MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING OCTOBER 25, 2021 ©

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The Dow got a boost Thursday as investors rotated out of tech stocks and into blue-chips.  Despite the blips in the tech sector, overall earnings season has been terrific so far, boosting the broader market back to an all-time high following a two-month lull.– Tanaya Macheel and Hannah Miao, “Dow Closes at a Record,” www.cnbc.com, October 22, 2021. 

The end of Mercury retrograde last Monday, October 18, didn’t end the global stock market rally that started from lows nearby to when Mercury turned retrograde on September 27 or its midpoint of October 7-8. It didn’t end with the three powerful Jupiter transits October 15-19 either. However, several of the world stock indices did pause their rallies on October 20-21, while a few others just kept rising right until the end of the week. Overall, the market behavior last week was very Jupiterian. That is, stock markets were bullish, with some even reaching new all-time highs. The behavior of stock indices was not even across the globe, or within any of the major regions either. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING OCTOBER 18, 2021 ©

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The Securities and Exchange Commission is set to allow the first U.S. bitcoin futures exchange-traded funds to start trading next week, a landmark victory for a cryptocurrency industry that has long sought permissions from Wall Street’s top regulator. Bitcoin traded north of $60,000 on Friday, its highest level since April 17, in part on speculation the SEC would greenlight the ETFs. – Thomas Frank, “The SEC Is Poised to Allow the First Bitcoin Futures ETF To Begin Trading,” www.cnbc.com, October 15, 2021.

Rising vaccination rates and nearly $2.8 trillion in federal spending since December have produced a recovery like none in recent memory. Inflation has soared (and) the gains largely reflect disrupted supply chains and shortages associated with the reopening of the economy. – Nick Timiraos, “Fed Tapering Plan on Track, Clarida Says,” Wall Street Journal, October 13, 2021. 

Global equity indices soared last week following their lows that started when Mercury turned retrograde September 29, or near the midpoint of its retrograde cycle, which was October 7-8. But now we are in the midst of three prominent Jupiter transits, October 15-18, plus Mercury ends its retrograde motion on Monday, October 18, along with Jupiter doing the same. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING OCTOBER 11, 2021 ©

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The U.S. economy created jobs at a much slower-than-expected pace in September, a pessimistic sign about the state of the economy… Nonfarm payrolls rose by just 194,000 in the month, compared with the Dow Jones estimate of 500,000, the Labor Department reported Friday. The unemployment rate fell to 4.8%, better than the expectation for 5.1% and the lowest since February 2020. – Jeff Cox, “September’s Jobs Creation Comes Up Short With Gain Of Just 194,000,” www.cnbc.com, October 8, 2021.

September’s wage gains provided more fuel to the argument that the current pace of inflation could run longer than many economists anticipate. – Jeff Cox, “Strong Wage Gains Cast Doubt That Inflation Is Going Away Anytime Soon,” www.cnbc.com, October 8, 2021.

It is hard to say which had the stronger correspondence to the sharp price swings in global equity indices last week: the new Moon in Libra, the Sun conjunct Mars, or the midpoint of the Mercury retrograde cycle. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING OCTOBER 4, 2021 ©

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Stocks of fast large growing companies had their worst month since the pandemic-fueled selloff of March 2020, and Treasury yields are around their highest since June. Strategists who had predicted another strong quarter of economic growth are cutting estimates because of supply chain bottlenecks  and the highly contagious Delta variant of Covid-19. – Akane Otani, “Stocks End Quarter in Turmoil, Worst Month Since March ’20,” Wall Street Journal, October 1, 2021.

“What I have made clear to the President and Democratic leaders,” Mr. Manchin said in a statement, “is that spending trillions more on new and expanded government programs, when we can’t even pay for the essential social programs, like Social Security and Medicare, is the definition of fiscal insanity.” Opinion Page, “The Manchin Intervention,” Wall Street Journal, October 1, 2021. 

World equity markets started out strong last week, rising nicely off their lows of September 20. But then Mercury the Trickster turned retrograde on Monday, September 27, and the decline that had started from all-time and multi-year highs in August and early September resumed until late this past week. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING SEPTEMBER 27, 2021 ©

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The S&P 500 and the Dow Jones Industrial Average were near flat on Friday, wrapping up a volatile week on Wall Street. A move by China to ban cryptocurrencies weighed on the technology sector and Nike shares fell as supply chain issues stemming from the pandemic hit the sneaker giant. – Tanaya Machael, Yun Li, “Dow Trades Near Flat as Markets Wrap Up Volatile Week,” www.cnbc.com, September 24, 2021. 

A notice from the People’s Bank of China on Friday complained Bitcoin, Ethereum and other digital currencies disrupt the financial system and are used in money laundering and other crimes. “Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its website. – Lucas Manfredi, “Bitcoin, Ethereum, XRP Tumble on China Crackdown,” www.foxbusiness.com, September 24, 2021. 

What a turnaround! And it occurred right in the middle of the Venus T-square to the Saturn/Uranus square, which took place September 17-23. In astrological parlance, this is known as the “Venus translation” of the Saturn/Uranus waning square. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING SEPTEMBER 20, 2021 ©

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Inventories remain at a “very, very low level,” Jeffrey Gundlach, CEO and chief investment officer of Los Angeles-based DoubleLine Capital, which has $137 billion in assets under management, said during a conference call Tuesday evening. “This is not supportive of inflation being transitory.” Customer inventories plunged to an all-time low earlier this year as lockdowns aimed at slowing the spread of COVID-19 shuttered factories, resulting in materials shortages and supply chain disruptions. Low customer inventories, especially during periods of elevated inflation, lead to even higher prices because retailers have to pay more for their merchandise. Those higher prices are then passed along to customers. Consumers are already grappling with the highest inflation in 13 years. –Jonathan Garber, “Billionaire Fund Manager Grunlach Debunks ‘Transitory’ Inflation,” www.foxbusinessnews.com. September 16, 2021.

It is getting increasingly risky in the investment world as the Sun approaches its powerful conjunction with Mars in Libra on October 7-8. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING SEPTEMBER 13, 2021 ©

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The producer price index for final demand jumped 8.3% year over year, according to the Labor Department. The reading was hotter than the 8.2% increase that analysts surveyed by Refinitiv were expecting and above the 7.8% print recorded in July. The reading was the strongest since recordkeeping began in November 2010. – Jonathan Garber, “Producer Prices Surge 8.3% Annually, Fifth Straight Record Gain,” www.foxbusiness.com, September 10, 2021.

It is good to be back after a one-week absence during which I delivered a special webinar on the Chinese stock market, Gold, and Bitcoin last weekend. It went very well. Unfortunately, I cannot say the same for the U.S. government and its withdrawal from Afghanistan during the break, nor can I say the same regarding the recent data on inflation and its effect on European and American stock indices last week.

As the quote above notes, producer prices increased at their greatest rate since records began almost eleven years ago. In the U.S., stock indices fell right into the close of the week, after the S&P posted a new all-time high the previous week, on September 2, and the NASDAQ posted its new all-time high on Tuesday, September 7. This is important because the holiday weekend of September 3-7 was a two-star geocosmic critical reversal date (CRD), anchored by the Mars/Neptune opposition of September 2 and Venus/Pluto square of September 6. The high in both the S&P and NASDAQ was right there. In the case of the DJIA, its all-time high was back on August 16, so there is a triple case of intermarket bearish divergence involving an important geocosmic CRD related to the NASDAQ high of last Tuesday. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING AUGUST 30, 2021 ©

NOTE: Due to next Friday’s special webinar on the “Review of Gold, Bitcoin, and Chinese Markets,” there will not be an “MMA Free Weekly Column” next week. Financial and commodity markets will be closed the following Monday, September 6, in observance of the Labor Day holiday. For information on attending the September 3 webinar, please click here.

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Federal Reserve Chairman Jerome Powell indicated Friday that the central bank is likely to begin withdrawing some of its easy-money policies before the end of the year, though he still sees interest rate hikes off in the distance. – Jeff Cox, “Powell Sees Taper by the End of the Year,” www.cnbc.com, August 27, 2021. 

“South Korea became the first developed economy in Asia to raise interest rates since the beginning of the pandemic, a signal that policy makers see rising household debt and inflation as bigger threats to the economy than the resurgence of COVID-19 driven by the Delta variant…. The record household borrowing came amid a rapid surge in housing prices during the pandemic like many other parts of the world.– Stella Yifan Xie, and Dasal Yoon, “South Korea Raises Rates Amid Rising Inflation, Debt,” Wall Street Journal, August 27, 2021.

Many world stock indices continued their rallies last week following lows of August 19-20. However, the rallies were not even across the globe, and they were not without concerns given the dangerous situation revolving around the miscalculated Afghanistan withdrawal process, increased cases of the Delta variant of COVID-19 prompting communities and countries to enter into lockdown again, and the onslaught of hurricanes and floods causing death and great property damage. Still, liquidity is extremely high and much of the monies continue to find their way into the stock markets of the world. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING AUGUST 16, 2021 ©

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There has been a US consumer goods demand surge, as consumers have spent the savings they acquired against their will. Once those savings have gone, US consumers’ demand will be based off incomes, plus whatever credit they can get. But the real spending power of US income is now falling, as headline inflation exceeds income growth. This limits the power of future demand to push up prices indefinitely. Dr. Paul Donovan, “Time For An Inflation Fantasy,” UBS Morning Audio Comment, www.ubs.com/pauldonovan,  August 13, 2021. 

Global stocks indices are now making their move up into the spectacular full Moon-conjunct-Jupiter that takes place next weekend, August 20-21. Let’s see what happens after that Jupiterian euphoria, which will also take place with the over-excitable Uranus turning retrograde. Continue reading…

MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING AUGUST 9, 2021 ©

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Nonfarm payrolls increased by 943,000 for the month while the unemployment rate dropped to 5.4%, according to the department’s Bureau of Labor Statistics. The payroll increase was the best since August 2020. Economists surveyed by Dow Jones had been looking for 845,000 new jobs and a headline jobless rate of 5.7%. However, estimates were diverse amid conflicting headwinds and tailwinds for the jobs market and an uncertain path ahead for the economy. Jeff Cox, “Payrolls Increase 943,000 in July as Unemployment Rate Slides to 5.4%,” www.cnbc.com, August 6, 2021.

And on that news, Gold and Silver, along with currencies, got crushed. The strong jobs report implies that inflation is a threat and the Fed will have to start tapering or raising rates to prevent an overheated economy. The specter of higher rates also raises the value of the U.S. Dollar, which is nearing its high for this year after ending a 2-week pullback. This is consistent with the political cycle as show in our Forecast books, where the US Dollar goes up under a Democrat presidency and down under a Republican White House. Gold fell over $70 and Silver nearly $2.00, following from Wednesday’s new cycle high in Gold. The report was not good news for commodities and currencies vis-à-vis the US Dollar.

But it was good news for equities, especially since the Fed has not announced that it is thinking about reducing its accommodative monetary policies any time this year.  Several world stock indices recorded a new all-time high slate last week, including the DJIA, S&P, NASDAQ, plus the AEX and SMI in Europe, the ASX in Australia, and India’s NIFTY Index. Continue reading…