MMA Comments for the Week Beginning January 23, 2012
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Written by Raymond Merriman
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Review and Preview
Once again this week’s column is written and posted well before
U.S. markets close on Friday, January 20, due to the fact that I am in
Amsterdam now and will give a seminar here on Saturday. The markets
won’t close until 11:15 PM tonight, CET. Additionally this week’s report
will be brief due to the current schedule.
Last week saw the continuation of stock markets rallying to new
cycle highs in several indices as of Thursday, such as the Dow Jones
Industrial Average, the NASDAQ Composite, Brazil’s Bovespa index, the
AEX of Amsterdam, and SMI of Zurich. The German DAX, London FTSE,
Russia’s MICEX, and Hang Seng of Hong Kong are very close to doing so.
However, prices are still well below their October highs in Japan’s
Nikkei, Australia’s All Ordinaries, China’s Shanghai and Argentina’s
Merval indices. In the case of the DJIA, it is approaching the 12,700
mark, not far from the May 2, 2011 high of 12,876. We will want to watch
closely if that is exceeded while other indices remain below their
yearly highs of 2011.
The precious metals continued soaring to new cycle highs as well
last week. As of Thursday, January 19, Gold was up to 1670 and Silver
closing in on 3100 ($31.00/ounce). Given that both the Moon and
heliocentric Mercury were in Sagittarius Thursday and Friday (January
19-20), we advised our subscribers to now take some profits if position
trading, and cover all longs if aggressive short-term trading. Once
again, this was an exception trade, given that three weeks ago
subscribers were advised in our special alert to buy Gold below 1530 and
Silver below 2660. For those who trade thre COMEX, you know that this
$140+ gain in Gold represents a profit of $14,000/contract and the 430+
point gain Silver as of this trade represents a profit of $21,500/
contract. It is a good way to start the year. Our long position in the
Euro currency from near the recent low is also working out quite well.
And it remains to be seen if new short positions in stock indices will
be elected shortly.
Short-Term Geocosmics
This should be another interesting week. The Sun is changing
signs, from Capricorn to Aquarius on Friday, January 20. As it does
this, it enters a T-square formation with the Jupiter-Saturn opposition
(January 19-22). On Monday there is a new moon in Aquarius. Any planet
changing its sign is a signal of a turn in investor psychology and
attention. And a market that is rising into a new moon is vulnerable to
reversing, especially if that new moon is in an air sign. Aquarius is an
air sign. Let’s see if it happens that a crest is indeed forming now.
We have our orders in to enter on the short side if thre set up is
elected.
But that is not all. Mars is making its 25-month retrograde motion (in
Virgo) on January 23-24. It will remain retrograde through April 14.
This too can coincide with a sudden change in outlook by the investment
community.
Will these reversal signatures lead to a new 2-year bear market? Or are
they indicative only of a modest corrective decline before another push
to new cycle highs, and possibly new yearly highs? We know that
transiting Jupiter is nearing the end of its second passage through 0-7°
of Taurus, when the stock market historical makes highs. It was there
(within 7° of 0 Taurus) on last year’s highs of May 2 and July 21. The
market fell 19% afterwards in the DJIA and well over 30% in the German
DAX. The implication is that this type of decline will happen again once
the crest of this current primary cycle tops out. Jupiter remains in
this sector through March 7, so it could happen anytime in the next 7
weeks.Η συνεχεια εδω
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