Preview for the week beginning September 27, 2010

Please note that I am lecturing in Buenos Aries and Rio de Janeiro through next week. Thus there will be no report due next week (for the week of October 4). Our offices will be open during usual times while I am away.

Review and Preview

As expected, the Federal Reserve Board maintained its position that it will execute further “quantitative easing” measures to support the USA economy if it considers it necessary. That means the Fed will continue keeping Fed funds rates down to 0-.25%, AND they will purchase long-term Treasury Bonds and Notes, if they deem it necessary to support the economy in the event that it starts to fall again. In other words, they will continue with their stimulative monetary policy because they do not yet consider the economy’s growth to be on a secure and sustainable foundation. This is no surprise because Fed Chairman Ben Bernanke has stated on several occasions that the USA government must address its ballooning deficit before the economy will be on the proper path. There has been no sign yet that Congress or the White House are willing to do that, so there is no reason for the Fed to change its position either.

This announcement came right on September 21, within hours of the full moon on the Vernal and Spring equinox, in conjunction with Jupiter and Uranus. In fact, Jupiter and Uranus reached their closest distance to the earth in decades around that time. It was a critical reversal date, and immediately after the announcement, equity markets in the USA soared to new multi-month highs. It lasted only a few moments, and then the Dow Jones Industrial Average fell about 100 points towards the close of that day. Equity prices continued falling over the next two days. But on Friday, they began to recover again.

Gold soared to another new all-time high last week, and Silver soared to its highest level since the 1980’s. And why not? After all, the exploding deficits and continuous spending policies of the USA government, and the zero-interest rate and quantitative easing monetary policies of the Federal Reserve Board, are extremely inflationary for most assets. They are not supportive for a strong U.S. dollar. Somewhere down the road the piper will have to be paid, and he won’t want payment in the form of paper fiat currency. Accordingly, foreign currencies also rallied strongly against the U.S. Dollar last week. This was especially true with the Swiss Franc, which is rapidly resuming its historical role as the currency of safe haven,” replacing that status previously held by the U.S. Dollar.

Short-Term Geocosmics

Although last week’s September 21 critical reversal date produced the expected reversal in several markets, it cannot yet be said that it created much of a shift in equity markets around the world. The orb of influence is still in force, however. But now our attention will begin to focus on Venus retrograde, taking place on October 8. This signature has a 78% historical correlation to primary or greater cycles within an orb of 12 trading days. It has an 83% correlation to a 4% or greater reversal in stock indices within 4 trading days. Since the Jupiter-Uranus conjunction of September 18 and Sun-Jupiter opposition of September 21 also have a 75+% correlation to primary or greater cycles within 12 trading days, it is possible that all signatures could be fulfilled with a cycle crest during the period in which these time bands all overlap.

This week is important also because the Sun will square Pluto on September 25 and then conjunct Saturn on September 30. This means it “translates” the Saturn-Pluto square, which was exact August 21. You may remember that just a couple of days later (August 25 and 27), many stock markets of the world bottomed. Shortly after, this big 10+% rally began. That was also during the time that the Russians loaded the Iranian nuclear reactor rods. Hence we may see more news regarding Iran’s nuclear ambitions announced shortly.

The Sun-Saturn takes place in Libra, which is the sign of justice and fairness. Saturn with the Sun may pertain to new laws. Thus there may be a new initiative in some lands to enact laws that provide greater justice to its citizens. At its worst, it could instead indicate an effort to take greater control of the government and disguise the maneuver as an act of providing greater safety and security for its citizens, but in reality, it provides greater control only for the government itself. In terms of markets, Sun-Saturn conjunctions have been observed to coincide with trend changes in some markets. It does not have a high correlation by itself to trend changes in equity markets, but more often with some commodities, especially those that are affected by weather. There could be crop damage, or the end of a threat of crop damage. Economically, the Sun transiting the Saturn-Pluto square will keep the attention on deficits and debt.

Longer-Term Thoughts

It is not only the Sun translating the Saturn-Pluto square that will rivet attention on the debt and deficits. It is also the combination of both Venus and Mars transiting through Scorpio that does the same. Scorpio is associated with Pluto, the principle in Financial Astrology related to debt. Venus, which rules money, is in Scorpio an unusually long time (September 8-November 7, and then again November 29-January 8) because it turns retrograde there on October 8. Mars will be in Scorpio September 14 through October 28. Even after that, the Moon’s North Node will be in conjunction to Pluto through much of November. With Pluto and Scorpio in such prominence, the three D’s (debt, deficit, and default) will be the major topics of discussion by world leaders and angry populations over their government’s fiscal mismanagement over the prior decade.

But Pluto also rules taxes, and governments everywhere are in conflict as to the role taxes should play in reducing their national deficits. Which brings up the question: Why is it that every new president or Congress of the United States (and probably every other country) feels compelled to change the tax laws once they come into power?

What is it about politicians – government leaders - that refuse to let businesses and individuals have the certainty of knowing what their taxes are – or will be - so that they can make plans for the future of their business or families? When the tax laws change, every business and many individuals have to make changes in their financial planning. It causes an interruption in their journey through life, a confusion that delays progress until one can figure out a new map to achieve their goals, especially when the changes being contemplated are for more taxes. Businesses stop hiring and individuals stop spending until the picture clears and they can once again enact the ability to make plans, assuming they can afford the goals they have with less money than they had before.

Who really benefits from the tax tinkering that takes place every time a new party comes into power? Certainly not businesses, which are the driving force behind a growing economy. The only people who benefit - in almost all cases - are the politicians themselves and the government bureaucracy that they grow. Constantly changing the tax law is one of the greatest detriments to a sustainable growing economy because it constantly interrupts the ability to plan one’s financial future. It creates a behavior that is stop-go-stop-go, and hinders the ability to create a successful business plan.

The problem is not that the tax laws need to be changed every 4 years in order to help the economy. This argument is bogus and disingenuous. The problem is that most governments do not intelligently manage the receipts it gets from taxes to run the country, state, or city. That is all it is. And this is the argument that will be debated over and over again into the mid-term election and even beyond, as Scorpio the sign and Pluto the planet will be highlighted.

With Venus soon to turn retrograde in Scorpio, it is likely that we will hear of bizarre proposals being offered about taxes. This may result in the change of a tax policy. Right now in the USA the discussion is about letting the “Bush tax cuts” expire on time, starting January 1, 2011. But the White House has promised not to let them expire for 95-97% of the population (i.e. those whose households do not exceed $250,000 if married, or $200,000 if single), while some Democrats and all Republicans want to maintain the current tax code for everyone until the economy is on sound footing. According the Federal Reserve Board’s monetary policies, the economy is not on sound footing yet or else it wouldn’t continue its quantitative easing option.

With Venus retrograde during the election, it would not be a surprise if the expiring “Bush tax cuts” alone became the dominant election theme. With Venus retrograde, it is not likely that a decision will be made, or if it is, it may not be very popular and will require another modification after Venus turns direct. With Venus retrograde in Scorpio, it may yet be another opportunity for politicians to exhibit their capacity for short-sighted fiscal mismanagement, versus longer-term effective fiscal management policies that the populace wishes from their elected representatives.

In the meantime, it is beginning to look like the massive rally in stocks and other assets (i.e. asset inflation) discussed in the Forecast 2010 Book is starting to manifest. The “pedal to the metal” behavior of the Federal Reserve Board is starting to its anticipated effect just as described.

Announcements

	Attention for the Pinoeering Online Astrology congres: EARLY BIRD OPTIONS EXPIRE Sept 28 New Simplified 4-step Registration: · Select Option · Indicate who recommend conference, if anyone · Provide C/C info · Submit order. That's it. EARLY BIRD OPTIONS EXPIRE Sept 28 - FULL ACCESS TO ALL 40 CONFERENCE LECTURES. ForumOnAstrology invites you to join the free Pre-Conference broadcast 'Creating & Building images: On Synthesis' Sunday, September 19th at 9pm EDT. This is a pre-conference lecture to the Internet Conferece Three Days of Live Video Broadcasts October 1, 2 and 3 where Irma Schogt will give a lecture "Financial Astrology, the basics". For all: If you register now for the Pre-Conference, you will get access to the recordings later on so that you can attend in a more convenient time phrame yourself. It's free! Read more here>>
	It's that time of the year again! As in the past, MarketTiming.NL offers a special pre-publication discount rate for those who pre-order the next year’s book (will be available in English as well as in Dutch) before October 31, 2010. For those who pre-order the Forecast Book we have a special discount offer on many of our daily, weekly, or monthly reports*. For more information and the discount code click here!
	Irma Schogt, co-author and publisher of the Forecast book for 2011 in Dutch translation, will give a lecture ‘Vooruitzichten 2011’ Saturday January 15, 2011 from 2-4:30 PM. A summary of what to expect in 2011, in the world polictics and on the financial markets. With emphasis at the situation in The Netherlands and Europe, seen from (financial) astrological perspective. To go to the lecture information & ordering page click here>>>
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	The monthly MMA Cycles Report and its companions – the MMA Japan Cycles Report and MMA European Cycles Report – went out last week. This report covers our longer-term analysis of the U.S. stock market, precious metals, crude oil, currencies, Treasury Notes, and grain markets. The MMA Japan Cycles report covers the Nikkei, JGB Bonds, and the Dollar-Yen. The new MMA European Cycles Report covers the German DAX, Swiss SMI, and Netherlands AEX, each in English only. These reports are included in the Japanese, German, and Dutch translated MMA Cycles Report respectively. New yearly (or renewing) subscribers to these reports will receive a free copy of the Forecast 2010 book while supplies last (see below). You can also qualify for a special discount on a yearly subscription if at the same time you pre-order Forecast 2011. Also, for those who pre-order the Forecast Book we have a special offer on many of our daily, weekly, or monthly reports! Read more here>>
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	Market Timing Digest September came out September 7. 13 financial astrologers' sisions bundled in great and accurate summaries, with turn data and model portfolio with recommendations for investmnets for short-term to long-term into 2012. Read moere here>>
	September 23-26, 2010: Buenos Aires! Seminar on Financial and Mundane Astrology with Raymond Merriman and others, with special emphasis on Argentina’s Merval Index and precious metals and whatever else is of interest to participants, for each Financial Astrology workshop is different. For more information, contact Claudia Rizzi by sending her an email, or visit MMA in Spanish. If you only speak Spanish, go to here. We will host a special gathering of MMA Subscribers at the end of the seminar, depending on interest expressed.
	CD’s DVD’s, MP3’s, and “On-Line Streaming Video” of the July 11 webcast are now available!!! Each of these various ways to see the event can now be ordered via our website. This webcast covered our outlook for stocks, precious metals, interest rates and Treasuries, foreign currencies vis-à-vis the U.S. Dollar, and Grains. We picked this time because it is right before the astrological midpoint of the Cardinal Climax, which takes place late July through early August. It may be the peak of the huge trend reversals expected in many of these markets, aided and abetted by major changes of trend in geopolitical matters. You won’t want to miss this presentation. Order now, because most of the trading opportunities presented are in effect from July 21 through October 8, 2010!!!< Read more here>>
	Any remaining copies of the Forecast 2010 book will be available for €25.00 (plus postage), now as long as supplies last. This year’s book was an incredible publication, as almost everything forecasted in it has come out as described. All the themes outlined, and almost all the financial markets are unfolding as indicated with one exception: there has (as of yet) been no sign of excessive speculation in stocks or precious metals. Instead, frightened investors are flocking to U.S. Treasuries. Everything else, however, has been spot on, and there is still time for this to happen in stocks and precious metals into mid-2011. We now offer a complimentary copy of this year’s book to any new or renewing subscriber of a one-year subscription to the MMA Cycles Report, our new MMA European Cycles report, or any subscription to a MMA daily or weekly report, as long as books are still available.

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 SMT (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.