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Comments for the Week Beginning February 12, 2007
Written by Raymond Merriman   

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Several equity markets in the world made new all-time or multiple highs again last week, including the Dow Jones Industrial Average, which soared to 12,700 on Wednesday, February 7, as the Venus conjunct Uranus, and thus translated the major Jupiter-Uranus square signature that unfolded January 22. As stated last week, “There is astrological cause to think that this could correspond to a crest in the stock market (again). Previously we had stated the importance of the Jupiter-Uranus square. Now this week the first “fast planet” (Venus) translates to that square. It conjuncts Uranus and therefore also squares Jupiter. Sometimes it is the “translation” of a fast planet to the slower moving planets that act as the catalyst for the slower moving planet’s correlation to a cycle reversal.” The fact that the new all-time high in the DJIA occurred exactly on the date that the first “fast” planet transit touched off the longer-term planetary signature may prove to be significant. It’s a start, but too early to confirm its importance.

New all-time highs were also registered last week in Australia’s All Ordinaries Index, The Swiss Stock index, and the Bovespa of Brazil. New multi-year highs also occurred in the London FTSE, Netherlands AEX, and German DAX. But last week’s rallies failed to register new monthly highs in the NASDAQ Composite, Hang Seng of Hong Kong, the Japanese Nikkei, and the Merval stock index of Argentina. Again, it is too early to tell if this kind of intermarket bearish divergence will be significant, but we do note that it is occurring within this critical reversal zone outlined last week.

Last week was impressive – again – in the precious metals, where Gold and Silver soared to their highest level in several months. It was also noteworthy in Crude Oil, where prices finally broke above the $60.00/barrel barrier. Soybeans also soared to $7.50.bushel, consistent with our views expressed in this year’s Forecasts for 2007 book.

Short-Term Geocosmics

As impressive as last week was for many financial markets, we must keep in mind two things. First, this is the second grouping of several geocosmic signatures in a short-span of time this year, February 7-13. This constitutes what we consider a critical reversal zone, within three trading days of the February 9-12 midpoint (Friday-Monday). The second thing to note is that Mercury now turns retrograde, February 13-March 8. This is usually a very unstable technical environment for financial markets, because political announcements and new economic data that are released tend to create conflicting signals to investors. Is it bullish or bearish? One set of announcements is bullish, the next is bearish, and so on. Given that the Sun will also enter Pisces February 19 for one month, probably adds to the confusion of the ordinary investor for the next few weeks.

Still, we know that money will continue to pour into the market through retirement plan contributions that are due by April 15. That alone continues to be a huge support to stocks continuing higher. It will take an unexpected shock to stop the tide. But then again, Jupiter is in square to Uranus, and the Sun will next touch off this pattern in the first ten days of March. Jupiter square Uranus is a classical signature of a sudden surprise, or shock. And on February 28, Saturn will undergo its second of three opposition passages to Neptune. Saturn can represent disappointment or loss, and Neptune can be even more confusion. Could a sudden shock occur soon? Sure it could, basis astrology. But will it be enough to push stocks sharply lower? Not necessarily, due to the influx of so much money still taking place at this time.

Long-Term Thoughts

The Saturn-Neptune theme was very much in the news last week. One Wall Street Journal edition featured a front page story on corruption in China’s real estate market. Corruption was also the concern of world leaders towards Russian President Putin, and the decision of the Russian government to bring new charges against the oil conglomerate Yukos’ Chairman, who is already imprisoned for standing up to the corruption and abuse of basic human rights taking place in Russia. In the meantime, Russia, has taken over control of all Yukos assets, and thus control of the major distribution of oil in Russia.

While justice awaits its application under Saturn-Neptune’s opposition (usually 1-2 years afterwards), the fact remains that Jupiter is in Sagittarius and in trine to Saturn as well. Stock markets generally go up during these periods. But with Jupiter also square to Uranus, there are risks to sudden and unforeseen sharp declines. With the 4-year cycle time band still in effect this year, such a decline could last 2-5 months once it begins. Ideally that decline would end by June. No solid signal yet, but the high of last Wednesday remains a possibility. A close below 12,370 would be more of a confirmation.

 

Announcements

 If you are an active short-term trader, you may be interested in our Weekly or even Daily Market reports with short-term trading recommendations. It is the only way I keep in touch with traders on a daily or even weekly basis. These reports give in-depth analysis of the DJIA, S&P and NASDAQ futures, Euro currency (cash and futures), Swiss Franc, Dollar/Yen cash and Yen futures, T-Notes, Corn, Soybeans, Wheat, Gold and Silver. The daily reports cover all stock indices listed above, as well as futures in Euro, T-Notes, Soybeans, Gold and Silver. Subscription to the daily report also includes the weekly report. For more information, go to http://www.mmacycles.com/services, or call our offices at 1-248-626-3034. In the words of one of our subscribers: “I recently subscribed to your weekly report and am finding it to be excellent and a very useful companion to the MMA Cycles Report.  I can't imagine now managing my investments without them.”

The next issue of the “MMA Cycles Report” and “MMA Japan Markets Cycles Report” will come out May 27-28. These reports are issued once per month to subscribers. The “MMA Cycles Report” is our most popular subscription-based market advisory report for traders of the U.S. stock indices, T-Notes, Gold, Silver, Euro currency, Swiss Franc, Grains, and Crude Oil. The “MMA Japan Cycles Report” covers the Nikkei, Dollar/Yen, and JGB Bonds. For more information and subscription, please go to http://www.mmacycles.com/services/.

Many readers may also be interested to know that the largest gathering of Financial Astrologers in many years will be taking place May 15-20, 2008, in Denver, Colorado. In fact, the largest gathering of astrologers since 1974 will be taking place then. The United Astrological Conference (UAC) will convene for the first time since 2002, and approximately 1500 professionals and students of astrology will be present from all around the world. Whether you are a professional or student or novice, you will find one of the 15 tracks being offered to be of great interest. They even have a beginning track based on sun sign astrology for those who know very little about how astrology really works. In all, there will be 160 speakers from over 30 different countries. For more information on this conference, go to www.uacastrology.com. For more information on the Financial Astrology track (18 different presentations), go to http://www.uacastrology.com/cgi-bin/tracks.cgi?CODE=12. At the present time, all rooms at the Sheraton Adams Mark have been sold out, but on the UAC web site is a list of other hotels within walking distance.

 The German version of “Merriman on Market Cycles: The Basics” is now in print. It is also a revision of the earlier work in English. For more information on this book, please go to our German web site at www.mma-europe.de.

Disclaimer and statement of purpose:

The purpose of this column is not to predict the future movement of various financial markets. However, that is the purpose of the MMA (Merriman Market Analyst) subscription services. This column is not a subscription service. It is a free service, except in those cases where a fee may be assessed to cover the cost of translating this column from English into a non-English language.

This weekly report is written with the intent to educate the reader on the relationship between astrological factors and collective human activities as they are happening. In this regard, this report will oftentimes report what happened in various stock and financial markets throughout the world in the past week, and discuss that movement in light of the geocosmic signatures that were in effect. It will then identify the geocosmic factors that will be in effect in the next week, or even month, or even years, and the author’s understanding of how these signatures will likely affect human activity in the times to come. The author (Merriman) will do this from a perspective of a cycle’s analyst looking at the military, political, economic, and even financial markets of the world.

It is possible that some forecasts will be made based on these factors. However, the primary goal is to both educate and alert the reader as to the psychological climate we are in, from an astrological perspective. The hope is that it will help the reader understand these psychological dynamics that underlie (or coincide with) the news events and hence financial markets of the day.

No guarantee as to the accuracy of this report is being made here. Any decisions in financial markets are solely the responsibility of the reader, and neither the author nor the publishers assume any responsibility at all for those individual decisions. Reader should understand that futures and options trading are considered high risk.

Copyright MMACycles 2007; you may link to this site or page, but you may not distribute these texts in any way (by email or otherwise).

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