MMA Weekly Comments

Review and Preview 
 
Equity markets around the world bottomed early last week, and then rebounded modestly. 

In Europe, all the indices we track completed a trading cycle trough on Monday, July 17. These lows did not take out the lows of June 13-14, our last three-star critical reversal period. And the rallies that followed did not (as of yet) exceed the highs of July 3-7, which was the period coinciding with the Sun trine Jupiter and Jupiter turning stationary direct.

In the Pacific Rim, the situation was similar, except the dates for the low varied. The Hang Seng made its secondary low on Monday, July 17, same as European markets. The Nikkei index of Japan wasn’t open on July 17, so it bottomed on Tuesday, July 18. In Australia, the All Ordinaries formed their weekly low on Wednesday. All rallied afterwards, but none took out the highs of early July, although the Hang Seng appeared the strongest.

In South America, it was similar. A secondary low formed on Tuesday, July 18, that was not below the lows of June. The rally was modest, far below the highs of the Jupiter signatures time band in early July. In the United States, however, both the Dow Jones Industrial Average and the NASDAQ Composite did take out their lows of June 13-14. This is interesting for two reasons. First, they were the only markets we track which did make a new low for the last month, so we have a case of intermarket bullish divergence. But, as the DJIA made a new low, it begins to create a pattern of lower lows and lower highs of the same cycle types, which is a characteristic of a bear market. It fits with the view that these two markets are still in the downside of their 4-year cycles, with a possibility of declining another 10-15% or more from here before the year is over. But that doesn’t negate the possibility of rallies along the way.

After posting a new all-time high of 79.45 in the nearby futures contract on July 14 – following the outbreak of violence in the Middle East - Crude Oil fell back this week, to a low of 73.51 on Wednesday. Gold and Silver also fell back hard this past week. The Euro, on the other hand, bottomed on July 19 and rallied smartly into Friday, even as Gold and Silver fell hard. This fits last week’s comments that, “For this coming week, Venus will enter Cancer on Wednesday, July 19, oftentimes a signal for a reversal in currencies, sugar, copper, and soybean markets within 2 trading days. Then on Saturday, July 22, two more ingresses will take place as the Sun enters Leo and Mars will enter Virgo. These two planetary sign changes can correspond to reversals in precious metals and interest rate sensitive markets, like T-Bonds and T-Notes.”

Short-Term Geocosmics

As stated last week, “Mercury continues its retrograde motion (July 4-29), and financial markets continue to flip-flop between mixed economic and political signals. This is not an easy trading environment.” It seems that every 1-4 days the investor sentiment changes on the odds of a Central Bank increase in interest rates. They just don’t know, and as a result, T-Bonds and T-Notes may fluctuate a lot now, as well as currency prices.
 
This week we will begin the longest “geocosmic cluster” zone of the year, lasting July 27 through September 5. The first signature is an interesting one because of its potential ramifications for world events. It is the classically harmonious Venus trine Jupiter on Thursday, July 27, following the new moon in Leo of July 25. Then on Friday-Saturday, July 28-29, Mercury will turn direct, and on Sunday Venus will form another favorable trine, this time to Uranus. In other words, we are entering a grand trine period between Venus, Jupiter and Uranus, immediately as we start the waxing moon phase and end the Mercury retrograde. I think this means there will be a Middle East truce and cease fire. In reaction, the equity markets may stage another decent rally. How long it lasts and how high prices go, will say much about where we are in the 4-year stock market cycle.

All of this is building up to a climax at the end of this great geocosmic cluster zone. Three powerful signatures are in effect August 29-31: Jupiter making its last waning trine to Uranus, Mars in waning square to Pluto, and the astrological granddaddy of the year - Saturn making its first of three oppositions to Neptune. This is a powerful and political 36-year cycle. Things could get very tense again after that, as we head towards the mid-term elections in the U.S.A. in early November. I still consider possible that President George Bush’s normal completion of his own term in office will be dependent upon the outcome of this election. If the Republicans lose the House and/or Senate, he will become more than just a “lame” duck President. He becomes a “sitting” duck. I do believe there will be more than the usual percentage of incumbents voted out – in both parties. Saturn in opposition to Neptune supports the view of last week’s survey that most Americans are disgusted with the way this country is going, and they blame Congress for that, even more than the President. But clearly, they blame both. And Saturn-Neptune is a “blame game” signature. Somebody is going to be sacrificed. Maybe a lot of people.

Long-Term Thoughts

Last week’s column stated, “If life on earth sounds challenging for the next few years, it is. But also remember that in such challenging times are incredible long-term investment opportunities. You just have to know where to look, recognize it when you see it, and have the courage to invest in it. Think back to the mid to late 1960’s, the last time Saturn and Uranus made an opposition. Think back to all the changes in the world that period signified. And a key to understanding those opportunities lies in your recognition of what the youth are saying, doing, and buying.”

To these thoughts, I had two inquiries. The first was, “Is there anything we can do about the current insanity in the world?” And the second was, “What kind of opportunities are the youth likely to produce for us?” In reply to the first inquiry, I don’t believe there is anything one can do to alter world circumstances - other than to be conscientious about everything you do pertaining to the world condition. Individuals cannot control tragedy brought on by external circumstances, but only our reactions – and possibly acceptance – of them. The only thing we can control is our own joy, for that is based upon our own inner choices.

In response to the second inquiry, we might be able to understand what opportunities might be present by analyzing the planetary themes in effect the last time Uranus and Saturn were in opposition, 1965-1967. At that time, Uranus was in the ecologically and health-friendly earth sign of Virgo, while Saturn was in the spiritual and musically-inclined sign of Pisces. Each of those areas resulted in dramatic changes and financial opportunities afterwards. The music industry was revolutionized. The health food and fitness industry became a major economic force. The ecological movement got well-underway. And of course, there was a metaphysical, spiritual movement that became known as the “New Age” and led to remarkable financial opportunities. Maybe think of the musical “Hair” and other movies and theatrical productions of that era, and what they spawned in terms of investment opportunities in the entertainment field. Of course, the pharmaceutical and drug business (both legal and illegal) also launched into high financial profit gear then too.

The interesting thing is that this Saturn-Uranus opposition will be in their opposite signs from that of 1965-67. That is, Saturn will now be in Virgo, and Uranus will be Pisces. So, the same fields are likely to present the same kinds of movements and long-term investment opportunities: ecology and energy-saving concepts, healthy foods and fitness, medicines and drugs (bio techs?), music, and entertainment. Look for major changes in each of these areas, with long-term trend potentials. It’s another “New Age” movement, but it’s different this time too.

Announcements:

If you are an active short-term trader, you may wish to consider subscribing to our Weekly or even Daily Market Reports with short-term trading recommendations. 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, T-Bonds, Soybeans, Wheat, Gold and Silver. The daily reports cover all stock indices listed above, as well as futures in Euro, T-Bonds, Soybeans, Gold and Silver. Subscription to the daily report also includes the weekly report. For more information, go to http://www.mmacycles.com/services.htm, or call our offices at 1-248-626-3034.

A weekend intensive on the “MMA Financial Market Timing” course is being planned for August 26-27, in Buenos Aires (see www.mmacycles.com for further information).  The focus of this small intensive will be upon MMA market timing techniques as they apply to trading of U.S. stock indices, the Euro and Swiss Franc currency against the U.S. Dollar, as well as Gold and Silver markets. Both long-term and short-term cycles will be addressed, and projections of each market will be covered. In order to conduct this seminar, it will be necessary for a minimum of 5 people to register before August 1. The maximum allowed to attend will be ten persons. In the event that less than 5 people register by August 1, this seminar will be cancelled. Seminar Fee: The cost of this 2-day MMA Market Timing Seminar is $1995.00. However for those who register early (prior to August 1), the discounted price is $1500.00. There are further discounts to those who are subscribers to any of the MMA newsletters. Please inquire directly to mmacycles@msn.com for those additional discounts, as well as to receive via email a further description of what this course will cover. The cost for a spouse to attend is $300.00. Registration: You may register for this MMA Seminar in Stock Market Timing via credit card by calling 1-800-662-3349 or 1-248-626-3034, or faxing registration to 1-248-538-5296. You may also register via e-mail at mmacycles@msn.com or by sending check or money order in US funds to MMA, P.O. Box 250012, W. Bloomfield, MI 48325 U.S.A.

Plans are at work to set up a similar workshop in the United States October 13-15. Right now we are looking into hotels in Denver or Chicago, with an outside possibility of Phoenix.

If you are an active short-term trader, you may wish to consider subscribing to our Weekly or even Daily Market Reports with short-term trading recommendations. 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, T-Bonds, Soybeans, Wheat, Gold and Silver. The daily reports cover all stock indices listed above, as well as futures in Euro, T-Bonds, Soybeans, Gold and Silver. Subscription to the daily report also includes the weekly report. For more information, go to http://www.mmacycles.com/services.htm, or call our offices at 1-248-626-3034.