November 24, 2024

Stocks plunge as the Fed turns hawkish

(24 April 2022) We’re not in Kansas anymore.  Stocks plunged last week after Fed Chair Jerome Powell signaled a 50 basis point rate hike at the next FOMC meeting on May 4.  While the Fed had previously been preparing markets for a much tighter monetary stance to fight inflation, investors seem to have finally got the message after a hawkish Powell promised several hikes through 2022. The prospect of significantly higher borrowing costs is anathema to markets which have become dangerously dependent upon cheap money from the Fed’s zero interest rate policy.

The decline was not unexpected given the prevailing Saturn influence. The month of April has been generally bearish due to the relative strength of Saturn.  As noted last week, the near-exact Saturn-Ketu square aspect was primed to release of its negative energy and all it needed was a trigger.  The late week alignment with fast-moving Mercury proved to be that trigger as Mercury conjoined Rahu (and thereby opposed Ketu) and squared up with Saturn.  It was classic case of an alignment of slow-moving bearish planets (Saturn and Ketu) required a triggering planet for the negative potential to fully manifest.

Moreover, we can see that on Friday, April 22 the Mercury-Saturn-Rahu/Ketu alignment set up almost exactly on the natal Mars-Ketu conjunction in the S&P 500 horoscope.  Since Mars and Ketu are both malefics, the incoming Mercury-Saturn-Ketu alignment piled on the negative energy even more to create a very potent pattern.

This week may also have some continuing volatility although the picture looks more complex.  With Mercury quickly moving away from its conjunction with Rahu and the natal Mars-Ketu, there will likely be less bearish energy available.  Of course, Saturn and Ketu will still be in very close alignment to the Mars-Ketu in the S&P 500 chart but it looks less damaging this week without an obvious triggering planet.

Bears may still have some hopes though as Saturn is due to change sidereal signs on Wednesday (or Friday if following Lahiri) as it enters Aquarius. Saturn sign changes occur every 2.5 years and can be bearish although they typically need other factors to confirm.   Even if Saturn is now separating from its square with Ketu, it is, however, moving into a 30-degree alignment with Neptune.  This will be an extended alignment, however, as Saturn will be aligned with Neptune for the next four weeks.  While it looks like a bearish influence, this extended alignment means it is more difficult to pinpoint specific days of market declines.

We should note that there is a real chance for some upside this week as Venus conjoins Neptune on Wednesday and enters Pisces, its sign of exaltation.  In the late week, Venus will align with bullish Jupiter.  Wednesday could therefore be an important day since Saturn enters Aquarius just as Venus enters Pisces and both align with Neptune.  While a bounce seems likely at some point this week, Wednesday’s outcome is a tough call, although the Moon’s transit of Pisces that day would suggest that the strength of the other bullish planets in Pisces (Jupiter, Venus, Neptune) could get a boost.  Let’s see.

For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.


 

Get notified whenever we post something new!

Continue reading

Bond yields tumble on recession fears

(5 July 2022) It seems we've entered in a good news, bad news economic situation for the moment.  The good news is that bond yields have finally started to fall amid early signs that inflation may have peaked. ...

Trump ‘s actions under scrutiny in new Jan 6 committee testimony

(28 June 2022) It's been a tough week for former President Donald J. Trump.  Today's Congressional testimony in the January 6 committee highlighted Trump's angry and agitated behavior that day in which he tried to take the wheel...

Powell reaffirms Fed’s commitment to fight inflation

(22 June 2022)  Jerome Powell was in the hot seat today as the beleaguered Fed Chair tried to defend his record in an appearance at the Senate Banking committee.  While the Fed has come under a lot of criticism...

Enjoy exclusive access to all of our content

Get an online subscription and you can unlock any article you come across.