REVIEW AND PREVIEW
The U.S. economy saw solid job growth in April, suggesting the labor market is still strong despite headwinds from rising interest rates, soaring inflation, a worsening labor shortage and fears of a slowdown. Employers added 428,000 jobs in April, the Labor Department said in its monthly payroll report released Friday, beating the 391,000 jobs forecast by Refinitiv economists. It marked the 12th consecutive month that job gains topped 400,000. The unemployment rate, meanwhile, held steady at 3.6%, the lowest level since February 2020. – Megan Henney, “US Economy Sees Healthy Job Growth in April as Payrolls Jump by 428,000,” www.foxbusiness.com, May 6, 2022.
It was the return of the taper tantrum last week as the next act of this Dr. Jekyll and Mr. Hyde stock market drama got underway. Is it going to finally slay the bull? Or will the bear finally go into hibernation and let the stock market come back to life. Last week it seemed to vacillate between both possibilities as the plot thickens, or sickens, depending on who you are rooting for.
The week began with fears that the Fed might raise rates by ¾ points. This led to a huge Monday sell off. On Wednesday, the Fed announced the mostly expected rise of “only” a ½-point and the market had a bout of irrational exuberance, with the DJIA rising over 900 points in its biggest daily rally since October 2020. But all that was completely forfeited the next day as the Jekyll-Hyde taper tantrum resumed with the market down over 1000 points. In fact, three days last week witnessed price ranges exceeding 1000 points. It was every bit as wild and crazy as the cosmos suggested with the Moon in Gemini, Monday-Wednesday, and then the powerful conjunction of Sun and Uranus on Thursday. This was covered all week on our several Twitter posts starting last Monday, May 2 through Thursday, May 5. Last week’s planetary lineup was a symbol of chaos, an emotional earthquake. The ground was not solid. Nor was any ceiling of resistance. Whatever appeared to be a boundary was broken and the result wasn’t just a case of Neptunian confusion, but rather Uranus mayhem. It wasn’t just in the U.S. either. It was global.
In Asia and the Pacific Rim, the Australian ASX and India Nifty indices continued their steepest declines since the important lows of January-February. For those who study chart patterns, those early year lows represent the head of an inverse head and shoulders pattern in many indices like the NIFTY and the SMI of Switzerland. In China, Hong Kong, and Japan, the recent lows of April 27 held up in last week’s shortened trading.
In Europe, the decline of last week remained well above the recent lows of March 7-8, so this recent pullback is still just a corrective decline.
However, in the U.S., it was a very different and more worrisome stock market performance. Both the NASDAQ and S&P took out their lows of January-March. For the S&P, it was its lowest mark since May 19, 2021. The NASDAQ plunged to its lowest level since November 24, 2020. They look ominous. But the DJIA continued to hold above its low of February 24, the day of the Russian attack on Ukraine. As long as that low holds, we have a case of intermarket bullish divergence.
In other markets, Bitcoin and Ethereum followed the path of global stock indices, which was basically lower into Friday. Bitcoin tested 35,000 and Ethereum 2700. But so far, each continues to hold above their lows of January and February. Gold and Silver continued their descent as well. Gold fell below 1850 intraweek, and Silver tested 22.00. Only two months ago, Gold was testing its all-time high at 2078 and Silver was around 27.50. Lately, all that glitters is not Gold. On the other hand, Crude Oil was strong, rising above 111 during the day on Thursday.
The bottom line is that we have a lot to talk about on Sunday’s special annual Spring Webinar on financial markets (see Announcements below).
SHORT-TERM GEOCOSMICS AND LONGER-TERM THOUGHTS
Clarity is not apt to suddenly make an appearance this week. We now have to contend with the return of the cosmic trickster, Mercury retrograde, beginning May 10 and lasting through June 3. What a fine time for the White House to serve up this bright idea of creating a new “Ministry of Truth” with a new “Disinformation Board.” It is a nice thought. But who will determine the Truth? Who will decide upon what constitutes “disinformation?” Doesn’t Google, MSNBC, and Fox already do this? Right now the debate is whether to name it the Board of “Disinformation” or “Misinformation.” The Trickster is going to have a lot of fun with this one.
The Trickster might also enjoy playing in the current market production of Dr. Jekyll and Mr. Hyde. When Mercury is retrograde, many financial markets will start out one way and then suddenly reverse every 1-4 days. At each interval, it tends to give a buy or sell signal that is almost immediately negated, in what we call fake-outs, just like last week’s behavior under Mercury’s higher (and more volatile) octave of Uranus. If trading is an art, this is when the abstract becomes the trend.
May 10-11 also begins the first phase of Jupiter’s entrance into Aries, which will last for five months (until October 27-28) before briefly returning back to Pisces until the end of the year, then back again into Aries until May 2023. On the one hand, Aries is the sign associated with Mars, the god of war. Aggressors are prone to act out with bolder initiatives, especially when Mars joins up with Jupiter (god of abundance and exaggeration) in Aries on May 29. However, for stock markets of the world, this may also indicate a more aggressive period for investors who will be looking for something to get more aggressive about. I think of Jupiter in Aries as bold and adventurous, which could be good for equities. Looking back in history, wars are not always bad for equity markets after an initial plunge. They are just bad for people who desire peace, which is basically most of those who inhabit this planet.
Nevertheless, Mars and Jupiter together in Aries is apt to be a “muscular” time, when those garnering the most attention will be those who act out the most aggressively and perhaps most outrageously in their accusation of others they proclaim to be ‘too weak to lead.” This will be just in time for the 2022 midterm elections. It might be entertaining. More than likely, it will be obnoxious and embarrassing as the era of extremism and excess has its final hurrah. A Department of Disinformation or Misinformation will be overwhelmed if it gets off the ground during this period. Nothing is factual or provable. Everything may seem libelous, insulting, or offensive, especially to those who are serious. This is a time to not take things so seriously, but that is difficult to muster when lives are at risk.
However, Jupiter in Aries also has its benefits. It wants its freedom, and it will seek fun and be engaged in more activities. It won’t stand still and let life pass by. It may be very competitive, but that may only lead to superhuman feats. Many records in athletic events may be broken. Many new frontiers may open up in space and education. It may seem like we are entering a new era of thought and activity. Fear may give way to greater bravado and confidence. People will feel like taking more risks, opening up new avenues for trade and business activity, and I think that can be bullish for global stock markets.
Looking forward to seeing many of you this Sunday, when we will discuss these markets and more!
NOTE 1: THIS IS IT! LAST CHANCE! MMA’S ANNUAL SPRING FINANCIAL MARKETS UPDATE WILL TAKE PLACE ON SUNDAY, MAY 8, 2022, 1:30 PM EDT: That’s 10:30 AM PDT, 6:30 PM UK, 7:30 PM CDT. 1:30 AM in Beijing, 2:30 AM in Tokyo, and 3:30 AM in Sydney. In the comfort of your own home or office, you can tune into MMA’s Annual Spring Webinar on Financial Markets. This 3-hour webinar (with two 5-minute breaks) is an incredible bargain at only $55 and will provide an intermediate-term update on several financial markets, including the U.S. stock market, Gold, Silver, Crude Oil, the Euro currency, Bitcoin and Soybeans. This will be an especially timely presentation because 1) the 12-year Jupiter orbital cycle will be making its first entrance into Aries on May 10, and 2) May 27-June 22 has been highlighted as one of the more probable times in 2022 for major moves in Bitcoin as well as several other financial markets and 3) May 6-9 is an important CRD (geocosmic critical reversal date zone). Joining Ray will be Ulric Aspegrén (MMA Currency expert on Euro, U.S. Dollar) and Gianni Di Poce (MMA expert analysis on U.S. Treasuries, Crude Oil and Soybeans). Ray will be covering equities, metals, and Bitcoin. There will be a 20-minute Q&A with attendees during this webinar. This webinar includes the slides of the presentation, plus access to the video recording afterwards. If unable to attend live, you can still sign up, as everyone who orders the Webinar will receive the video recording following the live event. For more information, click here and SIGN UP NOW TO LOCK IN YOUR PLACE for this event!
NOTE 2: THE MAY ISSUE OF THE MMA Monthly Cycles Report will be released this week! With Jupiter entering Aries this week, we will begin to see a shift in investor psychology that could last until May 2023. We will examine the current state of financial markets as many are at critical turning points now. Every issue provides MMA’s intermediate-term investors’ and near-term traders’ 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 the March issue for only $35. For an additional $20, you can also receive the next issue, due in two weeks, of the MMA+ addendum edited by Pouyan Zolfaharnia, which 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).
NOTE 3: 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 as itis ready for viewing! Ulric Aspegrén, MMA Euro Currency analyst, will be the guest on May 6, followed by Ray Merriman on May 13. To view this week’s show, 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.
MAY 8, 2022: MMA’S ANNUAL FINANCIAL MARKETS UPDATE TAKEs PLACE this Sunday, May 8, 2022 at 1:30 PM EDT (that’s 10:30 AM PDT, 6:30 PM UK, 7:30 PM CDT. 2:30 AM Tokyo, 3:30 AM Sydney). This 3-hour webinar (with two 5-minutes breaks) will give an intermediate-term update on several financial markets, including the U.S. stock market, Gold, Silver, Crude Oil, the Euro currency, Bitcoin and Soybeans. Joining Ray to share their outlook will be Ulric Aspegrén (Euro, U.S. Dollar) and Gianni Di Poce (U.S. Treasuries, Crude Oil and Soybeans). Ray will be covering equities, metals, and Bitcoin. There will be a Q&A with attendees during this webinar. The cost to attend is $55.00 and includes the slides of the presentation, plus access to the video recording of the event. If unable to attend live, you can still sign up, as everyone who orders the Webinar will receive the video recording following the live event. For more information, click here and SIGN UP NOW TO LOCK IN YOUR PLACE for this event!
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
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.