Merriman Market Analyst

Review and Preview

 The stock markets of the world bounced around quite a bit last week, with many making their weekly lows on Monday or early Tuesday, which was the center of this huge geocosmic cluster in effect October 25-November 30. From those lows early last week, most rallied for 1-2 days into the Mars retrograde date, only to give back a good portion of their gains into early Friday before recovering into the close again. Some indices, like the Japanese Nikkei, fell below the lows of August 17 that started this current primary cycle in many counties. Others made their steepest retreat since those lows of August, and some even made a double bottom to them, like the Swiss stock index. In the United States, the Dow Jones Industrial Average broke slightly below 13,000 for a weekly low of 12,975 early Tuesday. It then rose nearly 400 points into the high of the next day, Wednesday. However, by Friday, the DJIA was again testing 13,000, but it held and closed the week at 13,176.

 Both currencies and precious metals pulled back from their multi-year or all-time highs of the prior week. Gold fell over $60.00, from a high of 848 the prior week to a low of 784 on Thursday. Silver fell nearly $2.00, from 1627 the prior week to a low of 1435 last Thursday. Even Crude Oil pulled back about $8.00/barrel into its weekly low last Tuesday. But then it started to rally again and closed the week at 93.10.

Short-Term Geocosmics

 The dilemma now before traders (and Financial Astrologers) is whether Friday’s low represents a successful re-test of the lows earlier in the week, or will they break lower this week? Arguing in favor of holding is the fact that this is Thanksgiving holiday week, which is traditionally bullish for U.S. and world equities. Also, the low of the decline so far was on Monday-Tuesday, which was the midpoint, or critical reversal date, of this huge geocosmic cluster. The argument for lower prices is the approaching Jupiter-Pluto conjunction and its attendant worries about the sub-prime mortgage debacle. Those problems are not over and that conjunction is still forthcoming.

 This week will begin with Venus forming a waxing square to Mars on Monday, a Level Two rated signature. With Venus in its home sign of Libra, the completion of this aspect might release Venus to do what it would normally do in Libra, which is to give support to equity values. By itself, that is a bullish bias for stocks. But the bigger signature occurs next weekend, when Uranus ends its retrograde motion in mid-Pisces. This is a Level One signature, the strongest of all types. In fact it has historically correlated with primary cycle in U.S. stocks within 12 trading days with an 83% rate of frequency. That’s huge, and a reason to anticipate an important low shortly, followed by a healthy rally. But how low do equity and precious metals’ prices have to go before the reversal kicks in? With Uranus, there is only one thing you can usually count on: it will go lower or higher than anyone is prepared for. Uranus is the planet of the maverick, the radical, the alien. Matters seldom go as expected when Uranus is strong, and it has a penchant for surprises. This is the most important geocosmic signature in effect the rest of this month, and it would not be surprising (to us) if many financial markets made an important high or low right around then.

Longer-Term Thoughts

 For several weeks I have referred to the importance of the Jupiter-Pluto conjunction that takes place on December 11 at 28 degrees of Sagittarius, as an indicator of debt-related crises. It correlated with the default on Orange County municipal bonds when it last occurred in December 1994. And this time it is coinciding with the ill-advised sub-prime mortgage loans of the past few years that are now leading many home owners to lose their homes, due to the escalation of their readjusted payments.  Not only that, this record-breaking rate of home foreclosures is hurting many banks and lending institutions, and causing concern that it will lead the U.S.A. into a recession very soon – and maybe other countries too that have exposure to U.S.A. sub-prime lending companies.

 This 13-year planetary cycle is occurring nearby to the Galactic Center at nearly 27 degrees of Sagittarius, which presents other interesting possibilities with regards to human activity. As stated on the Forecast for 2007 book, “Pluto crossing the Galactic Center and Solar Apex of 26 Sagittarius and 1 Capricorn respectively, 2006-2009, (is a) 248-year cycle that brings to the forefront the issues of life and death. Where did we come from? Was it evolution of the species, as Darwin proclaimed, or is there a God that created us all? At this time, humankind is on the brink of solving the human genetic code (DNA).” So it is interesting that as Jupiter is about to also touch this point, the Los Angeles Times reports “Monkey Cloning Breaks a Barrier.” Scientists from the Oregon Health and Science University have successfully cloned “… a monkey embryo from an adult’s skin cell and (have used) the embryo to harvest stem cells.” According to Dr. Robert Lanza of Advanced Cell Technology in Worchester, MA, “This is a giant step toward showing that human therapeutic cloning is possible.” In other words, this is a step towards the use of embryos in the process of finding new cures for human ailments. This announcement may have political connotations. Jupiter is one of the principles governing religion (and philosophy). Pluto can pertain to issues like life and death, or even the source of life. It also pertains to abortions. The Galactic Center and Solar Apex may be symbolic of the “Universal Mind,” the source from which original ideas spring from – especially those that have themes and symbols common to many cultures.

 So as Jupiter and Pluto come together and cross the Galactic Center, humanity stands once again at the brink at solving a huge mystery, and possibly uncovering new ways to enhance the human life experience. Which begs the question: what will the politicians do about it? Will they make this type of research unlawful? Will they bring the religion card into the debate? Of course they will. It is going to be an interesting discussion over the next two years as Pluto continues its passage over these two critical points: the Galactic Center and the Solar Apex of our solar system. And in the next month, Jupiter joining Pluto could bring this issue out front and center. For savvy investors looking for a long-term trend, here is one to pay attention to. It is seldom that the strong beliefs of the religious faithful can hold back the progress suggested by new scientific findings for very long, especially when those findings hold the promise of enhancing the quality of life on earth. After all, in the bigger picture, we are moving from the Age of Pisces (faith and religion) into the Age of Aquarius (science and knowledge).