REVIEW AND PREVIEW
Rising recession fears pushed U.S. stocks briefly into a bear market on Friday with the S&P 500′s decline from its all-time high in January reaching 20% at one point. A dramatic late-day reversal pushed the benchmark slightly into the green for the day at the closing bell. – Sarah Min and Fred Imbert, “Stocks Close Flat in Wild Session Friday that Saw S&P 500 Briefly Fall Into a Bear Market,” www.cnbc.com, May 20, 2022.
It was another wild and wacky week as the Trickster (Mercury retrograde), continued his penchant for teasing the bulls and then quickly pivoted back to serenading the bears, messing with their psyches too, along the way.
U.S stocks looked favorable into Tuesday, May 17, following their lows of May 12, one day after Mercury turned retrograde and Jupiter entered Aries. The DJIA had rallied from a low of 31,228 to a high of 32,689, a gain of 1400 points in those three trading days. But the next day it gave back 1164 points in one of the steepest daily declines in history. The plunge didn’t end until late Friday when it bottomed at 30,635, down over 2000 points from Tuesday’s high. But then a funny thing happened (it always does when the Trickster is the star). The DJIA (Dow Jones Industrial Average) rallied over 600 points in the last two hours to actually close up on the day. The S&P and NASDAQ also made new lows on Friday, and also rallied sharply during the final two hours. Which way is this crazed road runner running now? He’s leaving some clues as he skids to stop at the midpoint of his retrograde cycle this weekend.
Once again, the selloff to a new cycle and yearly lows happened only in America. The rest of the world’s stock indices remained above not only their lows of January-March, but also of May 10-12, the previous week, when Mercury turned retrograde and unleashed his alter ego (market instability).
So, here is the picture the Trickster has painted thus far. It has coincided with lows in most of the world’s stock indices within a day of turning retrograde, except in the U.S. There, he is making a new yearly low at the midpoint of his retrograde cycle. When a market doesn’t reverse near Mercury retrograde, it will usually continue its trend and then reverse at its midpoint. So, this Mercury retrograde cycle has a different set of rules for the U.S. than it does for the rest of the world. Maybe that’s because the U.S. is more messed up in economic turmoil than the rest of the world.
In Asia and the Pacific Rim, it is interesting to note that the China and Hong Kong indices are rising, and actually bottomed before the recent decline in other world indices. Australia, Japan, and India all pulled back into May 10-12, but held those lows and the lows of early this year during last week’s trading.
In Europe, each index held its lows of March 7-8. In addition, each held their secondary lows of May 9-13, except the Zurich SMI, which fell lower last week on May 19 for a case of intermarket bullish divergence to the other markets in the region.
In the U.S., each of the three major stock indices plummeted to new yearly lows on Friday, May 20.
In other markets, Bitcoin and Ethereum held above their washout lows of May 12, but so far have not exhibited any compelling bullish signs other than the proverbial “dead cat bounce.” Gold made a new multi-month low of 1785 on Monday, May 16, but was back up near 1850 by the latter part of last week. The U.S. Dollar came off its 19-year high of 105 made the prior week on May 13 but is still in a bull market. Crude Oil had quite a volatile week, trading between 103 and 115, but ending around 110. And Dr. Copper held its primary cycle low of 4.037 made on May 12 as Mercury turned retrograde, which is another positive sign because Copper often leads stocks. We will be talking more about Copper in the weeks ahead as we will soon add it to our monthly MMA Cycles Report. And by the way, we will continue listing solar/lunar values for stocks and metals after all, as subscribers requested that we continue this market timing feature. It is indeed valuable as a leading market indicator.
SHORT-TERM GEOCOSMICS AND LONGER-TERM THOUGHTS
President Joe Biden’s approval rating dipped to the lowest point of his presidency in May, a new poll shows, with deepening pessimism emerging among members of his own Democratic Party. Only 39% of U.S. adults approve of Biden’s performance as president, according to the poll from The Associated Press-NORC Center for Public Research, dipping from already negative ratings a month earlier. Of particular concern for Biden ahead of the midterm elections, his approval among Democrats stands at 73%, a substantial drop since earlier in his presidency. In AP-NORC polls conducted in 2021, Biden’s approval rating among Democrats never dropped below 82%. – Nicholas Riccardi, “Biden’s Approval Dips to Lowest of Presidency: AP/NORC Poll,” Associated Press (apnews.com), May 20, 2022.
The country’s politics are a mess. We have four political parties, not two: Trumpists and traditional conservatives on the Republican side, and moderates and progressives on the Democratic side. The forces at play are driving politics away from the center where solutions are usually found. (There is) cause for hope. Our democracy has always adapted and it can do so again. The power to make it survive and thrive remains in the hands of all of us who participate in, and benefit from, the great American experiment. – Gerald F. Seib, “After 3 Stormy Decades, There’s Still Hope,” Wall Street Journal, May 17, 2022. This was Gerald’s farewell address to WSJ readers after 29 years. I will miss his very balanced reporting.
For this week, we note several planets are changing signs. This is known as an ingress, and represents a shift in collective psychology where that planet is concerned. These are important, especially when it involves an outer planet, like Jupiter, which ingressed into Aries on May 11, just one day before all those markets made lows (except the U.S. stock market).
Now we have a slew of faster-moving bodies changing signs coming up, and they too are important for reasons to be discussed here. The Sun enters Gemini on May 21 for the next month, so the emphasis on world leadership will depend upon a leader’s ability to message properly, get the narrative correct and exhibit moments of clarity and brilliance. It’s either that or outright, contradiction that it will have to walk back over and over again, especially with its ruler, Mercury retrograde. Mercury will also leave its home sign of Gemini and will retrograde back into Taurus on May 23, where it remains until June 13. This might actually be a positive, for in Taurus, one is more apt to use logic to explain their position, which people can then understand a little better. Or, it may mean errors in judgment (Mercury retrograde) that they have to walk back, but they are too stubborn to do so, which just makes the task of moving their agenda forward that much harder. Things get stuck due to inflexibility, when the Sun in Gemini demands the willingness to adapt and adjust.
The most important ingresses, however, involve Mars and Venus. Mars enters Aries on May 24, and Venus enters Taurus on May 28. Venus and Mars will thus ingress into their ruling signs, which gives them strength. It also bodes well for financial markets, because with Jupiter in Aries too, there will be a greater urge to be bold, to take more risks, and that is exactly what equity markets need right now to overcome their malaise.
Furthermore, Mars, when in its ruling sign of Aries (bold actions, risk-taking) will conjoin Jupiter in Aries on May 29, which is another indication of strength and confidence in taking risks. By itself, this would seem to bode well for the markets, for both Mars and Jupiter like the fire sign of Aries. And of course, Venus likes the money sign of Taurus, which it rules. But Mars conjunct Jupiter in Aries could also be a very large military offensive, probably involving Ukraine and Russia. And if it acts out that way, it may cause markets to fall hard, unless the large military offensive is waged by Ukraine and is successful, in which case world indices would likely soar. Don’t rule this out, although the orb of time for something to manifest related to this aspect can be two weeks either way.
The bottom line is that major shifts in collective psychology are underway, starting with the ingress of Jupiter in Aries last week, and both Venus and Mars ingressing into their ruling signs this week, culminating with the new moon and Mars conjunct Jupiter, May 29-30. This can be a time for great optimism and a renewed sense of freedom. It is an excellent cosmic dynamic for fun. So, get ready for a lot of social activity and entertainment. But also keep in mind that if you have too much fun (Jupiter in Aries), or are too careless (Jupiter and Mars in Aries), accidents or hangovers can be the consequence.
As always, party responsibly and know your limits with Mars and Jupiter aligning in Aries, because there is no real freedom for those who don’t know their boundaries and respect those of others. You might need a “Get out of jail” card if you mix stupidity with carelessness under this cosmic combo. It can be humbling. As far as trading goes, there is money to be made or lost (or both), depending on your ability to trade versus overtrade. Mars and Jupiter can be profitable and fun, even huge fun. But it can also be greedy and result in losses if greed and excess are not under control. This, too, can be humbling or rewarding, depending on your attention and ability to manage risk.
NOTE 1: THE MAY ISSUE OF THE MMA+ Addendum to this MMA Monthly Cycles Report (scroll down the scroll bar) will be released next week, May 30, 2022! Written by Pouyan Zolfaharnia, this has become a very popular addition to the MMA Cycles Report (less technical, more visual, high-quality analysis and update on MMA Cycles Report markets). This is a very popular and valuable addition to the monthly MMA Cycles Report. Readers love it! Pouyan will update our take on financial markets since the last issue of the MMA Cycles Report in a very visually attractive and easy-to-read format with excellent analysis.
NOTE 2: TUNE INTO MMA’S NEW WEEKLY YouTube Channel on the geocosmic climate related to financial markets hosted by MMTA Educational Director Gianni di Poce. The video is recorded late Friday night and posted then or early Saturday, depending on the editing process. These 5-15 minute video presentations review the market activity of the past week and offer a preview of the geocosmic signatures in effect for the next week and beyond. You may subscribe to MMA’s YouTube Channel today at no cost and get announcements when each geocosmic market review is ready for viewing! To view this week’s show and discussion on the midpoint of Mercury retrograde related to financial markets, click here.
“Just a quick word to say your (Gianni’s) weekly video on YouTube is really a great complementary format to Ray’s letter. I find it interesting and masterfully delivered. Thanks to both of you for this!” M.K., Paris, France, Portfolio Manager.
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 on stock markets, precious metals (Gold and Silver), and Bitcoin, and how to integrate astrology with cycle studies to attain optimal market timing skills. Visit https://isar2022.org/schedule/ for further information and register for a great event! For a video description of this workshop via interview between Ray Merriman and Conference Coordinator Laura Nalbandian, click this link https://youtu.be/kBxYZ_VpckA.
September 9-11, 2022: THE MMA TRADING AND INVESTMENT RETREAT, Troy, Michigan, at the Michigan State University Education Center. SAVE THE DATE! This special 3-day event will feature a long-term, intermediate-term, and short-term analysis of several financial markets, including the U.S. stock market, Gold, Bitcoin, Euro, T-Notes, and Crude Oil, plus others to be determined. It will also go into depth with the MMA trading plan– how to use the daily and weekly report data points – and how we assess each market and determine the trading strategy for each day based on MMA’s cycles analysis, geocosmic studies, solar/lunar studies, combined with chart patterns, price targets, and technical studies. This retreat is required for all graduating students of MMTA (the Merriman Market Timing Academy), some of whom will be presenting their own original research and analysis of markets to be discussed by instructors Raymond Merriman and Gianni di Poce. Attendance to non-students will be limited, and special rates will be available to long-term subscribers of MMA reports through invitation only. If you are a short-term trader, or an investor interested in the longer- and intermediate-term outlook, this is a special event you will not want to miss. It is an opportunity to not only learn about the future outlook for several financial markets, but also an opportunity to connect with those who understand and have mastered the MMA methodology of market analysis and market timing. This is a one-of-its-kind opportunity! Details for registration will be available on MMA’s website in early June. Or, to get on the early release announcement, drop us an email at email@example.com.
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.