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MMA Comments for the Week Beginning May 2, 2011
Written by Raymond Merriman
Gold soared to another new all-time high in a continuing concern that paper, fiat currency (i.e., the U.S. Dollar) is inching ever more towards the precipice of a serious run on it, and maybe eventually even becoming worthless if something (or someone, like a CENTRAL BANK) doesn't stop it sooner rather than later. The Dollar is just a couple of cents above its all-time low of March 2008 as some currencies are making new all-time highs against it, like the Swiss Franc. As noted before, the Moon's North Node is in that range of nine months from its passage over the 0 degree Capricorn point (February 2011), a time when currency prices tend to make a major reversal of long-term trends. The Dollar still has a chance if the Fed would just pay a little more attention to it, and Congress and the White House would just try a little harder to come to an agreement to cut spending and raise the debt ceiling limit before it is too late. May would be a good time to accomplish this with just a little effort. That's the bend in the tracks alluded to earlier, coming up within a few weeks of June 4 when Jupiter turns from a ram to an ox. You don't want the ox to tip the train over, and the presence of the ox won't be able to keep up the speed of the ram when the track bends. The ox does better with a steady pace than a race. The Market Week in ReviewThursday's headline article in the Wall Street Journal, one day after the Federal Reserve and Ben Bernanke officially announced they would phase out of programs to pump money into the financial system (QE1 and 2), was titled: "Fed Takes Foot Off the Gas." How appropriate given that we have used this very analogy for the Fed's super accommodative monetary policy so many times, ever since the writing of Forecast 2010 Book, which was written in November 2009. In fact, it is the basis for our term "Asset Inflation Express," which continues to roar down the tracks, primed by the position of both Jupiter and Uranus in Aries. But, as stated last week, a very sharp bend on these tracks is coming up within 7 degrees of Jupiter leaving Aries and entering Taurus on June 4. That equates to May 2-July 22, 2011, with a secondary bounce when Jupiter retrogrades back to 0-7 degrees of Taurus late this year through early the next. The question is: has the Fed really taken its foot off the gas pedal enough to prevent a rollover of this "Asset Inflation Express" when it comes to that bend? The historical correlation of Financial Astrology to price movements in the Dow Jones Industrial Average suggests the Fed hasn't and it won't. The Fed funds rate will remain at or near 0% indefinitely, which we now know means for at least the next two Fed meetings, according to Bernanke's interview. Yet the world equity markets are not acting in concert with one another. This may be a left-over response to Mercury retrograde, which ended one week ago on April 22. As we know, markets tend not to behave rationally, especially during Mercury retrograde periods. Nor do political and banking leaders. It is a time when economic and political announcements are often contradictory, leaving investors confused. Breakouts of support and resistance frequently become fake outs shortly after. But in this case, we witnessed some equity and financial markets taking off to new multi-year highs last week, while others fell or failed to make similar new highs. In Asia and the Pacific Rim, for example, we note that the Japanese Nikkei rallied back to its highest level since the March 11 earthquake. The Russian MICEX index also rallied smartly last week, but was still well below its multi-year high of 1865 registered back on April 6, a three-star critical reversal zone. But in the case of the Australian All Ordinaries, India NIFTY, and Hong Kong's Hang Seng indices, last week witnessed falling prices, back towards the major cycle lows of April 18-19, when Mars was in opposition to Saturn, a strong Level 1 signature according to our studies published in "The Ultimate Book on Stock Market Timing Volume 3: Geocosmic Correlations to Trading Cycles." In Europe, the story was much different and mostly bullish last week. The star performance was rendered by the German DAX index, which soared to 7514 on Friday, its highest level since January 2008. The other indices also rallied into the end of last week, but none made new multi-year highs. In fact, the Netherland AEX and Swiss SMI indices were well below their yearly highs of February 18-21, which was another MMA three-star critical reversal date. The London FTSE is still slightly below its yearly high of the same period (February 21). In the Americas, we see another tale of two cities (err, continents). The Dow Jones Industrial Average soared to its highest level since May 2008 (above 12,800). But the NASDAQ Composite rocketed to its highest level since January 2001! Yet neither the Bovespa of Brazil nor Merval of Argentina are anywhere their yearly highs. In fact, they are closer to their major cycle lows of April 18. Did I say it is a bizarre world right now? The indices that are falling have one thing in common: high inflation rates. So much for the argument that high inflation will drive stock markets higher. Yet, this is the "Asset Inflation Express," which is different than the price inflation submarine. In other markets, Gold soared to another new all-time high in a continuing concern that paper, fiat currency (i.e., the U.S. Dollar) is inching ever more towards the precipice of a serious run on it, and maybe eventually even becoming worthless if something (or someone, like a CENTRAL BANK) doesn't stop it sooner rather than later. The Dollar is just a couple of cents above its all-time low of March 2008 as some currencies are making new all-time highs against it, like the Swiss Franc. As noted before, the Moon's North Node is in that range of nine months from its passage over the 0 degree Capricorn point (February 2011), a time when currency prices tend to make a major reversal of long-term trends. The Dollar still has a chance if the Fed would just pay a little more attention to it, and Congress and the White House would just try a little harder to come to an agreement to cut spending and raise the debt ceiling limit before it is too late. May would be a good time to accomplish this with just a little effort. That's the bend in the tracks alluded to earlier, coming up within a few weeks of June 4 when Jupiter turns from a ram to an ox. You don't want the ox to tip the train over, and the presence of the ox won't be able to keep up the speed of the ram when the track bends. The ox does better with a steady pace than a race. For an article I recently wrote on the future of the U.S. Dollar, go to the front page of our website at www.mmacycles.com and scroll down to the article. Short-Term GeocosmicsOn Saturday, April 30, Mars will form a conjunction with Jupiter in late Aries, and Venus will end its translation of the wide T-square of Saturn, Uranus, and Pluto (with Pluto at the midpoint of the Saturn-Uranus opposition). The last part of this translation of Venus is its opposition to Saturn (April 30). In a study once conducted on the Japanese Nikkei Index (by yours truly), hard aspects from transiting Venus to Mars, Saturn, or especially Uranus were found to have a very strong (i.e. 80% or more) correlation to major or greater cycles within 4 trading days. If it is to be valid this time, it would be from a crest. The transit of Mars through the final degrees of Aries is also important. It joins Jupiter in 22-27 degrees of Aries this week, which is a critical sector of the New York Stock Exchange chart (founded May 17, 1792). Jupiter will remain there through May 25. This has been observed (by none other than me) to have high correlation to reversals in the U.S. stock market. And it should not go unnoticed that there is a new moon in Taurus, the sign of money and net worth, on May 3. Rising equity prices often form at least a temporary top within a day or two of new moons. We also note that heliocentric Mercury exits Sagittarius on the new moon of May 3. As expected, precious metals, crude oil, and currencies (against the Dollar) were very strong for the first few days of this ingress (it entered Sagittarius on April 22-23). Gold made a new all-time high, Silver came close to breaking above its all-time high of 5000 (it reached 4982 on Monday, April 25, our three-star critical reversal date), and Crude Oil soared to its highest level since its all-time high days of May 2008. As mentioned, the Swiss Franc made a new all-time high last week too, and the Euro currency rallied towards the dreaded 1.5000 level to the Dollar. It's all related to heliocentric Mercury in Sagittarius' explosiveness, and the Jupiter-Uranus transit in Aries. That's a lot of fire power fueling this bullet train of assets. But helio Mercury in Sagittarius ends this week, just as Jupiter and Mars start entering that zodiac sector when the top to those assets is due to culminate. In other words, we are nearing the end of the line. It would be wise to prepare to switch to another line before all the oxen get on board and tip the balance of this train. There will be no "Longer-Term Thoughts" section this week. |
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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."
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The Forecast 2011 Book is still available in both printed edition and electronic book format. The remaining printed copies are currently $55.00, but will be marked down to $40.00 beginning May 1, then $35.00 June 1, and finally to $30.00 on July 1, should any copies still be available. The electronic book version of the book is also available via I Pad, the I Phone 4, and Amazon Kindle, but those prices cannot be changed The Amazon Kindle edition is available to anyone anywhere in the world. Just go to their bookstore and type in "Raymond Merriman" or "Forecast 2011." It is available in Spanish as well. It is also available via ITunes if you have the Apple I Pad or I Phone 4. Both the English and Spanish versions are available in this format to any resident of Australia, Canada, France, Germany, United Kingdom, or the United States. If you are not a resident of these countries, you can still order it if you have an email address registered via one of these countries. Just go to ITunes, and then "Library," then "Store," then in the field titled "Search," type in "Forecast 2011" or "Raymond Merriman" (without quotation marks).
The printed version of the Forecast 2011 Book is also still available in Chinese, Swiss, Dutch, Japanese, Spanish, and Russian versions. The Chinese book contains an analysis of the Hang Seng stock market. The Japanese Book contains an analysis of the Nikkei index. We are pleased to announce that that this year's book may be purchased at these websites, and in these languages: Chinese: at http://www.zzdcycles.com Dutch: at www.markettiming.nl German: at http://www.mma-europe.ch/ Japanese: at http://merriman.jp Russian: at http://www.mmafinance.ru/ Spanish: at www.mmacycles-spanish.com
The final Volume 5 of "The Ultimate Book on Stock Market Timing" series is nearly finished. This will complete a project started in 1996. The previous 4 volumes have been on "when" to buy and sell, or how to forecast a future cycle low or high. This last volume addresses the subject of "where" to buy and sell, or "forecasting price targets." It is the missing link. It details the mathematical formulas and technical studies used to enhance timing of entry and exit in any market, but especially stock indices. The book is expected to be out sometime between August-November 2011. If you have any of the first four volumes, you will soon be receiving a special pre-publication offer for advanced orders (or call us to place your order if you want to make sure you are on the list). We should point out that Volumes 2 and 3 will probably be sold out before this new volume comes out. There are less than 25 copies of each available. We will allow them to remain out of print for awhile before reprinting.
I am oftentimes asked for recommendations of a money manager who uses my methods, since I won't manage other people's money. 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 MMA 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 dukeoneil1@gmail.com, or 1-(303) 247-0600. Duke will be with us in Kansas City for those who wish to personally meet him. For those looking for a professional trader of commodity and futures contract might consider Ted Lee Fisher at ted.fisher@comcast.net. Ted is a legend in financial futures and has a seat on the CME. He is also the individual who first introduced me to the idea of "Asset Inflation Express" back in 2009. 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, you may contact him through www.brunnerinvest.ch.
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).
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