Menu Content

Merriman Market Analyst

Home arrow Weekly Preview arrow MMA Comments for the Week Beginning October 27, 2008
Advertisement
Please note:
This is not the same as our service titled
"MMA Weekly Comments and Recommendations on Financial Markets"
which is available by subscription only.
Flowchart on MMA Products and Services
MMA Comments for the Week Beginning October 27, 2008

Review and Preview

That Saturn-Uranus freight train keeps thundering down the tracks, crushing any asset of value that stands in the way of its destination on Election Day, November 4, 2008. Although this particular train ride has been more of “train wreck” for most investors, it has been a phenomenal reinforcement of the value of Financial Astrology to today’s society.

There are few astrological signatures that have the potential for near-total devastation as Saturn and Uranus in hard aspect. You may remember the last one, which was a square between these two powerhouses that unfolded three times between July 18, 1999 and May 13, 2000. Many of the world’s stock markets made their all-time high in January-March 2000. But before the aspect was completed, the “technology bubble” burst and a dramatic decline in the “tech stocks” commenced. The tech-heavy NASDAQ Index plunged 80% by October 2002. Many of the start up “dot com” companies went out of business. In this current case, global equity values are once again dramatically falling as we enter into the opposition aspect, which starts November 4, and doesn’t end until July 26, 2010. The “good news” is that this bear market will quite possibly be completed by the time aspect ends (or within the following 5 months). The bad news is that the start of this aspect series is still ahead. See “Longer-Term Thoughts” section for more discussion.

Every major stock index that we study made a new multi-year low last week, except two: the Swiss SMI and Dow Jones Industrial Average. But it is not just that so many indices made a new low that is important. It is the chart structure that is impressive, for herein one can see that these new lows represent the greatest percentage decline in many decades. Not only that, but they followed some of the greatest appreciation – rallies – in history. This reinforces one of our cyclical rules, which states that when a market rallies longer than anyone expects, the decline will also be much greater than anyone expects. For so many months in 2007 we were baffled by the fact that the stock markets kept rising and rising into - and beyond – the time band when the 4-year cycle trough was due. At the time, all I could do was repeat this rule. And now, unfortunately for many investors who did not get out, one can see the truth in this rule.

In Europe the AEX fell to 232.43 on Friday. This represents a 59% decline since its all-time high of 563.98 on July 13, 2007. It is now approaching its previous 4-year cycle trough of 217.10, which was recorded at the time the U.S. commenced its war to liberate Iraq on March 12, 2003. Note that the all-time high happened when the next 4-year cycle trough was supposed to be due, which is the case in all of these examples. The German DAX fell to 4014.60 on Friday. This represents a 50+% decline from its all-time high of 8157, also on July 13, 2007. It is still nearly double its 4-year low recorded also on March 12, 2003, at 2188.75. A similar pattern can be observed in London’s FTSE stock index, which made a new 5-year low on Friday at 3715.24. Its previous 4-year cycle trough was 3277.50 on March 12, 2003. After that, it soared to an all-time high of 6754.10 on July 13, 2007, so the decline now has only been 45%. The Swiss Stock Market (SMI) did not make a new multi-year low on Friday. It fell to 5410.95, still above the 5205.86 low of October 10, but down from its all-time high of 9548.09 achieved on June 4, 2007. It is also still up considerably from its 4-year cycle trough of 3618 of March 12, 2003.
 
In the Far East and Asia, the dramatic nature of this decline has been even more stunning. In Hong Kong, for example, the Hang Seng has now fallen from an all-time high of 31,958 on October 11, 2007, to Friday’s low of 12,618. This represents a loss of value of 62.47%. India’s NIFTY Index fell to 2525 on Friday, a decline of over 60% from its all-time high of January 8, 2008. In Japan, the Nikkei index fell back to 7647 on Friday, nearly matching its 54-year cycle low of 7604 back on April 29, 2003. It is now down 58% from its highs of mid-2007. In Australia, the All Ordinaries plunged to 3799.50 on Friday. That represents a decline of only 44.7% from its all-time high of 6873 back on November 1, 2007.

In the United States, the NASDAQ made a new 5-year low on Friday as it plummeted to 1493.79. It is still well above its low of October 10, 2002 when it was down to 1108.49. That is still down nearly 50% from its 4-year cycle crest of 2861.50, and still much lower than its all-time high of 5132.52 recorded on March 10, 2000, when the last hard aspect (square) took place between Saturn and Uranus. The DJIA, like the Swiss SMI, did not make a new low on Friday. It fell to 8187, which is still considerably above the 7882 low of October 10. It might have exceeded this if it had opened earlier, for the DJIA futures were locked limit down when they opened on Friday. In the case of the DJIA, it is challenging the 7197 lows of October 10, 2002. The low of October 10, 2008 was already down 44% from its all-time high of 14,198 on October 11, 2007. The market seems to like the October 10th period. It may also like this current period too, for four years ago, the market was making an important low on October 26, less than 2 weeks before that USA presidential election. Usually this means the party in office will lose. But not then. The market soared into the election of 2004, and George W. Bush was re-elected. Are we about to witness another stunning reversal in the stock market and the election polls? It is doubtful, but with Saturn still approaching its opposition to Uranus on Election Day itself, nothing will surprise me.

Precious metals and crude oil also witnessed stunning declines last week. Silver, for instance, fell to 865 during the day on Friday, a loss of nearly 60% in value from the 2115 level posted last March. Gold dropped to 681 on Friday, down $367 from its all-time high of March 18. Crude oil made its all-time at 147.27 just last July 11. On Friday, it was down as low as 62.65, now off over 57% and confirming our forecast of a 50-90% decline before Uranus left Pisces. There are some things that simply cannot be understood or prepared for properly in advance without the aid of Financial Astrology combined with Cycle Studies. It is truly a gift from the heavens (i.e. God), and nothing that I have studied demonstrates the existence of an orderliness to the universe (i.e. a Divine Intelligence at work) more so than the study of Astrology. It is humankind’s misfortune that this marvelous study is not used more effectively in understanding trends that coincide with both the individual and society’s cyclical nature, as alluded to in the Book of Ecclesiastics (i.e. for everything there is a season under heaven).

Short-Term Geocosmics

 As mentioned earlier, we are fast approaching the Saturn-Uranus opposition of November 4. But the day before, November 3, is also important, for that is when Venus will “translate” the Saturn-Uranus opposition in a T-square (squaring both). Every “translation” of the Sun or Venus to the Saturn-Uranus opposition of this year has coincided with a serious sell-off in stocks throughout the world. This one is no different. Venus rules assets, and has special significance to currencies and Soybeans. Both are falling hard since their all-time highs of just a few months ago.

 We also note that our next time band of heavily populated geocosmic signatures starts on Halloween, October 31, and lasts through November 13. There are nine important signatures unfolding then, of which five are Level One (strongest) types. We can anticipate the week starting November 3 may be one of the most important reversal weeks of the year. We already know that politically it will mark an important change as well. An era will have ended and a new one will begin. The new era will be dramatically different than we have experienced for the past 8 years in terms of economics and military activity, regardless of who wins.

Longer-Term Thoughts 

 In “The Ultimate Book on Stock Market Timing Volume 2: Geocosmic Correlations to Investment Cycles,” there is a special study titled “Saturn-Uranus in Cardinal signs.” This study examined the 8 cases of Saturn-Uranus in hard aspect, in cardinal signs, since 1761, and their correlation to long-term cycles in the British and U.S. stock indices. The results showed that in 7 of these 8 cases (87.5%), an 18-year or greater cycle unfolded within 5 months of the central time band. That is a quite phenomenal result! I bring this up because Saturn and Uranus will be in opposition, in the cardinal signs of Aries and Libra, on that last passage, July 26, 2010. In this case, we are looking for the 72-or 90-year cycle trough, a cycle that historically has coincided with losses of 50-90% in stock markets around the world. We are already there in several stock markets, and nearly there in all the others. But typically, these declines last 3-22 years from their all-time highs. The year 2009 will be only the second year. Could it be done by then? Why not? We are in the part of the Pluto cycle where time “speeds up”. That is, when Pluto transits Scorpio through Capricorn, it stays only 12-15 years in each sign. When it is on the opposite side of the zodiac (Taurus-Cancer), it spends up to 28 years in each sign. 

 The “ideal” time for this bear market to end is anywhere between 2011 and 2016, as discussed in my article on “Pluto in Capricorn: The Good, The Bad, Even Worse, and Redemption,” which you can read on our web site at www.mmacycles.com. But sometimes long-term cycles contract, especially when Pluto is moving through the “fast part” of its orbit around the Sun. Pluto, ruler of debt and reform, is going to re-enter Capricorn again on November 26, where it remain through much of 2023. Yes, it is a new era we are entering.

 

Announcements

We are now accepting orders for the Forecast 2011 book now via phone (1-248-626-3034), fax (1-248-538-5296), email (ordersmma@msn.com), or through our shopping cart online (www.mmacycles.com). We are pleased to announce the price will remain the same as last year. That is $55.00 if ordered after October 31, and $45.00 if ordered before (plus postage). We will also be offering special 10% discount rate for our subscription services to those who also pre-order Forecast 2011. This is a great deal, for in the words of one of our daily subscribers recently, “I don't know whether you want to hear/take any comments at all but I wanted to say that, so far, I am a very happy camper and the only thing which I think that I did wrong with subscribing to your service that I did it TOO LATE! What was I thinking....? :-)" – R. Rood, Lugano, Switzerland, futures trader and technical analyst, former cash grain trader.

For a review of the forecasts from the Forecast 2010 book, please go to www.mmacycles.com, and scroll down to about the third or fourth article on the opening screen. Or go directly to http://www.mmacycles.com/the-news/about-mma/scorecard-for-forecasts-2010/.

If you are an active short-term trader, you may be interested in 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, Soybeans, Crude Oil, 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, or go to http://www.mmacycles.com/services. In the words of one of our subscribers: “I recently subscribed to your weekly report and am finding it to be excellent and a very useful companion to the MMA Cycles Report.  I can't imagine now managing my investments without them.” Order now with the Forecast 2011 Book and receive a special 10% rate reduction on these services through October.

The monthly MMA Cycles Report and its companions – the MMA Japan Cycles Report and MMA European Cycles Report – went out last week. If you are a subscriber and did not receive it, contact us at once. This report covers our longer-term analysis of the U.S. stock market, precious metals, crude oil, currencies, Treasury Notes, and grain markets. The MMA Japan Cycles report covers the Nikkei, JGB Bonds, and the Dollar-Yen. The new MMA European Cycles Report covers the German DAX, Swiss SMI, and Netherlands AEX, each in English only. These reports are included in the Japanese, German, and Dutch translated MMA Cycles Report respectively. New yearly (or renewing) subscribers to these reports will receive a free copy of the Forecast 2010 book while supplies last (see below). You also qualify for a special discount on a yearly subscription if at the same time you pre-order Forecast 2011. For subscription information, please go to SERVICES at www.mmacycles.com.

CD’s DVD’s, and MP3’s of the July 11 webcast are now available!!! Each of these various ways to see the event can now be ordered via our website at www.mmacycles.com (just click the opening banner), or by calling 1-248-3034 or email operations at ordersmma@msn.com. The cost of each is $45.00, plus postage if necessary. This webcast covered our outlook for stocks, precious metals, interest rates and Treasuries, foreign currencies vis-à-vis the U.S. Dollar, and Grains. We pick this time because it was right before the astrological midpoint of the Cardinal Climax, which is taking place now. It may be the peak of the huge trend reversals expected in many of these markets, aided and abetted by major changes of trend in geopolitical matters. It is interesting to see how the stocks, grains and currencies moved right up into this time band, as outlined in this presentation. You won’t want to miss this. Order now, because most of the trading opportunities presented are in effect mainly from July 21 through October 8, 2010!!!

ForumOnAstrology.com is holding a three-day video conference on Friday, Saturday, and Sunday, October 1st, 2nd, and 3, 2010. This pioneering Internet astrological conference features dozens of internationally known speakers.  Very economically priced, all participants have access to all live broadcasts with the ability to replay them from the archives for up to three months. Call (212) 929-4507 or email Inquiries@ForumOnAstrology.com.

I am oftentimes asked for recommendations of a money manager who uses my methods, since I won’t manage other people’s money. That is especially true now with the uncertainty in the market place as of late. The thing is, almost all money managers I know use their own systems. But many subscribe to my services and share my thoughts about the future of the economy, various financial markets, and how to position one’s portfolio along these lines. One money manager who subscribes to our services that I would suggest for those looking to structure a longer-term portfolio, such as a retirement account, is Duke O’Neill of Capstone Capital Wealth Management, Boulder, Colorado. He can be reached at dukeoneil1@gmail.com, or 1-(303) 247-0600. For those looking for a professional trader of commodity and futures contract might consider Ted Lee Fisher at ted.fisher@comcast.net. Ted is a legend in financial futures and has a seat on the CME. Both are very knowledgeable of the tools I use, of the way I am looking at markets, and yet each makes their own decisions as exactly when to enter and exit any market. I would also like to recommend long-term MMA subscriber Erwin Brunner of Zurich, Switzerland. Mr. Brunner is the founder of BrunnerInvest AG. One of his five funds was awarded the “Best in-house fund of funds” in the world recently. Mr. Brunner is a former director of the Swiss Banking Corporation (today it is known as UBS), and a general director of Rothschild Bank in Zurich. As an independent wealth manager for high net worth individuals and institutional clients only, he places his clients into the funds of the best performing fund managers in the world, via his own research and experience. For high net worth readers interested in Mr. Brunner’s funds, please contact him through www.brunnerinvest.ch.

 

OK. You’ve asked about classes in Financial Astrology, and I am giving two of them in great South American cities in late September and early October. Since these constitute “investment education,” many of you will be able to write the expenses of this trip off (travel, some meals, and cost of conferences). Here are some more details of each – and I hope to see many subscribers at each:

September 23-26, 2010: Buenos Aires! Seminar on Financial and Mundane Astrology with Raymond Merriman and others, with special emphasis on Argentina’s Merval Index and precious metals and whatever else is of interest to participants, for each Financial Astrology workshop is different. For more information, contact Claudia Rizzi at astrologycr@gmail.com, or visit our web site at www.mmacycles-spanish.com. If you only speak Spanish, go to www.astrologiamundana2010.blogspot.com. We will host a special gathering of MMA Subscribers at the end of the seminar, depending on interest expressed. 

October 1-2, 2010: Rio de Janeiro! Workshop on Financial Astrology with Raymond Merriman, plus a Mundane Astrology panel with Merriman and others. The workshop will have with special emphasis on Brazil’s Bovespa Index and precious metals, and whatever else is of interest to participants. For more information, contact Renato Chebar at astrologiafinanceira@gmail.com. We may host a special gathering for MMA Subscribers on Sunday, October 3, the day of Brazil’s elections, if enough subscribers request such a meeting.

January 14-16, 2011, Zurich, Switzerland. “Forecasts 2011” symposia featuring top mundane and financial astrologers, plus one day workshop on Financial Market Timing with Ray Merriman, to be followed by a special meeting with MMA Subscribers (at no cost). For more details, go to www.astrodata.ch.

March 10-12, 2011: Mexico City, Mexico. Speech on Forecasts 2011, and workshop on “Evolutionary Astrology: The Journey of the Soul Through States of Consciousness.” For information, please contact acuario888@gmail.com.

April 28 and 30, 2011: Kansas City, Mo. “Forecasts for 2011” and “Financial Astrology Workshop” with Raymond Merriman. Sponsored by AOA. Details soon. This will be the next Financial Astrology workshop in the United States.

September 1-8, 2011: Bali! "Financial Astrology" Intensive workshop with Raymond Merriman, and "Mundane Astrology" with Claude Weiss. For more information on this unique week-long intensive and incredible South Pacific paradise adventure, please go to http://www.heavenandearthworkshops.com/financial.html.

Disclaimer and statement of purpose:

The purpose of this column is not to predict the future movement of various financial markets. However, that is the purpose of the MMA (Merriman Market Analyst) subscription services. This column is not a subscription service. It is a free service, except in those cases where a fee may be assessed to cover the cost of translating this column from English into a non-English language.

This weekly report is written with the intent to educate the reader on the relationship between astrological factors and collective human activities as they are happening. In this regard, this report will oftentimes report what happened in various stock and financial markets throughout the world in the past week, and discuss that movement in light of the geocosmic signatures that were in effect. It will then identify the geocosmic factors that will be in effect in the next week, or even month, or even years, and the author’s understanding of how these signatures will likely affect human activity in the times to come. The author (Merriman) will do this from a perspective of a cycle’s analyst looking at the military, political, economic, and even financial markets of the world.

It is possible that some forecasts will be made based on these factors. However, the primary goal is to both educate and alert the reader as to the psychological climate we are in, from an astrological perspective. The hope is that it will help the reader understand these psychological dynamics that underlie (or coincide with) the news events and hence financial markets of the day.

No guarantee as to the accuracy of this report is being made here. Any decisions in financial markets are solely the responsibility of the reader, and neither the author nor the publishers assume any responsibility at all for those individual decisions. Reader should understand that futures and options trading are considered high risk.

Copyright MMACycles 2007; you may link to this site or page, but you may not distribute these texts in any way (by email or otherwise).

Archives

Previous weeklies (2006) are archived at www.olmta.com

For other language editions of MMA´s weekly comments:


Owners of websites:

This Weekly Market Climate is available for co-branding. Call 1-800-662-3349 for details.