MMA Weekly Comments

Review and Preview

The column of two weeks ago stated, “In other words, we are entering a grand trine period between Venus, Jupiter and Uranus (July 27-31), 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.” On Sunday, July 30, there was a cease fire agreement. It lasted less than a day. While in effect, some of the stock indices that were trading during the cease fire ran higher. But then equity prices around the world came down into Tuesday-Thursday. By the end of the week, many were rebounding again, even to levels higher than that achieved in early July when Jupiter went stationary, trine to the Sun. However, not all rebounded that strongly, creating a potential case of intermarket bearish divergence in many parts of the world.

In Europe, all the indices we track made slightly higher highs than the levels seen in the first week of July. But there were differences between those that topped out on Monday, July 31 (as cease fire was in effect), and those that topped out on Friday (German DAX and Swiss stock indices made weekly highs on Friday, whereas London FTSE and Netherlands AEX made weekly highs on Monday).

In the Pacific Rim, the Hang Seng continued to look strong, making yet another new monthly high last week at 17,114. However, the Japanese Nikkei and the Australian All Ordinaries did not do the same. They are still below their lows of early July, and Australia still seems weak in comparison to Hong Kong. As stated last week, “In fact, it (Hang Seng) could easily go much higher as it appears to be in a new 50-week longer-term cycle.”

In the Americas, the Brazil’s Bovespa and the United States’ Dow Jones Industrial Average both eclipsed the early July highs. As stated last week, “The momentum indicators of each are poised for new monthly highs to form, perhaps early this week.” However, neither the NASDAQ Composite nor the Argentina Merval Index made new monthly highs, yet another sign of potential intermarket bearish divergence.

Gold and Silver prices moved smartly higher last week, as did crude oil and the currencies against the dollar. In the case of Gold and Silver, they reached their highest levels since early June.

Short-Term Geocosmics

The favorable grand trine with Venus ended July 31 as the cease fire took effect – and was then violated immediately afterwards as a more difficult aspect formation unfolded. As stated last week, “Monday (July 31) ends a favorable grand trine involving the benefic planet Venus…. Now we will begin a more challenging aspect formation known as a T-square involving the Sun, August 2-11. On August 2, the Sun will form a waning square to Jupiter; on August 7 it forms a conjunction with Saturn; and on August 11, it completes this multiple aspect formation with an opposition to Neptune… this combination of the Sun transiting (triggering) a T-square between Jupiter-Saturn-Neptune has the dynamic of either “irrational exuberance” or “hysterical panic.” In the first case, traders may bid stock prices up based on false assumptions, only to find immediately afterwards their judgment was in error. In the second case, they may realize that their hopes and dreams (Jupiter and Neptune) have been dashed, and reality (Saturn) strikes that the opportunity for peace and “cease fire” is much further away than originally thought. Progress on the war front is not so easy, and it’s going to take a lot more time. On top of that, with Saturn and Neptune involved, the possibility of deception and betrayal is increased.” So we had a cease fire, and the terms of agreement were immediately violated.

This is a preview of what to expect later in August when Jupiter will makes its third and final passage of a trine to Uranus (August 29) and Saturn will make the first of its three oppositions to Neptune (August 31). It is the theme of hopeful breakthroughs and agreements, followed by disappointing betrayals of those very agreements.

For this week, we will observe the Sun in conjunction to Saturn on Monday, followed by the Sun in opposition to Neptune on Friday, August 11, and then Mars in opposition to Uranus on August 13. The later two are powerful Level 1 signatures (highest correlations to cycle culminations in stock indices). The Sun-Neptune opposition is like the deception all over again, and the Mars-Uranus opposition is like the excessive and hostile reaction to the violation of that agreement all over again. We can expect stock indices and other financial markets (precious metals, currencies, and crude) to move sharply into and immediately following that period.

Long-Term Thoughts

In late August through mid-October there are a couple of powerful longer-term planetary cycles in effect. The first is a T-square between the Moon’s Nodes and Pluto, which is turning stationary direct. The second is the first of three passes of the Saturn-Neptune opposition, which we have discussed in great detail previously. But the Pluto-Nodal T-square deserves consideration too, especially as Mars will be involved on August 29, as it conjuncts the South Node, and thus squares Pluto. Astrologically-speaking, and given the heightened tension in the Middle East, these signatures do not bode well. We have already seen the propensity of the Saturn-Neptune for deception and broken agreements last week, as the Sun began an early “translation” of the opposition. And we have seen Israel’s reaction to those violations (some say their military reactions have been over-excessive, and have cost the lives of many innocent civilians). The point is that this situation is not likely to cool down. To the contrary, the deceptions and the hostile reactions are likely to get more intense late August through mid-October. Pluto, under these mundane themes, becomes extremely dangerous, and not necessarily limited to the Middle East. Pluto can correlate with the concept of secret plots to cause harm. Thus it may be necessary to put the Terrorist alert on red. But sometimes these aspects pertain to nature too. Instead of human lives being in jeopardy due to terrorist plots, crops and large parcels of land could be in jeopardy due to dangerous weather conditions of acts of nature (heat waves, fires, as well as hurricanes and floods).

How will this affect financial markets? Well it depends on exactly what the cause of the danger is. If man-induced, it probably sends stocks lower and precious metals higher. If nature-induced, it probably sends grain prices and other foods higher. Last week I discussed the view that Corn prices may be readying for a new and impressive bull market that could take prices to twice the level of their all-time high (i.e. $10.00 in the next 1-3 years). This view is based upon a combination of fundamentals (alternative source of fuel – ethanol), cycles, and geocosmics. Many have asked about how to position for such a move. In the next 1-2 weeks, I will provide you the names of some commodity trading advisors who can help you to develop a trading plan to capitalize on such a move.

In the meantime, understand that we are now in period of abnormal and difficult mundane conditions as suggested by our understanding of geocosmics. But in such difficult times, outstanding investment and trading opportunities are created. And historically, humankind has always pulled itself out of such turmoil. It may take years and even a decade to come out of this mess, but humankind will likely survive. The world hasn’t ended yet. And until it does, there will always be investment and trading opportunities, where the potential for profit and/or loss is always proportionate to the present degree of danger and safety.

Announcements:

The weekend intensive on the “MMA Financial Market Timing” course is on 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. Seminar Fee: The cost of this 2-day MMA Market Timing Seminar is $1995.00. There are discounts available 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.

The plan to do a similar seminar in the United States in October is probably going to be canceled until April. The reason is that I am running out of time to finish the revised Silver Book. I wish to have this book completed and out by the end of this year.

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.