REVIEW AND PREVIEW
Investors have been preparing for the Federal Reserve to start hiking interest rates. They also know the central bank is cutting the amount of bonds it buys each month. On top of that, they figured, eventually, the tapering would lead to a reduction in the nearly $9 trillion in assets the Fed is holding. What they didn’t expect were all three things happening at the same time. While the moves are designed to fight inflation and as the jobs market heals, the jolt of a Fed triple threat of tightening sent the market into a tailspin Wednesday. – Jeff Cox, “The Federal Reserve is Scaring Markets with the Triple Threat of Policy Tightening,” www.cnbc.com, January 6, 2022.
The U.S. economy added far fewer jobs than expected in December. Nonfarm payrolls grew by 199,000, while the unemployment rate fell to 3.9%, according to Bureau of Labor Statistics data. That compared to the Dow Jones estimate of 422,000 for the payrolls number and 4.1% for the unemployment rate. The numbers come at a crossroads for the U.S. economy as more than half a million Covid cases per day, many related to the omicron variant, threaten to stall an economic recovery that looks to accelerate in 2022. – Jeff Cox, “Hiring falters in December as payrolls rise only 199,000,” www.cnbc.com, January 7, 2022.
Venus retrograde struck the world equity markets on Wednesday, January 5, as the Federal Reserve Board shocked the investment community with a much more hawkish-than-anticipated change in monetary policy. Was that the legendary but elusive “gong” that is supposed to be struck when the bull market ends? Maybe. Venus rules the voice, and the Federal Reserve has the largest voice of any institution on the planet. When the Fed speaks, markets listen. And the Fed says it wants to stop the growth of inflation.
We expected something like this. Last week’s column stated, “We suspect important announcements from central banks will come out while Venus is retrograde through January 29 and maybe close to the midpoint of that passage, which is next weekend (January 8-9).” The notes from their December meeting came out late in the day on January 5, shortly after the DJIA and S&P posted new all-time highs. The selloff was dramatic and sudden. It was also the 12th trading day after Venus turned retrograde and 7th trading day after Saturn squared Uranus. Our historical studies published in The Ultimate Book on Stock Market Timing Volume 3: Geocosmic Correlations to Trading Cycles showed that primary cycles (crests or troughs) occur well over 70% of the time within 12 trading days of each signature. This is a big cosmic moment as one year ends, and another begins, given these two powerful signatures.
Now, with the weaker than expected jobs report on Friday, the Fed may have to walk back their hawkish discussions if it leads to a severe market selloff. Raising rates and reducing liquidity are not the best steps to take if the economy or stock market begins a sudden and serious retreat. And retreat is a word that goes with retrograde planets like Venus. Plus, Mercury (talk) will join Venus in its retrograde cycle on January 14. On the other hand, acceleration of inflation practically demands this aggressive approach.
Venus retrograde also represents conflicts in decision-making. It can be a time of indecision, seeing things from multiple but contrasting points of view. Does the Fed want to get control of inflation and risk an economic recession, or avoid a recession at the risk of accelerating inflation? It may not be able to have its cake and eat it too, which Venus (lust) wishes. Perhaps the Fed lets them eat their cake, but not their potatoes, which would be perfectly fine with me.
Equities were not the only market that got pummeled by the Fed announcement last week. Gold and Silver were also doing quite well until then, with Gold testing its high for the current primary cycle above 1830. By Friday, it was testing 1780. Silver was near its cycle high of 23.48. By Friday, it was trading under 22.00. But both started to rally by the end of Friday. Bitcoin and Ethereum also got crushed, with both falling to their lowest levels since their major cycle lows in September. Crude Oil, on the other hand, was a star last week, rising above $80 after being as low as 62.43 on its primary cycle trough of December 2. And why not? Jupiter just went into Pisces, the sign it co-rules with Neptune, which is already there. Jupiter, Neptune, and Pisces all rule Crude Oil. Nobody likes Crude Oil. But they can’t live without it yet.
Nearly all world stock indices started off the year on fire last week. And nearly all then got drenched by the Fed’s aggressive and bold communication of its December meeting. Aggressive and bold – that’s Mars in Sagittarius. It was like a fire that had to be put out (Sagittarius also co-rules Crude Oil). It will be interesting to see what the Fed says and does around January 24 when Mars ingresses into Capricorn, conjunct the Fed’s Sun and opposite its Pluto, and at the same time opposite the U.S. Venus in Cancer. That is also just five days before Venus (currency) ends its retrograde cycle, also in Capricorn.
Mars transitioning from the fire of Sagittarius to the cold and bleak Capricorn makes me think we will be forced to adjust from a diet of cake to one of potatoes. Mars in Sagittarius may be all over the place with wild speculative ideas. Inflation is still likely to be excessive (Sagittarius). But Mars in Capricorn will know its place and be asked (maybe forced) to get by on less, and until obeyed, so there will be no cake. We could have another battle raging between the Fed and the people or the government. The former wants to be strict and follow through on administering the tough medicine. The latter can’t stand the loss of its sugar addiction and rebels against the diet of potatoes.
In the past, it hasn’t paid to fight the Fed when it was in a generous and accommodative mood. I suspect it won’t pay to fight the Fed when it says it is time to get off our addiction to the sugar highs of fiscal and monetary accommodation we have gotten used to over the past decade. It’s not a bad idea to get off sugar. Yet, as Jupiter continues to approach Neptune in Pisces in April, those with the sugar blues aren’t going to go down meekly. Inflation will likely be here a little longer, even after the Fed administers a heavy dose of distasteful medicine. But not to worry. I don’t think the Fed will last long either on this diet. Once Jupiter enters Aries, another fire sign, after May 10, I expect they will go for the sugar again, thinking they proved a point or feeling the heat of Aries now being administered by a government that never wanted to go cold turkey in the first place, especially heading into a mid-term election.
Somewhere through this schizophrenic year, they – most people – will begin to see the virtue of the path of moderation, consistent with the message of Jupiter in its waxing phase with Saturn. Everyone (except me) really wants a balanced, full-course meal, and that includes dessert and potatoes. I think we will get there. One to three years after Jupiter conjoins Saturn, you usually get a good sell-off. Then three-five years after that, you get a nice bull run. I will talk about that in the Forecast 2022 webinar on February 20.
NOTE 1: THE JANUARY ISSUE OF THE MMA Monthly Cycles Report will be released this week! With the completion of the last exact Saturn/Uranus waning square on December 24, and Venus now retrograde through most of January, this becomes another important juncture for financial markets. Has the 23-month cycle in stock indices topped out? Do Gold and the Euro have another leg up ahead with Jupiter headed to Neptune in Pisces? How much further can Crude Oil rally? Every issue provides MMA’s intermediate-term and near-term outlook for the U.S. stock market, Gold, Silver, Treasuries, Euro Currency, Crude Oil, and Soybeans. Each issue also contains MMA’s original geocosmic critical reversal dates (CRDs) and Solar/Lunar reversal dates over the next several weeks for DJIA, Gold, and Silver, complete with trading strategies for position traders during the next month. If you are not a subscriber to the monthly MMA Cycles Report and would like a copy of MMA’s outlook for financial markets, consider trying this issue for only $35. And keep in mind that subscribers to this report will also receive a complimentary addendum and mid-term report of MMA Cycles, written by MMTA student Pouyan Zolfagarnia, two weeks later.
NOTE 2: The Forecast 2022 Book is now out! The cost of Forecast 2022 is $55.00 plus shipping (no shipping costs for eBook version). Order both the print and eBook (Forecast 2022 Bundle) for only $75, a savings of $35. Order now before the remainder of this year’s edition sells out! There will be no additional reprints. When they are gone, they are gone. And four of the last seven years have sold out. We are now down to the last 50-75 copies.
This year’s printed versions of Forecast 2022 will also be available in these languages from the below affiliates:
NOTE 3: Each foreign translation of Forecast 2022 has a section on that nation’s stock market that is not in the English or other nation’s Forecast Book. Yet we are aware that some readers and investors may be interested in the stock markets of these other nations but do not wish those editions in the other nation’s language. Therefore, we make those stock market outlooks available in English as a separate service for $35.00 each. The overseas market reports for 2022 that are available separately in English include: Japan’s Nikkei, China’s Shanghai Composite, and the German DAX plus Zurich SMI indices. Each is available in PDF format at $35.00 each. Each report is about 9-11 pages, with their monthly charts as of November 2021 and a list of their critical reversal dates for 2022.
NOTE 4: The Trends for the Twelve Signs 2022 Book is available now in eBook format! The print edition will be mailed out mid-December, at the same time as the Forecast Book. Find out what lies ahead for your sign in 2022! In fact, it identifies many specific birthdate ranges in addition to the 12 signs that are in store for a remarkable year. This very popular annual sun sign book is written by Antonia LangsdorfMerriman and Raymond Merriman. Trends for the Twelve Signs 2022 covers the health and relationships outlook for each sign (by Langsdorf) and the business, career, and overall psychological outlook of each sign for the year (by Merriman). The cost of this book is $25. You can save $10 by purchasing both Forecast 2022 and Trends for the Twelve Signs 2022 together, Forecast 2022 Ultimate Bundle for $70. This makes for an excellent gift for your family or friends who follow astrology and wish to know what to expect for the coming year based on their Sun sign. It is quite good!
NEW AND COMING UP FROM MMA!
Starting on January 17 (next week), we will begin issuing the English version of the Monthly Chinese Shanghai Composite Report! China’s financial markets are critical to the global economy. Each monthly report of this important market is 4-7 pages in length and includes daily and weekly charts, with a list of geocosmic indicators and critical reversal dates for the next several weeks, and what to expect. These reports are scheduled to include an additional feature on the solar/lunar signals in effect each month for the SSE based on current studies underway. These will identify the 2-4 most likely periods, lasting 1-3 days each month, when the probability is greatest for trading cycle highs and lows based on the historical studies of the SSE since its inception in December 1990.
These reports will be translated and available in Chinese too, at the same rate, via www.NoDoor.com/ or through MMA.
STARTING ON FRIDAY, FEBRUARY 4, MMA will begin offering a weekly 10-15 minute YouTube video on the geocosmic climate related to financial markets. This video will review the market activity of the past week, and offer a preview of the geocosmic signatures in effect for the next week and beyond. The host will be MMTA Education Director and market analyst Gianni di Poce. Ray Merriman will also present on the first episode, and the one nearby to every new moon (monthly) after that. Like this free weekly column, there will be no cost. Stay tuned for further information on this exciting new feature by MMA!
January 14, 2022: This week! Zurich, Switzerland: Trends for 2022, sponsored by AstroData, and featuring Claude Weiss, Alexandra Klinghammer, Monica Kissling, Verena Bachman, Antonia Langsdorf, Raymond Merriman, and others. This special event will be given online due to COVID-19 meeting restrictions that have been implemented in Zurich at the present time. For more information, and to register, contact AstroData at www.astrodata.com.
February 20, 2022: The Annual Worldwide Webinar and Address on Forecast 2022 with Raymond Merriman. Save the Date! Details and reservations to be announced in early January.
August 25, 2022: 1:00 PM, Denver, CO, ISAR Conference, 4-Hour Pre-Conference Workshop by Raymond Merriman on “ASTROLOGY AND THE ART OF FINANCIAL MARKET TIMING: HOW TO FORECAST TRENDS AND MARKET REVERSALS.” Financial markets offer objective means to test astrological validity. The Moon changes signs every 2-3 days and is valuable for short-term trading. Planetary stations and aspects identify longer-term market reversals. Approximately 4-5 times/year, markets will form important highs or lows, which are the most favorable times to buy and sell for position traders. This course provides research studies showing the correlation of astrological factors to short-term and longer-term financial markets. The focus will be upon stock markets, precious metals (Gold and Silver), and Bitcoin, and how-to.
Disclaimer and statement of purpose: The purpose of this column is not to forecast 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 often cite 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 may affect human activity in the times to come. The author (Merriman) will do this from the perspective of a cycles’ 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 the psychological dynamics that underlie (or coincide with) the news events and their potential effect on financial markets.
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 of this column assume any responsibility whatsoever for anyone’s trading or investment decisions. Readers of this report should understand that commodity futures and options trading are considered high risk.