Uncertainty, interim changes likely as Mercury turns retrograde

Stocks slumped last week as a surprise 50 basis points rate hike from the Reserve Bank of India (RBI) underscored the intractability of India’s inflation problem.

The Sensex fell more than 2%, closing at 18,197, while the Nifty finished at 5482.

Last week offered more evidence that Saturn was taking a greater role in influencing the state of the financial world.

The greater than expected RBI rate hike reflected an austere and no-nonsense approach to the problem of inflation and untamed growth.  

Saturn addresses problems through restraint and the elimination of excess. A more balanced approach might have delivered a more modest 25 point hike. 

This week features a range of both bearish and bullish influences. Perhaps the most important involves the planet Mercury, which turns retrograde near the open on Wednesday.

The reversal in Mercury’s direction can coincide with periods of uncertainty and interim changes in the prevailing trend.

Mercury is turning retrograde while in opposition with Neptune. This is not a good aspect and suggests a greater likelihood of situations marked by confusion and deception.

This is perhaps an appropriate planetary backdrop for the uncertainty surrounding the ongoing US debt ceiling negotiations.

While the Mercury-Neptune opposition is bearish, aspects involving the Sun and Venus to Jupiter could offer some support to the market this week.

However, it is unclear if these positive influences will be sufficient to push the overall market into the green by Friday.

Crude oil got caught in the crossfire of the US debt ceiling debate as futures declined to $95. As expected, crude declined early in the week as Mars’s entry into Gemini upset the bullish mood.

Prices slid through the week as the Sun’s influence had little effect. Trading in crude may be fairly choppy this week as the Mercury-Neptune aspect is likely to depress sentiment while the late week Venus-Jupiter aspect should offer some support.

With uncertainty continuing to swirl around the US debt talks, gold reached a new all-time high above $1630 as investors sought out safe havens from the ongoing financial storm.

This was in keeping with expectations as Venus joined the Sun in the sign of Cancer.
Gold will likely extend its rally this week from the combined effect of the aspects of the Sun and Venus with bullish Jupiter.