Cycles: Next week is fascinating from the geocosmic viewpoint

Review

JPMorgan Chase CEO Jamie Dimon expressed frustration at the U.S. federal government during the company's earnings conference call Friday. “It's almost embarrassing being an American citizen ... and listening to the stupid s--- we have to deal with in this country," Dimon said in response to an analyst question. "Since the Great Recession, which is now 8 years old, we've been growing at 1.5 to 2 percent in spite of stupidity and political gridlock, because the American business sector is powerful and strong," he said. “What I'm saying is that it would be much stronger growth if there were more intelligent decisions and less gridlock." – Evelyn Cheng, “Jamie Dimon Blows Up at DC Dysfunction,” cnbc.com, July 14, 2017.

In spite of more “smoking guns” trying to connect the Trump family to colluding with the Russians in an effort to influence the USA 2016 Presidential election, the U.S. stock markets soared to new record levels last week. Although the biggest risk to equities continues to be in the political arena, as evidenced last week by the news that Donald Trump Jr. met with a Russian lawyer and a former Soviet counterintelligence officer, investors were more focused on the prospect of strong earnings reports coming out this season. On that anticipation, both the Dow Jones Industrial Average and S&P broke out to new record highs on Friday. The NASDAQ is only 20 points away from joining the party. Also making a new all-time high was India’s CNX Index. The Hang Seng of Hong Kong leaped to its highest level in two years. Most other indices were up last week, but these stood out.

Other markets that stood out last week were the US and Australian Dollar. The U.S. Dollar was notable in its continued plunge down to its lowest level since last September, clearly supporting our call for the past two years that the Dollar would top out within 6 months of January 2017 – especially if a Republican won the election. The decade-long high was achieved on January 3, 2017. The Australian Dollar was also highlighted last week as it finally broke above an important downward trendline, as it blasted off to its highest level in over a year, right in line with our forecast made in the past several issues of the MMTA International Cycles Report. In addition to the Australian Dollar, the British Pound also rallied smartly last week to its highest level in 10 months. It appears to be coming back right in time for prime tourist season. Smart people, those Brits!

As the US Dollar fell, most commodities also rallied. Gold and Silver had fallen to their lowest levels in several months on Monday, July 10, and then spent the rest of the week rallying nicely. Is this rally for real? That will be one of the points we will address at length in the monthly MMA Cycles Report, to be issued this week. We will also address the new all-time highs in the DJIA and S&P, and analyze its importance in terms of their longer-term cycles. There is a lot to share now that I have just completed studies of these cycles for the soon-to-be-released re-write of The Ultimate Book on Stock Market Timing, Volume 1: Cycles and Patterns in the Indexes. Current research is so important to understanding cycles. It is hard to believe how much has changed since the last studies of these cycles was conducted 12 years ago. It is also hard to believe how so many of the studies conducted back then still hold up, too - but not all. Slight, but important, modifications were necessary in several cases.

 

Short-term geocosmics and longer-term thoughts

The International Monetary Fund's Managing Director, Christine Lagarde, said that she would not rule out another financial crisis in her lifetime, indicating that comments made recently by Federal Reserve Chair Janet Yellen may have been premature. "There may, one day, be another crisis," Lagarde told CNBC …. "I plan on having a long life and I hope she (Yellen) does, too, so I wouldn't absolutely bet on that because there are cycles that we have seen over the past decade and I wouldn't exclude that," Lagarde said. – Karen Gilchrist, Karen Tso, “I Wouldn't Rule Out Another Financial Crisis, Says IMF’s Lagarde,” www.cnbc.com, July 12, 2017.

Yellen predicted that because of the measures the Fed has taken, another financial crisis is unlikely "in our lifetime." – Jeff Cox, “Yellen: Banks 'Very Much Stronger'; Another Financial Crisis Not Likely 'In Our Lifetime',”, cnbc.com. June 27, 2017.

The possibility of no financial crisis is about equal to the possibility of no more war in our lifetime.  Both outlooks are possible, according to different cycles and how you define “financial crisis” and “war.”

For instance, in the stock market, our original studies revealed that there is a long-term 72-year cycle in the USA stock market - when the market declines by 50-90%. It actually has a range of 73-77 years in four historical instances, the last having bottomed in 2009, and before that, in 1932, 1857 and in Great Britain, in 1784. Based on that cycle, there won’t be another stock market crash in our lifetime like we witnessed 8 years ago.

However, there may also be a 90-year stock market cycle, as measured from the historic lows of 1761, 1842, and 1932. There just isn’t enough historical data to decide yet which is more dominant. But, if there is a 90-year cycle, it is due in 2022 (+/- 15 years).

These “crashes” also happen when Saturn, Uranus, and/or Pluto are in hard aspect to one another - especially the conjunction and opposition of Saturn and Uranus (1987-88, 2008-2010). Saturn and Uranus are not due for a conjunction or opposition until June 28, 2032. However, Saturn and Uranus will enter into a waning square three times in 2021, following the Saturn/Pluto conjunction in 2020. That is close to the center of the possible 90-year cycle. Uranus will also be in Taurus then, which indicates a major shock to the banking system. It happens every 84 years, +/- 7 years. But it is interesting that Yellen, the positive and optimistic Leo, sees no financial crisis in our lifetime, as indicated by the 72-yer cycle, whereas Lagarde, of the more worrisome sign of Capricorn, sees a possibility as supported by the potential 90-year crash cycle. I think Lagarde may be a student of cycle studies. It is kind of natural for Capricorns (like myself) to be fascinated by the repetition of themes at regular intervals of time throughout history.

Next week – and the week after – are also fascinating from the geocosmic viewpoint. The Sun and Mars will form a cardinal square to Uranus on July 17 and 20. These are very combustible signatures, often coinciding with sudden reversals and/or sharp price movements that take out long standing support or resistance levels. In other words, markets move more sharply than expected in very brief periods – and then may reverse and move more sharply than expected in the opposite direction. Both aspects are rated Level 1 types – the most powerful group of all geocosmic signatures correlating with market reversals and primary cycle highs or lows. The following week is no less important, as Venus will be in opposition to Saturn, July 24, followed by the very important Sun/Mars conjunction in early Leo on July 26. If that is not enough to goose the market, heliocentric Mercury begins its 12-day journey through the volatile sign of Sagittarius, also starting on July 26.  Not long after that will be the total solar eclipse in late Leo on August 21, conjunct Mars, and Donald Trump’s natal Mars and Ascendant. We are entering a cosmic earthquake. This is the first total solar eclipse to black out the mid-section of the United States since 1918. This will be a strange period to live through (and we will live through it). We may literally see dramatic disturbances in nature during the next month, along with very bizarre (and potentially dangerous) human behavior by lone psychopaths or organized terrorist groups, so extra caution and awareness is warranted. On the positive side, corporate earnings reports could propel to even greater record highs in several world equity markets before the 10% plunge begins Based on the history of the Sun/Mars conjunction, that high is due within 6 weeks of July 26, and based on cycles, the low is due to end by mid-October.