Jupiter’s optimism may start to fall

Stocks surged last week as India’s superior economic performance continued to make it the darling of many foreign institutional investors.

The Sensex touched another new high for 2010 as it added 4% to close at 19,594 while the Nifty finished the week at 5,884. I was overly cautious in my outlook last week as I mistakenly emphasised the role of several short-term influences instead of fully recognising the ongoing role of the Jupiter as it prepares to conjoin Uranus.

It is interesting to note that the only down day of the week came on Thursday, which I had noted looked somewhat more bearish given the Moon-Rahu conjunction that day.

Ultimately, however, the most important driver of this September rally has been the Jupiter-Uranus conjunction. It is interesting to note that the date of the exact conjunction was Saturday, September 18. Since the planetary energies begin to weaken after they reach exactitude, this is the first clue that some of that optimism may be in shorter supply going forward.

While the planets will still be in very close proximity — they will be less than a degree apart for the rest of September — Jupiter’s optimism may now begin to diminish.

At the same time, we see bearish Saturn in the sign of Virgo preparing to step back onto the stage as it approaches its aspect with unpredictable Rahu and Ketu on September 27.  In addition, the Sun’s entry into Virgo last Friday means that Saturn will exercise a greater influence over this important planet for the next four weeks.

Since the Sun is the planet that symbolises confidence, Saturn’s influence here may instil a greater sense of unease and uncertainty about risk-taking. A weakening Jupiter and strengthening Saturn over the next several weeks would tend to limit any possible upside while increasing the likelihood of a correction.

The other aspect I am watching is the conjunction between Rahu and Pluto due in mid-November. This is another bearish pairing that will tend to depress sentiment in the medium term.

This week will give us the first taste of life after the Jupiter-Uranus conjunction. The Sun aspects Jupiter on Monday and Tuesday, so that will be an important indication of the ongoing strength of this Jupiterian optimism. All things considered, I would expect the market to rise early in the week. And yet with Jupiter’s energy started to fade a bit here, we need to be alert for signs of weakness.

If the market does not rise strongly on these days, then that will be a sign that a correction is at hand. But even if we do see early gains here, there is a greater likelihood of a hangover effect that could produce profit-taking through the remainder of the week. This is somewhat more likely at the end of the week as Mars forms a minor aspect with Saturn.

Crude oil fell sharply last week on positive supply data closing below $74.  A rebound is very possible this week but crude looks quite vulnerable to declines as the Sun joins Saturn in Virgo in the next two weeks.

Gold continued to shine last week as it closed Friday at an all-time record of $1277.  Much of the gains came as the Sun was making its final passage through Leo, so this rally was not hugely unexpected. But now that the Sun has joined Saturn in the more hostile confines of Virgo, gold may become less attractive. More early-week gains are possible as the Sun gets a jolt from Jupiter and Uranus, but the picture becomes more uncertain after that.

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