MMA Comments for the Week Beginning September 19, 2011
Written by Raymond Merriman
Review and Preview
The full moon on Monday, September 12, appears to have coincided with a major turning point in stock indices around the world. But that turn may be minor compared to the geocosmic signatures present around the new moon that is approaching September 27, especially if the market continues its rise into then. Sometimes this is the way markets move. That is, bottoms at full moons are followed by rallies into new moons.
The lows of early last week were followed by significant rallies in many markets. Of course, those rallies may just be corrective "bounces" off the severe declines that ended then. In the Pacific Rim and Asia, for instance, the Hang Seng index of Hong Kong fell to a new yearly low, taking out the low of August 9 by over 200 points. China's Shanghai Composite fell to 2439 last week, virtually a double bottom to its yearly low of 2437 on August 9. Japan's Nikkei Index fell to 8499, well below its lows of August, but within a double bottom range of its 8227 low on March 15, amidst all the disasters that struck that country during that week. Australia's All Ordinaries and India's Nifty indices also fell hard from highs in early September to their lows of early last week, but both remained above those world-wide lows of August 9. Thus we see several cases of intermarket bullish divergence in this region of the world off the lows of last week.
In Europe, the declines from the highs of the summer to the lows of last week's full moon were much more serious than anywhere else on the planet, largely due to the escalation of new banking crises from the troubled countries of the Eurozone. The German DAX, for example, fell from a multi-year high 7600 on May 2 (same date as the 23-month high in the Dow Jones Industrial Average), to a low of 4965 on Monday, September 12. That is a loss of nearly 35% in a country that was the model of economic success until July. When I was there in May and June, I was convinced that the "miracle" of Germany was a mirage. The finances of the government may be going well, but the finances of the people impressed me as precipitously close to great danger. The Netherlands AEX indices also fell to a new yearly low last week, on September 13. But both the FTSE of London and SMI of Zurich remained well above their August lows, for yet another case of intermarket bullish divergence in a specific region of the world (Europe).
In the Americas, there was no divergence between the lows of August 9 and the lows of early last week. The August lows remained the lows of the year, from the Merval in Argentina, to the Bovespa of Brazil, to both the DJIA and NASDAQ Composite in the USA. On Monday, September 12, the DJIA was trading as low as 10,824, not far from its yearly low of 10,604 on August 9. By Friday, September 16, it was trading well above 11,500, over 700 points above the low of Monday. Technically-speaking, this looks very positive. But the principles of Financial Astrology point to the possibility of a sudden disruption coming up, either right away or closer to the new moon the following week (see "Short-Term Geocosmics" below). In addition, we may be seeing a case of intermarket bearish divergence developing now as the NASDAQ is taking out its high of September 1 (highest price since the August 9 low), but the DJIA is still 200 points below its high of that time. This could be meaningful as we enter this geocosmic critical reversal turning point.
The German DAX is not the only financial market that is losing its luster of the summer. Gold, which made a new all-time high of 1923 on September 6, fell to a new two-week low, falling to 1765 on Friday, September 16, just ten days later. And the Euro and Swiss Franc have also fallen steeply this month as the Dollar continues to rally from its multi-year low of 72.86 on May 4 and secondary low of 73.15 on August 17. Early last week it was trading close to 78.00, its highest level in over 6 months. This fits well with our presentation given to the ICE traders last October (http://www.youtube.com/raymondmerriman). We have another video just out today on You Tube at http://www.youtube.com/watch?v=PnplAS5m2AI, describing our new book due out September 27, titled "The Ultimate Book on Stock Market Timing Volume 5: Price Objectives and Technical Analysis. It is the final volume of the 5-volume set that began in 1997. It is "the missing link." You may want to check this video out, as it contains some interesting long-term tips.
One of the most heavily populated geocosmic signatures of the year now starts September 16 and lasts through October 7. Of the 9 important geocosmic signatures unfolding, three will be Level 1 types, the strongest correlates to major reversals in financial markets as demonstrated in Volume 3 of the "Stock Market Timing" series. Those three occur September 17-23 (now).
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. The latter set involves the new moon in Libra. In a research study I conducted a few years ago on the October stock market crashes, it was observed that these "crashes" usually took place – or ended - on the new or full moon in Libra (the new or full moon with the Sun in Libra). So this new moon on September 27 may be especially significant if stock markets continue their current rallies into that time frame. Of course with Venus translating the Uranus-Pluto square first, it may be a real roller coaster – or rocket - ride between now and September 27.
In the mundane world, such transits as these pertain to unexpected, sudden, disruptive, and even shocking events or decisions. We note that the Federal Reserve Board will conduct an unusual 2-day meeting with its directors early this week. The expected purpose is whether or not to launch another quantitative easing program (QE3), or some sort of "twist" regarding the purchase or issuance of new Treasuries (i.e. maybe a new 50-year bond?). 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.
These aspects are like earthquakes, hurricanes, and tornadoes, which are also ruled by Uranus. In fact it is also like a volcano eruption, which is ruled by Pluto. This is to imply that there may be a break in the stability of the system, or the foundation. What Japan went through in March of this year is symbolic of these very aspects. There becomes a greater awareness that change is urgently needed. With Pluto involved, we already know this is the case in regards to the world and national debt. Even the President seems to finally understand this now, or at least speaks as if he acknowledges it. But his choice to handle this urgency with yet another $457B stimulus package contains the very risks that are associated with Uranus square Pluto.
Between the meeting of the Fed governors and President Obama's demand for immediate approval of his newly formulated stimulus program, there are apt to be a few heavy storms brewing these next two weeks. Thunder and lightning, warnings to take shelter financially and physically, may dominate the headlines. If it was a war, it would be "shock and awe." But it's money and the bankers and a few politicians. Yet it might be just as scary as "shock and awe" in war, because something could happen – something could be decided - that we are totally unprepared for.
So what to do we do? Prepare for the unexpected, and prepare for financial markets to make very large price swings, taking out both support and resistance areas along the way. This is a time to trade the extremes, and not the usual boundaries. In personal business and relationship matters, this is the time to "think outside the box." Proposing and doing the same things that didn't work before won't likely work this time either. The risk is that it just makes things more critical and more dangerous. It is time to "re-set" and stop this "slow water-drip torture" soap opera. It is time to "Do the Bad Thing Good." But that takes a courage that political leaders just don't seem willing to exhibit (more stimulus spending isn't courage… it may be bold and it may involve risk, but it isn't courage).
It's a different kind of war we are fighting. It's not military – yet. But with Uranus in Aries, it could become military, as historically that is one of the ways that nations end up resolving their financial debts. That, or you execute the largest holders of your debt, as France did so ruthlessly and efficiently a couple of centuries ago (sound like Uranus in Aries?). Today, in the United States, that would be the Federal Reserve Board. Eliminate (or subsume) the Fed and you eliminate a huge portion of the federal debt. But then you have the even more frightening prospect of the nation's finances under the control of politicians.
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 everyone is waiting for their after-meeting announcements this week. The market players are expecting good news, judging by the run up of stock prices. I am expecting something a little more wild, and in fact I am expecting something unexpected to come out of this meeting... maybe a reversal of policy that no one anticipated.
Longer Term Thoughts will resume next week.
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 atwww.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 at 1-248-626-3034. 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.astrrofinanza.com 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. "The Ultimate Book on Stock Market Timing, Volume 5: Price Objectives and Technical Analysis" is now ahead of its scheduled release date on the new moon in Libra, September 27. It is now projected to be out at the end of this week. It is always a surreal feeling when I complete a book of this size (over 300 pages). Like every market analyst who writes a book, I think this is the greatest one ever written. Did I ever disclose that I have Mercury in Sagittarius? Well, it is true. I am very pleased with this book and I think it is the one book that you will truly get your money's worth from purchasing, even if you know nothing about geocosmic studies (its primarily about technical; analysis and price objectives). It's a book describing the tools that serious traders use. It identifies the formulas that they use to calculate price targets, and the trading plans that work using market timing and technical indicators. This book is like the market itself: it 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. 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!
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, 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 tohttp://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 monthly MMA Cycles Report and its companions – the MMA Japan Cycles Report and MMA European Cycles Report – came out last week. If you subscribe to this report and did not receive it, then please contact us immediately at email@example.com. 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, and will be available on Wednesday. For further information and subscription, go tohttp://www.mmacycles.com/catalogue/subscription-services/mma-cycles-report/.
January 6-7, 2012: Zurich Switzerland. Forecast 2012 Symposia sponsored by AstroData. Details to be announced shortly at www.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, 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.
Copyright MMACycles 2007-2011; 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 www.olmta.com
For other language editions of MMA´s weekly comments: