Market Preview for the week beginning July 9, 2018

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Review and Preview 

President Donald Trump said on Thursday he would consider imposing additional tariffs on $500 billion in Chinese goods, should Beijing retaliate. U.S. tariffs on $34 billion worth of Chinese goods kicked in on Friday. Another $16 billion are expected to go into effect in two weeks and potentially another $500 billion, Trump told reports aboard Air Force One on his way to a rally in Montana before the tariffs kicked in. First “34, and then you have another 16 in two weeks and then as you know we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300," Trump said. – Chloe Aiello, https//www.cnbc.com, July 5 2018.

It was a low volume holiday week in the USA, but that didn’t stop several markets from making interesting reversals following Mars turning retrograde the prior week. With Mars retrograde and on its way back to its second passage of a square aspect to Uranus on August 1, the erratic nature of both financial markets and the timing of political pronouncements are more likely to continue. It is not going to get any smoother when Mercury goes retrograde either, July 26-August 19.

Most markets started the week under pressure following Mars turning retrograde on June 26, and many of those rallied into the close of the week. Most notable was the Australian ASX index, which made a new 10-year high on Friday. The NASDAQ Composite also staged an impressive rally into the close of the week following a possible primary cycle low on June 28 of the prior week. However, it was a much different story in China, where the Shanghai Index fell on Friday, July 6, to its lowest level since January 2016. The threat of huge tariffs against China by President Donald Trump is causing this market to hemorrhage. Japan and Hong Kong equities also suffered last week, possibly related to the Trump tariffs.

Crude oil made a new 3-year high on July 3, but then promptly sold off into the close of the week. This may prove to be important as the Sun is currently ending a grand trine to Jupiter and Neptune, the two planets that rule crude oil.

However, an even more interesting story may be developing in the precious metals. Gold fell to 1238.80 on Tuesday, July 3, a virtual re-test of its 11-month cycle low posted last December at 1238.30. The day before, Silver fell to $15.80, a re-test of its low of 15.63, also made last December. This is cause for us to write a special update on Gold for the monthly MMA Cycles Report, to be issued this Monday evening. Something big might be developing here, as we will describe in that special report.

Short-Term Geocosmics 

The period of soft and harmonious aspects beginning on Thursday, July 5, is correlating, as expected, with rising equity prices in many parts of the world. The Sun is currently making a grand trine to Jupiter and Neptune, July 5-8, and Jupiter turns direct on July 10. This will be followed by Venus making a grand trine to Saturn and Uranus, July 11-14. In the midst of all this, there will be a solar eclipse on July 12, in opposition to Pluto.

Both of these grand trines make favorable aspects to the USA’s natal Sun and Venus. Thus, it is not surprising to see that U.S. stock markets have started to rally, especially the NASDAQ, for Uranus is involved, and Uranus rules the tech sector.

However, after July 14, the cosmic dynamics begin to change. The Sun will head towards a T-square with Mars and Uranus, July 25-August 1, followed by Uranus changing directions on August 7. All this is taking place during the next Mercury retrograde cycle too (July 25-August 19). An abundance of Uranus hard aspects, accompanied by Mercury and Mars retrograde with Uranus changing directions, is a formula for systemic or natural shocks. Abrupt changes in plans, or sudden eruptions of temper by world leaders who may be cracking under pressure, could cause havoc in world financial markets. If not kept under control, these are the kinds of behaviors that could lead to panic reactions. This will also be a period of heightened danger of violence, such as terrorist attacks or psychotic breakdowns by “lone wolves.” It could also correspond to natural calamities like earthquakes and volcano eruptions. Readers are advised to stay clear of any potentially dangerous situations, or people with explosive personality disorders.

Short-Term Geocosmics 

“The U.S. is now behaving in ways that could all too easily lead to a breakdown of the whole trading system and a drastic reduction in world trade… A trade war would cause huge worker displacement.” – Paul Krugman, “From Temper Tantrum to Trade War,” New York Times International, July 4, 2018.

Are the highs for the 4-year cycle in world stock indices in as of January 2018? The bearish triggers from various studies, which suggest that is the case, are piling up.

On the geocosmic front, we have the historical studies correlating with the waning trine between Saturn and Uranus. Although these two powerhouses come within 13’ of a degree of a 4th passage, August 25-28, the actual central time band took place in the three passages between December 25, 2016 and November 11, 2017. In the past four instances that this 45-year aspect has occurred, a new all-time high happened in every case in the U.S. and British stock indices, either within the central time band of the passages, or within an orb of only two months. The highs of January 23-29, 2018, two months after the last exact passage, fit this historical pattern.

On the political and economic fronts, we note several correlations between 1929-1930 and 2017-2018. First, that was the last time that the Republican party controlled the two legislative branches of the USA government and the executive branch. The president in the first instance was Herbert Hoover, elected in 1928, who was considered a brilliant businessman, but who had little political experience. He was not popular within his own party (Republican). At first, the economy and stock market boomed under his leadership. The boom, leading to new all-time highs in the USA stock market, lasted 8 months, until the crash of September 1929. By his second year in office, Hoover presided over the Smoot-Hawley Tariff Act, which implemented trade protectionist policies that raised tariffs on over 20,000 imported goods. It worsened the Great Depression and contributed to the start of World War II (www.thebalance.com).

Is history repeating itself today?

It is a risky direction the president is embarking upon, consistent with Mars in Aquarius, retrograde, and in the midst of a three-passage series of a square aspect to Uranus - in the money sign of Taurus. Yes, he has the upper hand in this developing trade war with China, simply because the USA imports far more from China than it exports. China can’t match tit for tat because of this huge difference. And despite the idea of many analysts that China can make up the difference by selling its goods to other nations, the fact remains that no one consumes more than the United States. Still, this might be the reason behind the recent sharp decline in China’s currency, the Yuan. A cheaper currency will make its products more attractive to the rest of the world, which in turn will compensate somewhat for the potential losses due to the new American tariffs.

The idea is that by closing off trade with China, Americans will start buying more American-made goods, thus putting more Americans back to work. However, there are serious doubts, and hence risks, with this type of thinking. First, it means goods will cost more, both to Americans at home, and to other trading partners abroad. Higher costs for goods that Americans try to export will result in fewer sales abroad, not more, and will hurt American exporters. Those who import Chinese goods and sell them in America will be hurt too, because they will have to pay more to continue their businesses. As many economists note, no one wins in a trade war like this. Both exporters and importers will suffer, and the result will be loss of market share, sales, and profits, which in turn means many businesses will eventually have to shut down, and their workers will be laid off – in both China and the USA.

The rising cost of goods has inflationary implications too. With Jupiter in its ruling sign of Sagittarius, November 8, 2019- December 2, 2019, and both pertaining to world trade, one would think that the trade disputes would end and world trade would rebound with renewed hope and optimism. Yet at the same time, Jupiter will be in a square aspect to Neptune in its ruling sign of Pisces. Neptune and Pisces can represent loss of control by going too far, and by not recognizing the consequences of one’s decisions and actions. Jupiter/Neptune can correlate with rising prices, the return of greater inflation than anticipated, especially given that Saturn and Pluto will conjunct in January 2020, one month after the Jupiter/Neptune square ends.

This brings us to the meeting between Russian President Vladimir Putin and Donald Trump next week. The solar eclipse takes place on July 12, in opposition to Pluto, and also during Mars retrograde. The opposition to Pluto implies an underlying agenda is present that may be “top secret.” The Mars retrograde implies it will likely not be enacted as wished; there will be problems in getting the support, or actors in place, necessary to carry the plan out. You wonder who or what is being eliminated or undermined. With whom and where will the chess master Putin align? China or the USA? Does he – Libra that he is - even know yet? The solar eclipse is also making a grand trine with Jupiter and Neptune, and it’s a north node eclipse (not a south node one), which means there is promise and hope here. But in typical Neptunian fashion, that may be more the illusion than the reality. It will look and sound promising, with the prospect of a hero emerging. But who is the master of the hero-puppet that is being presented as one who is going to rescue – save - the threat of a trade war that engulfs the world’s attention now? My view is that the major factor at work is the planet making a conjunction or opposition to the solar eclipse – Pluto, in this case – and the other aspects are only window dressing that contain far less impact.

Be prepared for a week - or six weeks – of some incredible maneuvers taking place on the world stage. The world may look very different by the end of August. This is shaping up to be another important step in “The Great Reset” that alters the way we conduct business with one another.

Announcements

	A SPECIAL UPDATE ON GOLD   ...will be featured in this month’s MMA Cycles report, which comes out this week. The MMA Cycles report will also cover the outlook for U.S. stock indices (DJIA and S&P futures), Treasuries, Euro Currency, Crude Oil and Soybeans, plus MMA’s original geocosmic critical reversal dates (CRDs) and Solar/Lunar reversal dates over the next several weeks. If you don’t already subscribe to this report, this would be an excellent time to take out a trial subscription ($66.00) if you are interested in Gold or Silver. It is also available in Dutch language, read more here>> The monthly MMA Japan Cycles report also comes out this week, and covers the Nikkei, JGB Bonds, and the Dollar-Yen. The MMA European Cycles Report will be released this week too, covering the German DAX, Swiss SMI, and Netherlands AEX. Read more>>
	The webinar/workshop “Cosmic Cycles Are Forever,” took take place last week, June 22. It went very well and the MP4 recording is now available! This 4-hour, MP4 recording of the webinar is an excellent way to learn basic and even some more advanced methods of cycles analysis working with geocosmic studies. Sponsored by the AAGB (Astrological Association of Great Britain) as part of their 60th anniversary, this workshop by Raymond Merriman features valuable tools for understanding market cycles, identifying trends, and timing changes of trends in financial markets using cycle studies and geocosmic studies along with technical tools and charting analysis. In this masterclass, the historical correlation of stock markets, currencies, precious metals and bitcoin to certain planetary and solar/lunar cycles present in today’s cosmos are examined, with an eye on what to anticipate between 2018 and 2020, both in terms of world politics and financial markets, as well as shorter-term forecasting projections. Read more>>
	New: Market Timing in Money Management The market timing method, developed by Raymond Merriman, based on historical research of natural cycles in economy and financial markets - has become available in porfessional money management in Holland. Today's Asset Management and MMTA graduate Irma Schogt now offer professional money management via trade decisions taken via the rules and lines of the Market Timing Method.   For more information, read here>>
	NEW! The MMA Weekly Indian Nifty Stock Index Report by MMTA graduate and market analyst Nitin Bhandari has begun. This report focuses exclusively on the Indian stock market (Nifty cash). Each report will come out on the weekend, prior to the Monday opening of markets. The cost for the weekly Indian Nifty stock index report is $825/year, or $275/three months. Sign up now now here>>

Disclaimer & State 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 Schogt Market Timing & 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 author's 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 cycle's 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.

No guarantee as to the accuracy of this report is being made here. Any decisions in financial markets are solely the responsibility of the reader, and neither the author nor the publishers assume any responsibility at all for those individual decisions. Reader should understand that futures and options trading are considered high risk.