Week of October 26

Review and Preview

It was a mixed bag for world equity markets last week. Some made new yearly highs, such as the German DAX, London FTSE, and Swiss SMI in Europe. In Asia and Pacific Rim, new yearly highs were recorded in the Hang Seng in Hong Kong, and the NIFTY of India. In the Americas, all the indices we track made new yearly highs. But these new highs were not the result of explosive rallies as in the past few weeks. In most cases, they were just slightly above the prior week’s high. Furthermore their closes were not that impressive from a technical stand point. The combination of intermarket bearish divergence in many of the regions, with weakening momentum indicators at the close of the week, is yet another cautionary sign. However, the closes of last week were not serious enough to rule out the possibility of yet another rally, especially given the geocosmic outlook for the next few days.

The momentum also slowed in the impressive rally in precious metals of the past few weeks. Neither Gold nor Silver took out the highs of the prior week. Yet here too, neither sold off so much as to rule out the possibility of another rally, especially given that both Crude Oil and the European currencies rallied to new yearly highs in terms of the U.S. Dollar.

Short-Term Geocosmics

Last week’s new highs in many markets was not surprising form the study of geocosmics. We outlined the signatures present in last week’s column, and concluded, “When markets are rising, these factors can also correspond to a peak, for Jupiter and Sagittarius represent the principle of optimism, particularly with Venus in Libra. With earning reports still coming out, there can be more “good news” under these combinations.”

Venus remains in Libra for the next two weeks. Additionally, Venus will form a trine to the Jupiter-Neptune conjunction October 28-November 2. This favorable “translation” can keep up the optimistic outlook for the stock markets of the world, regardless of whether the news is good or bad. In other words, the sense of “hope” is strong, and it may not seem rational. That’s because traders and investors are chasing short-term profits and they don’t want to miss the boat. The tide is uplifting this market right now, but the problem is that tides also ebb. I use the symbology of tides, because in the next 1-2 weeks, there will be a pre-dominance of Neptune’s influence, and Neptune rules the sea. It also rules rumors, gossip, deception, fraud, and the quest for an ideal state of being, as in a religious or spiritual sense. Markets seldom fall hard under Neptune’s reign. But as Neptune’s influence drifts away, we will sail smack into the first of three Saturn-Pluto squares on November 15. Talk about a wake-up call. This could be like a parasailing adventure, gently cruising in the clouds, but then suddenly—when it is time to come down—the ripcord is found to be missing.

The clouds may start to gather this week, as both Mercury and the Sun leave the gracious and agreement-loving sign of Libra, and begin their month-long trek through the more foreboding—and sometimes forbidding—sign of Scorpio. Unlike Libra, Scorpio tends to demand more accountability of leaders. It is the sign of audits, debt, taxes, and the understanding that sacrifices have to be made in order to achieve balanced budgets. And if others don’t cooperate in this sacrifice, then watch out, the fingers will point to those who obstruct progress. They will be exposed. It could be a time of some humiliation. With Neptune so prominent in the first days, the message—and the threat—may fail to be appreciated early on. But it would be unwise to ignore it.

Longer-Term Thoughts

“We’ve got to make it cool to be in business again. We really have to polish the value of what business brings to mankind.” – Alan Mulally, Ford Motor Co. CEO and president, from the Wall Street Journal, August 11, 2009.

Mulally may be one of the few people in business who “gets it” right now. Ben Bernanke may be another. I am referring, of course, to the symbolism of Pluto in Capricorn, 2008-2024, which infers that those in banking, business, and government can only succeed if they are aware of their need to be completely honest and open about all of their dealings that affect those in their community. This is not a favorable time in history to be secretive, dishonest, or power-hungry. This is a time of purging those individuals who behave in a manner that enhances their gains at the expense of those in the community whose support they need in order to succeed. Pluto in Capricorn is indeed a time when it is necessary to polish the value of what business brings to mankind. The same can be said for government and banks too, for Capricorn relates to all three.

One of the characteristics that play into this “movement towards honesty and accountability” is Neptune. As stated earlier, Neptune rules ideals and the quest for a world of beauty and peace. In business, it pertains to advertising, or marketing, which is the art of creating an image in people’s minds, one that is attractive and agreeable regarding one’s product or service. The problem arises when the image being created is not honest. Neptune can rule deception and fraud. It can be intentionally misleading. And in its quest for profits and success, it behaves without any concern for how one’s actions may harm another. In its most sinister expression, Neptune can be a liar, cheat, and thief. In fact, the three are related because lying or cheating is actually stealing another’s right to know the truth in order to make the best decisions possible for their life.

Presently the transit of Neptune is stationary. That is, it is about to change from its retrograde motion to its direct motion on November 2. As it does so, its station is forming an exact conjunction to the natal Pluto in the New York Stock Exchange chart (May 17, 1792, in New York City, time unknown, but probably morning). That is, Pluto in the NYSE chart is at 23 Aquarius, the same position that transiting Neptune now occupies. Furthermore, the natal Mercury in the NYSE chart is posited at 23 Taurus, exactly 90 degrees (square) from transiting Neptune and natal Pluto. This is a signature that pertains to the temptation of fraud and dishonesty regarding the ethical rules of behavior in the U.S. stock market. In other words, the possibility of market manipulation and dishonesty regarding stock trading and information on the NYSE is extremely high right now. It is no coincidence, according to the principles of Financial Astrology, that the biggest insider trading scandal in decades was alleged last week against hedge fund giant Galleon Group. What may be more surprising is that this maybe just the tip of an iceberg, for usually under such transits, the revelations