MMA Weekly Comments

Review and Preview:

We arem back after an incredible experience at the ISAR “Art and Soul” Symposium in Tuscany, Italy. There are no words to describe how fantastic the ISAR Financial Market Timing track was, or how beautiful the Castello di Montegufoni was. The presentations were not only brilliant, but impressively accurate already. All the presenters saw an imminent top in the U.S. stock market (and others), and some of us also correctly forecasted the nosedive in Silver, Gold, and currencies this past week. The information was as valuable as the grounds were stunning. And the attendees were just as remarkable as the presenters. People from 20 different countries attended, and they were highly sophisticated in their understanding of either market dynamics or astrology.

As stated in the last column three weeks ago (issued April 28), “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… 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… 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… 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.”

And now we can look back and see that the S&P index topped out right on May 5, while the Dow Jones Industrial Average topped out three trading days later, on May 10. We can observe similar “Intermarket Bearish Divergences” all over the world during this period. For example, in Europe, the London FTSE and Netherlands AEX indices topped out April 21 and 25 respectively, then made lower secondary highs on Monday, May 8. However the German DAX and Swiss stock index made their multi-year highs on May 11, and all have fallen close to 10% off those highs this past week. In the Pacific Rim, both the Hang Seng and Australian All Ordinaries made new multi-year highs May 8 and 10. But the Japanese Nikkei fell short of its 17,563 high of April 7 when it stalled at 17,375 on May 8. By the end of last week, all indices were down hard from those recent highs. And the same was true in South and North America. Brazil’s Bovespa and Argentina’s Merval index made new all-time highs on May 9 at 42,016 and 1952 respectively. But by Friday, May 19, they were down to 37,375 and 1627 respectively, well over 10% declines. The NASDAQ Composite was also hit hard. After posting a multi-year high of 2375 on May 8, one day after the May 5 midpoint of that cluster, the Composite had fallen to 2164 as of Friday, a loss of nearly 10% in less than 2 weeks.

Gold and Silver also got hit hard falling their new multi-year highs within that geocosmic cluster. Gold topped out at 728 on May 11, the same day Silver topped out at 1520. But by last week’s close, Gold was testing 650 and Silver 1200. Both are entering time bands when their longer-term cycles are due, and we are seeing our minimum criteria of a 10% decline being met. Our ideal price target is still lower in each case.

Declines from highs in this reversal zone were also noted in Crude Oil and the currencies vis-à-vis the U.S. Dollar. It was, without a doubt, an important geocosmic reversal period, just as expected.

Short-Term Geocosmics:

Our last column two weeks ago bears repeating. “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. It is a very exciting astrological (psychological) dynamic…. once it does stop, everyone falls off balance – except those who prepared for the unexpected and sudden change of pace.” Bam! But of course, you were prepared three weeks ago for this “unexpected and sudden change of pace.”

For this coming week, Neptune turns retrograde on Monday, May 22. This is a Level 1 signature (strongest correlation to primary or greater cycles), with an 86% historical correspondence to primary or greater cycles within 10 trading days. This is followed by Venus in waning square to Mars (Level 3) on May 23, and Venus in waxing trine to Pluto (Level 2) on May 26. This is therefore a potential reversal zone, but not as strong as May 4-10, nor as strong as the next geocosmic cluster, which unfolds June 4-22. With Neptune stationary, we note abundant rains and severe flooding in many parts of the world, especially in the Northeast USA, which has recorded record rainfall for this period. Neptune rules floods, especially when in square by sign to Jupiter, planet of excess. It also rules crude oil.

Long-Term Thoughts:

We have now passed the second of the Jupiter-Uranus waning trine signatures. As stated in previous columns, this is the last benefic aspect involving Jupiter and beyond for awhile. Now we approach Jupiter in waxing square to Saturn (June 22) and Saturn in opposition to Neptune (August 30). This later signature will also coincidce with the third and final Jupiter-Uranus trine (August 29), but as its last passage, it is expected to be much weaker than what we just witnessed. The Saturn-Neptune opposition is likely to be more dominant. Thus I think equity markets have topped out for awhile, and the 20+% decline to the four-year cycle trough is underway, as discussed before. Of course there will be rallies in between, but our strategy will be bearish, selling all rallies until we feel the bottom is in, and the trend is truly changing back to bullish.

On the political front, we note that one of the top stories this past week was the Senate passage of the bill to construct a 370-mile fence along the Mexican border, and the president’s request to send 6000 troops to also defend that border. This too is right in line with the concept of progressed Mars turning retrograde in the United States chart, a factor that was covered in great deal in both this year’s Forecast for 2006 book, as well as in the two “On-Line Virtual Discussions” we had in December and January. Our interpretation of this 700+-year cycle (first time in USA history) was that the troops would be brought home from Iraq shortly after the next USA presidential election and these same troops would then be stationed along the border. The military emphasis of the USA would radically shift from deployment of the military outside the USA, to be stationed within the USA to defend its borders. And the candidate who promised to end the war in Iraq and bring the troops home would be the victor in the next election.

But first we have a mid-term election in November 2006. This election will be right in the middle of the “discontent” signified by the Saturn-Neptune opposition. The public is looking for someone to blame. So are the politicians. The election will come down to one major issue for voters: whether or not to impeach George W. Bush. Depending on the result of that election, the future and legacy of both George W. Bush and the Republican chances of victory in 2008 will ride. It is not an easy path ahead, nor a pretty picture, and one wonders if everybody (voters and White House) understands the risks. Soon Saturn-Uranus-Pluto will form a T-square for the first time since 1930. Soon progressed Mars will turn retrograde in the USA chart for 70-72 years, for the first time in history. This decade is destined to represent the turn to a new saga in the history of the United States, and also for the entire world.

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” 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.