Financial Astrology - MMA WEEKLY, Comments for the week ahead, Market timing

The Market Week in Review :

Most of the world stock indices performed very well last week, with two of the ones we track making new all-time highs (Dow Jones Industrial Average and the Swiss Stock Index), and the Hang Seng very close to doing the same.

In Europe, all four of the indices we follow made a new multi-year high. The Netherlands AEX is now testing the 500 level for the first time since May 2002. Since its yearly low on June 14 at 409.60, the AEX has appreciated over 20%. The German DAX index closed above 6200 for the first time since June 2001, and has now appreciated 18.5% since its yearly low on June 14. The London FTSE index was within a whisper of 6200 on Friday for the first time since February 2001. It has now rallied over 13% since its yearly low of 5467 on June 13. And the Swiss Index reached 8677 one week ago, October 13, eclipsing its previous all-time high of 8489 back in July 1998. Since its yearly low of 7123 on June 13, the Swiss index has appreciated nearly 22%.

In the Pacific Rim, the Hang Seng soared to 18,148 on Friday, just a little off its all-time high of 18,298 registered back in March 2000. This index is now up over 19% from its yearly low on June 13. The Japanese Nikkei index got to 16,732 last Monday, which is still below its yearly high of 17,563 recorded back on April 7. Still, it is up nearly 20% form its yearly low 0f 14,045 on June 14. The Australian All ordinaries got to 5298 on October 17, which was still slightly below its all-time high of 5352 back on May 10. Of all these indices, it is up the least - only 12% - since its lows of June 14.

In the Americas, the Dow Jones Industrial Average soared to a new all-time last week, closing above 12,000 for the first time ever. Yet this is only an increase of slightly less than 13%. But the NASDAQ Composite, Brazilian Bovespa, or Argentina's Merval index could make even new yearly highs last week. The Composite got to 2368, a shade under the April double top of 2375, and still well below the all-time high of 5132 of March 2000. However, last week's high was up nearly 18% from the 2012 low of July 18. The Bovespa rallied to 39,446 last Wednesday, up a whopping 23% from is June 14 low, but still well below it all-time high of 42,016 recorded only last May. In Argentina, the Merval rallied to 1708 on Friday, its highest level in several weeks, but still well beneath its all-time high 1952 that was attained on April 26. It is up about 15% from its lows of June 14.

So as we look at world stock indices, we can see that they are presently in a very strong position. All are up solidly since their mid-year lows around June 13-14, or double bottoms in mid-July. Some are making new all;-time highs, others are close to it, and yet others are still well off not only their all-time highs, but even their highs of last April-May. There is still a lot of technical intermarket bearish divergence, despite the strong gains of last week. And almost all indices are still late in their 4-year cycles, a time when powerful reversals can commence. Of course with a cycle as long as the 4-year type, such distribution patterns can take weeks - even months - to be completed.

In other markets, both Gold and Silver did fairly well last week, with Silver filling its old downside “gap” at 1208, a sign which augurs well for the near future. The nearby crude oil contract continues to hold the 59.00 mark as we approach the critical Jupiter-Saturn square this Wednesday and the Neptune stationary point next weekend, October 29. Both Jupiter and Neptune rule crude Oil, and Saturn tends to depress prices or limits the supply. Last week OPEC made an announcement they will cut back production of crude oil now, so perhaps the 4-year cycle trough in Crude Oil is nearly completed. Once it is in, I still anticipate $100.00/barrel crude oil as Uranus remains in Pisces. In agriculturals, Corn continues to soar, nearly hitting $3.25/bushel last week, while Wheat continues to trade above $5.00, which is historically very high. Even Soybeans closed back above $6.00 for the first time in several weeks. Our call for $10.00 Corn by the end of 2008 (double the prior all-time high) continues in force.

Short-Term Geocosmics :

But now comes to big shift, as indicated by the movement of planets in the heavens. As stated last week, and now ready to commence, “The new moon in Libra then takes effect October 22 - in the last degree of Libra. The Sun and Mars both exit Libra within a couple hours of one another on Monday, October 23. They are conjunct. The next day, Venus does the same. Venus, at home in its ruling sign of Libra, was conducive for a strong rally in stocks, since Venus rules things of value, like equities... But all that could change when so many Libra planets give way to Scorpio, the sign of darkness, mysteries, and deep concerns rising to the surface that have been suppressed (or kept hidden and out of sight) for so long... The changing signs of the planets are not the only geocosmic concern of the next couple of weeks. On October 25, Jupiter will complete the last of its three passes in square to Saturn. That's a big one, a 20-year planetary cycle involving Saturn, the planet of accountability. With all the scandals now coming to the surface, one can only wonder about the flood of demands for accountability that will escalate with Jupiter square Saturn.”

In addition to the three-planet shift from Libra to Scorpio, and the square between Jupiter and Saturn, we also have to contend with Mercury starting another retrograde period from October 28 through November 18. These are seldom easy periods to trade, for support-resistance areas tend to not be reliable, and many false buy and/or sell signals are generated by these “fake-outs. This is perhaps caused by announcements and economic data that seems to be quickly contradict accepted beliefs. And with Neptune also changing directions the next day, the combination of Mercury and Neptune can coincide with misinformation, in accurate facts, and rumors that cannot be verified and may even have to be recanted. It portends a very confusing and uncertain time, when no one is quite sure what is happening. Just in time for the elections.

But more important than all of that to traders and investors alike is that we are now about to enter the most heavily populated time band of geocosmic signatures of the year, stretching from October 23 through December 22. There are no more than 6 consecutive calendar days separating any two geocosmic signatures during this period, a very rare phenomenon. We have had four prior instances of heavily populated geocosmic time bands this year, but none were as intense and as enduring as this one. And all four previous ones coincided with major reversals in many financial markets. These include March 1-17, April 30-May 10, June 4-22, and July 27-September 5.The second one correlated with the 50-week cycle crest (and yearly highs) in many world equity indices, and the third period correlated with the 50-week cycle trough (low) in most. Even the first and last one produced notable crests in many of the world indices and other financials, although the later failed in the United States stock market. It didn't fail in others, like Japan. So now we approach the longest cluster of geocosmic signatures of the year, so its it any wonder that we might anticipate the 4-year cycle crest to occur now, followed by a minimum 8% decline, and more likely a 20+% decline as the 4-year cycle bottoms by next June ? To repeat last week's comments, “ The Sun conjunct Mars part of this set up (October 23) has a very high correlation to 10% or greater reversals in U.S. stocks within 10 degrees (approximately three weeks), as reported in The Ultimate Book on Stock Market Timing Volume 3: Geocosmic Correlations to Trading Cycles. We are entering that time band now, and obviously stocks are making new highs. This signature implies that traders should be preparing for a substantial decline shortly. I wonder what that says about the mid-term national elections in the U.S.A.?” We are about to find out.

Long-Term Thoughts :

Let's return to our studies of the Saturn-Neptune opposition, and our observations of how this 36-38-year planetary pair cycle is unfolding as we head into the mid-term U.S. national elections. We are in the central time band of this three-passage series, which began August 31, 2006. The second and third of these passes will occur February 28 and June 25, 2007. The central time band is the most intense period of the principles represented by this combination, but there themes tend to be in effect even one year before and after the first and last passage. And what are the themes associated with this planetary-pair cycle? In terms of spiritual expression, it represents honesty, virtue, the ability to combine imaginative ideals with practical reality - to make the dreams come true. It can be heaven on earth, and the transcendence of obstacles through the sheer force of one's ability to overcome pettiness through the realization of a higher goal and purpose. It is a marvelous signature for those who are truly honest, honorable, accountable, and spiritual in their consciousness.

For others, it is not so marvelous. It is a signature of temptation, and the willingness to sacrifice one's integrity and truth for personal gain or power. It is therefore an aspect that is associated with corruption. It is the temptation to use others, or blame others, in the hope of making oneself look better in comparison. It is therefore an aspect that is associated with starting false rumors, participating in misinformation designed to ruin the careers and reputation of others. It is a temptation to disguise the truth, in hopes of getting away with things that are morally questionable, even illegal. It is therefore an aspect associated with deception, betrayal, and denial. However, with Saturn, you can't get away with anything. Saturn rules accountability, and any effort to hide, deny, or cover up, are usually revealed - either during that period, or shortly thereafter. Therefore, in terms of the public eye, these Saturn-Neptune periods are usually associated with corruption and scandal in government and business. Furthermore, blame for any moral wrongdoing is usually exaggerated and made into a very “big deal.” It can be a time of hysteria and grossly exaggerated fears of “the unknown.” It is part of the “fear sells” hysteria.

We could spend a lot of space right here demonstrating how these themes are indeed playing out as we enter the last two weeks of the mid-term U.S.A. national elections. But we will refrain for now, due to space limitations. But suffice it to say that this week's polls show that the U.S. populace continues to be disgusted with the leadership of this country, with only a 39% approval rating for the President, and an astoundingly dismal 16% approval rating for Congress? Would it be a surprise if a majority of incumbents running for Congress were not re-elected? And if that happens, would it be surprising to see an effort made to impeach the President, followed by a U.S. stock market drop at least 20% rather quickly, over the uncertainty of where this country's leadership is headed? It is all possible, and of course, a concern to investors. On Election Day, the Sun and Venus will square Neptune. Do you think the election results will be clear by the next day, or without allegations of fraud? Don't bet against that possibility.

Announcements :

The Forecasts for 2007 Book will come out on December 15. There is only one printing of this annual book, and twice in the past five years it has sold out. The number of books ordered is dependent upon the number of books pre-ordered (+20%). So order now to make sure you don't miss your copy of next year's forecasts on world politics, stock markets, currencies, precious metals, crude oil, grains, interest rates and treasury notes, plus critical reversal dates of each, and much, much more. Enjoyable reading, informative, and a constant reference source for trading in the next year. For more information.

The newly revised The Sun, The Moon, and Silver Book: Secrets of a Silver Trader, is also now completed and with the editor, being readied for publication in the next few weeks. This book can also be ordered prior to publication, which is due sometime in December 2006. This book identifies all the key Sun-Moon combinations that have a higher (and lower) than expected probability of correlating with 4% or greater reversals in COMEX Silver. It also identifies “Big Range Days” - those days in which the range of Silver is most likely to be 3.5% or more of the price of Silver, which is a great tool for day traders. This book fulfills the dream of all traders: high probability winning trade possibilities, with minimal market exposure. The cost is $125.00. For ordering either of these two books.

We expect to have available CD's of last week's “MMA Market Timing” conference in Phoenix, which was a great success. You will be able to order the 12-hour course on CD, plus the 100+ page workbook that goes along with it, for $1500.00 + postage. If you are interested, let us know at ordersmma@msn.com . This is a great way to learn how to time turns in any financial market. And it comes with the two beginning books, titled “Basic Principles of Geocosmic Studies for Financial Market Timing,” and “Merriman on Market Cycles: The Basics,” plus a 2-issue trial of the “MMA Cycles Report.”

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, or call our offices at 1-248-626-3034.

I have had several calls regarding a “crisis investing” portfolio that I suggested could be developed with the help of a money manager who subscribes to my reports, and shares my views about the next few years. If you are interested, you can contact him at ted.fisher@comcast.net.
He will be more than happy to assist you.