Review and Preview

 Heliocentric Mercury in Sagittarius was certainly in evidence last week. This is a planetary-sign relationship that has a history of correlating with dramatic price movements in various markets anywhere in the world. In this case it coincided with the re-election of Prime Minister Manmohan Singh in India, and the stock market of India liked that choice so much the Bombay Sensex stock index soared 17% last Monday. By Tuesday and Wednesday, most of the other markets we track made weekly highs. In same cases, they represented new highs since the lows of Venus retrograde back in early March. In others cases, these were not new highs, which creates a concern to Financial Astrologers like us, since we are about to experience the first of the three 13-year Jupiter-Neptune conjunction passages this week.

 In Europe, the Netherlands AEX, German DAX, and Swiss SMI stock indices all made new cycle highs last Wednesday, May 20. However, the London FTSE only rallied to 4512 on May 19, just below its cycle high of 4520 on May 7. And then came word that Great Britain is in serious financial straits, and its credit rating is to be downgraded (see Longer-Term Thoughts).

 In Asia and the Pacific Rim, only India’s stock market made new cycle highs last week. Rallies topped out on Wednesday and Thursday in Australia, Japan and Hong Kong, but at considerably lower levels than the highs seen May 11. Thus here too – as in Europe – it was a case of intermarket bearish divergence.

 The same bearish divergence pattern was present in the Americas. Both the Bovespa of Brazil and Merval index of Argentina made new highs for this year. The Dow Jones Industrial Average soared to 8591 on Wednesday, slightly above its prior cycle high of 8587 on May 8. But the NASDAQ Composite fell short of its May 7 high at 1773. What is just as troubling as the intermarket bearish divergence signals are the lower oscillator readings at last week’s highs. This is a sign of weakness and an impending decline. Of course we must keep in mind that Mercury is retrograde, a time band notorious for false technical signals.

 The bullishness of heliocentric Mercury in Sagittarius coincided with very healthy rallies in precious metals, foreign currencies (against the Dollar), crude oil, and grain prices. All soared to multi-month highs last week.

Short-Term Geocosmics

 The first passage of the 13-year Jupiter-Neptune conjunction occurs this week, May 27. With a planetary cycle this long, its influence is usually evident for several days, even weeks. In this case, its influence may be noticeable for several weeks, for Neptune will turn stationary retrograde the very next day, May 28, and Jupiter will do the same on June 15. Then they will conjunct one another on their second of three passages on July 10. Therefore it will seem as if Jupiter and Neptune are conjunct from now through mid-July.

 Normally one would think this would be very bullish for equity markets around the world. After all, Jupiter is the principle of optimism, hope, and expansiveness. In the friendly air sign of Aquarius, Jupiter’s positive nature tends to flow more freely. Neptune is also a planet of hope, or rather faith. It is altruistic, even romantic in thought. Together, these two planets represent the principle of faith in others, even “hero-worship.” And since Aquarius rules the masses, it can correlate with the belief that a great leader has come to rescue the world. It would not be an overestimation to state that many people project this very hope onto the new leadership of Barack Obama, which is reflected in his own horoscope as this Jupiter-Neptune conjunction falls on his natal North Node, in his first house of personal recognition. He is arguably the “hero” symbolized by the current Jupiter-Neptune cycle, and the number of issues – problems - he is tackling is impressive. He is not complacent, and he is communicating with the populace in a way that makes them feel he truly cares about their situation, the nation, and in fact the entire world.

 So what is wrong? Why is he getting so much criticism from the conservatives, and in particular former Vice-President Richard Cheney, who just happens to be an Aquarian Sun native? Perhaps it is because Jupiter and Neptune also represent the urge for peace and non-violence, and interestingly enough, the nature of the debate has to do with torture, enhanced interrogation techniques, and the safety of the USA, if not the world. Barack Obama, right now, symbolizes the principles of Jupiter and Neptune. Dick Cheney symbolizes the combination of Saturn and Uranus in opposition, as well as Pluto in Capricorn. This is the awareness of danger and the potential to be attacked or blocked by one’s opponents. It also demands for accountability for the past and in the present. This is a power struggle – battle - between these two worlds that we see unfolding right before our eyes. These are the two major archetypes of astrology in force today. From the perspective of a Mundane Astrologer, this is classic.

In terms of financial markets, Jupiter and Neptune can have a downside too. If the investment community sees that there is a lack of control over waste and spending, or a lack of support if prices start to fall, it can quickly escalate to panic and hysteria. Later this week, Mercury will also go stationary direct. Combined with Neptune going stationary direct and in conjunction to Jupiter, this can represent a period of immense rumors and misinformation being thrust upon onto the public’s awareness. The seeds of panic are present, especially given that rating services are about to downgrade Britain’s ability to meet its debt obligations. If faith in the USA presidential leadership is also undermined, there would be cause for equity markets around the world to sell off – instead of rally sharply – under this Jupiter-Neptune conjunction. It should be interesting to see how these astrological themes play out in the next three weeks. Will it be irrational exuberance, or hysteria and panic? Or a little of each?

Longer-Term Thoughts

 Here is a sign of the times. In the 1960’s, as Saturn and Uranus were last in opposition, we sang along to sad song called, “Where Have All the Flowers Gone?” Now, in 2009, in the middle of the next 45-year Saturn-Uranus opposition, we are singing another sad song called, “Where Has All the Money Gone?”

 The front page of Friday’s Wall Street Journal featured a report on the potential downgrade of bonds issued by the United Kingdom, “… sparking global fears about the consequences of massive debts being incurred by the U.S. and other major nations as they try to dig out from the Economic crisis.” Great Britain defaulting on its debt? The USA defaulting on its debt? Is it possible? There is also concern that the Federal Reserve Board cannot account for trillions - not billions – of dollars. Could the Federal Reserve Board be going broke too?

 These are alarmist thoughts of course, but they fit with the nature of Saturn and Uranus in opposition, which has a historical theme of “fear sells.” In other words, collective fear of a major disaster – man-made or otherwise – is at a peak. But where there is smoke, there could be fire, because in this instance Pluto is also involved. In fact, a Cardinal T-Square  involving Saturn, Uranus, and Pluto is approaching later this year through much of 2010 (November 2009-September 2010). As readers of this column know, the last time such a configuration unfolded was in 1930-1931. That T-Square happens to fall across the Sun-Pluto opposition point in the Federal Reserve Board chart (founded December 23, 1913). It also forms a grand square as well to the natal Venus in the charts of The United States and President Barack Obama. Venus rules currency value and one’s net worth. Pluto rules debt. Where has all the money gone? Probably to the same place as all the flowers of the mid-1960’s.

 A headline in last Monday’s Wall Street Journal was titled, “A Reshaped Fed is Likely to Gain Some Powers, Lose Others.” That’s another theme when transiting Pluto hits your natal Sun, and opposes your natal Pluto. In the former case, there is apt to be a major overhaul of the entire structure, including its leadership (the Sun represents the leader of the entity). In the later case of transiting Pluto in opposition to natal Pluto, it is like “the debt of the debt.” Where did those trillions of dollars go? The Fed not only stands to lose much of its power, but may have to own up to the possibility that it has lost much of its money too. Of course it can just print more money, but that power – and likelihood – is why the U.S. Dollar (USA Venus) is now falling sharply – again. What happens when you engage in monetary inflation for too long and incur such severe debt? Eventually it results in price inflation, possibly around the time that Uranus enters Aries in the middle of 2010, and maybe even before. Maybe it happens when Jupiter and Neptune conjunct one another, a three-phase passage that will begin this week. At first, inflation will seem like a relief after the last few years of deflation and disinflation.

 If you are looking for a reason as to why Gold is doing so well as of late, and why it may be advisable to have some in your portfolio, you have your answer. Until the Federal Reserve and the Federal Government get control of this debt, the future for Gold will look bright. In fact, it is no longer just a USA problem. Great Britain and other countries share the same fear, and Gold has no national identity.