Mercury In Retrograde?

February 14 2007

Happy Valentines Day,

Ok so the choppiness continues, today its fears of significant defaults in the sub prime lending ,tomorrow who knows what disaster will predetermine the end of the world .It seems to me that the people that told us interest rates needed to raise to stem (wink wink) inflation, then told us after a summer on the beach that rates were headed down because the consumer was fading and a recession was looming and the Christmas shopping would be a bust, then told us the economy was booming so rates would have to raise to stem the increase in wages? Now rates must again fall because real-estate is about to disappear as an asset class? Yea right, I don’t believe any off it either and none of the indicators I look at suggest any of this is true. My issue is and has been that my indicator continues to suggest that the market should be doing better than it is or has been doing, so I continue my search for answers.

I have may have finally got it and seems to be all explained by the simply fact that Mercury is In Retrograde. So what does that mean you ask? On February 14, Mercury, the cosmic trickster, turns retrograde in Pisces, the sign of the Fishes, sending communications, travel, appointments, mail and the www into a general snarlup! A planet is described as retrograde when it appears to be moving backwards through the zodiac, its doesn’t actually move backwards but appears that way through an optical illusion. This awkward period begins a few days before the actual turning point (as Mercury slows) and lasts for three weeks or so, until March 12, when the Winged Messenger reaches his direct station. At this time he halts and begins his return to direct motion through the zodiac. So my bet is that the market will take its cue from Mercury and settle itself on a direction once the retrograde is done. The scary thing is that this is about the most sensible thing I have heard about the market so far this year.

The recent weakness has now been followed by renewed strength across the board .I know it is terribly old fashion but what I am liking is that the DOW Transportation index and the DOW Utilities Index are finally confirming the DOW JONES Industrials upside motion.

James Foytlin
1(866)492-3959
www.jamesfoytlin.com