Week might eke out a gain

Losses on Friday, though not as bad as Wednesday’s, could set up another terrible Monday

The US financial crisis went global last week and Indian markets did not escape the turmoil.

As predicted in my previous column, markets suffered steep losses early in the week as fears grew on the continued viability of American investment banks and the world financial system.

The lows forecast for the week were also quite accurate as key indices stayed above the July lows and recovered later in the week. The Nifty briefly went below 4000 and went on to close Friday at 4245 on news of a massive US government bailout and regulatory overhaul. The Sensex was somewhat more bearish as its intraday low of 12,500 breached the January low, but it showed surprising strength and finished very close to where it started the week at — 14,042. Friday’s prediction of a significant gain was right on the money as Moon formed a favourable aspect with Jupiter. While I thought we would be a little lower on the week, the basic overall market trend here is more or less following my planetary model.

This week may eke out a gain, but it will probably not be very substantial.
Look for Monday and Tuesday to have significant gains that may lift stocks another 5%. The Moon is in very good aspect to Venus on Monday, so we can look for the expected up day from Friday’s solid gain in New York. The Moon then comes under the benefic influence of Jupiter on Tuesday, so another positive day is likely.

After the close of trading on Tuesday, however, there is a significant planetary configuration that bodes poorly for stocks: Mars will conjoin and overtake Mercury, which is slowing in advance of its retrograde station on Wednesday. This means Mercury, the planet of commerce and trading, will be infused with Mars’ aggressive and unhelpful energy and will indicate a return to fear and some measure of panic in the markets.

I would expect Wednesday’s losses to wipe out Tuesday’s gains, and perhaps Monday’s, too. Thursday may see a slight recovery, but nothing too substantial.
Friday looks more negative as the Moon opposes Neptune in the morning and points to cloudy and confused thinking that pushes stocks lower. I don’t think Friday the 26th will be as negative as Wednesday, but it will likely set up another terrible Monday on the 29th.

The declines early next week will be below current levels as the investment mood will darken once again.

Impressive as this relief rally has been, I don’t believe it will last. It will only delay the inevitable. I am still predicting a major move down in the first two weeks of October that takes the Nifty down to 3500 and the Sensex to perhaps 12,000.

The period around October 9-10 looks particularly prone to decline and may produce losses of 5-10%. The market will likely make new lows through December and January.

In sum, it looks like this bear market will get much worse before it gets better. This market decline is ushering in a severe global recession that will last for at least a year or two.

After a precipitous decline early last week that took it down to $91, oil staged a stunning rally and closed above $104, up $3 from the previous week. While I was correct in thinking we would see some gains for crude here, I was not accurate in calling the intraweek pattern. I think oil is likely to start the week strong and stay above $100, but bearish sentiment will likely predominate by the end of the week, so prices may fall below $100 by Friday.

Next Monday, the 29th , looks like the beginning of a real collapse in the price of crude. Astrologically, this may be linked to movement of Mars into Libra that occurs late this week. As the significator for oil, Saturn is in a nakshatra of Purva Phalguni, which is ruled by Venus.

When Venus is joined by malefic Mars, the oil price will tend to come under pressure. I am expecting a shocking decline in the price of oil perhaps down as low as $80 in the next three weeks. While this may assuage inflation fears, it will be reflective of the slowing of the overall economy.

Gold had unbelievably explosive rally early in the week in the wake of the financial turmoil that gripped global equity markets. At one point, it reached $900 and rose 10% in a single day. Bullion faded towards the end of the week as confidence in the banking system was restored. Gold futures closed at $864, up from $764 the previous week.

While I had been uncertain about gold last week, this rise is in keeping with my general prediction that a significant rally is due over the coming weeks. Last week’s moves confirm that this rally is now underway. Since the gold price is rooted in its safe haven status, it is reasonable to assume that further declines in stocks will bring corresponding gains in gold.

While we may see some down days early in the week, gold looks very positive by Friday and we could well see $900 by then. With the movement of malefic Mars into Libra, we may well see $1,000 next week as the Sun’s only other co-occupant of Virgo is benefic Mercury. This creates a very accommodating “home” for the Sun, so gold can shine more brightly.

Gold will likely continue its rally through October and may reach well over $1,100, although calling the top will be difficult in this volatile market. Be forewarned, however, as the price will quickly retreat in November to current levels or even below.

Day by day
Moon is in very good aspect to Venus on Monday, so we can look
for the expected up day from Friday’s solid gain in New York
Moon then comes under the benefic influence of Jupiter on Tuesday, so another positive day is likely
Mars will conjoin and overtake Mercury after close of trading on Tuesday, so Wednesday’s losses could wipe out Tuesday’s gains,
and perhaps Monday’s, too
Thursday may see a slight recovery, but nothing too substantial
Friday looks more negative as
the Moon opposes Neptune in the morning

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