(5 November 2023) US stocks surged last week as a weak jobs report and a dovish Fed statement saw bond yields tumble. The S&P 500 jumped almost 6% to 4358 while the Nasdaq-100 finished the week at 15,099. While I expected gains in the aftermath of Wednesday’s Fed meeting, the size of the rally was surprising. The absence of any early week downside was perhaps an early clue of the shift in sentiment from the previous week as the series of bullish Venus alignments with Uranus, Rahu and Neptune quickly dispelled the geopolitical pessimism.
Suddenly, everything looks bullish. Markets rallied after Fed Chair Powell inched closer to signaling a formal pause in rate hikes given increasing evidence that the inflation pressures may be dissipating. After 10-year yields had tested the 5% level, the prospect of a Fed pivot had investors breathing a sigh of relief in the hopes of lower borrowing costs. Friday’s uptick in unemployment added fuel to the speculative fire as the outlook shifted away from the risks of overheating towards one more focused on the benefits of economic cooling. While markets obviously don’t want a recession, a short term breather for the job market would be most welcome as it would move forward the date of a possible Fed pivot towards easing. Even if the last week’s powerful move suggested the high in yields was in, more data is necessary before declaring victory in the war on inflation. The next CPI report is due on November 14.
The planetary outlook leans bearish for the month of November. Last week’s gains highlighted the bullish influence of both Venus and Jupiter as both planets were involved with multiple aspects. With the Venus influence now largely done, there is just the Nov 5 Jupiter-Neptune alignment left to consider. While some early week upside is possible from this 45-degree alignment, it will already be separating and thus weakening by Monday’s session. This suggests that last week’s bullish energy is unlikely to persist. Moreover, there are now two new bearish influences to consider. First, the Saturn station on Nov 4 will mark the start of a series of tense alignments that are likely to coincide with some selling: Venus (Nov 8), Mercury (Nov 10), Uranus (Nov 20) Sun (Nov 23), Mars (Nov 25) and Chiron (Nov 25). Second, Venus is set to transit through sidereal Virgo, its sign of debilitation, from Nov 3 until Nov 29. While Venus is normally a bullish planet, its once-a-year transit through Virgo is usually marked by a pullback. The size of this annual pullback varies depending on other factors, although it averages around 3-7% from the day of entry into Virgo until the interim low, usually in the last two weeks of the month-long transit…
[…]
This week (Nov 6-10) leans bearish. The early week has some downside risk as Monday’s Moon-Saturn opposition could be a negative influence. Mars crosses the ecliptic on Monday and Tuesday and this is another potentially troublesome influence. On the plus side, we could see some optimism from Sunday’s Jupiter-Neptune alignment although it may be a less reliably bullish influence by Monday’s close or by Tuesday. Even if Monday opens green, there is a real chance of an intraday reversal and a red close…
