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MMA Comments for the Week Beginning May 23, 2011
Written by Raymond Merriman
The Market Week in ReviewLast week's full moon was particularly noteworthy in world stock prices. Depending on where in the world you were, the full moon took place on either May 16 or 17. In Asian and Pacific Rim equity markets, the low of the week took place on May 16 or 17. In the Australian All Ordinaries index, the low was May 16 at 4718, which was considerably higher than the primary bottom of March 17 at 4559. The high of the week occurred on Thursday at 4834, which is considerably lower than the high of the year so far at 5069 on April 11. Both the Hang Seng and Japanese Nikkei bottomed on May 17, and again that low did not take out the primary cycle trough of March 15-17. Both then rallied to their weekly highs on May 19, and again that was considerably below their recent highs of April 18 in the Hang Seng and May 2 in the. Nikkei. So for each of these indices, prices are in congestion between the lows of mid-March and the highs of April 11-May 2. In Russia, however, the MICEX stock index to a new multi-month low last week at 1603. That was its lowest level since December 2, 2010, and was probably a result of falling crude oil prices over the past two weeks. In Europe, there was some intermarket divergence as well. Each of the four indices we track made weekly lows on May 17 or 18. None took out their primary cycle troughs of March 15-17. Each of the four markets then rallied into the end of last week, May 19-20. These rallies did not make new monthly highs in the AEX, DAX, or FTSE. However, a new cycle high was recorded in the Swiss SMI index on Friday, May 20. Since this is right in the middle of a time band of several powerful geocosmic signatures, it may become a case of intermarket bearish divergence. However, that idea will be negated if prices in the former three indices make new cycle highs in the next 1-2 weeks. That possibility cannot be ruled out, as Jupiter and Uranus are still in Aries, and that is the engine still driving this "Asset Inflation Express," although it is getting old. In the Americas, there is also a potential case of intermarket divergence developing. In the USA, both the Dow Jones Industrial Average and NASDAQ Composite made their weekly low on May 17. That low was considerably above the primary bottom of March 15-16. The rally that followed into the end of last week, however, was not too impressive. It has not exceeded the multi-year highs of May 2, and it closed weak. Thus like most of the world's stock indices, the USA equity markets are also in congestion between the highs of May 2, and the lows of mid-March. But in South America, it was a little different. Argentina's Merval index is getting less and less volatile. The range of every week seems smaller and smaller, as it too continues in congestion between the cycle low of March 16 and cycle high of April 6. The Bovespa index of Brazil, on the other hand, continues to fall to its lowest levels since July 2010, even as other markets were rising into the end of last week. Inflation in Brazil and Russia is not translating into higher stock prices on their exchanges. In other markets, both Gold and Silver were weak into Tuesday, May 17 when they formed their weekly lows. Gold fell to 1471 and Silver to 3296. But in each case, those lows remained above the lows of the prior two weeks. The rally that followed was not too impressive in Silver as it topped out 3575 on Thursday. But Gold prices rallied to a weekly high into the close of last week, with Friday's intraday high up to 1515.80. Both metals still remain well below their highs of April 25 (Silver at 4984) and May 2 (Gold at 1577.40). Crude Oil made a weekly low on the same May 17 date, with the June contract down to 95.02. Again the market started to rally afterwards, slightly above 100.00 on Wednesday and Thursday, but it closed the week below 100. In currencies, the Euro and the Swiss Franc posted their weekly lows on May 16, one day prior to the full moon, and commenced rallies into early Friday that were still well below their cycle highs of May 4. The Euro then sold off again into the close on Friday, while the Swiss Franc remained near its weekly high. The Japanese Yen on the other hand, did just the opposite. It posted its high at the end of the prior week (May 13), and spent most of last week declining each day. The Sun is in Gemini now, so consistency between these markets is not to be expected. Regarding the U.S. Dollar, it made a new multi-year low at 72.86 on May 4. It had an impressive rally to a high of 76.19 on May 17 last week, after which it started to pull back into the end of the week. But it managed to close the week at a respectable 75.58. Readers are encouraged to read my long-term analysis of the U.S. Dollar posted at www.mmacycles.com. Just scroll down the page until you see the article. Short-Term GeocosmicsOnly Jupiter and Uranus, the key components of the "Asset Inflation Express," remain in the speculative and assertive sign of Aries. Indeed this ride has slowed down considerably since the new moon in Taurus on May 2-3 was followed by several other planets moving into the sign of the bull. The Sun is now leaving the conservative earth sign of Taurus for the wild and unpredictable sign of Gemini, May 21-June 21. Gemini is a mutable sign, and mutable signs are where trends often change. It gets volatile in mutable signs. Mercury will join the Sun in Gemini on June 2. Venus does the same one week later on June 9. Neptune is already in the mutable sign of Pisces through August 5. You can see the cosmic forces are shifting, because on June 4, Jupiter also leaves Aries. Only Uranus will remain there. In fact, Uranus remains there for about 7 years. But without the accompaniment of Jupiter alongside it, the "Asset Inflation Express" may become like a like a fast car without a driver, speeding along the autobahn without a map and lacking a clear idea of where it is headed. It's in a big hurry to get somewhere, but it seems to have lost its way, and so it starts to take alternative routes, hoping that one leads it onto a path it recognizes. But instead it just seems to get further and further off course, and increasingly anxious about it. Did I mention that the USA hit its $14.3 trillion debt limit last week, on May 17? As discussed previously, there are at least 4 major geocosmic signatures in effect May 20-23. Last week's column stated, "Something big may be about to happen. Maybe this is the end of the line for the Asset Inflation Express. Or maybe it continues into Neptune turning retrograde on June 2. This signature has an astounding 86% correlation to primary or greater cycles within just 10 trading days, and has the extra advantage of occurring just one day before Jupiter ingresses from Aries into Taurus." It is interesting that Mercury also transits into its ruling sign of Gemini just one day earlier, June 3. The end of the line is near. Longer-Term ThoughtsThe end of the line for the Asset Inflation Express relates to the historical correlation in stock prices of Jupiter moving from Aries to Taurus. In prior columns I have discussed the orb of time (7 degrees) in which this passage has correlated with long-term crests in the U.S. stock market. We are in that orb of time now that is centered on June 4, give or take about 7 weeks. And we discussed how it re-enters this astrological orb of space October 7, 2011-March 7, 2012 due to Jupiter's retrograde motion. One (or possibly both with a double top pattern) of these times is scheduled to coincide with the crest of this current bull market that started in March 2009. But it could be now, unless U.S. political leaders can come to an agreement on 1) raising the debt ceiling limit and 2) reducing government spending. One without the other is just kicking the can further down the road, and the further it is kicked, the harder it will be to get back to normal. The debt ceiling limit of $14.2 trillion has been reached as of last Tuesday, May 17. However, through its clever banking practices, the U.S. Treasury is now borrowing from federal pension funds (and other questionable steps) in order to stretch its cash flow out until August 2. That is the new "D-day" (default day), which seems to lack a certain required sense of urgency. If the USA defaults on its debt, that will be catastrophic, an opinion I have shared long before, but which is just now being talked about in financial and government circles. The problem for us as Financial Astrologers is that we see a time window of possible agreements coming to an end very shortly. May was previously identified as the "best month" for resolving this debt crisis issue through practical agreements, as many planets were together in the practical sign of Taurus, combined with a slew of favorable Venus transits. Venus also rules agreements, and the last Venus transit of this period ends on Monday, May 23, when it conjuncts Mars. After that, the cosmos starts to move from the stable and sensible influence of Taurus to the highly volatile, brilliant, but not necessarily practical influence of Gemini, where anything can happen. Typically agreements made in Gemini are more temporary than long-lasting. They are subject to many modifications. With Neptune also turning stationary retrograde on June 3, agreements may soon be more wishful thinking than practical. Promises made may not be deliverable once reality enters the picture. This is all a wonderful time for love and romance (May 2-June 6). But it is rapidly evaporating from a period of potential agreement on financial issues to escalating anxiety over the lack of any definitive solution. Equity markets are likely to respond with a resounding thud by the full moon period in mid-June (June 10-17). However, that does not negate the possibility of a sudden rise in equity prices first in the next few sessions, as long as the lows of last week hold. If not, this express may be derailing. |
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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 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 in September 2011. If you have one of the first four volumes, or if you subscribe to any MMA subscription report, you will be receiving a special pre-publication offer this week (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 15 copies of each available. We will allow them to remain out of print for a while before reprinting. If you have purchased one of the volumes, or if you are a subscriber to our market reports, and do not receive a letter from us next week, then please call us for the special pre-publication offer that will be in effect only until July 1. At that time we will announce a different pre-publication price to the public. Special Offer!!! Good while supplies last! New or renewing subscribers to any MMA subscription services will receive FREE one copy of the "English version only" of the Forecasts 2011 Book (postage cost not included). This offer is available to all MMA subscription reports, except 2-issue versions of the MMA Cycles Report. This offer ends when the remaining copies are sold out, and it does not apply to the foreign translated versions unless announced on their respective websites. To get your free copy of Forecasts 2011 with a subscription to an MMA reports, simply go to http://www.mmacycles.com/services/. When you place order, mention "special offer" under the comments section of your order. Or call us at 1-248-626-3034. The Forecast 2011 Book is still available in both printed edition and electronic book format. The remaining printed copies are currently $40.00, but will be marked down to $35.00 beginning 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 iPad, the iPhone 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 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. Events: August 13, 2011: San Francisco, CA. Financial Market Timing seminar, featuring Raymond Merriman and other market timers. It is on. Details to be announced shortly at www.tsaasf.org. Immediately afterwards will be a special meeting with MMA subscribers who are present. January 6-7, 2012: Zurich Switzerland. Forecast 2012 Symposia sponsored by AstroData. Details to be announced shortly at www.mma-europe.ch. March 16-18, 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 dralagifts@msn.com. 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. Mid-September 2012: The first annual "MMA International Cycles Summit on World Economy, Politics, and Financial Markets." Location will be near Florence, Italy in a 12th Century Medieval Castle that has a rich tradition for hosting other world summits over the past several centuries, including Napoleon, several cardinals and popes, and leaders of the third Reich in World War II (well, it is an interesting past history, to say the least – and they have the ghosts to prove it). Or it will be in Lake Bled, Slovenia, one of the most beautiful regions in the world. Details will be announced soon.
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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