Friday, August 6, 2010

Double bubble in T bonds, and equities' positive prospects against bearish bigger picture: Raymond Merriman's weekly preview

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 August 9, 2010
Written by Raymond Merriman

Review and Preview

The midsection of the Cardinal Climax correlated with powerful developments in nature last week. Monsoons in Pakistan have killed hundreds of people, and in China, rains have recently displaced over one million people. A record heat wave in Europe has led to fires and soaring Wheat prices as Russia has now banned all exports of the grain. Wheat futures rose to 841 intraday on Friday, following Thursday’s limit up, an appreciation of nearly 100% since its low of 425 under the Jupiter-Uranus conjunction of June 8. Of all the forecasts made in the Forecast 2010 Book, this may have been the most impressive, for it clearly described the possibilities of a drought in July-August, and gave a price target as high as 880 +/- 108 for Wheat. That’s not bad in terms of time or price for a forecast made back in November 2009. By the end of the day on Friday, Wheat was limit down at 725.

There are some indications that major developments in both politics and economics are also transpiring as we are now well within the middle part of this fifth layer of the Cardinal Climax (July 21-August 21). As mentioned previously, the “Financial Regulatory Reform Act” passed right as this time band began on July 21, and this promises to be a monumental shift of the power balance between the government and banks. Previously it may have seemed as if government existed for the benefit of the banks. Imagine that being reversed in this new decade, this “New Era of the Regulator.” But just as important may be the increasing – not decreasing – role of the Federal Reserve as the “Fourth Branch of Government.” This is a subject I will be addressing more and more in the Longer-Term Thoughts section of this column, for the well-controlled “leaks” of the past week regarding the Fed’s tentative actions are a concern for the financial well-being of this country, its people, and in fact of people everywhere.

It is too early to tell how many markets are to reverse under this incredible geocosmic set up of July 23-August 9. But there are early indications that substantial reversals could commence from the highs or lows that formed in many markets this past week. In Europe, the German DAX didn’t just make a new cycle high, it made anew yearly high on Friday, August 6. On Thursday, the London FTSE took out its previous cycle high of June 21. However, rallies in both the Netherlands AEX and Swiss SMI indices did not take its cycle highs of June 21.

The same type of divergence was noticeable in Asia and the Pacific Rim. Like the DAX, India’s NIFTY index made a new yearly high, and the Hang Seng of Hong Kong made a new cycle high, taking out the previous cycle crest of June 21-22. But the August 3 high in the All Ordinaries of Australia fell short of its June 21 high, and the Japanese Nikkei only got to 9750 last week, which was below the 9760 high of the prior week and well off the 10,251 high of June 21.

Intermarket bearish divergence in this incredible geocosmic reversal zone was also evident in the Americas. The Dow Jones Industrial Average soared to a new cycle high of 10,703 on Thursday, August 5, well above its previous cycle high of 10,594 back on June 21. Yet the NASDAQ Composite could manage a rally to 2291 on August 4, which was not only below the 2307 high of July 27, but well below the 2341 high of June 21. Both the Bovespa of Brazil and Merval Index of Argentina rallied into early last week, but fell well below the prior cycle highs of June 21-22. It is too early to claim these markets have indeed topped out and will now fall hard, but these are the kind of leading indicators we look for under powerful geocosmic signatures like we see in effect right now.

Yet the big story is in the drought-driven grain markets, especially Wheat. Soybeans and Corn also posted big gains last week, especially when measured from their lows of June. Currencies were another big story as they exploded last week under the transit of heliocentric Mercury in Sagittarius (August 2-12). The Japanese Yen soared to a new multi-month high, and to a lesser extent, so did the Euro and Swiss Franc currencies, as the dollar fell to a new multi-month low. In concert with the currencies and heliocentric Mercury in Sagittarius, both Gold and Silver rallied. But the even bigger story was in the Treasuries, which have now risen to their highest levels since the Panic of 2008.

Short-Term Geocosmics

This week continues the awesome lineup of geocosmic signatures that constitute the midsection of the Cardinal Climax. Venus now enters Libra (August 6-September 8), a planetary cycle that is usually bullish for stock indices because Venus rules Libra, and pertains to assets (like stocks). However, the initial aspects that Venus forms to the Cardinal Climax planets can make this particular cycle a little bumpy. Venus starts with an opposition to Uranus on Saturday, August 7, followed by its conjunction to Saturn on August 8. On Monday, August 9, it will then square Pluto and form an opposition with Jupiter. Later that night (and early the next day in Europe and Asia), there will be a new moon in Leo. By the end of the week, heliocentric Mercury will end its ten-day sojourn through Sagittarius, and Uranus will retrograde from Aries back into Pisces, where it will remain through March 11, 2011.

But it won’t end there either. The following week (August 16) begins with the 2nd passage of the 20-year opposition between Jupiter and Saturn. At the end of that week (August 20-21) Venus will conjunct Mars in Libra (Venus rules Libra, Mars is in detriment in Libra), the Sun will be in opposition to Neptune (a very powerful Level 1 reversal signature), Mercury will commence its three-week retrograde motion through September 12, and Saturn will end its 32-37 year waning square to Pluto cycle. Then we might be able to look back and realize the importance of what just happened. Or maybe we will even need to wait until Mercury retrograde ends before we begin to understand it all. In fact, there are likely more decisions to be made and more events to unfold that will potentially alter our reality and transform our future in ways we can’t quite fathom right now. This is both an exciting and dangerous time. We are still very much in this new portal where the rules of before no longer work and the rules that will now apply are still being learnt.

But the bigger question will be: who is in charge? The people? The government? The banks? The multi-national businesses? The delicate balance between all four is changing as the Cardinal Climax of 2008-2015 gets into full gear now.

Longer-Term Thoughts

There was a time, not long ago, when I interpreted the transits of today’s Cardinal Climax to the Federal Reserve Board Chart (December 23, 1913, 6:02 PM, Washington D.C.) and compared them to taking a brand new Ferrari out for a test drive one night, taking the speed up to something like 160 mph, and then lights go off, the accelerator gets stuck, and directly ahead is a bend in the road. And there you are, trying to figure out it, thinking “What the ____ do I do now?” I mean, to me, this is the symbolism of Jupiter conjunct Uranus in Aries, T-square to the FRB Pluto-Sun opposition at 0-1 Cancer/Capricorn. Jupiter in Aries by itself, in square to the FRB Sun-Pluto, would be a time in which the Chairman (who is a Jupiter-ruled Sagittarian) would be prone to over-estimation, and poor judgment exemplified by taking on too much risk (the downside of Uranus also in Aries). It is an aspect signifying over-confidence, maybe over-generosity, and one that could lead to large losses. And then comes Saturn in Libra, in opposition to Jupiter-Uranus in Aries, to complete the grand square to all of these planets. Oh, oh. The lights suddenly go out. And the accelerator gets stuck while the Ferrari is at top speed. “What the ____ do I do now?”

So, what is happening with the Fed right now? They are committed to keeping rates low until they are more certain that the economy can stand on something of a foundation without crumbling down to a second dip recession and - God-forbid - another Panic. OK. And they are discussing purchasing more Treasuries to support longer-term Treasury prices and lower long-term interest rates. The lead article in Tuesday’s Wall Street Journal put in perspective as follows: “The issue: Whether to use cash the Fed receives when its mortgage-bond holdings mature to buy new mortgage of Treasury Bonds, instead of allowing its portfolio to shrink gradually.”

Now let me see if I get this right. The Federal Reserve Board controls the printing of money and the amount of money in circulation in the USA. They are the government’s bank, where the government deposits the people’s money (tax monies). And that bank, privately owned but rapidly becoming the fourth arm of the government itself, is purchasing more and more of the government’s (really, the people’s) debt as a result of its government’s excessive spending. In other words, the government is going into this massive debt to its own bank. The question I would like to ask is this: if government treasuries (debt) are so much in demand right now, why does the Federal Reserve Board even have this kind of discussion? Isn’t it like pushing the accelerator to the floor? At night? And losing sight of where you are going?

“The central bank’s $2.3 trillion (that’s with T, not a B) portfolio has nearly tripled in size since 2007,” according to the same article. And the Fed is discussing increasing it even more now, rather than allowing this grossly overextended portfolio to contract? Something’s wrong. As we look at the recent market activity of U.S. Treasury Bonds and Ten-Year Notes, we observe they are starting their most ambitious run upwards since the all-time highs recorded in December 2008, when the Panic was in full force. That was a bubble, created by fear. This is starting to look like another bubble created by fear. It’s on the way to becoming a double bubble and if it continues, it means “double bubble trouble.” Treasuries don’t become bubbles unless there are troubles. It may be time for the Fed to get its foot off the accelerator as the lights are going out, and start to think about taking less risk. Yes, I know the argument that this is how the Fed is keeping us from falling into another recession by purchasing mortgages and Treasuries to keep rates low. But why is the government allowing its bank to buy so much of its debt? Who is in control here? Those who control the debt. And who is losing control by these decisions?


We are going to start taking orders for the Forecast 2011 book now via phone (1-248-626-3034), fax (1-248-538-5296), or email ( In a couple of weeks, you will be able to order directly from our website too. We are pleased to announce the price will remain the same as last year. That is $55.00 if ordered after October 31, and $45.00 if ordered before (plus postage). For a review of the forecasts from the Forecast 2010 book, please go to, and scroll down to about the third or fourth article on the opening screen. Or go directly to

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.”

CD’s DVD’s, MP3’s, and “On-Line Streaming Video” of the July 11 webcast are now available!!! Each of these various ways to see the event can now be ordered via our website at (just click the opening banner), or by calling 1-248-3034 or email operations at The cost of each is $45.00, plus postage if necessary. This webcast covered our outlook for stocks, precious metals, interest rates and Treasuries, foreign currencies vis-à-vis the U.S. Dollar, and Grains. We pick this time because it was 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. It is interesting to see how the stocks and grains are moving right up into this time band, as outlined in this presentation. You won’t want to miss this. Order now, because most of the trading opportunities presented are in effect mainly from July 21 through October 8, 2010!!! is holding a three-day video conference on Friday, Saturday, and Sunday, October 1st, 2nd, and 3, 2010. This pioneering Internet astrological conference features dozens of internationally known speakers. Very economically priced, all participants have access to all live broadcasts with the ability to replay them from the archives for up to three months. Call (212) 929-4507 or email

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 exactly when to enter and exit any market.

To the above list, I would also like to recommend long-term MMA subscriber Erwin Brunner of Zurich, Switzerland. Mr. Brunner is the founder of BrunnerInvest AG. One of his five funds was awarded the “Best in-house fund of funds” in the world recently. Mr. Brunner is a former director of the Swiss Banking Corporation (today it is known as UBS), and a general director of Rothschild Bank in Zurich. As an independent wealth manager for high net worth individuals and institutional clients only, he places his clients into the funds of the best performing fund managers in the world, via his own research and experience. For high net worth readers interested in Mr. Brunner’s funds, please contact him through

OK. You’ve asked about classes in Financial Astrology, and I am giving two of them in great South American cities in late September and early October. Since these constitute “investment education,” many of you will be able to write the expenses of this trip off (travel, some meals, and cost of conferences). Here are some more details of each – and I hope to see many subscribers at each:

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 will host a special gathering of MMA Subscribers at the end of the seminar, 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 may host a special gathering for MMA Subscribers on Sunday, October 3, the day of Brazil’s elections, if enough subscribers request such a meeting.

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 10-12, 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

April 28 and 30, 2011: Kansas City, Mo. “Forecasts for 2011” and “Financial Astrology Workshop” with Raymond Merriman. Sponsored by AOA. Details soon. This will be the next Financial Astrology workshop in the United States.

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, please go to

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

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