj Khalifa in honor of U.A.E. president Sheikh Khalifa bin Zayed al-Nahyan, the ruler of Abu Dhabi who gave a second bailout loan to help alleviate Dubai’s $100 billion debt mountain. As The Economist points out, “skyscrapers have long been associated with the ends of financial booms.”

The choppy and “see saw” trading I described in last week’s Forecast certainly reflected last week’s market behavior as Monday was the only day the indices moved in one direction all day as “investors gained renewed faith in the global economic recovery,” according to The Wall Street Journal (italics mine). Mercury conjoining Venus did indeed bring out “the feel good factor.”

Many analysts expected December’s employment report would show jobs being added to nonfarm payrolls instead of a reported loss of 85,000 jobs. November nonfarm payrolls were revised from -11,000 to a gain of 4,000 jobs. Even accounting for such wide revisions, the employment picture reflects that fewer jobs are being shed each month. A steady increase each month in temporary workers (+46,500) is viewed as a precursor to permanent hires. Sustainable employment growth should begin to appear later in the third quarter.

As I’ve written before, Wall St. and Main St. are in parallel universes. Wall St. wants a jobless recovery so the Fed will keep interest rates at zero and financial markets can party on. Each week there are more signs that Wall St. is returning to its pre-crisis behavior. Yesterday’s Wall Street Journal reported that super-TARPED Citigroup (C) and former “TARP babies”* JPMorgan Chase (JPM), Bank of America (BAC), and Morgan Stanley (MS) are offering hedge funds leverage again. Citi is even calling up hedge funds to ask if they want to borrow money as they believe the stocks and bonds hedge funds put up as collateral are a safer risk than lending to small businesses and consumers. Loading up leverage for deal making has also made a comeback.

Wall St. would freak out, but I believe financial reform should prohibit or at least institute high margin requirements. Leverage exaggerates the market’s rise as well as its fall when securities must be sold to meet margin calls.

Is what happened during the fall of 2008 already too far away to remember?

Summary Of This Week’s Influences:
Planets giving the appearance of changing direction from Earth’s vantage point symbolize shifts in consciousness which can also reflect a shift in market sentiment.

Saturn represents caution, fear, pessimism, and accountability. As Saturn appears stationary in the sky all week as it turns retrograde on Thursday, the lord of the rings could not only put the brakes on stocks moving higher but increase the potential for the market to fall.

Saturn rules Capricorn. With the Moon (sentiment) in Capricorn from late Tuesday night until midday Friday afternoon and Mercury moving direct in Capricorn on Friday just hours after the Capricorn Solar Eclipse, Saturn’s energies are particularly potent now.

And to top it off, Saturn in Libra is about to exactly square Pluto in Capricorn for the second time on January 31, highlighting how out of balance our economy has become. Libra is ruled by Venus (money/banks). Mountains of private and sovereign debt cannot be concealed by central banks creating asset bubbles. Saturn retrograde until May 30 means now is the time to restructure the financial system to create a more balanced economy.

The Sun rules speculation, and with the Sun conjoining Venus Monday and the Moon in optimistic Sagittarius through Tuesday, the stock market is likely to begin the week on a high note that deteriorates as the week progresses. Venus conjoining the Solar Eclipse and Mercury moving direct Friday should help bring milder weather conditions even though most of the planets will still be in cold signs.

Monday, January 11, 2010
Positive as Wall St. believes markets are in a “sweet spot.”

Tuesday, January 12, 2010
Positive early but could weaken in the afternoon to close to mixed to moderately up.

Wednesday, January 13, 2010
Negative.

Thursday, January 14, 2010
Positive early, then turns negative.

Friday, January 15, 2010
Negative. (Options expiration)

*Paraphrasing JPMorgan CEO Jamie Dimon’s description when his bank was TARPed.

Chanos, China, and the Capricorn Solar Eclipse of January 15, 2010

2010-01-09T22:30:00.010-05:00

Published by WallStreetWeather.net

James S. Chanos is famous in the hedge fund world for betting against companies whose numbers don’t add up. From Tyco International to Enron, Chanos is a contrarian in a world currently full of raging bulls.

Ultra accommodative monetary policy and government stimulus have reinflated a speculative frenzy in emerging markets. Just as it was prior to the financial crisis, China is the stimulant of the world’s excess liquidity flowing into commodities.

In “Contrarian Investor Sees Economic Crash in China,” The New York Times reports that Chanos is betting against conventional wisdom that China’s uber real estate bubble is “Dubai times 1,000 – or worse.” Echoing a post I wrote about asset price bubbles, Chanos believes that “Bubbles are best identified by credit excesses, not valuation excesses. And there’s no bigger excess than China.”

In a June 2009 post I explained how the US and China mirror each other. The Chinese government claims to have dedicated $586 billion to stimulus programs to keep their export-based economy booming and increase Chinese consumer spending. Chanos suspects that China’s 8+% growth rates are exaggerated. When China announced the $586 billion stimulus on November 10, 2008, the Sun (central government; speculation) and Moon (sentiment) aspected Jupiter (exaggeration; optimism). Reports surfaced a few days later that infrastructure projects already funded had been included in the stimulus.

With $6 billion under management, Chanos’ hedge fund Kynikos Associates is looking to execute a bearish bet on China by trying to focus on construction and infrastructure-related companies that sell cement, coal, steel, and iron ore. I believe the planetary cycles this year confirm that James Chanos is correct about China.

Eclipses are harbingers of major change as they represent endings (Lunar Eclipse) that usher in a new beginning (Solar Eclipse). The eclipse will be particularly influential over the next month and its impact will likely evolve over the next six months. The January 15, 2010 Capricorn New Moon is an Annular Solar Eclipse as the Moon does not fully block the light of the Sun. Capricorn is ruled by Saturn, and the ring of light surrounding the eclipse is a symbolic reminder that Saturn’s rings represent the boundaries and limitations of government stimulus.

Saturn is a cautious energy as it relies on concrete facts and fundamentals. Saturn’s energy is particularly pronounced now as from Earth’s vantage point Saturn appears to move retrograde just prior to the eclipse. With Saturn in Venus-ruled Libra and Venus in Capricorn conjoining the Solar Eclipse, the focus is on financial valuations and governments initiating major structural reforms affecting the global financial system.

Eclipses affect the world, particularly nations along the path of the elipse.* Solar eclipses in Capricorn affect government leaders, and tend to create cold and severe weather conditions and greater potential for earthquakes which have an economic impact on the areas affected. Not only does the path of the eclipse run through China, but the planetary influences present during the eclipse profoundly impact China’s chart.

The eclipse occurs in the sector of China’s chart representing secrets, scandals, and fraudulent activities. With the eclipse conjoining China’s natal Jupiter as well as China’s progressed Venus and progressed Midheaven,** the Chinese government will have to take control of the financial excess it unleashed or risk damaging its reputation.

Uranus represents the unexpected as well as sharp and sudden price movements in either extreme. This is accentuated as China’s Sun in Libra squares Uranus, the planetary ruler of China’s chart. Uranus in Cancer in the sector of speculation reflects the rapid rise and fall and current rise again of real estate and the stock market.

Saturn in Libra is squaring Pluto in Capricorn, reinforcing the eclipse’s theme of financial valuations as this planetary alignment describes the relationship between government and private finance and the excess debt accumulated by both. Mercury has been retrograde in Capricorn and will turn direct a few hours after the eclipse. Mercury squares Saturn and conjoins Pluto; all three planets are exerting pressure on China’s natal Uranus in Cancer. This increases the likelihood of an event that causes the speculative frenzy to rapidly collapse as it is a reminder that China’s growth is based on speculation more so than fundamentals. Mars retrograde in Leo conjoining China’s natal Mars at the eclipse reinforces Mercury’s message.

Pluto represents issues that have an effect on a massive and profound level. With the Solar Eclipse conjoining the USA Pluto in the sector of the USA chart representing the economy and the banking system, a market collapse in China would have major implications in the US. Mercury, Saturn, and Pluto impacting the USA’s natal Venus and Jupiter in Cancer at the time of the Solar Eclipse reflects that financial valuations here have become excessive in large part due to “the China syndrome.”

Stocks and commodity prices would fall precipitously yet longer term bond yields could rise as China would likely stop purchasing our debt as it turns its financial support inward. The Solar Eclipse conjoining Venus describes how the nation’s central banks will impact global financial markets. The Eclipse opposes the Federal Reserve’s Neptune in Cancer and squares Fed Chairman Bernanke’s Mars and Neptune in Libra. Neptune rules bubbles, and the opposition to Bernanke continuing to run the Fed in the Greenspan doctrine could meet enough resistance in the Senate to prevent Bernanke being reappointed as Fed Chairman.

Above all, the January 15 Solar Eclipse highlights the energies of Saturn squaring Pluto. With Saturn there are lessons to be learned. If we don’t grasp the lesson the first time, the second time around becomes even more difficult. Saturn’s second square to Pluto at the end of this month reflects that the financial crisis has entered its second act. The second act is the convergence of the sovereign debt explosion on top of legacy toxic private debt. Global government actions have rekindled the asset bubble, this time in equities and Treasuries.

With Mars, Jupiter, Saturn, Uranus, and Pluto impacting China’s Uranus in Cancer along with Saturn in Libra conjoining China’s Sun later this year, a market collapse could cause China’s economy to stagnate which could in turn create social instability.

*The eclipse path runs across central Africa (Congo, Uganda, Kenya, Somalia), through southern India, Sri Lanka, Bangladesh, Burma, and southeast Asia.

**A mathematical calculation that moves the planets forward in time. China’s progressed Midheaven exactly conjoins the USA Pluto in Capricorn, reinforcing their financial ties.

People’s Republic of China: October 1, 1949 3:15 PM Peking, China
USA: July 4, 1776 5:10 PM Philadelphia, PA

WallStreetWeather.net Forecast For Week Of January 4, 2010

2010-01-03T20:31:00.003-05:00

Summary Of Last Week’s Influences:
There is a strong correlation when a transiting planet in a cardinal sign* aspects the Federal Reserve’s Sun in Capricorn opposite Pluto in Cancer that some type of action will emanate from the nation’s central bank.

On December 28 the first business day that Venus (banking) in Capricorn (government) conjoined the Fed’s Sun, the Fed announced its proposal to offer term deposits for under one year to banks at a rate “not to exceed the general level of short-term interest rates” as part of the Fed’s exit strategy to drain some of the more than $1 trillion in excess reserves from the financial system.

This proposal is meaningless considering that since the amendment to Regulation D on October 9, 2008, the Fed is already paying banks 0.25% interest on reserve balances and excess reserves held at the Fed. Banks taking out term deposits with the Fed could not withdraw the money before maturity, but the Fed would allow the bank to use its term deposit as collateral at the Fed’s discount window. Meanwhile consumers have to commit to a CD with a 6+ month term to get 0.25% interest at Chase! (I picked JPMorgan Chase’s CD rates since chief executive Jamie Dimon has publicly complained about the Obama Administration’s proposal to create a Consumer Financial Protection Agency.) This is yet another example of how Fed policy is anti-consumer.

The term deposit proposal is just another phony attempt by Fed Chairman Bernanke to prove to naysayers that he has the tools and willpower necessary to rein in excess liquidity before inflation takes off. Yet what Bernanke said in a speech today on “Monetary Policy and the Housing Bubble” before the American Economic Association should be sufficient for the Senate to reject his reappointment as Chairman.

Bernanke said the housing bubble was caused by regulatory failure, not loose monetary policy. And whose job is it to regulate the banks? The FED! Why should someone who admits he wasn’t doing his job properly be reappointed?! As I wrote in a previous post, this speech is yet another example of Bernanke defending the policies and plagiarizing the excuses of Alan Greenspan related to excess foreign savings bleeding in the U.S.

What the Fed refuses to admit is that ridiculously low interest rates promote loose lending and excess speculation. Meaningful financial reform cannot happen unless the Fed charters a different course. This is not going to happen with Ben Bernanke at the helm as the Fed does not take economic behavior into account. Using inflation alone to justify low interest rates leads to repeated boom and bust cycles and the associated pain.

Venus conjoining Pluto in Capricorn Monday and the Moon (sentiment) in Venus-ruled Taurus reflected the weakness in the financial sector due to rising Treasury yields and concerns that eventually the Fed will contract liquidity.

The S&P 500 reached a new 2009 closing and intraday high on Monday while the Dow and Nasdaq made their closing highs for the year on Tuesday and intraday year highs on Wednesday. As I described in last week’s Forecast, the stock market had a dramatic run up from the March 9 12 year low. The Dow’s best month was July (+8.6%) when Jupiter (optimism) conjoined Neptune (euphoria) for the second time which coincided with earnings season. Yet from a longer term perspective, the Dow has declined 24% over the last decade. So much for the “buy and hold” mantra! A new decade needs a new mantra along the lines of figure out your price points, then buy and sell using limit orders.

Summary Of This Week’s Influences:
The Moon represents the general public and emotional sentiment. Mondays are ruled by the Moon, and tomorrow Jupiter in Aquarius will conjoin the USA Moon for the first time since January 1998. But don’t expect this event to usher in another cycle of conspicuous consumption.

I’d like to thank a reader of this blog who emailed me a link to an article in today’s New York Times (“In Recession, Americans Doing More, Buying Less”). The article perfectly describes how Pluto’s entrance into Capricorn in 2008 began transforming how Americans spend their discretionary income and time. Pluto brings transformational change whether we are ready for it not and with Saturn in Virgo then, the changes first began as a result of people losing their jobs or having a contraction in their working hours.

The New York Times/CBS News poll was taken November 6-8, 2009 when the Moon was in its “home” sign Cancer, ruler of food and family. On November 8, the Moon moved into Leo which rules leisure activities. Most importantly, Saturn in Libra was about to make its first square to Pluto at the same time both of these planets are impacting the USA’s natal Venus in Cancer, reflecting that the public’s values are undergoing a profound shift spanning all income brackets. Nearly half of the Americans surveyed said they were spending less time buying nonessentials and more than half said they are spending less money in stores and online.

Economists worry that “experience consumption” – enjoying cultural and recreational activities as well as practical activities such as cooking from scratch – has ushered in the end of the spendthrift era of Pluto in Jupiter-ruled Sagittarius (1995-2008) and will undermine an economic recovery.

What this means is that while the public has become grounded in simpler tastes and values, the government and particularly the Federal Reserve doesn’t understand the planetary writing on the wall. Since consumer spending comprises 70% of the U.S. economy, a new paradigm in economic planning is required ASAP.

2010 begins with Mercury retrograde in Capricorn until January 15 and Mars retrograde in Leo until March 10. The first quarter of the year will be a time to take action on outstanding issues that have not been resolved. And if we think they have, circumstances will arise that remind us otherwise!

Mercury is the most dominant planetary energy this week as it conjoins the Sun on Monday and Venus early Tuesday during the time the Moon is in Mercury-ruled Virgo. This is an excellent time to review finances and work-related matters to formulate goals for 2010.

Mercury retrograde tends to bring choppy or “see-saw” trading, making it difficult to discern where the market is going. As I wrote in the Mars retrograde and more recent posts, the influence of Saturn square Pluto and other factors later in January/February could bring a market correction.

Monday, January 4, 2010
The Sun conjoining Mercury tends to be either bullish or bearish but has a greater tendency to be bearish when Mercury is retrograde. The Sun conjunct Mercury in Capricorn can bring news about sovereign debt or concerns about central bank policy that cause investors to worry (Moon in Virgo). However, Mercury conjoining Venus is the feel good factor; news tends to be positively interpreted. Combined with Jupiter conjoining the USA Moon, I would say that today has a positive bias but the market could turn negative intraday and/or weaken in the afternoon.

Happy Birthday, Mom!

Tuesday, January 5, 2010
Positive bias, especially in the morning. Could weaken and turn negative into the close.

Wednesday, January 6, 2010
Negative.

Thursday, January 7, 2010
Positive but weakens in the afternoon with indices mixed between moderately negative and moderately positive.

Friday, January 8, 2010
Negative, but indices could be mixed to positive intraday.

*The cardinal signs are Aries, Libra, and Capricorn.
**The Fed’s Aries Midheaven (reputation)

Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC
USA: July 4, 1776 5:10 PM Philadelphia, PA
CORRECTION (added 1/4/10 at 8:05 AM): I incorrectly stated that the Dow declined 24% over the last decade. The S&P500 declined 24%, and the Dow declined 9.3% from 1999-2009.

Time, Money, Politics, and the Body’s Solar Clock

2010-01-01T17:35:00.004-05:00

Published by WallStreetWeather.net

Capricorn and its planetary ruler Saturn represent time and how we keep track of it. Every year when the Sun enters Capricorn (December 21 to January 19*) we become even more conscious of time. Millions of people around the world wait for hours on New Year’s Eve for the clock to strike midnight in their time zone. At that moment a new calendar year has begun.

It’s about time, just in time, time is money – these have become some of the most popular expressions of all time. History, government, corporate, societal structures and matters of global importance fall under Capricorn and Saturn’s domain. With Pluto in Capricorn from 2008-2024, time as we currently know it will be transformed in a number of ways.

Recent articles in the Financial Times, The New York Times and The Wall Street Journal describe the history of tracking time and how it affects our economic, political, cultural, and biological functions.

From the beginning, humans kept track of time by observing the cycles of the Sun and Moon. Every town operated on its own local time originally calculated with sun dials. Calendars were developed to mark the four seasons of the year beginning with the start of Spring at the Vernal Equinox** to organize time around agriculture and religious observances.

Many calendars have developed over the centuries, each one attempting to better reconcile the relationship between Earth and the Sun and Moon. Since the Earth takes 365.2422 days to cycle around the Sun from one Vernal Equinox to the next, creating a calendar that neatly divides this time has been a challenge as a leap year will periodically have to be added to account for the time beyond the 365 days the Earth takes to orbit the Sun.

In “Time and Again, the Calendar Comes Up Short,” Charles Forelle describes the history of calendars from Julius Caesar’s Julian calendar to modern attempts at creating a perpetual calendar and how religious and political views have determined what kind of calendar the world uses. The Gregorian calendar is the world’s currently accepted civil calendar and was devised by Pope Gregory XIII in 1582 to return the Vernal Equinox to around March 21 to correlate to the Catholic Church’s original celebration of Easter which occurs on the first Sunday after the first Full Moon after the Vernal Equinox. England was reluctant to adopt a Pope created calendar after King Henry VIII broke with Rome in order to divorce his first wife and marry Anne Boleyn. The time for the coronation of their daughter Elizabeth I was calculated by Elizabeth’s astrologer John Dee who created a calendar system more accurate than the Pope’s but it was never used and England remained on the Julian calendar until 1752.

In the 1950s the UN introduced a “World Calendar” that begins each month on a Sunday, with each month consisting of 30 or 31 days and each quarter 91 days. An additional day called “Worldsday” was added on at the end of each year. Since Worldsday created eight days between Saturday and Sunday, religious objections forced the UN to drop the idea. Now the World Calendar Association is trying to get the UN calendar adopted in 2012 which begins on a Sunday, the day of the week ruled by the Sun.***

Despite England being a late adaptor to the Gregorian calendar, the UK’s natal Sun in Capricorn reflects that modern Britain would become the global leader in timekeeping. As the FT’s Clive Cookson explains in “Hour power,” the arrival of public transportation necessitated the need to develop a time standard to create railroad timetables which were first developed by Great Western Railroad in 1840. Big Ben is the most famous clock in the world, and the first accurate atomic clock was created in Britain in 1955.

In 1884 Greenwich in southeast London officially became the prime meridian (zero degrees longitude) of the world with every world time zone calculated by how many hours a geographic location is ahead or behind Greenwich Mean Time (GMT). Just like calendars, there is disagreement among nations regarding whether to abolish leap seconds from Universal Time Coordinated (UTC) to keep the link between clocks and the earth’s rotation. The US, France, Russia, and Italy want leap seconds abolished while China and the UK want to keep them.

Time is money, and London has made the most of its position as a “time bridge” since its business day overlaps with the Americas and Asia. In December 2007, Venezuelan president Hugo Chavez decided to change the country’s time zone to -4.30 from -4.00 hours GMT. Perhaps Chavez was inspired by Mao Zedong who in 1949 replaced China’s five time zones with “Beijing time” to symbolize a new and unified communist nation.

Russian president Dmitry Medvedev has proposed consolidating the country’s 11 time zones into four in the name of economic efficiency despite concerns that fewer time zones would use more energy and take a toll on the body’s circadian rhythms. The Sun is our life force and symbolizes who we are, reflecting that a human’s internal clock “depends on sun time rather than social time.” Studies have shown that moving clocks forward to Daylight Savings Time increases the number of accidents and decreases sleep time immediately following the time switch.

Cronus is the Greek name for Saturn. In “Enter the Chronotherapists” Olivia Judson predicts the next big thing in healthcare will be chronotherapy, or therapy by the clock overseen by your personal chronoconsultant.

Just as we are affected by planetary cycles, our internal clock influences how our bodies change throughout the day. Muscles are stronger in the afternoon than in the morning. Breast milk changes during the day. Evening milk is full of compounds that make a baby sleepy; morning milk isn’t. Breast cancers grow faster during the day than at night.

Chronotherapy helps to create better health and promote healing by working in harmony with the body’s circadian rhythm. Refraining from eating at night and getting sufficient sleep in a dark room can help to prevent obesity as well as inhibit the growth of tumors. Taking medication at a certain time of day can increase its effectiveness and decrease the dosage needed. Simple measures like these keep people healthier and save money.

I am confident that chronotherapy will become an accepted healthcare practice while Pluto is in Capricorn, as governments seek to implement various cost effective treatments to contain out of control medical costs and promote a more holistic lifestyle. The next level would be to take the timing of planetary movements into consideration for better health and economic wellbeing.

*These dates can slightly vary from year to year.

**The Vernal Equinox begins when the Sun enters Aries, the first sign of the zodiac.

***Each day of the week is ruled by a different planet: Sunday (Sun), Monday (Moon), Tuesday (Mars), Wednesday (Mercury), Thursday (Jupiter), Friday (Venus), and Saturday (Saturn).

The New Year’s Eve “Blue Moon” Lunar Eclipse

2009-12-30T22:03:00.006-05:00

Published by WallStreetWeather.net

We’ve all heard the phrase “once in a blue Moon” which is popularly defined as two Full Moons in the same month. While blue Moons occur around every 2.5+ years, there hasn’t been a Blue Moon on New Year’s Eve since 1990.

This Blue Moon is a Partial Lunar Eclipse as the Earth will come between the Sun and Moon, partially blocking the Sun’s light from striking the Moon. The Partial Lunar Eclipse occurs at the same time the Moon is at its closest point to the Earth (perigee). The Lunar Eclipse will exert an extra pull on the tides and humans who are composed of over 50% water.

We create water by shedding tears when our emotions are at opposite ends of the spectrum, from sadness and being upset to joy and tears of laughter. With the Moon in its “home” sign Cancer which is part of the water element, moods change quickly.

It is highly symbolic to have a Full Moon on the last day of the calendar year as the Full Moon represents the culmination of what has already transpired. This is a time to release old energies in order to prepare to give birth to new ideas and endeavors at the New Moon. Mercury retrograde and Mars in Leo retrograde further reinforce reviewing past thoughts and actions. With the Full Moon in Cancer, these energies relate to what we need to feel emotionally and physically secure. Food, shelter, and family are Cancer’s key themes. Just as Cancer the Crab has the security of its shell wherever it goes, the Moon opposing the Sun, Mercury, Venus, and Pluto in Capricorn and squaring Saturn in Libra, reflects that we are responsible for creating our own sense of security and balancing our personal and professional lives and relationships. We become insecure when we become too dependent upon others for their assistance or approval.

Cancer is sentimental and Capricorn is traditional. People are more likely to return to the New Year’s Eve “rituals” from the past, such as going out to a restaurant serving comfort-style food before watching a movie, or doing those things at home and then watching the ball go down in Times Square at midnight (Capricorn rules time.) New Year’s Eve celebrations will tend to be more simple and restrained.

The period one week before and between eclipses is not a favorable time to make decisions as the light being blocked symbolically represents that we do not have all the information we need to make a sound decision. Eclipses are harbingers of change, and things tend to be seen in a whole new light beginning a week after the eclipses have passed. This is especially true with Mercury retrograde until the January 15 Solar Eclipse in Capricorn.

In the USA, the Lunar Eclipse occurs at 2:12 PM EST on New Year’s Eve. Mercury rules the chart set for Washington. The nation’s thoughts and news are focused on the economy/banking system and the impact of global actions and events affecting the stock market which appears to be restrained from making new highs, likely drifting sideways before heading lower. Renewed fears about sovereign and commercial debt, as well as residential mortgages will cause bond yields and mortgage rates to rise. The eclipse opposes New York City’s Sun in Capricorn, further emphasizing events affecting Wall St. and the city’s reputation as a global financial center. Uranus in Pisces could bring some unexpected developments in Congress.

Increased precipitation is likely around this time. Weather conditions in most of the country tend to continue to be cold and harsh but could have brief periods of milder more pleasant weather. Travel difficulties likely remain between the Midwest and East Coast. Areas more likely to be prominent in the news now are the West Coast and surrounding states, as well as New Mexico (Albuquerque). California and Nevada could be prone to earthquakes and unexpected severe weather. Surprise developments could come out of Silicon Valley.

The path of the Lunar Eclipse will be visible over most of Europe, Africa, the Middle East and Asia. Nations more likely to be prominent in the news at this time are the UK, France, Libya, Zaire, Mozambique, Iran, U.A.E., Oman, Afghanistan (central and southeastern; Quetta), Pakistan (Karachi, Haripur, Rawalpindi), India (west coast;Mumbai and Ahmadabad), Burma, China (Beijing, Hong Kong), Taiwan, Indonesia, Philippines, Australia (east/west coasts; Melbourne).

Our current thoughts and actions on an individual and global level affect our future. Eclipses raise similar themes to the previous eclipse occurring on the same date and degree in the zodiac. The last New Year’s Eve Lunar Eclipse followed by the Solar Eclipse of January 15, 1991 began the first Gulf War. Except for a brief hiatus between Papa and Junior Bush, we haven’t left. Even with the tendencies for this to continue, Venus conjoining the January 15, 2010 Solar Eclipse offers the chance for the US to pursue diplomacy and gain cooperation with its allies instead of pursuing more war in the Middle East.

The next New Year’s Eve that will be a Blue Moon and a Lunar Eclipse will be in 2028. If we don’t want to be dealing with the same issues that we’re facing now, take the time on this New Year’s Eve to review and reflect upon the ways you can feel secure.

WallStreetWeather.net Forecast For Week Of December 27, 2009

2009-12-27T21:38:00.004-05:00

WallStreetWeather.net Forecast For Week Of December 27, 2009
The major indices reached new 2009 highs last Thursday, correlating to the historical tendency of the stock market to move up during the last two weeks of December.

Aquarius and its ruler Uranus represent extremes. The influence of Saturn opposite Uranus from Fall 2008 through Winter 2009, helped drive the Dow and the S&P down to decade lows. Jupiter is sometimes described as Santa Claus, and the influence of Jupiter conjoining Neptune in Aquarius from the Spring took global markets to the opposite extreme thanks to zero interest rates, government-backed loans, and global government stimulus measures.

To match the energies of optimistic Jupiter conjoining with Neptune the planet of dreams and illusion, there seems to be an attitude of party now and deal with the problems later.

Welcome to 2010. As Dennis K. Berman explains in an article in last Monday’s Wall Street Journal:

“Lots of worries hang over the coming year: the direction of the U.S. dollar, the Federal Reserve’s inflation-fighting, sovereign-debt downgrades and relations with China. None will top the biggest Wall Street story of 2010: the most significant financial regulation in 75 years.”

Timothy Ryan, the CEO of the Securities Industry and Financial Markets Association says “This is the rerun of the 1930s.” And he’s right. It is a rerun as Mercury is retrograde in Capricorn and Mars is retrograde in Leo at the same time and place they were in December 1930 to January 1931.* From June 1930 to July 1931, Jupiter (expansion), Saturn (contraction) Uranus (extremes/shocks), and Pluto (bankruptcy/transformation) were in cardinal (action-oriented) signs. Jupiter and Pluto were in Capricorn’s opposite sign Cancer. (Cancer rules food and describes the bread lines.)

During 2010, these same planets are or will be moving into cardinal signs. Uranus moves into Aries May 27 for the first time since its last transit from April 1927 to March 1935. Jupiter will follow June 6 and conjoin Uranus June 8. Just like the early 1930s, Jupiter and Uranus will oppose Saturn at the same time these three planets square Pluto. This configuration will be at its strongest in July and August 2010.

This does not mean that we will experience another Great Depression, but it is an overdue wakeup call for major reforms to take place as these planets converge over the USA Venus (banking system). Already the financial reform bill that passed the House on December 11 has so severely weakened proposed derivatives regulations that it will exempt nearly half of the $600 trillion in outstanding derivatives transactions from clearing requirements. This is despite the fact that the opaque world of derivatives trading precipitated the financial crisis and brought down AIG.

If Congress does not end up passing legislation requiring all parties involved in a derivatives trade to post margin or collateral, it is setting Wall St. up for another financial crisis. And in the event of another crisis, the House bill allows regulators and the Treasury to guarantee the debt of a “solvent” institution. This precipitates the volatile complete lack of moral hazard in institutions even bigger than the old “too big to fail.”

The influence of Jupiter conjoining Neptune brought us out of the crisis and back into a false sense of security and complacency. 2010 could bring many ups and downs in the market throughout the year. January and February is likely to inject a dose of reality to the market. Things perk up in the spring and as I wrote in a previous post, by June we could really have an inflation problem if the Fed doesn’t start tightening. Jupiter conjoining Neptune gave the illusion that there’s no inflation even in asset prices.

As Jupiter made its final conjunction to Neptune last Monday, Chicago Fed president Charles Evans hinted on CNBC that the Fed keeping rates low “for an extended period of time” could last for another three to four FOMC meetings which would mean the Fed would start tightening at its June 23 meeting. The Sun in Cancer will square Uranus in Aries June 21 and Jupiter in Aries that day. (The Moon enters Jupiter ruled Sagittarius at 2:10 PM EDT.) All three planets will impact the Fed’s natal Sun/Pluto opposition indicating a change in monetary policy to prevent economic expansion from causing inflation to spiral out of control.

The bottom line is that 2010 is not going to be the easy year for the market that 2009 turned out to be. Instead there will probably be periods of turbulence followed by a sharp rally and then more turbulence and volatility followed by the Sun shining again. ETFs might not especially perform as well between June and August when Jupiter and Uranus are in Aries, as one stock is likely to outperform while the rest of the stocks in the ETF will underperform. As Main St. begins to improve, it will become more challenging for Wall St.

Just as the Fed and the government’s extraordinary measures kept the market in full bull mode even during the late summer to early autumn gap between the Jupiter/Neptune alignment, the stock market has a propensity to be up during the last two weeks of December.

Instead of doing a daily forecast for this abbreviated week, I will do what I should have done last week and briefly describe the planetary influences and their tendencies.

Venus has now moved into Capricorn and Mercury is retrograde in Capricorn until January 15. Venus shifting into Saturn-ruled Capricorn until January 18 creates a more cautious outlook about financial matters. Mercury turning retrograde can reverse the market’s trend, but the strong end of year factor could delay this effect until January (Saturn/Capricorn represent delays).

Venus conjoins Pluto in Capricorn on Monday (the first time since the 18th century) and Saturn in Libra early Tuesday. The focus is on banking with the Moon (sentiment) in Taurus, and the debt (Pluto) held by banks and sovereign nations. An announcement related to a merger or talk of a potential takeover is possible.

With the Moon in Mercury-ruled Gemini Tuesday and Wednesday, the influence of Mercury retrograde could cause some choppiness and weakness. Tuesday’s Consumer confidence number could come in lower than expected. Thursday’s Blue Moon Lunar Eclipse in Cancer should see the indices finish up on the last day of 2009.

I want to wish all Wall Street Weather readers a happy, healthy, and prosperous 2010 regardless of what the markets do!

*The two were also retrograde simultaneously in the same signs in January to early February 1963 but Mercury began its retrograde cycle then in Aquarius.

Related Post:
“The December 21, 2009 Winter Solstice”

Mercury Retrograde in Capricorn (December 26, 2009 – January 15, 2010)

2009-12-26T08:38:00.005-05:00

Published by WallStreetWeather.net
Mercury is the planetary energy of communication, movement, and commerce. For three weeks about three to four times a year, Mercury appears to move backward in the sky from Earth’s vantage point. This post explores what Mercury retrograde is, how to make the most of it, and its potential implications for the economy and financial markets.

Mercury is retrograde December 26 to January 15, 2010. Retrograde is symbolized by Rx. Rather than making major decisions, starting new endeavors, and making major purchases, the remedy for the next three weeks is to engage in reflection and research. It’s a time to rethink, review and revisit situations we’ve overlooked, rectify past errors, and reattempt to resolve issues that previously failed to reach fruition. Put the RE prefix in front of everything you do: reapply, reform, renegotiate, repair, revise, redo, reconnect, reinvent, retry, etc.

Scrutinize all data especially receipts and financial statements which could be more prone to errors. Avoid signing important documents during this time unless carefully reviewed multiple times (even if it was vetted by an attorney). Allow extra time for travel as well as for shipments to reach their destination. Unsettled weather conditions can cause accidents, delays, cancellations, and power outages. With Mercury retrograde in Capricorn and a majority of planets in Capricorn and Aquarius, frigid temperatures and severe weather conditions will accentuate travel problems.

Capricorn is ruled by Saturn. Mercury rules schedules and Saturn and Capricorn rule time and how we keep track of it. Reconfirm all appointments and arrangements and keep your schedule as flexible as possible to accommodate unexpected changes and developments. This is a good time to reorganize your home and office and reflect if you are truly spending your time wisely.

With Mars in Leo retrograde (December 20, 2009 to March 10, 2010) as well, it is a time to review our thoughts (Mercury) and actions (Mars) rather than moving forward. Thoughts and actions are subject to readjustment. All types of communication and mechanical devices are more prone to malfunction or breakdown during this time. Keep devices fully charged, frequently backup files, and have printouts of important documents. It’s best to postpone purchasing new electronic devices, appliances, or automobiles unless you are replacing it with the identical product.

Motor vehicles are ruled by Mercury and Mars. Replace your vehicle’s brakes if they are dangerously low! Potential problems during this time could be related to the vehicle’s ability to stop/start, engine (the annoying “check engine light”), steering, turn signals, headlights, entertainment* and navigation systems, and sunroof/convertible top.

Capricorn rules career, public reputation, and tradition. The Sun in Capricorn (December 21 to January 19) ushers in the new calendar year. Many people make New Year’s resolutions that fail by February. (See “Blame It on the Brain”; Mars rules the brain.) Mercury retrograde is a good time to retry what has failed in the past. Capricorn energy is about moderation. There are no quick fixes; only time and genuine effort will reap lasting results.

The most common New Year’s resolutions relate to improving physical appearance, and this is especially true with Saturn in Libra. Don’t resolve to lose weight or it will surely find you again! Instead mentally focus on releasing the weight. Remove all food and drink from your diet that contains sugars and other chemicals. Replace them with water and unsweetened all natural juices, and primarily eat fruits and vegetables. Get frequent exercise and incorporate more movement into your daily routine. On the subject of health, Capricorn rules the knees, bones/joints, teeth, and skin.

When Mercury is retrograde there’s a greater tendency to be in contact with people from the past. It’s a good time to reconnect with a former boss or mentor and former clients/customers. If you’re looking for work, reapply to former employers or companies who rejected you in the past. Retake tests. January 4 and 5 (before 12:24 PM EST) are the best days for this. This is also a good time to restart all types of negotiations that previously failed.

Days Mercury retrograde’s influence could be the most pronounced: December 26, 28-31, Jan 1, 4-6, 12-15.

Economic/Financial/Geopolitical: With Mercury turning retrograde the day after Christmas, retailers could be faced with more returns than usual. Many of these returns will come from consumers who bought merchandise for themselves and are returning it because they were able to obtain the item at a lower price elsewhere. Venus entered Capricorn Christmas day until January 18. Together with the Sun and Pluto in Capricorn, consumers will only be interested in purchasing quality merchandise at low prices. Retailers who put out overpriced junk geared for consumers with gift cards will be disappointed as consumers will be very particular about what they spend money on regardless if it was a gift. The era of Pluto in Capricorn (2008-2024) is about quality over quantity and living within your means.

As CNBC understands, Mercury retrograde tends to create choppy and volatile trading patterns that reverse trends. Mercury combined with Mars retrograde can slow trading down. A more cautious and pessimistic outlook pervades with Mercury and Venus in Capricorn and Capricorn’s ruler Saturn squaring Pluto.

Conflicting economic data and technical signals send mixed messages. Data feeds could be problematic, displaying inaccurate information (ditto for the news media). Currencies and bonds are particularly affected. New deals announced during retrograde are more likely to fall through. Any discernable trading pattern begun during the retrograde period could begin to shift by February 4 when Mercury moves forward into new territory.

Capricorn rules governments and corporate and world leaders. Leaders could reverse or renege on previous positions and statements. Others could resign. Mercury retrograde in the USA** indicates that previously undisclosed information about corporate, government, and sovereign debt could affect profits. News about hospitals and other treatment facilities, drugs, and insurance companies gets revealed. This information will have a negative effect on the stock market as Mercury rules the sectors of the chart representing speculation and debt.

Mercury Retrogrades in 2010:
Except for the end of the year, Mercury will retrograde in earth signs in 2010, emphasizing financial and practical considerations.

April 18 to May 11: Mercury retrograde in Taurus (money, banking, material assets, self-worth and personal values).

August 20 to September 12: Mercury retrograde in Virgo (health, workforce and military, daily routine). This is a pronounced retrograde period as Mercury rules Virgo.

December 15 to 30: Mercury turns retrograde in Capricorn at the same spot where it turned direct January 15, returning to themes present during this Mercury retrograde. Thoughts shift from cautious to optimistic as Mercury moves back into Sagittarius December 18. Mercury will retrograde in fire signs*** during 2011 and 2012. It's time to rethink our mental outlook from one of fear and pessimism to one of enthusiasm for creating a brighter vision now and for the future.

*Personal experiences of the Mercury/Mars retrograde: The day Mars went retrograde I drove to the store listening to music on the car radio. When I went to turn the radio on driving home, the radio power buttons on the dash and steering wheel would not work, and the stereo won’t accept CDs or cassettes (car is 8 yrs old). Radios are ruled by Mercury, but listening to music is entertainment (Leo). Now as Mercury turns retrograde, the backup battery in my 11 yr old solar powered (Leo) watch (Capricorn) will have to be replaced for the first time.

**Chart set for Mercury retrograde December 26, 2009 at 9:38 AM EST Washington, DC.

***The fire signs are Aries, Leo, and Sagittarius.

The Weekly Forecast features a more detailed look at current and upcoming planetary influences. Check back early next week for my post on the New Year’s Eve Blue Moon Lunar Eclipse.