Early week Mercury-Mars aspect could boost trading activity

Stocks moved modestly higher last week on improved corporate earnings and bullish global cues.

Despite Friday’s sudden decline, the Sensex rose half percent, closing at 18,858, while the Nifty finished at 5660. This middling outcome was not unexpected as we had noted how a mixture of offsetting influences would likely keep the indices in a fairly narrow range.

As expected, the early week brought gains as the Venus and Jupiter aspects coincided with a decent rise on Monday. As Mars moved into aspect with Saturn, however, the mood turned bearish during into midweek.

Thursday’s gain fit nicely with a bullish Venus-Uranus aspect, but Friday’s sell-off perhaps revealed the fading energy of optimistic Jupiter as it completed its aspect with Pluto.

The market appears to be in a wait-and-see mode here as investors try to assess the impact of the culmination of the Fed’s QE2 programme. While Indian economic growth remains strong, inflation is still a concern, as higher prices could put a damper on future corporate profits. 

Exporters are perhaps even more vulnerable to the prospect of a double-dip recession in Europe and the US, as stimulus measures come to an end. All of this contributes to a very uncertain outlook as new trends have not yet asserted themselves.

The planets perhaps reflect this uncertain situation as sentiment takes a middle path between the brightening optimism of Jupiter and the caution pessimism of Saturn.

We have been witness to some positive Jupiter energy in recent weeks as the bullish planet has formed important aspects with several planets, including Uranus and Pluto. In the absence of any significant offsetting Saturn aspects, the market has generally risen.

But last week saw the last of these Jupiter aspects after Friday’s 120 degree angle with Pluto. While other Jupiter aspects will occur in the coming weeks, they do not appear to be as strong or as durable.

As a result, optimism may well be in shorter supply.  But pessimism needn’t be on the rise either since Saturn also looks to be somewhat subdued in coming weeks in the absence of any strong aspects.

Of course, the movements of the market are not reducible to those two planets alone and it is possible that we could see new trends emerge. But from a probabilistic viewpoint, the ongoing tug-of-war between bullish Jupiter and bearish Saturn will likely continue.

The stars this week suggest investors may take a more cautious stance as Saturn again becomes more prominent.   The early week aspect between Mercury and Mars may boost trading activity, but any combination involving Mars needs to be treated with a great deal of caution. 

On Wednesday, there is an exact square aspect between Venus and Saturn, which may correspond with spending reductions generally as well as profit taking. The latter half of the week could see a rebound attempt as Moon is aspected by Jupiter on Thursday.

Oil ended modestly higher after a volatile week saw it spike towards $100 on improved demand outlook. Crude futures finished the week near $96. I had expected a fairly choppy week given the mix the Jupiter and Saturn aspects.

What was more surprising perhaps was the gradual rise through the week with the down move arriving on Friday. This week may undo those gains as the midweek Venus-Saturn aspect could prompt some selling.  The late week offers the possibility of a rebound.

Gold extended its recent rally as it rose 4% on the week closing above $1540. While I expected some rise from the ongoing Jupiter aspects, the extent of the rise was surprising given the presence of the midweek Saturn influence. Gold looks vulnerable to declines this week as Wednesday’s Venus-Saturn aspect is likely to diminish bullion’s appeal.

The writer is a neo-Vedic astrologer specialising in predictive astrology. He runs the website www.modernvedic astrology.com