|MMA Comments for the Week Berginning December 29, 2008|
Review and Preview
It was a quiet week for equity markets around the world, which is typical for this time of the year. However it wasn’t so quiet in the commodity markets, especially the grain markets. In response to the weaken U.S. Dollar over the past three weeks, Corn prices have soared over 35%, from a low of 305 in the March contract to a high of 414 on Friday’s supposedly “quiet” trading. During that same time, the March contract in Soybeans has rallied from 811 to 966, as Wheat from 471 to 602. Gold also had a nice rally from a low of 829 on Tuesday to a high of 874 on Friday. Not bad for a low volume, holiday market. We can expect continued low volume and possibly narrow trading ranges in equity markets again next week, going into the New Year holiday.
Even though financial markets may be relatively quiet in observance of the holidays, the geocosmic picture is anything but quiet. This means there may be plenty of news, which under normal market conditions would probably result in more impressive price changes. The last week ends with Mars entering Capricorn on Saturday, December 27. This is one of the more important planetary ingresses, because it conjuncts the Sun, and is opposite Pluto, in the Federal Reserve Board chart. This usually coincides with changes in Central Bank policies, directly affecting prices of Treasuries and indirectly currencies. This next day, Mars conjuncts Pluto in the skies. This amplifies the ingress of Mars into Capricorn considerably. After all, we are just in the beginning stages of the 15-year transit of Pluto through Capricorn, a time frame that promises sweeping changes in the world economy and the governments - and even boundaries – of many nations. But beyond that, Mars conjunct Pluto is a potentially dangerous aspect to human lives. Mars pertains to aggression and combat, while Pluto relates to threats of safety. It can be a natural threat, such as severe cold, hot, or volcano eruptions and the like. Or it can be man-made, such as an act of terrorism.
The week will end with Saturn turning retrograde on December 31. When a planet turns retrograde, its principles are highlighted considerably in terms of human activity. Saturn is cold, in terms of weather. That is why the Mars-Pluto conjunction during the same week could coincide with severe cold temperatures, avalanches, and other acts of nature posing a threat to human life. In terms of financial markets, our rule is to look for any market that is declining into this retrograde of Saturn, give or take two trading days, for Saturn’s nature is to depress and push down. Once it is over, conditions rebound. That is, if prices have been depressed going into a Saturn stationary period, look for them to rally immediately afterwards. This could be the case with stocks, which have been trending more down than up in the past 10 days.
There are three major planetary signatures (at least) in 2009, and they seem to suggest guideline for what to expect in the New Year.
We enter the year in a crisis mode with the 45-year opposition of Saturn and Uranus already in effect. Saturn represents our sense of foundation, and integrity to the structure. It is our belief that things will continue to stand if they have existed a long time. Uranus, on the other hand, is the “shock that rocks” that stable foundation. It is the unexpected, usually an external event that no one is prepared for and results in a shattering of expectations. Plans are forced to be altered. There are probably no two planets that represent the potential for “crisis” and “panic” as a hard aspect between Saturn and Uranus. This particular 45-year cycle unfolds in a five-passage series, starting November 4, 2008 and lasting through July 26, 2010. The actual “influence” of this signature can begin 11 months before the first passage, and last up to 11 months after the final passage. So we are clearly in it now and especially following the full moon of September 15, 2008, which passed over Saturn and Uranus and gave us a preview of what was to come. The world began the current “panic” on that day. Together, these two planets in opposition can coincide with a period of greater than normal “fear” – as in “fear of the unknown” – as in “what is going to happen next?”
The second major signature to unfold in 2009 will be the Jupiter-Neptune conjunction in Aquarius, and both in mutual reception to Uranus in Pisces. That is, both Jupiter and Neptune co-rule Pisces, and Uranus co-rules Aquarius. Jupiter and Neptune are in Uranus’ home sign, and Uranus is in their home sign. A mutual reception operates like a big conjunction. So the effect is like a Jupiter-Neptune-Uranus conjunction. In terms of collective psychology, this can seem like Camelot, a “fairy tale come to life.” Jupiter is exaggeration and hope, Neptune is romance and idealism. Uranus in this case relates to 1) the masses and 2) something very unique and extraordinary, something that has never happened before, at least not like this. I don’t think I would be off-base to suggest that Barack Obama is the current archetype of this part of the celestial drama. That is, he is the new leader of the free world (Uranus, Aquarius), he inspires hope for the future (Jupiter and Uranus), and many people believe he will solve the problems of the world, especially the economy. In other words, he is looked upon as a “savior” (Neptune). Another economic manifestation of Jupiter-Neptune-Uranus can be extraordinary new programs requiring a much greater than anticipated spending effort. In other words, the Federal deficit could rapidly expand, along with monetary inflation followed by price inflation. It can happen very quickly once it starts – probably around the time Jupiter and Neptune conjunct one another (May-December 2009). In this climate of prolonged and suspended “belief that things are going to get better,” all assets can rally in prices, from stocks, to precious metals, to crude oil, etc. The only thing that will fall is the value of the U.S. Dollar.
And then the third major aspect hits. This is the Saturn-Pluto waning square, November 2009 through August 2010. Pluto represents death, debt, and taxes, and the need for a major overhaul. As I see it, the current 0.25% interest rate, combined with another forthcoming $150B+ stimulus package, will cause the economy to spring to life very suddenly (Uranus, Aquarius). Things will start to improve and people will start to have hope again (Jupiter and Neptune conjunct in Aquarius). For a couple of months (maybe 2-8 months) it may seem like the economy is turning for the better. But the economy doesn’t stabilize. It heats up too fast, and instead of deflation, we start to see large jumps in inflation numbers.
As we move from deflation to inflation, two things may happen, first politically and then monetarily. First, the new administration may raise taxes. Not income taxes, for that would be a violation of the campaign promise to reduce taxes for 95% of the population. That would be politcal suicide for Obama, just as it was for George Bush Sr. after the election of 1988. Obama will not make that same mistake (I don’t think he will, anyway). Instead we may see what Europe and other nations have already instituted, which is a consumption tax (VAT, or Value Added Tax). This allows Mr. Obama to keep his campaign promise. However, by creating a new consumption tax, the net result is to raise more monies to pay for the increased spending programs and give the appearance of tackling the out-of-control budget deficit. By the time all the numbers are added up, people may realize that their taxes just went up a lot more than if the income tax was raised. The monetary changes, however, may be more debilitating than the political ones. The Treasury and Federal Reserve Board have no where to go with interest rates in the face of rapidly heating economy and inflation, except up. The Treasury will be forced to offer higher yields on notes and bonds in order to attract buyers for all the cash the USA will need to raise in order to meet its deficit and spending efforts. Interest rates will rise and so will taxes, in line with Jupiter-Neptune rising deficits and inflation, and Pluto’s tendency to raise rates. The result is that assets which had been rising – stocks, commodities, and currencies against the dollar – will suddenly (Uranus again) reverse with a vengeance. They will all start to fall. The result will be what Financial Astrologers would expect from a T-square of Saturn, Uranus, and Pluto, the somewhat like it was the last time there were in such a position (1929-1934). Unless this tendency suggested by Financial Astrology is averted, it looks like we just completed the first leg down in a new bear market, we will now recover, and then we will nave another powerful leg down following that. Plan accordingly. That will be the guideline we will be following in developing our plans for traders and investors in 2009, until proven otherwise.
More of the research papers by students of MMTA from Course 1 (Cycles and Patterns in Financial Markets) will be posted on MMTA’s website at www.merrimanmta.com, under “Student Research.” The latest involve papers on the long-, intermediate-, and short-term cycles (and future projections) in Sugar. Yet to come are studies on Platinum, Soybeans and Corn. I think you will be as impressed as I am with the quality of work these students are performing already.
The next MMTA course will take place June 15-17, 2013 at the Michigan Education Center (MEC) in Troy, Michigan. Once again, it will be available as a webinar to those who wish to attend but cannot be there physically. This course is titled “Geocosmic Correlation to Investment Cycles in Financial Markets.” It will examine the correlation of Pluto, Neptune, Uranus, Saturn, and the Moon’s North Nodes to long-term trends and their cycle troughs and crests in many financial markets, including stock indices and precious metals, going back over 200 years. The cost of this webinar (for non-MMTA students and apprentices) is $2750. For further information and/or registration, please go to http://www.merrimanmta.com/course_two.shtml, or call MMA at 1-248-626-3034. Registration for this course will end June 12.
If you are an active short-term trader, or even if you are an investor who likes to keep up with our current thoughts on financial markets, you may be interested in our Weekly or even Daily Market reports with position trading and aggressive trading recommendations. It is the only way I keep in touch with traders on a daily or even weekly basis. These weekly reports give in-depth analysis of the DJIA, S&P and NASDAQ futures, Euro currency (cash and futures), Dollar/Yen cash and Yen futures, Euro-Yen cash, T-Notes, Crude Oil, Soybeans, Gold and Silver. The daily reports cover all stock indices listed above, as well as futures in Euro, T-Notes, Gold and Silver, plus GLD and SLV (the Gold and Silver ETF’s). Both reports provide trading strategies and recommendations for position traders as well as for shorter-term aggressive traders. Subscription to the daily report also includes the weekly report. For more information, go to http://www.mmacycles.com/services, or call our offices at 1-248-626-3034. These reports are extremely valuable to those who trade ETF’s (Exchange Traded Funds). In the words of one of our subscribers: “I am really pleased with your recommendations through the Daily and Weekly Trade Recommendations. I have used them to trade gold and silver stocks in my IRA. In the last eight years, I increased my account from $60,000 to $850,000. Thanks for your excellent publications.” - Bryden C., Small Business Owner, Illinois.
The monthly MMA Cycles Report and its companions – the MMA Japan Cycles Report and MMA European Cycles Report – came out last week. If you are a subscriber and did not receive your report, contact us immediately. 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, and will be available on Wednesday. For further information and subscription, go to http://www.mmacycles.com/catalogue/subscription-services/mma-cycles-report/.
If you are interested in a review of Course 1 of MMTA that took place April 6-8, please visit http://www.mmacycles.com/the-news/about-mma/a-review-of-the-mmta-course-1--by-henry-canciglia/. Or go to the www.mmacycles.com website and scroll down the first page. Henry Canciglia has an extensive background in the U.S. political and intelligence community. He is a graduate of the U.S. Military Academy, West Point. Henry is one of the 15 apprentices for the two-year MMTA course.
The April 6-8 webinar and live presentation on “Cycles and Chart Patterns in Financial Markets” has been completed. The DVD of this extraordinary event will be available in about one-two weeks. The LMS (Learning Management System) will also be available for uploading to new students who want to avail themselves of this training over the next two years. The LMS is expected to be available in about 5 weeks. You may now pre-order the DVD at http://www.mmacycles.com/index.php?option=com_content&task=view&id=421&Itemid=61. If you wish to place your order directly, please call Maureen Hogan or Amber Lundsten at 1-248-626-3034, or email to email@example.com. The cost of the DVD or the LMS will be $3000. It includes the very valuable 130+-page workbook, which follows right along with the DVD and LMS program.
Following the last MMTA workshop in April, MMA entered into an official affiliation with MetaStock. As most of our subscribers know, MetaStock has been my preferred market analysis tool for several years now, along with FAR for the Galactic Trader (they work together nicely). I particularly appreciate the crispness of their graphics, excellent scanning capabilities, and wide range of technical indicators that I use in the analysis of our various reports. As part of our affiliation, MetaStock is offering special discount and free trial to all MMA readers and subscribers. If you would like to try a free trial of Metastock in order to view and evaluate their charting software, please go to www.metastock.com/merriman. Let us know what you think.
The DVD of the MMTA pre-training workshop on “How to Read an Ephemeris” is also now available! The cost of the 8-set, 10+ hour DVD packet, is $395.00 plus postage, and will include the workbook. If you are a trader, analyst, or student interested in enhancing your skills in market timing, or if you are considering applying for admittance to the MMA Market Timing Academy (MMTA), then this DVD is highly recommended. To order this DVD, please go to http://www.mmacycles.com/index.php?option=com_content&task=view&id=379&Itemid=48. You may also call or email us at 1-248-626-3034, or firstname.lastname@example.org.
May 30-June 2, 2013: Great Lakes Astrology Conference, Ann Arbor, MI. Featuring internationally known astrologers, Michael Lutin, Chris McRae, Monica Dimino, Glenn Perry, Lea and Aleksandar Imsiragic, Sandra Leigh Serio, and Raymond Merriman. For further information, please contact Pamela Wenzel at email@example.com, or firstname.lastname@example.org, or visit their website at http://www. greatlakesastrology.com.
June 15-17, 2013: MMTA Course 2: “Geocosmic Correlations to Long-Term Cycles in Financial Markets” with Raymond Merriman. Location: MEC Technical Center of Michigan State University, Troy, Michigan. This will be available as a webinar to non-MMTA students and apprentices fro $2750.00.
August 10-12, 2013: MMTA Course 3: “Geocosmic Correlations to Primary and Trading Cycles in Financial Markets” with Raymond Merriman. Location: MEC Technical Center of Michigan State University, Troy, Michigan.
October 12-14, 2013: MMTA Course 4: “Solar-Lunar Correlations to Short-Term Reversals in Financial Markets” with Raymond Merriman. Location: MEC Technical Center of Michigan State University, Troy, Michigan.
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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.
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