Week of June 23

Review and Preview

Stock markets around the world continued their sell off last week, as we now enter the central time band of this huge geocosmic cluster zone containing 15 important geocosmic signatures from June 12 through July 14.

In Europe, all the indices we follow posted their lowest price since May 19 at the end of last week. The AEX of Netherlands fell to 434.79 from a May 19 high of 496.12, a drop of over 12% in just one month. The German DAX fell from 7231.82 to 6547.40 during the same time, a loss of nearly 10%. The London FTSE topped out at 6377 on May 19, and by the end of last week had fallen to 5597, a loss slightly more than 12%. And the Swiss SMI stock Index fell from 7785.17 to 7012.19, a drop of 10% during the same interval of time.

In the Pacific Rim, things were a little different. For instance, the Hang Seng and Nikkei fell, but did not take out their lows of the prior week. India’s NIFTY index, on the other hand, fell to its lowest level since August 2007. In fact, since May 2, it is down over 18%. But there is good news in this pattern, because now it is beginning to meet the criterion for a 4-year cycle trough. In Australia, the All Ordinaries tested 5400 on Friday, which is now down a little over 10% from its high of May 19.

In short, all the indices were weak last week. But the opposite was witnessed in precious metals and grain prices. Precious metals staged a strong comeback last week from their bearish performance the week before. Gold rose $50.00/ounce from its lows of June 12, and Silver rallied $1.25/ounce over the same one-week period. Corn prices continued to soar to new all-time highs, passing the 750 mark for awhile last week. Crude Oil was relatively tame, trading in a narrow range between 131 and 137.

 
Short-Term Geocosmics

Mercury ended its retrograde motion on June 19. But financial markets may continue to be erratic for a few more days, especially given that Uranus will turn retrograde on June 26. This is a powerful Level One signature, with one of the highest correlations to major reversals in U.S. stocks markets of all the signatures we examine. But the nature of Uranus—like Mercury Rx—is oftentimes unpredictable. It tends to coincide with sudden and unexpected events, and wild swings in financial markets within 4 trading days. It can relate to earthquakes, tornadoes, and high winds. This particular Uranus station is even more important than usual, because it occurs so close to the exact midpoint of this geocosmic cluster zone mentioned above. And, as mentioned last week, “…three (Level One signatures) 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.”

Longer-Term Thoughts

The Uranus station of June 26 is also significant because it is one of the parts of the extremely important Saturn-Uranus opposition that starts later this year. In fact, as mentioned before, the first of five passages of this 45-year opposition takes place right on the USA Election Day, 2008. By itself, this aspect signifies a fundamental change in direction over many areas of human activity, especially politically, but also including economics and investment opportunities (and risks). It lasts through much of 2010.

If we apply this theme to the USA election, this aspect alone would seem to suggest that Barack Obama would win, for he indeed represents a very fundamental change in direction in the politics of the USA. He would probably be the first real true liberal USA president since the time of the last passage of this signature, which took place in 1965-66. All the cards are in his favor, because the U.S. populace seems exhausted and tired of the policies in force over the past 8 years. Everyone wants a change, and very few people believe the country is headed in the right direction. This election belongs to the Democrats—it is theirs to lose.

Which brings up the other side of Uranus. It rules upsets or surprises, as well as a major change of direction in leadership. Keep in mind also that the Saturn-Pluto cycle is in its waning phase (2001-2020), and this column has oftentimes referred to that period as one that will likely see increased federal deficits (they are at a record high again), rising taxes, rising interest rates, and sluggish economy and stock markets. The turning point may well be when Saturn reaches its half-way point in this waning phase, which occurs March –December 2009 when it squares Pluto.

Many people are complaining that Obama has gotten a free ride by the press. They haven’t really challenged him on issues very deeply. He is an inspiring and charismatic speaker (Uranus), and he promises swift and dramatic changes quickly if elected (all Uranus themes again). And he has an ambitious agenda for transforming America, by major “investments into its future.” This is really jargon for increased taxes, and according to my understanding, the people who will experience the greatest increase in taxes under his leadership will be the most wealthy, and the middle class may get tax breaks. That all sounds good —except that study after study demonstrates that more taxes (Saturn and Pluto) do not result in better economic conditions down the road. It seems to me that if the press wanted to challenge him a little more carefully, they might ask what he intends to do with all the money he will save by pulling out of Iraq. It is understood that the cost of this war is astronomical, and Obama believes that money would be better spent on programs at home. With so much money being saved, would it really be necessary to raise taxes on anyone, and risk the economic results that so many studies show as a consequence of raising taxes? After all, what is the real purpose of a tax on individual income, other than to take away the hard earned money of the people and put into the hands of a government to use as they see fit, to fund their pet projects? I think these are the kind of questions Americans will be asking themselves in the next year as Saturn comes to square Pluto. And when Uranus follows that with seven passages of a square to Pluto in 2012-2015, it would not be surprising to see a tax revolt erupting.

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