Comments for the week beginning February 12, 2007
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Several equity markets in the world made new all-time or multiple highs again last week, including the Dow Jones Industrial Average, which soared to 12,700 on Wednesday, February 7, as the Venus conjunct Uranus, and thus translated the major Jupiter-Uranus square signature that unfolded January 22. As stated last week, “There is astrological cause to think that this could correspond to a crest in the stock market (again). Previously we had stated the importance of the Jupiter-Uranus square. Now this week the first “fast planet” (Venus) translates to that square. It conjuncts Uranus and therefore also squares Jupiter. Sometimes it is the “translation” of a fast planet to the slower moving planets that act as the catalyst for the slower moving planet’s correlation to a cycle reversal.” The fact that the new all-time high in the DJIA occurred exactly on the date that the first “fast” planet transit touched off the longer-term planetary signature may prove to be significant. It’s a start, but too early to confirm its importance.
New all-time highs were also registered last week in Australia’s All Ordinaries Index, The Swiss Stock index, and the Bovespa of Brazil. New multi-year highs also occurred in the London FTSE, Netherlands AEX, and German DAX. But last week’s rallies failed to register new monthly highs in the NASDAQ Composite, Hang Seng of Hong Kong, the Japanese Nikkei, and the Merval stock index of Argentina. Again, it is too early to tell if this kind of intermarket bearish divergence will be significant, but we do note that it is occurring within this critical reversal zone outlined last week.
Last week was impressive – again – in the precious metals, where Gold and Silver soared to their highest level in several months. It was also noteworthy in Crude Oil, where prices finally broke above the $60.00/barrel barrier. Soybeans also soared to $7.50.bushel, consistent with our views expressed in this year’s Forecasts for 2007 book.
Short-Term Geocosmics
As impressive as last week was for many financial markets, we must keep in mind two things. First, this is the second grouping of several geocosmic signatures in a short-span of time this year, February 7-13. This constitutes what we consider a critical reversal zone, within three trading days of the February 9-12 midpoint (Friday-Monday). The second thing to note is that Mercury now turns retrograde, February 13-March 8. This is usually a very unstable technical environment for financial markets, because political announcements and new economic data that are released tend to create conflicting signals to investors. Is it bullish or bearish? One set of announcements is bullish, the next is bearish, and so on. Given that the Sun will also enter Pisces February 19 for one month, probably adds to the confusion of the ordinary investor for the next few weeks.
Still, we know that money will continue to pour into the market through retirement plan contributions that are due by April 15. That alone continues to be a huge support to stocks continuing higher. It will take an unexpected shock to stop the tide. But then again, Jupiter is in square to Uranus, and the Sun will next touch off this pattern in the first ten days of March. Jupiter square Uranus is a classical signature of a sudden surprise, or shock. And on February 28, Saturn will undergo its second of three opposition passages to Neptune. Saturn can represent disappointment or loss, and Neptune can be even more confusion. Could a sudden shock occur soon? Sure it could, basis astrology. But will it be enough to push stocks sharply lower? Not necessarily, due to the influx of so much money still taking place at this time.
Long-Term Thoughts
The Saturn-Neptune theme was very much in the news last week. One Wall Street Journal edition featured a front page story on corruption in China’s real estate market. Corruption was also the concern of world leaders towards Russian President Putin, and the decision of the Russian government to bring new charges against the oil conglomerate Yukos’ Chairman, who is already imprisoned for standing up to the corruption and abuse of basic human rights taking place in Russia. In the meantime, Russia, has taken over control of all Yukos assets, and thus control of the major distribution of oil in Russia.
While justice awaits its application under Saturn-Neptune’s opposition (usually 1-2 years afterwards), the fact remains that Jupiter is in Sagittarius and in trine to Saturn as well. Stock markets generally go up during these periods. But with Jupiter also square to Uranus, there are risks to sudden and unforeseen sharp declines. With the 4-year cycle time band still in effect this year, such a decline could last 2-5 months once it begins. Ideally that decline would end by June. No solid signal yet, but the high of last Wednesday remains a possibility. A close below 12,370 would be more of a confirmation.
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My next conference appearance will be at “The Blast” an astrology conference in Sedona, Arizona, taking place March 28-April 2. This conference will feature many of the newest “young” astrologers, along with a couple of “young elders” like Rob Hand, Dennis Harness, Gloria Star, Robert Blaschke and myself. Coordinated by Moses Siregar, this conference will also be the site for the ISAR (International Society for Astrological Research) annual meeting, of which I have serve as President since 2002. The public is welcomed to attend, and meet the wonderful people who direct this organization. For more information on this unique and very affordable seminar, please go to http://theblastastrologyconference.com.
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 authors 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 cycles 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.
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