MMA Comments for the Week Beginning September 26, 2011
Written by Raymond Merriman
Review and Preview
The market climate was very close to what was projected in last week’s column. Which is to say that last week’s markets were dramatic, chaotic, filled with surprises and very large price swings.
Let's see, how did we describe this period of September 16-27? "There are two sets of planetary cycles in force between now and September 29. The first set involves the transit of Venus to the Uranus-Pluto square this weekend, September 17-18. The second set involves the Sun making the same T-square formation to Uranus and Pluto, September 25-28… In the field of Financial Astrology, Venus rules assets and currency, Uranus rules the unexpected, and Pluto rules debt. With Uranus, nothing goes as expected. Market prices, for instance, do not stop at expected support or resistance zones. They blow right through, like a tornado on the plains of Texas, and investors become suddenly crazed as chaos reigns. All controls are lost. Of course this is just temporary (everything is these days), but in the heat of the battle and crisis, it seems like it will never end. Reason takes a holiday, as fear of losing control steps in."
Did you get that sort of feeling after the Federal Reserve Board announcement on Wednesday? Traders and investors thought that whatever was decided by the FRB governors would be positive for stocks – and treasuries. Tuesday's lunar reversal date (as given everyday on our website at www.mmacycles.com) found the Dow Jones Industrial Average at 11,550, its highest price since September 1 at 11,716. The NASDAQ went even higher that day. Two days later and immediately following the Fed's long-awaited announcement, the DJIA plunged slightly below 10,600, even lower than the low on August 9. That was a swing (loss) of nearly 1000 points in just two days. Quite a dramatic turnaround for the stock market and probably not at all what Bernanke had intended when he decided to launch QE3, which is incorrectly dubbed "Operation Twist." I don't think there was anything surprising in the Fed's announcement – but the market reaction to that announcement was quite surprising. Treasuries soared to new all-time highs and stocks plummeted. But that was nothing compared to what happened in the Gold and Silver markets, which will be discussed shortly. The market's reaction to the Fed's announcement wasn't lost on politicians or readers of this column. Several of the Republican candidates were publically critical. Last week's column also stated, "Watch the Fed these next two weeks. It was born December 23, 1913. The Venus and Sun translations of the Uranus-Pluto square ties right into the Fed's natal Sun-Pluto opposition, forming a powerful cardinal grand square. Cardinal signs represent "new actions." And the Fed was not the only entity with "new Actions" to watch last week. China, the stressed out Euro zone never-ending banking crisis, and a new trade war started by Brazil raising its tariffs 30% on Chinese imports, were also significant factors. Trade wars historically coincides with currency wars, and then lead to military wars, or so stated Brazil's recently elected President Dilma Rousseff last November when she said, "The last time there was a competitive devaluation of currencies, it ended up where it did, in the Second World War." Talk about a self-fulfilling prophecy. And whether the world knows it or not, her story is Brazil's equivalent to the Patty Hearst story in the USA, except she was a real and willing Marxist urban guerilla fighting against the government, which was a military dictatorship. She was captured and jailed 1970-1972. But like Hearst, she was involved in bank robberies about the time she was finishing up her schooling in Economics, according to her biography on Wikipedia (which I know is not always reliable and accurate, but there it is). So here she is, involved right in the middle of the very type of war she warned others about. As Ten-Year Note yields fell to a record 1.7% and some change following the Fed's new QE3.
Gold and Silver (and lots of other commodities) fell into a bottomless abyss. Gold, which has just made an all-time at 1923.70 on September 6, was down to 1630 on Friday. Silver's fall was even more dramatic. It was trading close to $41.00/ounce on Monday. By Friday it was trading below $30.00, its lowest level in 7 months. But our favorite technical tools and geocosmic studies suggest that an important low is close at hand here.
The main geocosmic configuration in effect this week will be the new moon (with Mercury) on Tuesday, September 27, forming a cardinal T-square to the Uranus-Pluto square. This powerful configuration portends yet one more round of huge price swings and extreme volatility. Support and resistance areas are still rather meaningless when Uranus is so active. Prices can still blow right through them. But that climate may change after Mars completes its waxing square to Jupiter on the following Monday, October 3.
As discussed before, new or full moons with the Sun is in Libra has often corresponded to important lows or highs in the stock market, give or take a couple of days. They are the most important lunations at this time of the year. We will also closely watch September 29 when Venus forms its conjunction to Saturn in Libra. One of our rules is that any market making a low going into this aspect is a candidate for a reversal back up. Given that Venus in Libra (September 14-October 9) is usually bullish for stocks. Maybe that proves to be true after it conjuncts Saturn. This passage also has an historical correlation to primary cycle troughs in Silver, which certainly seems to be unfolding.
Further out, we are still focused on October 7-March 7, a period when Jupiter retrogrades back to the 0-7º Taurus sector of the zodiac. I expect the stock market to make yet another impressive rally during that time, in which prices rise at least 10% (better if 20%) from the low that is forming shortly, ideally by the end of October if not even right here. So we wait for the buying set up to be completed, for the next thrust up in the third and final phase of the 4-year cycle. But longer-term, once that next 2-5 month rally ends, we still anticipate a bear market into the time when Jupiter enters Leo, in 2014-2015. We also look for Gold and Silver to complete Gold's 34-month cycle trough, ideally before February 2012, maybe even much, much sooner. Maybe even by this coming week, based on geocosmic signatures and technical studies now in effect.
If you are an active short-term trader, or even if you are an investor who likes to keep up with our current thoughts on financial markets, 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, Euro-Yen cash, 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. Both reports provide trading strategies and recommendations for position traders as well as for shorter-term aggressive traders. Subscription to the daily report also includes the weekly report. For more information, go to http://www.mmacycles.com/services, or call our offices at 1-248-626-3034. These reports are extremely valuable to those who trade ETF's (Exchange Traded Funds). 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."
"The Ultimate Book on Stock Market Timing, Volume 5: Price Objectives and Technical Analysis" is out as of last week! Man, am I happy! It is a surreal feeling to complete a book of this size (over 300 pages), and it's a surreal feeling to see it out in print, at last. It took two years to write this one, which is par for each of the five books of this series that started in 1997. That was around the time I decided I wanted to "tap into the soul of the stock market," like there is such a thing. Turns out there is, in my opinion. But it depends on how you interpret "soul." If you accept that it is a connection between the observable and the intuitive, that patterns do exist and like oracles, they oftentimes do reveal the future, then it exists. This is a book describing the tools that serious traders that I know use. I use them. Many of my subscribers use them, although not that many know how I calculate price targets to go along with market timing. This book identifies the formulas I personally use to calculate price targets, and the trading plans I find that work using these market timing and technical indicators. This book is packed with powerful tools (signals), and if you take the time to learn these tools properly, your chances of being a successful trader will increase tremendously, IMHO. The book is 300 pages, printed in perfect bind format, gloss cover, 8-1/2" x 11" size. The retail price of this new book is $144.00. The publication of Volume 5 will complete the project that started in 1996, and covered approximately 1600 pages of studies and strategies for all types of traders and investors, using our market timing methods. In all, this is a complete and unified approach to analyzing (and trading) financial markets, and especially stock markets. If you are interested in this unique and integrated methodology for analyzing and forecasting stock indices, you can save big bucks by ordering all five volumes, or choice of any four now at http://www.mmacycles.com/catalogue/books/the-ultimate-book-on-stock-market-timing-volume-5/, or just go to www.mmacycles.com and scroll down to the announcement. If ordering all five volumes, you will save $99.00! For more information on this book, go to YouTube at http://www.youtube.com/watch?v=PnplAS5m2AI, describing this new book. It is "the missing link." You may want to check this video out, as it contains some interesting long-term tips.
It's that time of the year again! As in the past, MMA offers a special pre-publication discount rate for those who pre-order the next year's book before October 15, 2011. The special rate now in effect is $45.00 plus postage. In just one month it will increase to $55.00, its normal price. The annual Forecasts Book, written by Raymond A. Merriman since 1976, is one of the most unique, affordable, and accurate glimpses into the coming year. Utilizing the study of cycles and geocosmic factors, this annual Forecasts book outlines forthcoming trends pertaining to political, economic, and financial markets throughout the world. Although 2011 is only a little more than half over, several forecasts made in the 2011 book have already unfolded. For a list of some of these forecasts, please go to the front page of our web site at www.mmacycles.com. There you can also place your order for the Forecast 2012 Book at the special pre-publication rate now in effect through October 15. Or call us at1-248-626-3034. Save Big Bucks and Order Now!!!
The printed version of Forecast 2012 will be translated into several different languages again this year, and many of these publishers are also offering pre-publication specials as follows: Dutch: at www.markettiming.nl Italian: at www.astrofinanza.com andhttp://www.astrofinanza.com/mma/shop.html German: at http://www.mma-europe.ch/ Japanese: at http://merriman.jp Russian: at http://www.mmafinance.ru/ Spanish: at www.mmacycles-spanish.com.
Each of these will also offer the English version of Forecast 2012, as will our Chinese distributor at http://www.zzdcycles.com.
January 6-7, 2012: Zurich Switzerland. Forecast 2012 Symposia sponsored by AstroData. Details to be announced shortly atwww.mma-europe.ch.
January 18, 2012: Amsterdam, Netherlands. "Forecast 2012." The date is not yet finalized, but will be shortly, and it will be around this date.
February 23 and 25: Hong Kong, China. "Forecast 2012" on Thursday, March 1, and a workshop on "Financial Market Timing" on Saturday, March 3.
March 9-11, 2012: The 8th Annual Balkan International Conference, Belgrade, Serbia. Featuring a workshop on Financial Astrology with Raymond Merriman.
April 19 and 21, Boulder, Colorado. "Forecast 2012" with Raymond Merriman, plus a workshop on "Financial Market Timing," focusing on equities and precious metals. Sponsored by ROMA. For more information and registration, contact firstname.lastname@example.org.
May 24-29, 2012: UAC!!! The world's largest astrological conference. Taking place at the New Orleans Marriott Hotel. Go towww.uacastrology.com. There will be an awesome Financial Track, featuring some of the top Financial Astrologers and researchers in the world.
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.
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