Saturday, June 19, 2010

Expect the unexpected in markets next week, plus, the Fed isn't home free yet: Raymond Merriman's weekly preview

Raymond Merriman told us last week to expect extremism in the markets and it occurred. The rises last week occurred with very little if the typically-expected pullbacks. Exceeding SPX 1005 was a great "tell" the market may go bullish without a new low. While the euro moved up from its low underneath 121 $XEU, with a great move testing 123, but hasn't ansolutely proven whether it can pull off a bullish new wave up, or will fail over and probe lower (like 112). So for classic medium- to long-term swing trade and position investors, all the market has to offer is promise that it can follow through. Which at this point certainly can happen - because it basically just has to get through next week (especially Monday) without too much weakness. And we should expect positive window-dressing into the end of June, even if there's any weakness first.

We start our weekend as usual with Raymond Merriman's weekly preview. His perspective on the markets, economy, and even political climate is truly unique. He always has remarkable insights to share. We'll see what he's saying in his public comments this weekend, incorporating his cycles analysis with his financial astrology for equities, bonds, currencies and commodities - for commentaries that are always fascinating. Here's Ray Merriman's set of public preview comments for the upcoming week, from his site at Merriman Market Analyst MMACycles Weekly Preview Comments:

MMA Comments for the Week Beginning June 21, 2010
Written by Raymond Merriman

Review and Preview

It was a good week for financial markets as well for Financial Astrology. Both equity markets and precious metals were up strongly this past week, following their primary and trading cycles lows registered on June 7-8, coinciding with the Jupiter-Uranus conjunction of June 8. As stated last week, “In retrospect, we now have a case where the U.S. (and many other world) stock markets made their yearly high exactly on the date that Saturn was in opposition to Uranus (April 26), and their bottom exactly on the date that Jupiter was in conjunction to Uranus. This is how Financial Astrology works and why it is extremely valuable…”

It also demonstrates yet another truism about astrology in general. Hard aspects (like Saturn in opposition to Uranus) are not always lows, or the worst of all times. And soft, harmonious aspects are not always highs, or the best of all times. It depends upon your cycle going into these aspects. If you have been struggling and a hard aspects hits, it can coincide with the bottom of your personal cycle from which things begin to seem better. But if you have been a nice successful run and a hard aspect hits, you better be careful. It could end nearby to the time of the hard aspect, especially if you have been careless. It is like, “pride cometh before the fall.” The same is true with harmonious aspects. We see this over and over again with trends in financial markets, and how these aspects simply indicate “change of the trend.” Not necessarily bad, not necessarily good on that day. It is basically an end to one cycle and a new beginning for another.

In world equity markets, prices continued their rise last week from the double bottom lows of May 25 and June 8 periods. In some cases, the rallies have already exceeded 10% in just those 1-3 weeks (i.e. Netherlands AEX, German DAX, India’s Nifty, Brazil’s Bovespa, Argentina’s Merval, and the USA NASDAQ Composite). The biggest gainer that we track was in the Moscow MICEX, 3hich gained over 15% since its low of May 25. You may recollect that May 20-25 was when Venus was in translation to the Cardinal Climax planets, a harbinger of what we might see around d June 8. Indeed it was a double bottom formation, as some indices made a lower low on June 7-8, while the others bottomed May 20-25.

In other markets, Gold soared to a new all-time high on Friday, hitting 1263 intraday. Silver also exploded, closing above 1900 after bottoming at 1719 just a few days ago, on June 7. Crude Oil tested 80.00/barrel last week, after being as low as 64.24 on May 20.

Short-Term Geocosmics

This week starts and ends with two powerful geocosmic events. On Monday the summer solstice begins, and it occurs with a hard square aspect (waxing square) to Uranus. In terms of natural phenomenal, this is a signature that sometimes coincides with earthquakes, hurricanes, tornadoes, and the like. In the geopolitical realm, it can coincide with a sudden reversal of direction on the part of a world leader, or an act of great risk by a group that may pose a danger to the lives of others. In financial markets, it can correlate with a reversal of trend, or a pause, or an explosive breakout of support or resistance. With Uranus, you never know for sure what the event is, or what the reaction will be.

The week will end with a lunar eclipse on June 26. This might be an important eclipse because the moon will be in Capricorn, conjunct Pluto. In fact, this entire week will find the Sun filling in the open point of a grand square between Jupiter and Uranus in Aries, Saturn in late Virgo, and Pluto in Capricorn. It is a translation of the Cardinal Climax, which will be a preview of what we might expect to experience when we enter the fifth and deepest layer of this phenomenal once-in-a-lifetime cosmic pattern in late July through early August. This may still pose a critical risk to the Federal Reserve Board and other central banks, despite the recent reports suggesting that the FRB will remain basically intact of its most important powers per the so-called Financial Regulatory Reform bill. There may be a sudden switch on this proposal. Something may be hidden, and something may be revealed – or buried deeper from sight.

On Thursday and Friday, the “Sagittarius Factor” is in effect. This lunar cycle (Moon in Sagittarius) oftentimes coincides with very sharp price movement sin many financial markets, especially precious metals and Treasuries. In short, there is no reason to think that markets – or world leaders - will be quiet or tame this week. They are still likely to overstep their boundaries, exaggerate, and offend.

Longer-Term Thoughts

 “Regulation was the obvious method of keeping corporations answerable to democracy, and not the other way around – but why trust public officials to regulate if they were all on the take?... The power of the railroads (today, banks) gave rise to demands for a stronger government to control them, yet this same power aroused fears that they would simply corrupt a strong government, and grow still more powerful.”
- T.J. Stiles in “The First Tycoon,” regarding the life of Cornelius Vanderbilt in 1860.

Last week I asked, “But will more government regulations prevent crises? Or will they have an unforeseen opposite effect of actually creating more crises? The result of more and more limitations in activities implied by Pluto in Capricorn could lead to more and more risks from the ever rebellious, anti-authoritarian nature of Uranus in Aries.”

One of the many fears in the financial world today is that some nations are so far below water in terms of the debt to other countries that they pose the risk of sovereign default (i.e. not being able to pay back the countries they have borrowed from). Default and bankruptcy are particularly the domain of Pluto in Capricorn (2008-2023) as well as Saturn in its waning square to Pluto (October 2009-August 2010).

But what happens when a country cannot pay its debt when it is due to another country? Prior to the 20th century, governments used to borrow money from its banks or richest citizens. When the debt became too great, they would conveniently force the bank out of business (i.e., nationalize it or make such restrictive regulations that it could not survive), or hang the wealthy individual to whom they owed the money, and presto! The debt was gone. The nation’s treasury would return to surplus or a more manageable deficit. France, for instance, made an art of this process. Spain was not far behind. These two countries, by the way, have the most numerous cases of default in the history of nations’ finances, although for the last one-two centuries they have been pretty good compared to Latin American nations (source: “This Time is Different: Eight Centuries of Financial Folly” by Carmen Reinhart and Kenneth Rogoff, Princeton University Press, 2009).

But take the United States, for example, with all its recent and soon-to-be regulations of financial institutions, like banks. As the government bailed out these banks with TARP monies, with the intention that the banks would release those monies to the main street and thus re-stimulate private spending, a strange Uranian phenomenon happened. The banks didn’t lend the money out. They kept the money, and instead built up their own balance sheets, registering record profits last year.

And they are still not letting the money out. In fact, they are exhibiting new behaviors that are sure to stoke the populist cry for more regulations as we head towards the center of the Cardinal Climax in late July and August. In Friday’s “Wall Street Journal,” a front page article is titled “End is Seen to Free Checking.” That says it all. The government passes new regulations and fines onto banks, which then pass on more fees to pay for this loss of revenue. The same thing happened with the so-called Health Care Reform bill that was suppose to rein in costs that health insurance companies charge. But instead of lower rates, the regulations have enabled the insurers to raise rates, and many of them will take effect in August as well. It’s going to be a hot summer.

Regulations may start off with the best of intentions to protect consumers and citizens. But by the time the banks and businesses get to the politicians (i.e. regulators), regulation gets transformed in such a way that the reforms actually cause more harm to those it was suppose to help. Why? That’s an easy answer and as old as the time when politics and business first went to bed with one another. Pluto in Capricorn, and now Saturn in waning square to Pluto, is just the beginning of a new era of government intervention into - and regulations addressed to - businesses and banks. But Uranus in Aries (2010-2018) is also the era of increased competition and demand for goods and services that are being restricted by these new regulations (and taxes that will soon follow). I don’t think it takes too much imagination to see the implications and even likely consequences of these dynamics coming together.


The monthly MMA Cycles Report and its companions – the MMA Japan Cycles Report and MMA European Cycles Report – will come out this week, Monday and Tuesday, via posting on our web site, or attachment via direct emails, for subscribers. This report covers our longer-term analysis of the U.S. stock market, precious metals, crude oil, currencies, Treasury Notes, and grain markets. The MMA Japan Cycles report covers the Nikkei, JGB Bonds, and the Dollar-Yen. The new MMA European Cycles Report covers the German DAX, Swiss SMI, and Netherlands AEX, each in English only. These reports are included in the Japanese, German, and Dutch translated MMA Cycles Report respectively. New yearly (or renewing) subscribers to these reports will receive a free copy of the Forecast 2010 book while supplies last (see below). For subscription information, please go to SERVICES at

We will host a webcast on our mid-year update of financial markets, on Sunday, July 11. You may reserve your participation in this event now by calling 1-248-3034 or email Amber at The event will last about 2-1/2 hours and will start at 1:00 PM, EDT. The cost is $45.00. You may reserve via our web site shopping cart now too – just click on the opening banner that announces this event at This webcast will cover our outlook for stocks, precious metals, interest rates and Treasuries, foreign currencies vis-à-vis the U.S. Dollar, and maybe Grains. We pick this time because it is right before the astrological midpoint of the Cardinal Climax, which takes place late July through early August. It may be the peak of the huge trend reversals expected in many of these markets, aided and abetted by major changes of trend in geopolitical matters. You won’t want to miss this presentation.

Any remaining copies of the Forecast 2010 book will be available for $30.00 (plus postage), beginning June 30, when the year will be half over. We overprinted this year, after having sold out in three of the prior 4 years. We now offer a complimentary copy of this year’s book to any new or renewing subscriber of a one-year subscription to the MMA Cycles Report, our new MMA European Cycles report, or any subscription to a MMA daily or weekly report, as long as books are still available. See special offer on the opening page of

If you are an active short-term trader, you may be interested in our Weekly or even Daily Market reports with short-term trading recommendations. It is the only way I keep in touch with traders on a daily or even weekly basis, as I no longer offer personal consultations. These reports give in-depth analysis of the DJIA, S&P and NASDAQ futures, Euro currency (cash and futures), Swiss Franc, Dollar/Yen cash and Yen futures, T-Notes, Soybeans, Crude Oil, Gold and Silver. The daily reports cover all stock indices listed above, as well as futures in Euro, T-Notes, Soybeans, Gold and Silver. Subscription to the daily report also includes the weekly report. For more information, go to, or call our offices at 1-248-626-3034. In the words of one of our subscribers: “I recently subscribed to your weekly report and am finding it to be excellent and a very useful companion to the MMA Cycles Report.  I can't imagine now managing my investments without them.”

I am oftentimes asked for recommendations of a money manager who uses my methods, since I won’t manage other people’s money. That is especially true now with the volatility in the market place as of late. The thing is, almost all money managers I know use their own systems. But many subscribe to my services and share my thoughts about the future of the economy, various financial markets, and how to position one’s portfolio along these lines. One money manager who subscribes to our services that I would suggest for those looking to structure a longer-term portfolio, such as a retirement account, is Duke O’Neill of Capstone Capital Wealth Management, Boulder, Colorado. He can be reached at, or 1-(303) 247-0600. For those looking for a professional trader of commodity and futures contract might consider Ted Lee Fisher at Ted is a legend in financial futures and has a seat on the CME. Both are very knowledgeable of the tools I use, of the way I am looking at markets, and yet each makes their own decisions as to exactly when to enter and exit any market.

September 23-26, 2010: Buenos Aires! Seminar on Financial and Mundane Astrology with Raymond Merriman and others, with special emphasis on Argentina’s Merval Index and precious metals and whatever else is of interest to participants, for each Financial Astrology workshop is different. For more information, contact Claudia Rizzi at, or visit our web site at If you only speak Spanish, go to We may host a special gathering of MMA Subscribers at the end of the seminar on Sunday, depending on interest expressed.

October 1-2, 2010: Rio de Janeiro! Workshop on Financial Astrology with Raymond Merriman, plus a Mundane Astrology panel with Merriman and others. The workshop will have with special emphasis on Brazil’s Bovespa Index and precious metals, and whatever else is of interest to participants. For more information, contact Renato Chebar at We will host a special gathering for MMA Subscribers on Sunday, October 3, the day of Brazil’s elections!!!

January 14-16, 2011, Zurich, Switzerland. “Forecasts 2011” symposia featuring top mundane and financial astrologers, plus one day workshop on Financial Market Timing with Ray Merriman, to be followed by a special meeting with MMA Subscribers (at no cost). For more details, go to

March 3-5, 2011: Mexico City, Mexico. Speech on Forecasts 2011, and workshop on “Evolutionary Astrology: The Journey of the Soul Through States of Consciousness.” For information, please contact

September 1-8, 2011: Bali! "Financial Astrology" Intensive workshop with Raymond Merriman, and "Mundane Astrology" with Claude Weiss. For more information on this unique week-long intensive and incredible South Pacific paradise adventure, go to

The MMA Catalogue of products and services for 2010 is available for download in PDF at,com_docman/task,doc_download/gid,161/Itemid,63/. The ordering page is the last page of the catalogue. This is especially useful for those outside of the USA, since we do not send these by snail mail unless requested.

Disclaimer and statement of purpose:
The purpose of this column is not to predict 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 oftentimes report 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 will likely affect human activity in the times to come. The author (Merriman) will do this from a perspective of a cycle’s 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 these psychological dynamics that underlie (or coincide with) the news events and hence financial markets of the day.

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 assume any responsibility at all for those individual decisions. Reader should understand that futures and options trading are considered high risk.

Copyright MMACycles 2007-2010; you may link to this site or page, but you may not distribute these texts in any way (by email or otherwise).

Previous weeklies (2006) are archived at

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