Merriman Market Analyst

Review and Preview

 After posting important lows the previous week on March 17, stocks markets around the world were all over the place last week. In the U.S.A., the Dow Jones Industrial Average and NASDAQ Composite topped out on Monday-Tuesday’s lunar reversal date, and then sold off considerably throughout the rest of the week, closing near their weekly lows on Friday. But in the Far East and Pacific Rim, the Japanese Nikkei, India NIFTY, and Hong Kong’s Hang Seng indices all traded at their highest levels on Friday. The All Ordinaries of Australia topped out on Wednesday. In Europe, London’s FTSE and Germany’s DAX indices each made their highest marks since March 17 on Friday, whereas the Swiss SMI and Netherlands AEX indices topped out a day earlier. It was most definitely a week of uncertainty and hesitation, but not at all out of character with the astrological and cyclical indicators that were in effect.

Precious metals, currencies, crude oil and grains all attempted comebacks last week, but failed after peaking out in the Sagittarius Factor zone of last Wednesday-Friday. When the Moon is in Sagittarius, these markets frequently end sharp rallies and then give back a good portion of the gains they just made. That pattern happened again last week.

Short-Term Geocosmics

 We are in a rather strange transition period right now.  On the one hand we are just ending the time band when Venus is in translation to the forthcoming Saturn-Uranus opposition (March 15-28). As suggested during the past two weeks, this period corresponded more to a rally than a further decline in stock indices throughout the world, probably because Venus was in its exalted sign of Pisces this time. Two weeks ago, everyone on the planet was convinced the world economy was on the verge of collapse and depression, and stock markets were in a mini-panic. Most pundits expected that to continue. But instead, on March 17, the first trading day after this time band began, stocks around the world started a surprising rally (it was not surprising to financial astrologers, but to the rest of the world). Now, instead of predicting a global depression, world-wide stock market collapse, and the end of the financial world as we know it, many market analysts are suddenly forecasting a recovery and proclaiming that the worst is over. What a difference a fortnight makes! What a difference a transit to the Saturn-Uranus opposition makes. If I didn’t understand astrology, I would say the world is crazy. But because I do understand the subject to some extent, I am more of the opinion that these economic gurus are instead just fickle – at least when it comes to convictions in their beliefs espoused of the moment.

 During this period when the Venus translation is taking place, we also note that a translation of the Sun to a Mars-Pluto opposition is unfolding (March 21-30). With Pluto turning retrograde April 2, followed by Venus in a square aspect to Pluto on April 8, we have to be aware that the forecasts of a great and miraculous recovery may also be pre-mature. Pluto, after all, rules debt, and debt has been the big problem since last August. These aspects of the next two weeks indicate that the debt problem is not behind us. There is still more fallout likely to happen very shortly. But is it enough to send stock values to new yearly lows? That remains to be seen, and the answer determines whether or not the 4-year cycle trough is behind us or still ahead.

 One key may lie in the important Venus-Uranus conjunction of this past Friday, March 28. If that indeed acts as a reversal signature, it could lead to a rally, as the U.S. stock market has declined into it. If it does not act like a reversal signature, it may instead unfold as a breakout signature, where once again the floor of the market gives way to an elevator ride south. With Uranus, you never know if it is a reversal or a breakout of important support and/or resistance.

Longer-Term Thoughts

 Another reason why stocks may reverse right here is because Jupiter is making its first of three sextiles to Uranus on March 28, the same day that Venus forms a conjunction to Uranus. Anytime aspects form between Jupiter and planets outside of its orbit, it is considered a longer-term planetary signature. And the rule is: the longer the planetary cycle that is unfolding, the longer the stock market cycle that correlates nearby. Jupiter-Uranus has a periodicity of 14 years. It is not as long as aspects between Saturn and planets outside of its orbit, such as the Saturn-Uranus opposition that will take place November 2008 through July 2010. But it is long enough to be considered an intermediate-term correlate to market cycles, such as a 50-week or greater stock market cycle.

 In terms of Financial Astrology, Jupiter is considered a dynamic of growth and gains when in favorable aspect, or hysteria and large losses when in adverse relationship. The sextile is considered a favorable aspect. Uranus is the principle of surprises and the unexpected. When markets fall in price around the time of this signature, we look for sudden and powerful rallies to follow shortly afterwards.

 Of course any single signature has to be tempered with other planetary signatures that are happening at the same time. In this case, as Jupiter forms its favorable sextile to Uranus, other significant Pluto transits are taking place. The later are more worrisome. So it will be interesting to see how the drama plays out in the next two weeks between this favorable Jupiter-Uranus aspect, and the heavy transits involving Pluto.