Merriman Market Analyst

Review and Preview

The big news this past week was the Dow Jones Industrial Average passing the 14,000 mark for the first time ever – a new all-time high. However, the joy was short-lived as the index fell over 200 points to below 13,800 intraday on Friday, before closing the week at 13,851. Multi-year or all-time highs were also noted in the other indices in the Americas, like the NASDAQ Composite and Bovespa index of Brazil. A new all-time high was also achieved in the Hang Seng of Hong Kong on Friday. But that was it. No other index that we track was able to exceed their recent multi-year or all-time highs during last week’s trading. All of the European indices failed, and so did the Nikkei and Australia’s All Ordinaries. Furthermore, many of these indices also exhibited a turn down in their overbought momentum indicators, suggesting that the highs are in, or will be shortly. If new highs are now made, they will likely unfold under lower readings from these indicators, which would create a case of bearish oscillator divergence. Already we are seeing intermarket bearish divergences between the indices of the world, where several failed to make new highs, while only a few did.

Another big story occurred in crude oil, which soared to 76.143 intraday on Friday, coming very close to its all-time high of 78.40 achieved over a year ago. Also prominent was the Euro currency, which did manage a slightly higher all-time high last week. In sympathy with the new high in the Euro currency was a strong up week for Gold. On Friday it reached 687, its highest level since early May. Silver reached 1350, its highest level of this month. But all of this was suggested last week by the new yearly high in the XAU Gold and Silver Mining Index.

Short-Term Geocosmics

We are now entering the time band of the Venus retrograde influence. On July 27, Venus will reverse its apparent direction through the heavens from 2 degrees of Virgo. It will remain in retrograde through September 8. Within 12 trading days of Venus turning retrograde, the U.S. stock market has had a 78% correlation to primary or greater cycles from which prices reversed substantially. But it is not only equities that are affected by this geocosmic event. All markets can experience major turns around this time, for Venus rules values and assets of all kinds. Specifically we associate Venus with money, or currency values. And, as many readers know, currency values are influenced by changes in interest rates, which themselves are a response to perceived or real changes in monetary policy by central banks of the world. A look at currency charts will reveal that as we enter this Venus retrograde period, the Euro is making new all-time highs against the U.S. Dollar, and the Dollar itself is nearly lows of a long-term nature. The Venus retrograde suggests that these currencies could soon experience a multi-week contra trend move. I will speak more to this matter in the Long-Term section.

On a more personal level, Venus also rules relationships, partnerships, and matters of the heart. Old lovers return. Or new love interests enter one’s life that resurrect issues and patterns of the past that are still not yet mastered. If your love life has been going well with a significant other, be aware. It could reverse and head south now. On the other hand, if a relationship has been experiencing difficulties as of late, it is now possible that any misunderstandings can be corrected, and the relationship can now get back on track. On another level yet, Venus rules purchases and changes in one appearance. Venus retrograde is not a time when one is advised to make large purchases or changes in personal appearance. You may find you wish you could return the purchase, or undo the change in appearance.

Long-Term Thoughts

Change. That is a keyword that we usually associate with Uranus. But as you saw in the earlier part of this week’s column, it also pertains to the period of time when a planet turns retrograde, at least in matters to do with that planet. In the case of Venus turning retrograde for the next 6-7 weeks, we anticipate changes in regards to matters of money (and love). Typically this is a period when central banks of the world realize that a change in their monetary policy is necessary, and so they switch their bias from accommodative (low or stable interest rates) to restrictive (higher rates), or vice-versa. These decisions are oftentimes based on the perception of inflation trends. If it is believed that prices are rising, or about to rise due to unexpectedly positive economic growth, central banks will oftentimes start to take steps to slow down that trend by raising those interest rates that are within their power.

Right now there is concern about inflation in many of the capitalistic economies, like the United States. Of interest to astrologers regarding this matter, may be an examination of the chart of the Federal Reserve Board Chair Ben Bernanke, who was born December 13, 1953, time unknown, but thought to be around noon. Unfortunately I do not have my databank source available with me as I write this, so I cannot cite the source of this data, nor the city of the birth, but I believe it was somewhere in the southeast USA. In any event, He most likely has the Moon around 20 degrees of Pisces, in a T-square to the Sun-Jupiter opposition at 21 Sagittarius and Gemini respectively. This is important, because in Spring of 2008, transiting Uranus will set off this T-square as it conjuncts Mr. Bernanke’s natal Moon. Both Jupiter and Sagittarius rule expansion, and hence inflation. Although Mr. Bernanke has recently expressed concern about inflation, many people have expressed concern that the FED’s emphasis on “core inflation” – that which excludes energy and food costs – is not realistic. With Crude Oil back near all-time highs, and both Wheat and Soybeans at their highest levels in several years, consumers are feeling the stress of these high prices, even though “core inflation” seems tame. One has to wonder if the prospect of sharply rising prices might catch Mr. Bernanke unprepared, and force him to soon raise interest rates, amidst criticism that he waited too long to stem the tide. If so, the transit of Uranus over these key natal points may indicate a period of sudden reversals not just in Mr. Bernanke’s status, but also in financial stability of the United States, and possibly that of many capitalistic economies of the world. It is not only Uranus that will touch of this T-square of this most important central banker, but during this same time (spring 2008-spring 2009), Saturn will be in Virgo, opposite Uranus, and thus creating a grand square to these critical points of Mr. Bernanke’s chart - just about at the time of the USA 2008 presidential election.