Market Overview

Financial Astrology: Another USA Downgrade?


Looking out into late July and mid-August we could see again a break down in the financials: a potential conflict between the administration and Congress on budget issues. The conflict may force the President to make a decision that could lead to an international humiliation and another downgrade for the United States.

A critical date is August 15, 2012, that could bring negative news in financials - with more potential losses at J.P. Morgan (NYSE: JPM) or additional banking downgrades.

There could also be a potential California default amid other budgetary concerns that escalates into August 27th, 2012, where we could see a downgrade. These dates are also critical for the markets and we could see a correction beginning near July 25, 2012.

There are multiple factors that could cause a correction in the markets, including the Euro zone crises, however there could also be a growing scandal with the Facebook (NASDAQ: FB) IPO and the Nasdaq's (NASDAQ: NDAQ) handling of the flow of trades during the first week of the IPO.

June 21st-25th there could be unexpected news regarding the Nasdaq and Facebook that could send the markets lower as negative sentiment grows in light of potential market manipulation.

Pluto moved retrograde from 9 degrees Capricorn on April 9, 2012, and will go direct on September 18, 2012. Pluto with an orbit of 240+ years is very supportive for the United States when it reaches 10 degrees Capricorn.

The retrograde motion has an effect like an undertow in the economy. This suggests that the nation will have to go through a very dark period, somewhat like "the dark night of the soul for America" until in 2013 - where the standards and values of the nation receive support again when Pluto reaches 10 degrees Capricorn.

Editor's Note: Karen Starich is a market astrologer, Zentrader writer, and Benzinga Contributor - you can learn more about her service, Astrology Traders, here.

Posted-In: Financial Advisors Politics Psychology Topics Economics Markets Trading Ideas General


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