Note: I will be teaching MMA Market Timing courses in Beijing this weekend. Hence, this week’s column is being written on Thursday, June 13, one day before normal. This column does not take into account Friday’s trading activity, June 14.
REVIEW AND PREVIEW
Mario Draghi, the president of the European Central Bank (ECB) and Christine Lagarde, the managing director of the International Monetary Fund (IMF) warned that the global trade dispute between the U.S. and China as well as a threatened dispute with Europe and other industrial nations could cause headwinds for all and could get worse. Speaking at the 8th ECB conference focused on central, eastern and south-eastern European (CESEE) countries on Wednesday, the IMF’s Lagarde said “We meet at a moment when support for global cooperation and multilateral solutions is waning.” – Holly Ellyatt, “IMF’s Lagarde and ECB’s Draghi Warn Against Troubling Developments in Trade War,” https://www.cnbc.com, June 12, 2019.
Morgan Stanley’s Business Conditions Index, which captures turning points in the economy, fell by 32 points in June, to a level of 13 from a level of 45 in May. This drop is the largest one-month decline on record and the lowest level since December 2008 during the financial crisis, according to the firm. – Maggie Fitzgerald, “A Morgan Stanley Economic Indicator Just Suffered a Record Collapse,” https://www.cnbc.com, June 13, 2019.
Global stock indices continued their impressive rally through Thursday, June 13, off the lows that began with the prior week’s primary cycle bottom on June 3. It’s all part of the second passage of the Jupiter/Neptune waning square, which takes place this weekend, June 16, and has a historical correlation with major reversals within an orb of 11 trading days. The low of June 3 was nine trading days before this passage, which falls within the time band of historical correspondence. However, the orb for reversals related to this aspect remains in effect for another two weeks, which means it can also coincide with another major reversal, down from a crest that could be developing now. So far, most world indices have rallied about 5% from that low into highs of June 11. In the U.S. the rallies in the Dow Jones Industrial Average and NASDAQ have been greater, 6.4 and 8.4% respectively, as of the highs on June 11, but both are again challenging those highs as we close out the week.
In other markets, Gold also rallied smartly last week, climbing back above $1350 in the recent contract for the first time since April 19, 2018, over one year ago. Silver is flirting with the 15.00 level, up modestly from its 6-month low of 14.26 on May 28, but well below its 16.19-16.20 double top highs of January 31 and February 20, 2019. Crude Oil dropped to 50.72 last Wednesday, June 12, forming a bullish double bottom chart pattern to its low of 50.60 the prior week on June 5. This is noteworthy because both Jupiter and Neptune co-rule Crude Oil, and they are at their cosmic peak for 2019 right now. Bitcoin also had an important week, forming a double bottom at 7424 on June 5 and 7498 on June 10. As of this writing on June 13, just three days later, Bitcoin has already rallied more than 10% off those lows.
As stated above, this is the cosmic peak of the 2019 Jupiter/Neptune waning square aspect, arguably the most dominant geocosmic signature of 2019. It is especially important to students of geocosmic studies because both planets are also in their ruling signs of Sagittarius and Neptune respectively, something that only happens every 166-167 years. Both Jupiter and its ruling sign of Sagittarius pertain to the emotions of optimism and hope. They see the “glass as half full,” and believe that the glass is in the process of becoming full. However, both the sign and the planet have a tendency to exaggerate, to the point of dismissing factual evidence, perhaps because they want to believe the best outcome will happen. It’s called positive thinking, but it can lead to poor, or even wrong, judgement, resulting in losses rather than the gains expected due to the exaggerated and high hopes. This characteristic becomes more problematic with the waning square to Neptune in Pisces, which also has a tendency to dismiss or even fabricate/misapply “facts” in favor of optimistic (and even grandiose) wishes. And the waning square is, in my opinion, the most difficult of all aspects to work with, to integrate successfully, for a positive outcome. Thus, as long as evidence, accountability, and discernment are not required, the collective mood can easily bend towards “irrational exuberance.” People are positive because things “feel good” and therefore they must be good and getting better. What is often missing is awareness or attention to signs that tell a different story – a presence of reality that is not supported by the beliefs and wishes behind the irrational exuberance. When reality strikes and it becomes evident that this reality is not what was believed to be the case, then irrational exuberance can quickly turn to hysteria and panic.
We may experience a case of this conflict between reality and wishes/hopes in the next two weeks as the Jupiter/Neptune waning square peaks June 16, with an effective orb of influence lasting about two weeks. Last week, on June 9 and 10 the Sun made a T-square with Jupiter and Neptune. The stock markets of the world surged on hopes of a breakthrough in the trade dispute between the U.S. and … everybody else, but in particular, Mexico and then the hopes of a meeting between the presidents of the U.S. and China. Jupiter and Sagittarius relate to world trade, and the square aspect pertains to an impasse or the possibility of a blockage. With Jupiter and Neptune, the blockage is often a result of mistrust, deception, and/or misrepresentation by one side or the other.
Now we find Mars entering the picture as it makes an opposition to Saturn and Pluto, June 14-19. Whereas Jupiter and Neptune exaggerate and may try to play “nice,” Mars in a hard aspect to Saturn and Pluto has a tendency to play hard ball, to try and pressure one’s opponent into compliance or submission through force. This is a war-like aspect, where the powerful force confronts the immovable object head on. It’s a battle of brute strength, where one side pushes hard, and the other side digs in deep. Seldom does that result in an agreement or a breakthrough, which in turn dashes the hopes and wishes (or even false pronouncements) of those who “believed” something positive would happen per Jupiter square Neptune. Hence, world markets are vulnerable to a sudden jolt.
The following week, Neptune returns in full force, as it turns retrograde on June 21, followed by Venus making a T-square to the Jupiter/Neptune square, June 23-24. How do leaders react when their demands are not met, when their hopes and wishes are dashed? Under such aspects, they tend to resort to finger-pointing, accusations, and blame on one side, followed by complaints of unfairness on the other. Our historical studies show that stock markets often react with very large price swings during this period, especially over the next week, through June 24.
Interestingly enough, President Donald Trump’s birthday occurs during this time, on June 14. In the study of astrology, this is known as one’s solar return, a time when the earth is in the same position in its orbit around the Sun as it was at the time of one’s birth. The moment of the return creates a solar return chart, which outlines the themes and potentials of one’s next year of life. Thus, in Donald Trump’s case, we find both the Jupiter square Neptune, as well as Mars in opposition to Saturn and Pluto, very strong. This does not indicate a year of many agreements or accomplishments, but rather a year of increasing obstacles and investigations. He may be inclined to try to force others to do things they do not want to do (because he “believes” in his position, right or wrong), without much success. At the same time, he is likely to feel coerced into doing things he does not want to do, and is likely to react strongly to those demands. His resistance may be as strong as their force. The movement to remove him from power (Pluto) is apt to grow. This is his “war-like” year. It will likely be a real test as to his ability to “remain calm and under control” with this set up. If there is any advice to offer someone undergoing these types of aspects during their solar return, it is this: avoid confrontations and situations of stress as much as possible. Of course, that is not possible when you are the president of the United States.
As for everyone else, this advice applies to all of us during the next week. Try to remain calm and grounded, not lose your temper, and refrain from starting or entering into unnecessary and un-winnable fights or disputes. Others will not bend to your will, any more than you will bend to their demands. It is best to use this period to carefully think out your plan(s), not act out or initiate those plans, especially if you know they will upset others whose support you need. You may be right in your beliefs, but you probably do not have the support of others needed to attain victory. Take the time to develop your strategy before attacking. Better yet, don’t attack. Be patient and try to detach and see the bigger picture realistically. What can you realistically gain without destroying your purpose? Otherwise, as we say in America, you may “create a tempest in a teapot” if you overreact on impulse.
NOTE 1: ONE MORE WEEK TO SIGN UP! The MMA Cycles 2020 Vision Webinar series continues. Mark your calendars for June 22, 2019 at 1 pm, EDT when MMA presents: “RE-FOCUS YOUR INVESTMENT STRATEGIES: ALL CYCLES LEAD TO 2020.” This live 2-hour webinar will be led by MMA Analyst Kat Powell. It will feature an in-depth look at longer-term cycles, trend patterns, and price targets for Silver and Soybeans, with select additional markets. Kat will also share her research highlighting geocosmic patterns correlating with the current Tariff Wars. Traders and investors will enjoy her clear, straight-forward charting examples and unique insights. Cost is $45.00 and includes an MP4 Recording with PDF charts. Sign up now and reserve your spot in the next MMA live webinar!
So, we asked Kat, “What will be different with this webinar, from the one presented late last year on Silver and Soybeans?”
“In 2018, we looked at longer-term cycles using monthly charts for illustration. The objective was to have viewers get in sync with the longer cycle patterns and to visualize the potential impact of the geocosmic events of 2020-2021. While we will refresh that data for viewers, we are now going to dive deeper into cycle structure by examining these future geocosmic events using historical correlations in weekly and daily charts. Special attention will be given to cycle structure, trend channels and patterns, moving averages, and price range references. The objective is to provide a closer focus as we transition into the trading and investing orb for these approaching geocosmic energy zones.” Sign Up Now to reserve your seat in this live webinar next weekend!
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Cost: $325/ Year
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JUNE 22, 2019, 1:00 PM: MMA Webinar on “RE-FOCUS YOUR INVESTMENT STRATEGIES: ALL CYCLES LEAD TO 2020.” This live 2-hour webinar will be led by MMA Analyst Kat Powell. It will be her second installment of THE MMA CYCLES 2020 VISION WEBINAR SERIES. This one will feature an in-depth look at Silver and Soybeans from a cycles’ and geocosmic studies viewpoint, as well as other select markets that illustrate the major reset underway into the Capricorn stellium of 2020. Kat will also share her research highlighting geocosmic patterns correlating with the current Tariff Wars. Traders and investors will enjoy her clear, straight-forward charting examples and unique insights. Cost is $45.00 and includes an MP4 Recording with PDF charts to all participants. Sign up now and reserve you spot in the next MMA live webinar!
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 a 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 hence potentially affect 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.