Christopher Kevill: With Saturn front & centre, volatility set to increase

Stocks continued to strengthen last week as the news out of Europe offered hope that a full blown banking crisis could be averted. After slumping early in the week, the Sensex ended slightly higher closing at 16,933 while the Nifty ended at 5084.

This mildly bullish outcome was generally in line with expectations as the midweek gains coincided closely with the bullish Mercury-Jupiter aspect I noted in last week’s column. The aspect was most powerful on Wednesday and Thursday and these turned out to be the most bullish days of the week. I had also mentioned possible weakness early in the week on the entry of Venus into the sign of Virgo. This coincided with selling pressure as the market dropped more than 2%. The late week bearishness did not fully manifest although Friday’s session saw a weakening of the previously bullish trend.

Perhaps it was not surprising that the political leadership in the euro zone was full of reassuring words last week that there would be no Greek default and that fresh injection of liquidity would shore up the balance sheets of the private banks. We were, after all, in the throes of another Jupiter aspect where sentiment and confidence rises and fears are relegated to the back burner.

Jupiter can usually be relied upon to provide some kind of relief. The trouble now, however, is that last week’s Mercury-Jupiter aspect was the last major aspect for the bullish giant of the solar system for a while. The next big aspect isn’t due until late October. Without any major Jupiter aspects in the near future, it may be tougher for the market to advance. While gains are still possible on minor aspects, the probability is somewhat reduced. Moreover, Saturn is now slated to have its time in the spotlight as we can see a number of aspects lining up with the bears’ planetary patron over the coming weeks. As a natural malefic, Saturn is much more likely to deliver lower prices as pessimism and caution rule the roost. That said, it is important to remember that Saturn can sometimes confound our expectations. If Saturn’s natural qualities of austerity and discipline are adhered to, the market may respond more favourably to its stringent energy. But overall, downside risk should rise here as Saturn becomes more prominent.

This week could see volatility increase as Saturn is front and centre. The early week features a difficult combination of Mercury, Saturn and Ketu which has the potential for sharply lower prices.

Some midweek strength is possible once Mercury moves past the influence of Saturn but the late week does not look very promising. Fiery Mars forms an aspect with explosive Uranus just as the Saturn-Ketu aspect becomes exact on Friday. This week will be an important test of Saturn’s bearish influence on sentiment. On paper, the aspects here suggest a major bearish move is possible. Yet if there is some lingering Jupiterian energy here, some of that pessimism could be partially offset.

Crude oil was modestly higher last week finishing near $88. This bullish result was largely in keeping with expectations. This week looks more bearish for crude as the Saturn-Ketu aspect may make commodities less attractive.

Despite the euro’s ongoing struggles, gold remained under pressure as it declined 2% closing near $1820. I expected gold to experience some headwinds as a result of the entry of Venus into Virgo on Monday although perhaps not quite so immediately. As the Sun exits the gold-friendly sign of Leo this week and enters the less welcoming ether of Virgo, gold could face more turbulence. The late week Mars-Uranus aspect could increase volatility significantly.

— The writer is a neo-Vedic astro-loger specialising in predictive astrology. He runs the website www.modernvedicastrology.com