Merriman Market Analyst

Review and Preview

The U.S. and other world stock indices continued to soar last week on news of better than expected corporate earnings. The Dow Jones Industrial Average was up a whopping 350 points, closing at a record high of 12,962. Astrologically, there are several factors that correlate with such a move. For one, Venus in Gemini may be a factor. As stated before, “On Wednesday (April 11), Venus (planet of love and money) will leave its ruling sign of Taurus for the more unpredictable sign of Gemini, where it will remain until May 8. Gemini is much more erratic in its correlation to things of financial value, so perhaps the stock markets act a little more volatile now.” Indeed we are seeing sharp price swings, and they are usually up after 1-3 days of decline.

More important, however, is the presence of Jupiter in its ruling sign of Sagittarius, approaching its second (of three) passages in a waning square to Uranus. The 12-year cycle of Jupiter in Sagittarius has a history of strong bull markets in equities, and this year is no exception (so far). But the square to Uranus is a concern. As stated in last week’s column, :”But more importantly, this (April 19) begins a time frame extending through May 13 that contains several powerful geocosmic signatures (Level 1 aspects), culminating with the extremely important Jupiter-Uranus waning square of May 10. In my opinion (and not a “humble opinion”), Jupiter-Uranus signatures are the strongest of all geocosmic pairings to sharp reversals in U.S. stocks. This is the second of three passages of this aspect this year (the first was on January 22). You may remember last year when these two planets formed the second of their three waning trines on May 5. Within one week the DJIA, Euro, and precious metals all made spectacular crests - and then fell hard in just as spectacular a fashion into mid-May. This time the price swings could even more spectacular because 1) the square is a stronger aspect than the trine, and 2) the square occurs in mutable signs, which are considered more volatile than the water signs they were in during 2006.”

In earlier columns, I had mentioned the possibility of several triple-digit daily moves (both up and down) in the DJIA as we traverse this April 19-May 13 time frame. On April 20, just one day in to this time band, the DJIA was up over 153 points.

As impressive as the stock market rally was last week, it paled in comparison to what happened in Wheat prices. After bottoming at 426 on April 2, the July contract soared to 525 intraday on Friday, an appreciation of nearly 25% in a little over two weeks. The severe drought in Australia is the primary culprit, another example of Saturn in its 36-year opposition to Neptune. Saturn is “lack of” matters pertaining to the planets it aspects. Neptune is rain. Somewhere in the world there was likely to be drought that would have an affect upon food prices. In this case, it is Australia, and the market is Wheat. Perhaps shortly after this transit ends June 25, the rains will return to this region.

In other markets, Gold was up and Silver was down last week, while the Euro continue its rally, coming ever closer to its all-time high of 1.3667 on December 30, 2004. The Dollar, on the hand, fell to a new multi-year low.

Short-Term Geocosmics

This should be a very interesting week. Both Venus and Mars will transit ion hard aspect to the approaching Jupiter-Uranus square, forming a powerful T-square April 23-30.

The line up begins this Monday, April 23, as Venus forms a waxing square to Mars. In classical astrology, this pairing has a theme of “disagreements.” It is an “attraction,” as Venus and Mars together are romantic and passionate about their intentions. But the square suggests they cannot come together on important issues of value, thus resulting is a dispute. In markets, it pertains to sugar, soybeans and currency prices. Three days later, Venus will for the same square relationship to Uranus, which can symbolize separations and divorces due the value conflicts and disputes alluded to under the4 square of Venus to Mars. This too correlates with changes in grain prices, sugar, but also stock indices.

On Saturday, April 28, Mars will conjunct Uranus (and the North Node of the Moon is nearby too), while Venus is in opposition to Jupiter. The Mars-Uranus is a powerful Level 1 signature, with a 75% historical correlation to primary or greater cycles in U.S. stocks within 10 trading days, as reported in “The Ultimate Book on Stock Market Timing, Volume 3: Geocosmic Correlations to Trading Cycles.” It also symbolizes earthquakes, fires, damaging winds, and the threat of terrorism or assaults that endanger human lives.

This T-square then ends with Mars forming its waxing square to Jupiter on Monday, April 30. This is a signature of “over-reaching” and “exaggeration,” or going too far on some matter. Mars can be anger and war-like activity. With Jupiter, there tends to be a lack of boundaries. In other words, if someone is offended ort upset, they may be unable to control their rage. In markets, the direction of prices may exceed the normal support and resistance boundaries, as either irrational exuberance takes prices to new highs, or panic sets in and prices fall way beyond what anyone expected (except us).

The key to understand here is that Mars, Jupiter, and Uranus are all involved in powerful aspects top one an other. Whenever these three planets are involved in configurations to one another, the potential fro very wild price swings is extremely high. That is why I think triple digit up and down days lie ahead in the DJIA. In fact, I would not be surprised if sometime in the next three weeks (and especially next 10 days), we see a record, or near record, down day (and perhaps up day as well). Mars, Jupiter, and Uranus together know no boundaries, especially in the mutable signs of Pisces and Sagittarius. These are not signatures of restraint and caution. As stated last week, “Fasten your seat belts. To borrow a phrase from the Disney World theme park, we are about to begin Mr. Toad’s Wild Ride.”

Long-Term Thoughts

Mars, Jupiter and Uranus may also explain the recent outbreak of crazed killings in the world. In astrology, Uranus can pertain to the principle of alienation and detachment from society. Mars rules anger, and Jupiter pertains to excesses and the “over doing” of things. Together, these dynamics may send a psychologically unstable individual over the edge. Thus it is important to realize that this period (mid-April through mid-May) may be a particularly dangerous and unstable time. As much as possible, avoid being in a situations where anger may quickly spill over into violent actions. But every astrological dynamic also has a potential positive antidote. In this case, the dynamic can also lead to new and inspiring ideas towards a brighter future. So it will be interesting to watch how world leaders react in the next couple weeks. Will they come up with brilliant new ideas about solving the problems of the world? Or will they continue to spin these events as if they are positive developments that support their previous decisions, and/or resort to sudden and unwise reactions to enter into new combat, and thus endanger the lives of others? Certainly the “terrorists” of the world are embarking upon a path of increasing violence. But is there any possibility that a leader will step forward with a bold plan that can successfully (and honestly) address this issue, in a manner that does not put additional human lives in danger? Is that even possible? Look for the next week, and even next three weeks, to bring these matters to the forefront of public awareness. Unfortunately, these signatures suggest war efforts could expand, not recede. The “surge” may be fully underway, and it does not appear to be smooth, and thus could be followed by even more criticism and protest.