Astrological Musings

As predicted in this column, stock markets around the world rallied in April with US stock funds rising nearly 5% in that month following Pluto’s retrograde turn as it heads back into Sagittarius. The Sagittarian optimism that has fueled overspending, overborrowing, overinvesting, and a drastic increase of home sizes and prices sank into despair when Pluto first entered Capricorn in January.

Some financial analysts are agreeing with astrologers, calling this a “Sucker’s Rally.”

Jean-Marie Eveillard, who runs the $US22 billion ($23.5 billion) First Eagle Global Fund, is skeptical the gains can last because the worst housing slump since the Great Depression will reduce earnings. S&P 500 companies are valued at 22.7 times profit, the most in four years.

Options traders are paying 63% more to protect against a drop in the S&P 500 than to bet on a gain, the widest difference since at least 2005.

”It may be a suckers’ rally,” said Eveillard, who is based in New York. ”Investors want to believe. But if I’m right, then there’s truth to the argument that this is the worst financial crisis since the end of World War II. The same kind of reflex is the wrong reflex.”

Still, Pluto’s activity governs the mood of the masses, and there is no doubt that the masses are responding to the hope of Sagittarius as it springs back into view (Pluto will re-enter Sag in early June). A report from UBS noted an “unmistakeable return of investor optimism” in April and said “An increasing belief that the worst of the credit crisis has passed and that central banks will do what it takes to avoid a meltdown in the financial sector has been lifting investor spirits for much of April.”

Sagittarius rules our belief systems, and while it is true that we create our reality from our belief system, we must also integrate that Capricornian reality check. Blind optimism and belief alone cannot make us rich; we must have a strong and positive intention of financial abundance, but then we must do our homework and avoid the pitfalls of fantasy.

I’ve written before here that Pluto’s last travel back through Sagittarius will be the last hurrah of the stock market, and it is my belief that when Pluto changes direction and heads towards Capricorn (September 9) the optimism will fade and financial sectors will respond to that. Ray Merriman reports that Jupiter is even stronger over the next few weeks:

Over the next 2-3 weeks, we have four major Jupiter signatures coming up: Jupiter turns stationary retrograde on Friday, May 9, followed by the trine between the Sun and Jupiter on May 12. On May 18 Venus will form a harmonious trine to Jupiter, followed by the long-term sextile between Jupiter and Uranus. As suggested before, the combination of 1) the Federal Reserve Board easing (they reduced FED funds rate again this past week), 2) the $168B stimulus package of tax rebates to American tax payers (the money is being sent out now), and 3) so much money being poured into mutual funds for retirement accounts that was just waiting for a sign to go into stocks, would generate a rally stronger than anyone expected. [All of these being Sagittarian events.] It’s started. Look for new all-time highs before the end of this summer, maybe even a DJIA above 15,000. It’s Jupiter’s time coming up, and Jupiter is the cosmic Santa Claus.

Just don’t forget about Capricorn’s boss Saturn, who can be a cranky old taskmaster. These Jupiter events are based on the BELIEF that these three events will save the market. As long as the belief persists, the markets will do well. But a breath of pessimism will cause the markets to falter and if the underlying market conditions are poor an adjustment will be necessary.

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