Tesla declines 30% as tech bubble bursts

(9 September 2020) The Covid tech bubble finally rediscovered the forces of gravity over the past week as big tech firms such as Apple and Tesla saw their share prices fall sharply.  Ironically -- but perhaps not surprisingly -- the high-water mark for the tech sector may have been last week's stock splits of market darlings Apple and Tesla.  Both high-flying stocks began trading the new post-split shares on Aug 31.  Tesla peaked on Aug 31 and Apple just one day later and both have suffered huge declines since.  Tesla has fared worse, falling more than 30% from its high last Monday.  

We can see how the current planetary alignment may have negatively impacted the Tesla share price.  Using the Tesla IPO horoscope for June 29, 2010, it is clear that the current tense alignment of Mars, Saturn and Ketu has highlighted a couple of key points in the chart.  First, the Ascendant at 1 Leo is activated by Saturn (1 Capricorn) as it approaches its direct station in that same degree on September 29.   Saturn is a malefic planet, of course, so whenever it forms close alignments to key points in the chart (e.g. Ascendant, Sun, or Moon), stress and disappointment are more likely and share prices are more likely to fall.

Ketu (South Lunar Node) is also in close alignment with the Ascendant and conjunct the 5th house cusp at 1 Sagittarius.  Both Saturn and Ketu are slow-moving planets and have been sitting on that pivotal first degree of their respective signs for a couple of weeks.  And yet Tesla's price kept rising right up until Aug 31 despite this ongoing dual affliction by malefic planets.  Why?

On August 31, Venus and Mercury also aligned with Saturn, Ketu and the natal Ascendant at 1 Leo.  Unlike Saturn and Ketu, Venus and Mercury are benefic planets that are usually prominent during periods of increasing prices.  Tesla hit a post-split peak of $500 on Aug 31 as Venus (0 Cancer) and Mercury (27 Virgo) joined the fray and thereby lent a more positive energy to the ongoing Saturn and Ketu configuration. 

Once Venus and Mercury moved out of alignment (in the first days of September), the full negative influence of the Saturn and Ketu could be felt.  Ketu also slipped back one more degree from 2 Sagittarius to 1 Sagittarius and thus formed an exact aspect with the Ascendant.  We should also make note of the Mars retrograde station at 4 Aries.  This station is likely a bearish influence on the chart because: 1) it aligns with malefic Saturn (4 Virgo) and 2) it is only three degrees from conjoining the 9th house cusp and thus aligning with the Ascendant. 

Looking ahead, I would think Tesla is unlikely to return to its previous highs anytime soon.  As Mars begins its retrograde cycle today, its alignment with Saturn and Ketu and the Ascendant will tighten. This is likely to coincide with further weakness.  Late September in particular seems likely to correspond with some additional selling.

Weekly Market Forecast

Stocks have generally declined in recent days as last week's Venus-Mars-Mercury alignment coincided with a significant downdraft in the markets.  Today's bounce was not unexpected given the favourable Sun-Jupiter alignment, however. 

The rest of this week looks uncertain.  The Sun-Neptune opposition leans bearish for Friday and could put market bulls on a more defensive footing.  After its retrograde station today (Sep 9), Mars is now stronger than usual as it moves backward through the sky until mid-November.  Therefore, we should expect heightened tension and conflict during this period, as small disputes can suddenly escalate into significant conflicts.  Perhaps not surprisingly, the uncertainty of the US elections will occur during this Mars retrograde period. 

Next week is mixed with some upside possible on next Monday's Moon-Venus conjunction.  The outlook seems less positive after that, however, as the Sun is due to align with the Saturn-Ketu alignment.

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