Saturday, May 24, 2008

The return of financial volatility

Financial volatility has resumed in the USA.

Earlier this year it was predicted that volatility would characterize financial markets this year. This prediction was based on an analysis of the transit influences of slow moving planets in the SAMVA USA chart.

At the same time, some recovery in investor confidences was expected to take place in early May when 10th lord Mars exited the sign of Gemini and 12th house, after having been there since the autumn of 2007. Indeed, the predicted improvement in confidence did take place at that time as noted by numerous market commentators.

In recent days a moderate bout of volatility has appeared. The volatility was not expected to resume until in the second half of the year.

This has prompted a closer analysis of transit influences in the SAMVA USA chart involving the faster moving planets. Indeed, predicting financial market activity on a day-to-day basis requires a comprehensive analysis including also the fast moving bodies like the Sun, Moon, Mercury and Venus, which is too time consuming to perform for a whole year.

The additional analysis at this time reveals that transit Mercury as 3rd lord of courage and enterprise in the chart is going retrograde around 27° 30' Taurus and 11th house. In that placement Mercury is under the exact afflicting aspect of natal 8th lord Saturn and transit Rahu at 27° 40' Capricorn and 7th house, placing a strain on the indications of Mercury and disturbing the stock market sentiment. This aspect, which began after mid May, peaks towards the end of the month and ends around June 10th. Another aspect involves transit Ketu at 27° 41' Cancer and 1st house, which is now closely aspecting natal 8th lord Saturn at 26° 47' Scorpio and 5th house. Even if Ketu is moving at normal speed at this time, its aspect to Saturn can create sudden upsets. Further, transit Saturn is at 8° 06' Leo and 2nd house, from where it is aspecting natal 1st lord Moon at 7° 25' Taurus in 11th house. This aspect has a negative effect on the American sense of self. The rising oil prices (Saturn) are leading Americans to reevaluate their lifestyle (1st house). This was highlighted when Barack Obama recently commented in Oregon that he doubted the rest of the world was happy with the widespread reliance of Americans on fuel intensive SUVs for transportation.

The important thing to note is that these aspects will be felt until around June 10. However, at that time, the applying aspect of transit retrograde 6th lord Jupiter at 28° 02' Sagittarius and 6th house to natal 4th lord Venus at 23° 51' Sagittarius will begin to be increasingly felt. This aspect comes within 2° orb around 20 June and peaks on July 7th. This aspect is expected to increase tension concerning communal harmony and the housing market. It could also be associated with earthquakes and extremes in weather.

Finally, around 20 June another difficult aspect would begin to be felt, the conjunction of transit Rahu with natal 2nd lord Sun at 23° 44´ Capricorn and 7th house. This aspect will become stationary within 1° orb from 17 July and will not clear until in mid October. It is expected to produce difficulty for the US Presidency (Sun). One possible manifestation is a scandal involving the US government covertly financing foreign governments to ensure their assistance in the fight against terrorism. This aspect, which also represents an affliction of the 2nd lord of wealth, would also be disturbing for the financial markets.

In summary, the prediction for easier conditions in the financial markets in May and June will likely be more short lived than earlier thought. It has earlier been predicted, based on transit and period influences in the SAMVA USA chart, that the financial volatility would resume in the second half of the year. This prediction is now being slightly revised. The financial markets are now expected to remain volatile for the remainder of the year.

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