MMA Comments for the Week Beginning September 5, 2011
Written by Raymond Merriman
Review and Preview
You couldn't have asked for a much better week of trading stock indices than that offered via the principles of Financial Astrology. As stated in last week's column, "First there is a new moon on Monday, August 29. This is followed by Jupiter turning retrograde, and forming a favorable trine to Venus on Tuesday, August 30. On Friday, September 2, the Sun will also form a favorable trine to Jupiter. Thus we may conclude that next week will be very "Jupiterian" in nature. At its best, Jupiter is optimistic, hopeful, and relates to rising prices. At its worst, it can be exaggerative and hysterical, coinciding with sharply following prices and then a reversal. I would opt to form a trading plan based on the more optimistic manifestation this week."
Many stock indices around the world made their yearly lows on August 8-9. Those lows were tested on August 19 and then again on August 26. From there, equity markets soared to new monthly highs last week, right into the middle of the Jupiter transits discussed in the column. August 31-September 1, the dates of the high, was also a lunar reversal period, as shown by the weighted values posted every day on the top of our web site at www.mmacycles.com. These values are based on the studies reported in Volume 4 of "The Ultimate Book on Stock Market Timing" series.
Following the highs of September 1, these same indices pulled back into Friday. The declines were steep in the European and American markets following the USA payroll reports Friday morning. The good news is that those reports showed no decline in unemployment for the month of August. The bad news is that they also showed no job gains when economists were forecasting close to 100,000 new positions. This was also bad news for government leaders, but excellent news for holders of Gold, Silver, and U.S. Treasuries. Treasuries and Gold were nearing their all-time highs again as the week ended with the Moon in Scorpio, the sign of continuing worries over debt matters. In fact with Scorpio, the economic woes seem to be an abyss with no bottom. Things keep falling further and further with no end in sight.
Traders to MMA's daily reports had an excellent week in stock indices, however. First they covered all shorts below 11,000 between last Friday and Monday, August 26-29 for handsome profits and went long. Then they covered the longs Tuesday-Wednesday and reversed to the short side, near the high of the week around 11,700. They did this in all three indices (DJIA, S&P and NASDAQ).
This last time band of heavily populated geocosmic signatures was quite interesting in its correlation to the price movement in stock indices. It started on Sunday, August 21 and lasted through Friday, September 2. The low of this last move was on Friday, August 19, as the time band started. It made a secondary low right in the middle, on Friday, August 26. It then topped out on September 1, one day before the time band ended with third and final Jupiter transit (Sun trine Jupiter).
There are no major geocosmic signatures that have a high historical correlation to reversals in financial markets next week. But get ready for the week that follows, beginning September 12 with a full moon and then a series of Level 1 (most powerful) signatures that correlate to market reversals starting on Friday, September 16 and lasting into October.
Longer Term Thoughts
"By 2003 the debt-to-GDP ratio has risen to 61.7%. Many blamed the Bush tax cuts for adversely impacting federal revenues, causing the debt to spiral upwards. But that is just not true. Federal revenues declined by almost 12% in the early years of the decade, but when the tax cuts fully kicked in 2003, the economy began to grow strongly again, and federal revenues increased 44% in the next four years, while unemployment fell."
- John Steele Gordon, Wall Street Journal, "A Short Primer on the National Debt," August 29, 2011.
Sometimes it feels like they are reading these columns. I mean, wasn't it just last week that this column stated basically the same thing?
The response to last week's "Longer-Term Thoughts" was unprecedented. I always get mail after posting these columns, but last week's mail was over the top. Apparently many of you liked the article I wrote on the damaging effect of the Federal Reserve Board's low interest rate policy not just on savers, but also on the U.S. Government's (lack of) tax receipts. I quit counting after the first 15 letters, but up until then, 13 were extremely grateful and supportive of the column, and only two were adamantly opposed. And the opposition had to do with the comment that the Bush Tax Cuts were not the cause of the current deficit or the widening polarity between the classes in America – at least not anywhere close to the policies of the Fed, which have depleted the savings, spending, and tax payments of the middle class in America. Indirectly, this can also be a contributor to the anemic jobs growth that plaques the American economy today. If people can't spend the interest earned from the savings as they use up until four years ago, and instead they feel compelled to save, then there is no "consumer spending" that is so necessary to bring back the economic good times as well as give small businesses a need to hire and provide young entrepreneurs with the confidence they need to start a new business.
So what is happening here longer-term, via the principles of Financial Astrology? First and foremost, I think, is Pluto in Capricorn. This 15-year transit started in late January 2008, in the very week that Bernanke and the Fed dropped the fed funds rate sharply in order to create more liquidity when it became apparent that the USA sub-prime mortgage crisis was breaking out across the globe. As stated in every Forecast Book since 1994, the period beginning in 2008 and lasting through 2015 would likely be the most difficult economic crisis in the world since the Great Depression. And that proved to be true.
The last three years of this challenging time frame would be dominated by the 126-year quarter cycle of Uranus and Pluto (for astrologers, that means Uranus will form a waxing square to Pluto in 2012-2015). If one studies the history of the times in which these two planets were in any hard aspect (conjunction, square, or opposition), you will see an eerie correlation to economic depressions, recessions, and/or financial panics. We had a glimpse of what this might be like last month, as they came within one degree of their exact square aspect. In June 2012 they will make their first of seven exact aspects for this period, lasting through March 2015.
What should we do? Should we panic? Well, no. It's already too late for that. The panic has already come once and now it is starting up for its second manifestation. We should not panic, but we probably will because our leaders will urgently command us not to panic as they grit their teeth and search for someone to blame (probably George Bush or Barack Obama, depending on which side of the aisle you favor). No, what we should be doing instead is figuring out how to protect our assets and those relationships closest to us. One thing I was impressed with during my travels to Europe over the summer is how many people have already put together their own social security net in case of another economic plunge. "If I can't afford it, who will take me in? If I can afford it, who could be in trouble that I would take in?" They have been busy making agreements to help one another if the need arises. I don't see that happening in America.
It is ironic, isn't it? In times of greatest fears and threats, we first of all blame one another (especially our leaders), but then we seek contact – connection – with one another. The forces of destruction are huge and very much alive today (Pluto squared by Uranus). But the forces of creativity and mutual protection of all that we value, i.e. especially relationships, is even stronger. History implies that the evolution of humanity is tilted more towards the need to create and connect, and not the urge to destroy. But the play between the two forces is always present. It is like the alchemical forces of love. In order for love to last, you must find the perfect balance between separation and closeness with one another (Uranus and Moon/Venus). And that balance is different in every relationship. The same is true between the populace and its leaders. Too much involvement (closeness) in your life will cause you to turn off to the other person, the government. On the other hand, too little involvement will cause you to look elsewhere for closeness and leadership. The United States has experienced extremes in these two dynamics during the past two administrations. Somewhere, somehow, there will arise a balance in order to break through to the solution and resolution. It may take this entire decade to get there, but I suspect by the time Jupiter comes together with Saturn, and Saturn comes together with Pluto, the breakthrough will happen, the leadership will turn the corner. It seems to be the important macrocosmic cycle that correlates to this human activity cycle on Earth.
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 for ordering before October 15 is $45.00 plus postage. After that 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 at 1-248-626-3034. Save Big Bucks and Order Now!!!
"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 could be ready in the next 10 days. 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 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."
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, February 23, and a workshop on "Financial Market Timing" on Saturday, February 25.
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 to www.uacastrology.com. There will be an awesome Financial Track, featuring some of the top Financial Astrologers and researchers in the world.
September 20-27, 2012: The first annual "MMA International Cycles Summit on World Economy, Politics, and Financial Markets." The final decision on whether or not to host this event will be made shortly, by September 20. The location was to be in Lake Bled, Slovenia, one of the most beautiful regions 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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Previous weeklies (2006) are archived at www.olmta.com