Merriman Market Analyst

Review and Preview

Stock markets around the world had a very bullish week. This was not surprising, given that a grand trine between the Sun-Jupiter-Saturn was in effect going into the Easter holiday weekend. As stated last week, “But there are other geocosmic signatures and mundane factors coming up April 5-9 (Jupiter retrograde and Sun trine Jupiter) that make me reticent to get aggressively bearish again just yet. Those can be bullish signatures too, just as Mars sextile to Jupiter on Friday was. Plus that week proceeds the Easter holiday, which gives traders along vacation. My experience is that is dangerous to get too aggressive a stock market that precedes a major holiday…. This coming week will observe the stationary retrograde of Jupiter on April 5, followed by the trine of Sun and Jupiter on April 9. In most instances, these would be considered “harmonious” signatures, and would tend to prop stock prices up, especially as they unfold into the days leading into the major Easter holiday week. Actually, for Easter, the Sun will form a grand trine with Saturn and Jupiter (April 8-9). I don’t think it would be wise for traders to take aggressively bearish positions until this configuration ends.”

In Europe, new multi-year highs formed in the German DAX and Netherlands AEX indices. But the London FTSE and Swiss stock index fell short of their recent highs, for a case of intermarket bearish divergence, in a geocosmic critical reversal zone.

A new all-time high formed last week in the Australian All Ordinaries Index. However, new multi-month highs did not form in Japan Nikkei Index or Hong Kong’s Hang Send stock index, for a case of intermarket bearish divergence as well in the Pacific Rim.

In the Americas, Brazil’s Bovespa made a new all-time high in the holiday shortened week. But it was accommodated by a new high in Argentina’s Merval index. And even though the Dow Jones Industrial Average and NASDAQ Composite rallied strongly into the end of the week, neither took out their February highs, so here too we note the possibility of intermarket bearish divergence forming.

In sympathy with stocks, Gold and Silver also rallied smartly last week. Both posted their highest level since March 1. Crude Oil declined somewhat last week, closing at 64.28, down considerably from its spike high of 68.09 on March 27 when the British sailors were taken captive by Iranian authorities. The Euro currency, on the other hand, was very strong until Friday’s payroll numbers came out. After reaching a multi-month high of 1.3441 on Thursday, the Euro currency closed at 1.3372.

Short-Term Geocosmics

We are now leaving the time band of the harmonious Jupiter transits, in effect April 4-9. Stock markets and precious metals markets all rallied strongly into these transits. And now we wait to see if those departure from those harmonious signatures leads to a reversal down in one or both of these markets, or if these markets will start next week with an explosive “gap up” above the entire range of this past week, on their way to more all-time or multi-year highs.

For this coming week, the final Jupiter transit (Sun trine Jupiter) unfolds Monday, thus completing the classically benefic “grand trine” pattern with Saturn in fire signs (Aries, Leo, and Sagittarius). On Tuesday, Mercury (planet of communication and commerce) will leave the peace-loving sign of Pisces for the more assertive sign of Aries, an ingress that will last through Mary 11. On Wednesday, 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. One might consider that Venus in Taurus was very bullish for stocks (Venus rules stocks). Gemini is much more erratic in its correlation to things of financial value, so perhaps the stock markets act a little more volatile now.

Long-Term Thoughts

In the spirit of the religious holidays, we will stay away from negative thoughts in this week’s issue again. In fact, this is a good time to reflect upon the events of last week’s for which we should be thankful, particularly in regard to the release of the British captives by the Iranian government. Maybe the Cosmos really is in divine order (as we astrologers believe), and maybe leaders of the world are also in touch with the Infinite after all. As stated last week, “At the same time, we can look forward to the grand trine between the Sun, Jupiter, and Saturn next weekend, right during the Easter holiday. Perhaps leaders of the world will rise themselves to respond to the dynamic of “good will and trust” that this configuration can correspond to. Maybe, for this special day of the year, leaders can give “peace a chance.” It’s possible. And there is nothing wrong with hope. After all, no healing can take place without hope, even on the world stage.” On Wednesday, April 4, as Jupiter went stationary retrograde, the Iran government released all the British captives in a gesture of “good will.” No charges were filed. Thanks be to God and Allah! What a wonderful change of circumstances to reduce the tensions between these otherwise conflicting world views.

In the longer-term picture, we note that Jupiter will remain in its ruling sign of Sagittarius for most of this year. As stated in prior columns, this signature alone has a strong correlation to optimism and rising prices in equity markets. It seems that every decline is followed by a quick recovery so far this year. Of course, we must also keep in mind that this Jupiter is squared by Uranus all year too, suggestive of sudden and steep sell-offs, but perhaps not the type that last very long. We must also keep in mind that the funding of individual retirement programs for tax purposes comes to an end in the next few days. All that “new money” entering the markets will come to a pause or end as of April 15. Most of the funding should be completed by now.

Have a happy holiday weekend. The cosmic signatures of this weekend are as good as they get for enjoyment with those you love.