Merriman Market Analyst

Review and Preview

Last week's stock market behavior was consistent with principles of Financial Astrology. After bottoming in dramatic fashion on January 22-23, coincident with the first of three Jupiter-Saturn trine aspects in earth signs, stock markets around the world soared into a top this past Friday-Monday, February 1-4. They then began a decline that lasted all week, with almost all indices making their weekly lows on either Thursday or Friday, and Friday closing much nearer to the lows than the highs. The biggest decline of last week took place on Tuesday, a day or two before the eclipse of Wednesday evening (USA) or early Thursday (Europe and Far East). Last week's report stated, "The major geocosmic signature this week is the partial solar eclipse on Wednesday, February 6. By itself I am doubtful that this will do that much to the markets. Eclipses seem only important as significant cycle lows or highs when they make aspects to other major planets at the same time, in my experience."

Some financial astrologers may argue that last week's decline was indeed the effect of the solar eclipse. It depends upon the parameters one uses to define a geocosmic impact. My view is that last week's decline was the result of the post Venus-Jupiter conjunction of the prior Friday, February 1, when stock indices indeed made a trading cycle crest. In some indices, it spilled over into early Monday morning. But there was no multi-week low or high that formed specifically with the eclipse, which is the basis for the type of financial astrology analysis I apply. The stock market behavior so far is consistent with a crest under the Venus-Jupiter conjunction, followed by a corrective decline (so far) into the next major signature, which is the Sun-Neptune conjunction of this weekend, February 10.

The rally into February 1-4 did not confirm January 22-23 as the long-term cycle trough. Thus the challenge for traders and Financial Astrologers alike is to now determine whether this current decline represents just a corrective re-test to those lows that will end this week, or is it a new thrust down that will continue and take stock indices to lower lows? The studies of cycles, chart pattern recognition, and technical analysis allows for this to be a thrust leading to new lows. But the study of Financial Astrology - as I apply it - supports the viewpoint that the low of January 22-23 could hold. Why? Because that low coincided with the longer-term planetary aspect between Jupiter and Saturn, within one day. In situations like this, sometimes the astrology wins out, and sometimes the other studies win out. That's why we have to carefully monitor each day's market action right now. Thus this could be a very important week in the eventual labeling of the longer-term cycles.

In other markets, Crude Oil held support at the 86.00 mark and rallied strongly on Friday. Gold and Silver pulled back smartly from last week's multi-year high into a low on Tuesday, but also rallied strongly into Friday. Grain prices were strong, with Wheat soaring to new all-time highs on consecutive limit up days this past week. Corn and Soybeans performed very erratically around the solar eclipse, with very large price swings both up and down (and up again) - which is typical. But the Dollar was strong last week, as the Euro currency fell to new multi week lows. Still it is holding above the critical 1.4300-1.4400 support area. If that breaks, it strongly suggests that the dominancy phase of the 26-month cycle is in process.

Short-Term Geocosmics

For this week, the most important signature is the Sun-Neptune conjunction of February 10. This Level One signature has a 75% correlation to primary or greater cycles within 9 trading days. It also begins a geocosmic cluster of four important planetary aspects extending from February 10 through February 24. Thus we may see the end of many market retracements during this period.

A more important geocosmic period comes up around March 7, when the new moon conjuncts Uranus. This is an important signature correlating with activity in the interest-rate related markets, like Treasuries and currencies. And of course they may cause an impact in other markets, like stocks and precious metals. It is important to note that Mars will end its sojourn through Gemini on March 4. Mars in Gemini is a placement that historically coincides with sharp price movements in crude oil. The fact that this past Friday (February 8) was such a strong up day (up 3.66), after trending down the prior 7 trading days, may be related to the combination of Mars in Gemini as well as the Sun-Neptune conjunction taking place this Sunday. Neptune has great relevance to crude oil.

Longer-Term Thoughts

Last week's column stated, "The Moon on Super Tuesday, February 5, will again be in Capricorn as the voting starts, same as it will be on Election Day (and the same as on the New Hampshire's primary). So once again, it seems to mirror what we might expect on Election Day itself…. And where is Mitt Romney in all of this? He has Mars in Pisces, and there has never been a U.S. President with Mars in Pisces. Most have had Mars in Leo, which is the case with both Hillary and McCain, per the studies of Michael O'Reilly in his book called "Political Astrology." Obama has Mars in Virgo, like current President George W. Bush." The leaders in the delegate count after last week's Super Tuesday's primaries are once again the same winners of the New Hampshire primary: John McCain and Hillary Clinton. Yet neither has yet met the requirement to secure the nomination at this point. And Mitt Romney has now dropped out of the race.

The most important election consideration, in my view, is the relationship between the chart on Election Day and the political positions espoused by the two major candidates. On Election Day, the Moon will be in Capricorn, conjunct Jupiter. It will also be the first of 5 passages of the 45-year cyclical Saturn-Uranus opposition. As Mundane Astrologers, we are tempted to think that this opposition represents a surprise, or an event that moves us in to a dramatically new direction. After all, Uranus is the planet of disruption and upsets, as well as the planet of newness and innovation. It represents something entirely new, and hence it is associated with youth. Saturn represents the Establishment, the "old guard" and tradition. When the two are in hard aspect, the idea is that something new will replace something old, especially in governments. Or it can represent a period in which society rebels against the values and policies of the government. They demand a change. It is the symbolism of revolution in some form or another.

But here is the point to keep in perspective. November 4, 2008, is the only the first of five passages. It is not the middle or the last passage. And it occurs right on Election Day, when the Moon is conjunct Jupiter, in Capricorn, the sign that Saturn (not Uranus) rules. Therefore in this passage - the first between these two planets - I believe the Saturn themes will prevail, not the Uranus ones. The voting public is apt to behave more in a Saturnian fashion than a Uranian one. And instead of getting "change" on this first passage, we are more likely to get what we perceive as more of the same. And that will then lead into the increased demand for change as the next four passages unfold.

According to most recent polls, over 75% of Americans now believe the country is headed in the wrong direction. Only 19% think American leadership is headed in the right direction. That shows the degree of discontent presently in the USA with its leadership. But on Election Day, I don't think that discontent is satisfied. I believe Americans will still feel the USA is headed in the wrong direction, and maybe stronger than ever. As the next 4 passages of the Saturn-Uranus opposition unfold through July 2010, their voices will likely become louder and louder, and they will demand more change and accountability of their leaders. As this two-year aspect takes place, I think you will see the youth becoming more and more involved, just like they did 45 years ago when this aspect last occurred. But on Election Day itself, I think the Saturn part of this aspect holds reign… unless somehow the youth become active agents for change in the next couple of weeks, and show up to vote at the primaries and get someone in who is not recognized as "part of the Establishment."