Merriman Market Analyst

Review and Preview:

Happy New Year and best wishes for a joyful and prosperous 2007! There will certainly be ample opportunities for success for traders and investors alike this year. However, duplicating the abundant opportunities we had in 2006 may be hard to repeat, especially in regards to the moves in precious metals, grains, and currencies.

The markets were relatively quiet this past week, even though some equity indices continued making new all-time or multi-year highs, like the Dow Jones Industrial Average. Neither the NASDAQ nor the S&P made new highs. Gold and Silver had a positive week, as did Grains and European currencies against the U.S. Dollar. But all in all, it was nothing spectacular, and next week may not offer any major reversal either.

Short-Term Geocosmics:

There are no major geocosmic signatures related to our studies in financial market reversals coming up this week. In fact, due to the holidays (New Year's Day) and the day of mourning for the passing of former President Gerald Ford, the U.S. stock and commodity markets will only be open for trading on three days this week.

On Wednesday, January 3, there is a full moon in the solar sign of Capricorn. This usually coincides with heavy snow storms in the northern winter climates, within one day. Venus also ingresses into Aquarius the same day, and it remain there through January 27. This may have a benevolent correlation to peace efforts. Opposing parties may signal that they are more willing to compromise, and come to the table to negotiate in good faith. However, the challenges may still be great, for on January 13, Mars will conjunct Pluto near the Galactic Center. This is yet another indication of the tendency for some parties to act as if they are obsessed, or driven, in their wish to force others to their way of thinking. The importance of “being right” still seems to trump the desire for peace, and it is hard for some people to find any value whatsoever in any form of diversity or contrary thoughts. This type of intolerance and self-righteousness makes it very difficult to achieve any real progress.

Signatures of market reversals then arise January 8 through January 22, culminating in the first passage of the Jupiter-Uranus square in 2007. This signature, along with the Saturn-Neptune opposition, will be the astrological themes of what to expect in 2007. And what are they? Jupiter-Uranus in square, in mutable signs (Sagittarius and Pisces) is unbridled enthusiasm and positive thought. The only problem is that it is typically not channeled in a way that everyone understands, and hence it may come across as “manic” (as in manic-depressive, an extreme optimism that is not grounded in a clear plan). The Saturn-Neptune opposition, however, can provide the “depressive” side to that condition, if one is not careful with their attitude. In other words, the astrological energies are extremes of the spectrum in 2007. And those who succeed are likely those who are able to stay on a course of moderation. Just keep in mind as you navigate through 2007: things may not be really as bad as they seem at times, nor may they be as good as they seem at times. The essence of reality is somewhere in between.

Long-Term Thoughts:

We are living in a Renaissance time, and most of us do not even know it, or cannot find the time to step back and appreciate it. Every 500 years Neptune and Pluto return to their same spatial relationship to one another. Every 171 years, Uranus and Neptune do the same. And every 126 years, Uranus and Pluto do the same. Three Uranus-Neptune cycles approximately equals one Neptune-Pluto cycle. And four Uranus-Pluto cycles equal approximately one Neptune-Pluto cycle. That means every 500 years or so, these 3 outermost planets in our solar system (well, they were until scientists re-labeled them this past year) are in approximately the same position in reference to the zodiac and one another.

In 1398-1399, Neptune and Pluto formed their conjunction at 2-4 degrees of Gemini, which was just about the time that Italian Renaissance officially began. These two planets did not come together again until 1891-1892 at 7-9 degrees of Gemini, which could be argued as the approximate period of the start of another renaissance that we are still living today.

But what is most interesting is that Neptune and Pluto moved into a long sextile (60 degree) aspect to one another from 1460 through 1540. This same relationship returned again 1950-2032. Due to Pluto's elliptical orbit, Neptune actually comes inside of Pluto's orbit and is closer to the Sun during some of this period. That is why this aspect remains in effect so long. In the late 15th century, as this sextile was in effect, the intellectual and artistic climate of Europe was extremely exciting. It was a time of innovative movements that completely transformed several aspects of life, from economics, to art, to religion and philosophy. The height of this was even more defined as Uranus and Neptune came into conjunction in 1478-79, and then into mutual reception with one another in the first decade of the 16th century (through 1509). The same thing is happening now, as Uranus and Neptune conjunct in 1993, and they entered into mutual reception (where each planet is in the other's ruling sign) from 2003 through 2011 - while Neptune and Pluto remain in sextile.

We are in another Renaissance right now. In fact, I believe in time historians may look back upon the first decade of this 21st century and see that it too shared many characteristics of Renaissance Europe (and especially Italy). The difference is that back then we didn't know that Uranus, Neptune, and Pluto existed, which may be symbolic of the fact that we didn't know how to handle this type of eclectic and electric excitement. Now we know of their existence, and with Neptune and Pluto in harmonious sextile, astrologers know that this is a signature of opportunity - opportunity to solve any crisis if we put our mind to it. After all, Neptune is the imaginative mind, and the quest for peace and beauty. And Pluto is to urge to reform - to get rid of that which is holding us back, and bring forth new models that are more relevant to the current and futures needs of humanity.

That's why there is hope at the end of 2006. In the late 15th century, they didn't know how to handle this dynamic. They weren't even aware it existed, except perhaps on an intuitive plane. The heights that art, philosophy, and economics reached during that 100 year period, from 1390 through 1490, were incredible. But it all came toppling down at the end through excesses and indulgences on the part of the leaders of that period. That was the first time in thousands of years that Neptune and Pluto were sextile, while Uranus and Neptune were in mutual reception, for these orbital cycles are only approximately proportionate to one another. It will only happen twice.

And this is second and last time. Let's get it right this time, and enjoy the greatness of what we have achieved as a human family occupying this beautiful planet, we call Earth. .