MMA Weekly Comments

Announcement: We will take a two-week break from this column as I attend the ISAR Financial Market Timing conference in Tuscany, Italy, May 6-13. It is amazing, because we have exactly 100 people participating in this incredible event. The next column will therefore not be released until May 19-21, for the week of May 22.

Review and Preview:

The markets are rumbling. There is a sense of urgency and maybe even a little panic entering the political realm, and also many of the financial and commodity markets, especially in currencies, precious metals, and crude oil. Things are not so stable anymore, as we head into the very powerful Jupiter-Uranus trine (and six other Level One signatures) in the next ten days. This is therefore likely to be one of the most important geocosmic clusters – and hence potential market timing reversals – of the year. It is a good time to be amongst some of the greatest financial astrology minds in the world in Tuscany!

Gold continues to soar to its highest level in 25 years, with the nearby contract reaching 658 on Friday. A couple of weeks ago we speculated that 600 might now be the benchmark of support as we head towards new record highs, and even above 1000 in the next two years. It doesn’t mean there won’t be sizeable corrections along the way, but I am not so sure we will see prices fall under 600 for awhile. On the other hand, Silver fell from 1475 to 1180 during the past ten days, but has recovered to close at 1363 in the July contract on Friday. This is a case on intermarket bearish divergence, where Gold makes a new high but Silver does not. If Silver cannot close above 1440 soon, then one of those corrections may be in process as we head towards the very important ingress of the Moon’s North Node over 0 Aries on June 19.

Crude Oil soared to over $75.00/barrel in the nearby futures contract the prior week, and then fell back to test 70.00 last week. It will be interesting to see if a new rally into this week’s critical reversal period can produce a new high. If not, 70.00 may break shortly afterwards. But my forecast remains for $100.00 crude oil during the Saturn-Neptune opposition of August 2006-June 2007. The complaints over the price of gas are not over by a long shot. Nor is the dissatisfaction with the public over government leaders’ lack of ability to do anything about it (as if they really could or would).

But the most interesting market behavior last week took place in the currencies, where the U.S. Dollar plummeted against almost all major currencies in the back of new FED Chairman Bernanke’s implication that the rise in interest rates may soon be over. According to the Friday’s Wall Street Journal, “Mr. Bernanke didn’t put a timetable on a pause, but the likeliest time appears to be June.” Geez. Right when all the long-term cycles come due as reported in our “MMA Cycles Report” newsletters and Forecasts for 2006 Book, written back in November of the prior year. That’s why we are known as “Market Timers.” That’s why astrology, combined with the study of cycles, is arguably the most powerful of market timing tools.

Lest we forget amongst all the excitement in commodities and currencies, many of the world equity markets also witnessed new all-time or multi-year highs last week, like the Dow Jones Industrial Average, Brazil’s Bovespa and Argentine Merval Index, as well as Australia’s All Ordinaries, Netherlands AEX, and the German DAX. But these highs were not matched in other indices of these regions. In fact, some looked down right bearish, like Japan’s Nikkei Index and the London FTSE.

Short-Term Geocosmics:

This is it. We are now entering the second huge time band of heavily populated geocosmic signatures of the year, April 30-May 10. The first was March 1-17, which produced outstanding buying opportunities in many world stock indices. In the middle of this current cluster lies the potent Jupiter-Uranus trine of May 5, whose principles clearly relate to the “blow-off” mode that we see so many markets exhibiting today. It is a very exciting astrological (psychological) dynamic, relating to inventions, risk, adventure, and venture into new realms of experience. In fact, there is a grand trine forming in the heavens in the next ten days, between two planets and Mars, which just adds more zest and drive to the climate of the collective. With Mars, you get both volume and volatility. The possibility of a climax in investor sentiment is very real, but sometimes this type of momentum spills over a couple of days past the signatures. It is hard to bring a roaring freight train to a sudden halt. But once it does stop, everyone falls off balance – except those who prepared for the unexpected and sudden change of pace.

Long-Term Thoughts:

Two pieces of news caught my attention this week. First, there was TV talk show reports that “The President can’t catch a break.” Republicans are lamenting that the recent weeks have just been a case of “bad luck” for their leader, Mr. Bush. And then the second piece of news probably illustrates the reason for the first, and is covered nicely in the editorial page of Friday’s Wall Street Journal, titled “Congress Gone Wild.” In this editorial, the editor takes to task the Senate Republicans proposal for a $100.00 rebate to jump on the bandwagon of appearing to do something to address the issue of skyrocketing gas prices – as if this inane proposal will really make a difference. “As we see skyrocketing gas prices around the country, it is time for this Congress to act,” declares South Dakota’s John Thune. “And so the Members shall,” states the writer, “bravely marching off to battle higher prices by writing every tax payer (below a certain income level) a one time check worth about two tanks of gas if you’re driving an SUV… This is what happens when a President is at 36% job approval… and to think there are still six long months until Election Day.”

And on another talk show, it was illustrated how every president in the past 60+ years whose job approval has fallen to as low as this president’s (other surveys say his approval rating has slipped to 32%), has watched his party lose the White House in the following election. And, as I have stated before, if the Republicans don’t maintain control of the House and/or Senate this November, look for proceedings to begin to impeach Mr. Bush. Some readers may claim I am biased by making such a statement, but I assure you, I do not belong to any political party.

“Can’t catch a break.” Doesn’t it sound like someone going through a transit of Saturn over his natal Ascendant, Mercury, and Pluto? It’s not that Saturn necessarily brings “bad” things, but it certainly doesn’t give any breaks. It is a time when one has to be accountable for past decisions. It is time when one can move ahead by acting with integrity, ethics, honesty, and professionalism, and erases any doubts to the contrary. But all the “breaks” that are going against this administration have to do precisely with these issues. And the public isn’t relenting on its dissatisfaction. With Saturn coming into opposition with Neptune, August 2006-June 2007, the public isn’t likely to become any happier or more forgiving of their leaders. In fact, unless the leadership starts acting in ways that commands an aura of trust– instead of the mock appearance of “caring” by issuing $100.00 rebate checks for rising energy costs – the public will act out their dissatisfaction by demanding a major overhaul of that leadership. You can’t buy respect for $100.00 anymore. It’s only two tanks of gas at today’s prices. Why not try something more akin to the positive potentials of Uranus in Pisces? Like… legislation for new serious energy sources?

Announcements:

The “MMA Cycles Report” and “MMA Japan Cycles Report” will be issued this week. These reports come out every three weeks to subscribers. The “MMA Cycles Report” (Monday night by email) is our shorter-term report for traders of the U.S. stock indices, T-Notes, Gold, Silver, Euro, Swiss Franc, Grains, and Crude Oil. The “MMA Japan Cycles Report” covers the Nikkei, Dollar/Yen, and JGB Bonds, and comes out Tuesday afternoon. For more information and subscription, please go to http://www.mmacycles.com/services.htm.