More market thoughts into year-end

While Raymond Merriman didn't post a public weekly commentary last weekend, he did make some remarks in his December 15 commentary that pertain to this time period. So I'll quote here just some about this time period of late December. (You can find a fuller set in my most recent Merriman post on this site, or just go to Merriman's site for the weekly preview.)

I will add that I just looked at Merriman's home page to see if this is indicated as a likely reversal day for either the DJIA or silver, and it isn't (the value is well under 120 for both). This is an interesting indicator that you might want to check, especially on days of uncertainty.

All right then, here are those comments from Merriman's December 15 commentary that specifically discuss the current time frame:

The question now is will history repeat, and will we see another stock market crash into the end of this year? Or will it be different this time?

We may get that answer in about a week. From December 22-31, we will find the Sun and Mars both forming a conjunction to Pluto, ending with Saturn turning retrograde. What makes this especially interesting is that the Sun and Mars are essentially now making a “translation” to the forthcoming Uranus-Pluto square of 2012-2015, the heaviest planetary aspect of all within the greater celestial pattern known as the Cardinal Climax (2008-2015… for more information on this, please refer to a more detailed article on my website ...). This translation of Sun-Mars to Uranus-Pluto is taking place from December 10-28. We will have a preview of what to expect in 2012-2015 during this period. But for now, our concern is that stock markets have been rallying into the start of this period. We are also concerned because Mars is about to ingress from Sagittarius into Capricorn, December 27 a time which has been historically a historically dangerous time for Israel and its neighbors, and a time corresponding to big reversals in interest-rate related markets. Could it happen during the High Holiday season, traditionally a time when markets and the world are quiet and in peace? I suppose if the U.S. financial markets can fall into a panic just six weeks before a U.S. election (instead of afterwards), anything is possible under the Cardinal Climax.

Longer-Term Thoughts

As much as financial analysts and talking heads on TV financial shows are projecting even lower interest rates, my interpretation of geocosmic and cycle studies suggest just the opposite. We are very near to a critical turning point, and once it turns, we may not see these low interest and mortgage rate levels again in our lifetime. I happen to be in the camp that this deflationary period is going to end very abruptly with a new inflation monster. Combined with the forthcoming stimulus package, and ramped up government spending programs and unbelievable federal deficits, I think that by the time we get to the Jupiter-Neptune conjunction in the spring and summer, we have shifted from deflationary fears to inflationary fears.

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Folks, these thoughts sound consistent to me with market action that can surprise many in both directions, not only over the coming days but also over the coming months and years. For now, it just leads me back to that old phrase: if you're wrong, don't be wrong for long! again - careful out there and good luck all!