I am having a serious thought here.
What would happen if the Fed has another rate cut?
Could that happen next week?
Let's look at the barking hounds ( as AA likes to say) -
no Fed intervention in the dropping markets for the past three days -
financials held (propped) up today. that's why the spx held up.
I checked my handy-dandy Merriman book -g-
Venus Retrograde -
"In the field of financial markets, this is oftentimes a very difficult and unpredictable environment. It is not
unusual to see the Federal Reserve Board make a complete change in direction, from accommodative to
tightening, and back again (or vice-versa), all within this time frame. Thus trends that were up or down,
frequently reverse during this period. It is generally not a favorable time for stock prices worldwide, particularly if
the market climate was nervous going into it."
Merriman's comments this past week-end -
But the real key is still in the United States. Both the Dow Jones Industrial
Averages and the NASDAQ Composite broke to new 4-year lows this past
week. The DJIA dropped to 7460, it lowest level since the 7400 level of
September 1998 when President Clinton was trying to explain what "is" really
meant. The NASDAQ Comp, on the other hand, fell to 1160 on Friday, its
lowest level in 5 years, but barely below the 1192 level of July 24. But still
holding up is the S&P futures. Its nearby contract low of 773 last July is still
holding, as Friday’s low was only to 792, and the close was 807. If that breaks,
I think you could see real panic entering the market. Not just the U.S. market,
but all the stock indices of the world. And it would be consistent with the
possibilities inherent in Venus going retrograde this week in Scorpio, a sign
that is considered weak for its placement. Additionally Saturn goes retrograde
this week, on October 11, one day after Venus turns. And Mars squares
Saturn the following Monday, October 14. All of these are considered Level 1 –
the strongest – type of signatures, according to the studies I reported in The
Ultimate Book in Stock Market Timing Volume 3: Geocosmic Correlations to
Trading Cycles.
It is not often that you find three Level 1 signatures as powerful as those just
mentioned, unfolding in a period of only 5 calendar days. Each of them have a
greater than 60% historical correlation to primary cycles within an orb of 12
trading days. In fact, in the case of Mars square Saturn, the rate of frequency
is an astounding 80% within 11 trading days. In the case of Venus retrograde,
the correlation is 78%!
As if these signatures just mentioned is not enough, there is the rare
astronomical phenomenon known as syzygy coinciding with the Moon’s perigee
taking place at 7:18 AM, Eastern Time, this Sunday. Syzygy is a twice a month
event that happens when the Sun, Moon, and Earth array in a straight line.
Perigee is the time of this month (and nearly the year) when the Moon is at its
closest point to the Earth. And finally, this is all happening while the Moon is
parked over the Earth’s equator, or waistline. According to the U.S. Naval
Observatory, these three factors happen only about once every 4 years.
According to an article by Detroit Free Press Washington Bureau writer Seth
Borenstein, in which he quotes Steve Gill of the National Ocean Service, "This
year’s syzygy-perigee-equator pull will increase high tides and decrease low
tides by 2-3 inches." Geez, I wonder if that could translate to a rather
emotional period in the collective behavior of humanity, as human beings are
comprised of so much water? Oh, and did I mention that Mercury turns
stationary direct this Sunday as well, and in square to Saturn all week – an
aspect that was brought to my attention by astrologer Elizabeth Gregory?
Some people may read these things as the basis for making dire predictions.
And it is true that as we look around at the world’s stock indices, they appear
to be on the precipice of a potentially steep drop. And as we look around the
geopolitical situation of the world, it seems that war or terrorism could also
break out at any moment. That is, unless President Bush agrees to the
challenge of a dual with Saddam Hussein in order to spare the rest of us the
war that each seems to be driven to lead the world into. With all the Mars and
Saturn signatures coming up, and with Venus (planet of peace) going
retrograde in the sign of its detriment, the tension is likely to increase first
before it subsides. But as traders, I prefer not to look at this so much as a
period of dire consequences. I prefer to view it as a period of great opportunity
for traders and investors alike, which is who this column is directed to. It could
very well represent an outstanding to buy stocks and maybe some commodity
futures, very cheaply. For if I am reading this right, any "drop off the cliff" will
coincide with the end of the 4-year cycle trough in stocks, and represent a
very good investment opportunity for several months. Sometime between now
and the end of January, that bottom is due. Sometime between now and the
end of January, the opportunity to buy things at a discount of what their value
will be by the middle of next year, is very great, in my humble opinion. It just
could coincide within a week of when Venus turns retrograde or direct.
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One week (+ a little) from Venus Retrograde is 34 days from the start of a 10 trin countdown (forgot where that came from -g-). Also, Zeev's bottom is Oct. 22. Full moon 21st. |
