Merriman Market Analyst

Review and Preview

After the first wave down ended the prior week right on our critical reversal date of Monday, March 5, stock markets around the world tried to battle back last week. On Wednesday, several indices sold off again amidst fears of problems associated with sub-prime loans. Some indices took out the lows of the prior week, and others held slightly above it, for a possible case of intermarket bullish divergence. If so, we could expect this coming week to see higher prices.

In Europe, the Swiss Index fell to a new low for this move last week, but the others did not – although the German DAX and London FTSE came very close to the lows of March 5.In the Pacific Rim, all three markets (Australia, Japan, and Hong Kong) held above their lows of March 5 on last week’s decline. Yet none closed that bullish. In the America’s, the Bovespa of Brazil and Merval of Argentina held the prior week’s lows, But such was not the case in the USA, where the NASDAQ Composite and Dow Jones Industrial Average took out the lows of March 5, but then bounced back slightly by the end of the week.

The most exciting markets last week were the currencies, where the Euro soared towards its all-time high of a couple years ago. But Gold and Silver languished for most of the week until Thursday, when they too suddenly caught fire. This is in accordance with heliocentric Mercury about to enter Sagittarius next week, which has a decidedly more bullish relationship for currencies and precious metals than usual

Short-Term Geocosmics

This should be a very active and exciting week. First, the solar eclipse occurs Monday, and in exact square to Pluto at the Galactic Center. As stated last week, “…the solar eclipse of March 19 forms an exact square to Pluto, planet of terrorist threats and worries about debt and taxes. At the same time, Uranus will be in conjunction to the North Node of the Moon, indicating still a period of unexpected events, possible hysteria, and even the threat of high winds, earthquakes, and electrical blackouts or computer failures.” At the same time, heliocentric (as seen from Sun) Mercury enters Sagittarius (March 19-30), which is usually a time of dramatic price behavior too in most markets. Some markets (like metals and currencies) will rally strongly at first, and then plummet just as sharply before it is over. Others may do the opposite. And all the lunar signs next week point to short-term reversal in precious metals and stocks (two or three strong swings in each), as demonstrated in both our books titled The Ultimate Book on Stock Market Timing Vol 4: Solar-Lunar Correlations to Trading Reversals, and The Sun, The Moon ,and the Silver Market: Secrets of a Silver Trader. Also next week, transiting Mars will begin its translation over the Saturn-Neptune opposition and Jupiter-Saturn trine, March 22-25. This suggests a repeat of themes that were present around February 28 (the stock market began its plunge on February 27). This also pertains to Crude Oil, which has been falling steadily since it passed 62.00 on February 27. It was down below 59.00 intraday on Friday, sol we look for another reversal here to start in the next week.

On the mundane front, all of these signatures do not bode well for peace, especially the Mars-Saturn opposition of next Thursday. To the contrary, they imply heightened tensions in the world, with possible threats of combat where many lives may be in danger through the end of the month.

Long-Term Thoughts

The world, and the United States, continues to struggle with the themes of the Saturn-Neptune opposition, a 36-year cycle of distrust, feelings of deception, and ethical lapses  which usually results in the ruination of careers of those who become scapegoats for others in positions of power. It is not a “nice time,” when people get along easily. Instead it is a time when people tend to find fault in others, and exaggerate it, as if they are people of very bad character. At the same time, people began to crave for honesty and trust more and more. A poll reported by the Associated Press on March 8 found that the number one issue with voters in the U.S.A. right now was…. honesty. “55% of voters surveyed consider honesty, integrity, and other values of character the most important qualities they look for in a candidate.”

They didn’t get much good news in this department last week as U.S. Attorney General Alberto Gonzalez “…fought mounting pressure to resign… (when) emails between White House aides and (his) chief of staff show an orchestrated effort to fire several U.S. attorneys, counter to Mr. Gonzalez’s previous assertions that the firing weren’t instigated by the White House,” according to Wednesday’s Wall Street Journal Another lie? Or how about Tuesday’s Wall Street Journal report that February’s budget deficit for the Federal Government hit a record $120 billion (but tax receipts and outlays also hit a record). Politicians in the U.S.A. still can’t stop spending.

The problems with trust and honesty do not plague just the Republicans, or just the Americans. The character “attack squads, and the violators are too. The problem this creates is one of universal distrust of anyone in power, for no one is certain what information is true, and what is exaggerated and designed to harm one’s opponents. Consequently this creates a rather “paranoid” environment, which is a classic expression of Saturn and Neptune in conflict.

Saturn and Neptune also rule ice and water, and indirectly (or directly) temperature. Friday’s Wall Street Journal reported “This winter has been the warmest on record globally with temperatures 1.3 degrees Fahrenheit above the average since 1880.” Hmmmm… I wonder if this corresponds with a “meltdown” in the stock market as we near the end of the time band when the 4-year cycle trough is due, and in which the probability of a 20+% decline remains above 85% from our historical studies. With last week’s low, the DJIA was down close to 8% from its high of February 20 - Almost halfway there.

Announcements

The next “MMA Cycles Report ” and “MMA Japan Markets Cycles Report ” will come out this Monday-Tuesday. These reports come out every three weeks to subscribers of these reports. The “MMA Cycles Report” (Monday night by email) is our market advisory report for traders of the U.S. stock indices, T-Notes, Gold, Silver, Euro, Swiss Franc, Grains, and Crude Oil. The “MMA Japan Cycles Report” covers the Nikkei, Dollar/Yen, and JGB Bonds, and comes out Tuesday afternoon.

If you are an active short-term trader, there may be no better time than now to subscribe to 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 call our offices at 1-248-626-3034.

I will also be at “The Blast” an astrology conference in Sedona, Arizona, March 28-April 2. This conference will feature many of the newest “young” astrologers, along with a couple of “young elders” like Rob Hand, Dennis Harness, Gloria Star, Robert Blaschke and myself. Coordinated by Moses Siregar, this conference will also be the site for the ISAR (International Society for Astrological Research) annual meeting, of which I have served as President since 2002. The public is welcomed to attend, and meet the wonderful people who direct this organization. For more information on this unique and very affordable seminar, please go to http://theblastastrologyconference.com.