MMA COMMENTS FOR WEEK BEGINNING JUNE 16, 2008

Raymond A. Merriman ©

Review and Preview

       Nearly all the leading equity markets of the world fell to their lowest price since mid-May by the end of last week. Several of these started a modest rally by Friday.

 The interesting part of last week’s market behavior is that stock indices were down nearly the entirety of the May 22-June 13 “translation” period of Sun-Venus to Saturn-Uranus forthcoming opposition, as described in this report over the past couple of weeks. This is the third such translation period of the year, following the ones that coincided with the lows of January and March. It now comes to end, and we wait to observe whether or not this also means the decline comes to an end.

 Stock indices were not the only financial market in decline much of last week. Gold and Silver also fell to their lowest levels in over a month. From a high of 934 on May 21, Gold fell to a low of 860 on June 12. Silver’s decline was from 1833 on May 23 to 1625 on June 12, again coincident with the “translation” period of Sun-Venus in square to both the Saturn-Uranus that make up the forthcoming opposition later this year. Currencies also fell hard last week against the U.S. Dollar.

 But other commodities rose sharply, especially the grains. Corn soared to a record high of 737 on Friday. Both Soybeans and Wheat rallied substantially last week too. The rise in Corn was attributed to rainy conditions in the grain belt that is delaying the growth of Corn. While we expected Corn to soar above 700 quickly in our subscription reports, the cause was not as we anticipated (we anticipated demand due to ethanol would create the rally). Yet the presence of too much rain can also be explained in terms of Financial Astrology. Neptune rules rains and floods. We are in a period when the planetoid Chiron, as well as the North Node of the Moon, are in a conjunction to Neptune. Thus Neptune is highlighted this spring and summer, and coincides with heavy rains. It may also be a factor in the continual rise in Crude Oil prices, for Neptune also rules Crude Oil.

 Mercury will end its retrograde motion this week, June 19. Give it about a week, and then we would anticipate that financial markets will return to more “normal” behavior, from a technical studies point of view.  In other words, we will start coming out of this highly erratic and quite unpredictable zone, when events occur suddenly and without much warning, or reports are released which are considerably off the mark of most forecasters (think the recent Employment report, as well as the release of the former press secretary Scott McClellan’s expose on the current White House Administration).

 There are a series of interesting opposition aspects coming up between planets in the next couple of weeks. Oppositions are important because they represent the climax of cycles that began at their conjunction point. They can mark a turn in the trend of various financial markets which they pertain to. On Wednesday of this week, Venus will be in opposition to Pluto, followed by the Sun doing the same on Friday, June 20.  Pluto rules debt markets, like currencies and Treasuries. We might anticipate that Fed Chair Ben Bernanke comes under some rather severe challenges during this period. On June 21, Mars will be in opposition to Neptune, something that could relate to a climax in the Crude Oil market. On July 3 and 9 respectively, first Venus and then the Sun will be opposition to Jupiter. The later aspect is one of the most powerful correlates to primary or greater cycles in U.S. stock indices within 10 trading days. It can coincide with “Big Range” days, the 200+point types in the DJIA, especially since a Mars-Saturn conjunction occurs the very next day, and Uranus aspects to other planets unfold July 6 and July 14. Remember: when a combination of signatures involving Mars, Jupiter, and/or Uranus is present, stock indices tend to have “Big Range” days nearby. July 6-14 is one of those periods.

 The entire period of June 12 through July 14 is a powerful geocosmic cluster zone. During this time band there are no less than 15 important geocosmic signatures unfolding, and no two consecutive ones are more than 5 calendar days apart. Seven of these are our most powerful Level One types, including three that take place June 20 (Sun-Pluto opposition), June 21 (Mars-Neptune opposition) and June 26 (Uranus stationary direct). The last one is extremely powerful, with a 77% correlation to primary or greater cycles within 11 trading days. All this activity suggests that one of the best trading opportunities of the year could be readying any day now.

 I have referred to the importance of certain time bands this year in which faster moving planets make hard aspects to the forthcoming Saturn-Uranus opposition. My belief is that these periods, known as “translations” of the faster moving bodies to the longer-term aspect, will give us a glimpse of what to expect between November 4, 2008 and July 26, 2010, when the exact 45-year opposition of Saturn and Uranus take place in a five-passage series. The first four of those oppositions occur with Saturn in Virgo and Uranus in Pisces. Saturn in Virgo by itself represents a time when the working people of the planet become very dissatisfied with their working conditions – especially their pay scale, which they see as a sign of inequity in comparison to the affluence of the management, executive, or upper echelons of society. Typically the workers (laborers) demand intervention on the part of government to make changes that correct these inequities, or else they stop working. They go on strikes, demanding more money and better working conditions. Productivity goes down and distribution channels are interrupted.

 With Uranus in the equation, there can be an even more serious note of protest and rebellion. Again, the protests are aimed at the government or those in authority, which are represented by Saturn. Thus it can become a time of class warfare.

 We are currently in such a “translation” period, May 22-June 13, when both the Sun and Venus are transiting through Gemini, making first a square to Saturn, and then a square to Uranus. I am here in Tokyo this week, and it never fails to amaze me to see the difference in emphasis placed on various news items than we see in the United States. Here the front page headlines are all about protests taking place in Asian countries, such as India and South Korea. The later instance is particularly interesting, where tens of thousands of South Koreans are staging such a massive protests that the cabinet of the 100-day old government “offered to resign, taking responsibility for a string of political miscalculations that have sent support for President Lee Myung-bak’s government tumbling,” according to an article in Wednesday’s Asian Financial Times newspaper The reason for the protests? Sharply rising oil prices and the government’s decision to ease restrictions of U.S. imports on meat from cows, in the midst of an economy that is falling faster than they expected or forecasted. The Korean populace resents that the new government is “kowtowing” to the American government by allowing American beef into their country. They fear the dreaded “mad cow disease” will strike. Judging by their intense overreaction to the problem, it appears it may be too late. 

 But here is the thing that is pertinent to the United States. From a leadership point of view, could something like this happen in America soon?  The Times report goes on to state in that same article and another on the next day, “The scenes Tuesday illuminated the dramatic shift in President Lee’s political fortunes…. Mr. Lee’s government made grand pledges to overhaul the stagnant economy when it took office at the end of February… While championing a pragmatic leadership, Lee overlooked Koreans nationalistic pride. If what troubled Roh’s presidency (the prior President) was too much nationalism, Lee’s problem is a lack of it.” Hmmm, this sounds vaguely familiar.

 I have referred to the Saturn-Uranus opposition often in the context of the U.S. forthcoming election. The aspect is highly unpredictable, except that it promises sudden and unexpected events into the election, and immediately afterwards. It clearly defines the stark difference between the candidates. One is youthful, charismatic, and promises a great change, but cannot be accused of being overly nationalistic, which are characteristics of Uranus. The other is older, a national war hero, much more experienced, but represents the more conservative and nationalistic element, which is Saturn. Does the U.S.A. go for the promise of bold new changes at a time that the current party in office is so unpopular and nationalistic, as did South Korea? If so, could it be a landslide victory for the Democrats, as many are predicting, with all of the nation’s hopes wrapped up in the belief that these bold new changes will indeed take place quickly? And what happens if in the critical first 100 days, the failing economy suffers further and the promised changes aren’t taking place? With Saturn in Virgo representing discontent, and Uranus in opposition representing the urge to rebel, could there be massive protests because things aren’t getting better, and the hopes of the populace are falling faster than George W. Bush’s approval ratings? Yes, that is one possibility, and it is now a reality in South Korea, related to the translation of the Sun-Venus to the forthcoming Saturn-Uranus opposition. It could portend a theme that we see next year in the U.S.A. But it is Uranus to Saturn, and so there are several other possible themes related to the unexpected that are experienced as well. After all, the first passage of this Saturn-Uranus reality will take place right on Election Day, 2008.  All we know is this: events will happen, and reactions to those events will be exaggerated, in ways that we did not fully expect. We may not get what we wish for, or even expect, without solid planning and understanding of the dynamics that are present. And there are so many dynamics present. Reality trumps hope, unless hope takes into account reality and consists of something more concrete than just wishful thinking and desire for change.

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