Merriman Market Analyst

Review and Preview

Note: next week’s column may be a day later than usual due to my lecture obligations at the International Balkan Conference in Belgrade next weekend.

It was ugly last week for  many stock indices around the world. And it was not unexpected on the basis of our studies in Financial Astrology. First of all, the entire period of February 25 through March 7 witnessed the Sun translating the Saturn-Uranus opposition, a period that we previously described would, “… offer a glimpse of what to expect from November 2008 through July 2010 when that Saturn-Uranus opposition is in effect.” It was similar to what happened in January of this year when Venus also made a translation to this forthcoming Saturn-Uranus opposition. And as in January, stock markets around the world sold off again. In fact, these indices are right back around those same multi-month lows of January 22-23, and the sense of panic that was present then, has returned. And what is the cause? According to the front page of Friday’s Wall Street Journal, “Housing, Bank Troubles Deepen.” It is the same story line that was sounded during the sharp declines of last August and January.

 Secondly, this decline into Friday’s new monthly low coincided with the new moon conjunct Uranus. This is potentially a geocosmic critical reversal signature. Not only that, but Uranus signatures such as these can coincide with a sense of panic or hysteria, as if there is no hope left for the economy or stock markets. But as financial astrologers, we have to keep in mind that this is happening in Pisces, the sign of faith versus hopelessness. Pisces rules the imagination, the dream state. It is not considered practical or realistic. It is illusion and confusion. If the market falls during a Pisces influence, it may be based on fear of the worst. Based on the fact that commodities say there is a real threat of inflation, and Treasuries say there is not, we have a case of confusion. Based on the fact that stock markets appear headed downwards with no bottom in sight, and consumer confidence numbers are falling just as hard, there is also a growing lack of faith. And this is reflected in the increasing number of economic leaders who are proclaiming we are in a recession, when the data has yet to confirmed that. It is very much typical of a new moon in Pisces (confusion), conjunct Uranus (hysteria), and in opposition to Saturn (fear of loss).

 But commodities and currency prices are still roaring to record levels, and this too is typical of a new moon with Uranus. That is particularly true of crude oil, which is ruled by Pisces. Crude oil prices surged to another record high on Friday. They traded as high as 105.97. As stated in this column over the past several years, Uranus in Pisces is a signature that suggests crude oil would make an all-time high while transiting between 10 and 20 degrees. This condition is in effect right now, through May 2008. For this market to make its all time with the new moon also conjunct Uranus is almost a perfect astrological set up. Once the high is in, the possibility of a 50-90% decline before Uranus leaves Pisces is also very possible, based on the history of Uranus transiting signs and the sectors they correspond to in the past. Remember 1995-2003, when Uranus was in Aquarius? Aquarius rules technology stocks. They too had an explosive bubble to new all-time highs that suddenly ended in March 2000. Within two years, the NASDAQ Composite (of tech stocks) dropped 80%. The same could happen to crude oil by the time Uranus leaves Pisces in 2011. No one believed it two years ago when this column forecasted 100.00 crude oil by 2008. And today no one believes crude oil could possibly fall back to 50.00 or lower within the next three years. No one believes. Such is the nature of Pisces. Such is the work of Financial Astrologers, whose tools are always leading indicators, not lagging ones.

Short-Term Geocosmics

 Last week’s column correctly forecasted, “This could be a very dangerous week for many markets. In addition to  the Sun translating the opposition to Saturn and conjunction with Uranus there are other powerful forces at work that should be of interest to all Financial Astrologers… Mars will also cross the 0 degree Cancer point on March 4. Historically that is a period when central banks make critical changes or announcements in their interest rate policies, which in turn affect Treasuries and currency prices, and by association, also precious metals and stock markets… And (O)n March 4, heliocentric Mercury will also enter Sagittarius through March 17. This is a period that has a very high correlation to sharp price swings in many markets, especially precious metals and currencies. With heliocentric Mercury in Sagittarius at the same time as the new moon in Pisces conjunct Uranus around March 7, it could be a very dramatic time coming up…. Fasten your seat belts again. It could get very turbulent into next Friday.”

 In typical Uranus fashion, the Payroll and Unemployment reports were worse than expected. Treasuries rose and stocks fell.

 For this week, Venus will enter Pisces March 12, followed by Mercury doing the same March 14. More Pisces. More confusion and uncertainty. This is followed by Venus starting its translation to the Saturn-Uranus opposition, starting with its opposition to Saturn on March 15, and culminating with its conjunction to Uranus on March 28. The roller coaster may pause this week, but more steep slopes could be ahead March 15-28. Of course with the new moon conjunct Uranus this past Friday, a sudden and sharp rally is also possible, for it can be counted on for one thing: it does what most people do not expect.

Longer-Term Thoughts

 Despite all the negativity and fear as we ended last week, there are still signs of hope for the world, according to the study of Mundane and Financial Astrology. The major planets of Jupiter and beyond are still in favorable aspect until November of this year. The transit of faster moving planets to the forthcoming Saturn-Uranus opposition has shown us that there will be periods of utter depression and even panic. But these longer-term harmonious aspect also suggests that equity markets will find support, and these declines will be followed by healthy rallies. The declines will likely not be straight down, just as we witnessed after the falls of mid-August, late November, and late January. Very strong rallies followed each plunge, and that pattern is likely to happen all year.

 So, consistent with the theme of this new moon in altruistic and romantic sign of Pisces, it is appropriate to remind ourselves to “keep the faith.” The world is not ending. At least it isn’t ending before the November elections. It may feel at times like the world is losing control and its collective mind. But be patient. It is only temporary insanity, symbolized this past week with the new moon in Pisces conjunct Uranus. And let us also remember that our fire sign leaders of the U.S. Treasury and Federal Reserve Board aren’t done yet with their rescue saving heroics. We have our heroes. They won’t abandon us. They don’t want the economy or the stock market to crash on their watch. And soon the Sun and the other planets will leave the fog of Pisces and enter the fire sign of Aries (March 21). That’s when Bernanke and Paulsen will be back in their element, another rescue mission will be conducted, and the world will look rosy once again soon after. And we will all live happily ever after – until the next time. Isn’t it a perfect setup of a new moon-in-Pisces fairy tale? The knights and their white horses are coming, maybe even this week as Venus enters Pisces, and makes a favorable sextile-trine to the Federal Reserve Board’s Sun-Pluto. They did it in January. And both the aspects and the market patterns look a lot alike.