Nifty, the bigger picture 2012-2013

Today, September 19, 2012, at 11.33 am by Mumbai coordinates, Uranus and Pluto are getting into a square aspect once again, this year. This is the second of seven aspects. It would be an interesting exercise to speculate what this means to the market.

Before that, let us see how Jupiter`s movements have affected our stock markets, first in the recent past and then in the real past…

Please see the chart below: Every time Jupiter was in Leo or Aries or Sagittarius and Aquarius, we had significant top formations. Jupiter right now (September 19) is in Taurus. It has to move through Gemini and Cancer to reach Leo next, which could be sometime in the third quarter of 2015.

Interestingly the last of the Uranus- Pluto transitions happen on March 17, 2015.So progressively our Governments and Bankers do the same thing- provoking the Economy with more and more bailouts and QEs, with each one working less and less compared to the previous one, until the whole thing falls flat on its face and the system corrects all the ill doings once and for all. This 2015 mega top out also falls within the 8 year stock market cycle which we have ( 1992-2000-2008-2016) and with Jupiter in Leo then, astrology also seems to agree. 

If we examine from the 1980s, apart from Sagittarius, Aquarius and Leo, we had a couple more occasions where Jupiter in Gemini and once in Cancer did give us intermediate term corrections. But always the big tops have come with Leo, Sagittarius and Aquarius.

Armed with this knowledge, we deduce then, that the Uranus Pluto squares will work underground or behind the scenes, changing the very rules of the financial games we all play and ultimately manifest them during their latter squares.  

Jupiter enters Gemini only on 31 May 2013.He enters Cancer on 19^th June 2014 and Leo on July 14, 2015. So the long term upward bias will continue with a few significant corrections in between.

Our Uranus- Pluto square being the fundamental underlying aspect, is bound to be involved in many of the significant downturns during this run up, upto March 2015.Two other factors which work in favour of bulls is that,

1.    This Uranus- Pluto square is a waxing square- this means the underlying natural principle is not one of total destruction and then rebuilding, but one of massive change for rebuilding quickly.

2.     Rahu, on August 30, has entered Saturn star and Mercury sub in Scorpio. This means the 18 year previous economic cycle has come to an end and on August 30, 2012, a new cycle has begun. This cycle will top out in 2021.

With this back ground, now let us look closely at today`s Uranus- Pluto square and see how things are likely to pan out.

On September 21, Mercury is square Pluto. On September 23, 2012, Moon will conjunct Pluto and activate the Mercury square. Watch the black arrows on the right hand chart. But with Mercury moving into a trine with Jupiter and Mercury moving into an exalted position soon, the bearishness of Uranus- Pluto- Mercury square and opposition will be slightly muted. And with Jupiter on a sextile path with Venus, we can see the bullish structure getting shaken by adverse communication. Markets may not face big sellouts. In fact post September 24/25, markets may improve.

On September 26^th, Moon and Venus are in the mid points of Uranus and Pluto and this will cause the markets to fall again. By September 30, Moon is conjunct Uranus in Pisces. When Moon opposes Sun, in a Full Moon the square gets triggered. Meanwhile Mars and Rahu become conjunct and this conjunction is squarely aspected by Venus.

Markets should correct as per this formation, a little more than earlier. .

By second October, several aspects come together and the correction should weaken the markets further.

As usual trade with stop loses and unless the price moves as per expectations please do not open fresh positions.