Review and Preview

 The high of Venus direct on April 17 held in most – but not all – equity markets last week. For most of these markets, prices declined into Tuesday, April 21, then began another rally that lasted into the end of the week.

 In Asia and the Pacific Rim, none of the markets we track exceeded their highs of April 16-17. Each of them declined into April 21-22, and then rallied to close out the week, but that rally failed to exceed the Venus direct high.

 In Europe, we saw mixed results. England’s FTSE index soared to a new multi-week high of 4156 on Friday, exceeding the prior high of 4137. Germany’s DAX nearly repeated that pattern. After hitting a high of 4680 on April 17, it fell back to a low of 4390 on Tuesday, It then came storming back to 4674 on Friday, just shy of the Venus direct high. But the AEX of Netherlands and SMI of Switzerland stayed well off their highs of the prior week, after bottoming April 21. Thus we may have a case of bearish intermarket divergence developing in Europe.

 The Americas, however, were much stronger, perhaps because they remained open longer on Friday. The Bovespa of Brazil and Merval Index of Argentina each exceeded their prior week’s high this past Friday. So did the NASDAQ Composite. But the Dow Jones Industrial Average stumbled after attempting to do the same. Last week, on Venus direct, the DJIA got up to 8190. This week it had a huge decline on Monday (almost 300 points), bottomed on Tuesday at 7791, and then rallied back to 8127 on Friday before selling off again into the close. Last week we talked about the bearish rising wedge formation in these indices, especially the DJIA. Well, that lower line broke, and on Friday, prices rose back to it and stalled.

  In other markets, Gold and Silver exploded upwards after putting in lows Monday morning. This fits our thoughts last week, stating, “In the case of Gold, it tested but held its low of April 6. But Silver took out its low of April 6. If they too reverse here as Venus turns direct, it would be a case of intermarket bullish divergence where one market makes a new multi-week low and a related market does not. When that happens on a critical reversal date, it is usually followed by a very strong counter-trend move.” After hitting 865.50 on Monday, Gold soared to 914 on Friday. After hitting 1172 on Monday, Silver soared as high as 1294 on Friday. And it doesn’t look like they are done. Crude Oil also performed well. After bottoming at 43.83 on Tuesday, Crude rallied to 51.75 on Friday, with no indication that the rise is completed. The same can be said about the Euro currency and Swiss Franc against the U.S. Dollar. All of this ties in nicely with the nature of Venus changing directions one week ago. It was another good week for Financial Astrology.

Short-Term Geocosmics

As stated last week, “Venus now ends its retrograde motion as it turned direct on April 17. Since Venus rules assets and things of value (like stocks), there is cause to be concerned that the trend that preceded Venus turning retrograde may now return. That would be the bear market. But in many historical cases, a reversal from a high as Venus turns direct doesn’t necessarily result in a decline that takes out the low of the retrograde period. With Jupiter fast approaching its conjunction to Neptune in late May through mid-July, there is a geocosmic basis for thinking that any decline right now may hold above those lows of March 6-10, and then be followed by another rally to higher highs. Jupiter and Neptune are normally very optimistic and hopeful about the future.” Well, the equity markets did not really decline much since Venus turned direct last week, and in some equity markets, price have even made new highs. This “secondary” high that is now happening may be related to the new moon in Taurus, which takes place Saturday, April 25. Stock prices oftentimes do get a lift into the new moon, especially Taurus, which rules assets and equities. If so, look for that decline to start in earnest this week. If not, then we have to shift our focus to the forthcoming Jupiter-Neptune conjunction, a 14-year cycle which – in this market climate and with this new President – would seem more likely to be very bullish, and whose influence may already be starting. I would think that Saturn turning direct on May 16 would temper the market’s advance before Jupiter-Neptune takes root. But it is interesting to note that in previous bear markets, stock prices tended to rally into Saturn stations, according to the work of subscriber and friend Lindsay Holt, of Santa Fe, New Mexico.

Let us also not forget that the Venus-Pluto square of April 4-May 3 is still in force. As long as it is present, there remains the possibility of another large corporate bankruptcy or failure, another “takeover” by the U.S. government (or any government). Maybe it is General Motors or Chrysler that defaults, and GM already announced it would not be able to pay its bondholders June 1. It could also be the public’s outrage at the credit card companies (banks) that have doubled their interest rate charges on clients for no good reason. Sheriff Obama may make them pay dearly for that opportunistic decision. Nevertheless, the financial danger is far from over, even though confidence seems to be returning. It is all consistent with Jupiter-Uranus-Neptune in mutual reception.

Longer-Term Thoughts

 The consequences of ethical, moral, and perhaps legal violations that occurred around the time of the Saturn-Neptune opposition are now coming to light. Long-term readers may remember our concerns during that period, which stretched from 2006 through 2007. That was a 36-year cycle that correlates with very questionable “behind the scenes” activities by government leaders that would not be revealed until 2-3 years after the aspect passed. And then when these possibly corrupt, illegal, unethical, and/or immoral behaviors are revealed, accountability is demanded, and if not responded to openly and honestly, consequences will be administered. The previous time this happened was in 1971-72, when the Watergate burglaries occurred. That cover-up was not revealed until after the election of 1972. Within two years, then-President Richard Nixon resigned in disgrace, the first time that ever happened to a sitting USA president. He was saved from a possible prison sentence through a pardon by the new President Gerald Ford, who wanted America to move forward and not be caught up in the “vengeance game.” But many of Nixon’s staff did serve jail time for this abuse of power and subsequent cover-up.

Now, in 2009, we are seeing another Presidential cover-up coming to surface, under the previous administration of President George W. Bush. It has to do with torture and harsh interrogation techniques, approved by the Bush Administration, with terrorist suspects held in the Guantanamo Bay facilities following the 9-11 attack on the World Trade Center. Last week President Obama decided to release the Bush administration memos outlining the rational for approving such torture. Attorney General Eric Holder has now received a petition to “… appoint an independent prosecutor to pursue any legal culpability by officials of former President George W. Bush’s administration,” according to Friday’s Wall Street Journal.” Obama himself opened the door “…for a more aggressive pursuit of Bush-era practices... and declining to rule out prosecution of Bush officials.” But now he is backing off of that position. But here is the point: abuses and violation of laws, followed by cover-ups, may very well have occurred, according to our understanding of the Saturn-Neptune opposition of 2006-2007. And now, 2-3 years later– just as forecasted in this column in 2006 and 2007 – these revelations are coming to the surface. It is still possible that some of those involved in these behaviors will be held accountable, and will bear consequences. Because Pluto is also in Capricorn since 2008, these actions are not likely to just be forgotten and forgiven, despite the news reports at the end of this past week. Obama, perhaps like Gerald Ford, may not wish to subject the country to such a gut-wrenching and humiliating ordeal. And doing so now may backfire upon him. But Pluto is relentless and obsessive, especially in Capricorn, and there could still be a movement to pressure Obama to punish those who approved the torture methods. Pluto in Capricorn can be akin to power plays resulting in a witch hunt, especially with Saturn coming to square Pluto November 2009 through August 2010. Interestingly, that same aspect was present in 1974, when Watergate really exploded and led to Nixon’s resignation and the conviction of many of his staff, following the Saturn-Neptune opposition of 1971. Of course, it could be something else altogether.

Ironic, isn’t it, how history repeats along the same schedule as then? Which brings us to the question: how badly will re-opening this wound (or any wound) cause faith in the American financial system to falter? In 1973-1974, when the Watergate cover-up came to light, the DJIA fell from a record high of 1067 in January 1973 to a low of 570 in December 1974. We have already suffered one financial shock on our way down to the 72-90 year economic cycle trough that is due 2008-2015. I do expect a second shock and a second wave down if these abuses or deceptions of the Bush administration – or even newly revealed deceptions or cover-ups of the current administration - are pursued and determined to have occurred, which Mundane Astrology suggests could be the case late this year and into next. But the real test will come in the form of American’s ability to forgive and move forward, for that is the higher expression of Saturn and Neptune. Of course, this will be in conflict with the lower nature of Saturn square Pluto and Pluto in Capricorn, which will want an inquisition and burning of the alleged violators at the stake. But to Obama’s credit, he seems to be taking the “high road” on this current matter at this time.