|

Weekly Column: A strong test for the U.S

NOTE: Financial markets are closed in the U.S. on Monday, July 5, in observance of the Independence Day holiday. 

Review and Preview

Nonfarm payrolls increased 850,000 for the month, compared to the Dow Jones estimate of 706,000 and better than the upwardly revised 583,000 in May. The unemployment rate, however, rose to 5.9% against the 5.6% expectation. The jobless rate increase came even though the labor force participation rate was unchanged at 61.6%. A separate figure that accounts for discouraged workers and those holding part-time jobs for economic reasons fell sharply to 9.8%, with the 0.4 percentage point decline putting the so-called real unemployment rate below 10% for the first time since March 2020. – Jeff Cox, “U.S. Adds 850,000 Jobs in June, Better than Expected,” www.cnbc.com, July 2, 2021.

This week should be a strong test for the U.S. and other global stock indices that have been rising. Of most importance is the transit of Mars in Leo, in opposition to Saturn in Aquarius and square to Uranus in Taurus. The first signature occurred late last week, on July 1. It has a whopping 82% historical correlation to primary cycle (crests or troughs) within 11 trading days. The Mars/Uranus square will occur July 4 and also has a powerful 76% correlation to primary cycles within 9 trading days. With Uranus, you often get sudden, unforeseen, reversals. With Saturn, there is usually an overabundance of stress and frustration. Mars is a fast-moving planet that packs a powerful punch to any event or attitude that is willing to act aggressively. In market-speak, this translates into days of high volume activity. Price are vulnerable to large swings in short periods of time. Often an event occurs, or an unexpected announcement is made that could drive traders to take aggressive action.

More people are working and receiving higher wages in the U.S., but also more people are becoming unemployed. Economists are also now predicting “GDP growth in the second quarter to approach 10%, a stunning continuation of a rebound helped by vaccines that have sharply reduced Covid-19 case rates along with hospitalizations and deaths.” On this news, U.S. stock indices continued their rally with the S&P and NASDAQ soaring to new all-time highs on Friday. But still no confirmation with the DJIA, where the all-time high still remains at 35,091 on May 10, 2021.

In Europe, the Netherlands AEX soared to another new all-time high on Friday, July 2. But the all-time highs in the DAX and SMI, as well as the yearly high in the FTSE, remain as the highs made June 14-18.

In Asia and the Pacific Rim, only the NIFTY index in India made a new all-rime last week on June 28. China and Hong Kong actually saw their equity markets fall to test their monthly lows on Friday.

In other markets, Gold fell to 1750 on Tuesday, June 29, right on a powerful solar/lunar reversal date for a low (see Announcements below). That was Gold’s lowest price since April 15. Silver also fell to a new cycle low on the same date, in accordance with its solar/lunar date for a reversal. Both then rallied to weekly highs on Friday. Bitcoin completed a one-week rally of 27% on June 29 off of its 28,800 low on June 22. It then retreated over 10% into Friday’s low. Ethereum rallied nearly 35% from its recent low of 1700 on June 22 to its high of 2292 on June 30. As a point of interest, we will now include Ethereum in our weekly reports along with Bitcoin. Crude Oil continued its rally to new 33-month highs as it reached a high of 76.22 on July 1, and the U.S. Dollar was approaching its high for 2021 as last week ended.

Short-term geocosmics

This week should be a strong test for the U.S. and other global stock indices that have been rising. Of most importance is the transit of Mars in Leo, in opposition to Saturn in Aquarius and square to Uranus in Taurus. The first signature occurred late last week, on July 1. It has a whopping 82% historical correlation to primary cycle (crests or troughs) within 11 trading days. The Mars/Uranus square will occur July 4 and also has a powerful 76% correlation to primary cycles within 9 trading days. With Uranus, you often get sudden, unforeseen, reversals. With Saturn, there is usually an overabundance of stress and frustration. Mars is a fast-moving planet that packs a powerful punch to any event or attitude that is willing to act aggressively. In market-speak, this translates into days of high volume activity. Price are vulnerable to large swings in short periods of time. Often an event occurs, or an unexpected announcement is made that could drive traders to take aggressive action.

On July 7 and 8, Venus does the same as Mars just did. That is, it will oppose Saturn first and then square Uranus. In this case, it is the Venus/Saturn opposition that has a high correspondence to reversals in U.S. equity markets, with a 71% correlation to primary cycles within 13 trading days. With Venus, it may relate to a change of mind, or something to do with currency values. The mix with Uranus can make cryptocurrencies especially sensitive to sudden market turns. One thing to be concerned about with Uranus: any long-term support or resistance area can be broken. If Bitcoin is going to break again, this is the time of its greatest vulnerability. You don’t want to see Bitcoin break or Ethereum break to new lows for 2021 if you are a bull.

In personal matters, one is advised to remain under control and be vigilant to avoid dangerous and explosive situations. It can be useful if you are inventive and have a new idea to develop. It can be problematic if you are around others who are controlling, manipulative, and prone to jealous rages. In terms of trading, it can provide exceptional opportunities to those who are not overly impulsive or pre-mature in entering a position.

Longer-term thought

The heat-wave currently affecting parts of the US reminds investors that sustainability is not an abstract concept—it has a real world economic impact. Patterns of consumption will change. Employment is affected (e.g., construction). Electricity use will rise. Extreme temperatures will further complicate the lives of economists trying to interpret the already dubious quality US economic data. Dr. Paul Donovan, “A Pontification of Central Bankers,” www.ubs.com/pauldonovan, June 28, 2021.

A disposed planet looks to its dispositor to carry forth its agenda. In this case, Saturn (government) is implementing progressive (Aquarian) policies, which it looks to Uranus (the collective/group will) to further. Yet, because Uranus in Taurus squares Saturn, it responds in a counter-revolutionary manner. “No! I won’t help, I will block you!” Thus, Saturn’s efforts are continually frustrated. This is typical of what I call “ill-disposed planets” – planets in hard aspect to their own dispositor. Here, the dispositor (Uranus) does not help the disposed planet (Saturn), but rather frustrates its intentions as if Saturn has gone too far in forcing change (Aquarius) upon the people. Ill-disposed planets generate “pushback”, “backfire”, or “blowback”. – Glenn Perry, Ph. D, https://aaperry.com/, June 26, 2021.

The U.S. is celebrating its 245th birthday. In the study of astrology, we refer to this as one’s Solar Return – the date and time when the Earth returns to the exact position in its orbit around the Sun that it held when it was “born.” Of course, the moment of the nation’s founding has long been a source of great discussion and debate amongst astrologers for at least 200 years. Was it July 2, 1776, when the vote for independence was concluded? Or was it July 4 when the messenger delivered the news to George Washington that Congress had declared its independence and the Revolutionary War began? Or was it when the U.S. Constitution was finally completed (September 17, 1787, or when George Washington was inaugurated as its first president (April 30, 1789)? There are serious arguments to support each of these dates, and even others.

As long-time readers know, my bias is for the first case. That is, the U.S. horoscope is based on the vote for independence, which was completed sometime shortly before noon on July 2, 1776. This chart and the arguments supporting it – plus the outlook for the next year based on this chart – are given in each year’s annual Forecast Book.

Once again, as readers and astrologers are well aware, the U.S. is entering into orb of its first Pluto return, which happens every 248 years +/- 3 years. In the July 2, 1776, chart, it is most critical because on that date and at that time, the Moon was also conjunct Pluto in late Capricorn. Transiting Pluto is thus conjunct the U.S. natal Moon and Pluto for the next three years. Thus, according to the principles of astrology, the nation is undergoing one of its most profound transformations ever. The past will indeed hold the nation’s future hostage these next three years.

As Dr. Perry writes above, this is a period of intense “pushback” from all sides of the population against the government’s acts, and it is setting up a period of potentially great frustration (Saturn versus Uranus, but also the U.S. Pluto return, conjoining the Moon, in Capricorn). This is not an easy cosmic setup for the nation to navigate, but it is essential if the nation is to grow. It indicates a need (maybe demand) to uncomfortably face its past (Moon), acknowledge and correct its errors (Pluto), as part of the path of growth and not decay (Pluto). There can be a sense of foreboding to deal with this discomfort (Moon/Pluto), but it has to be done. With Pluto, no one and no nation escapes unscathed. But once it is confronted head-on, the transformation that results can be incredibly empowering. As they say in metaphysics, that which doesn’t destroy you makes you stronger.

Thus, it is also essential that Americans recognize the positive aspects of its history and culture and not assign everything in its past to the waste bin, for you can’t have a secure future without a strong foundation – both an understanding and appreciation of all aspects of one’s history. You need both an understanding of the sins (Pluto and Moon in Capricorn) as well as a recognition of the gifts and strengths (Sun, Venus, and Jupiter together in Cancer on MC). The U.S. has a very strong chart based on July 2, 1776, just before noon, so it can succeed in this period of trial and transformation. Things will be different in the U.S., but this doesn’t have to result in a termination of the nation.

In concluding this week’s column, we note that in the 2021 solar return for the chart of July 2, 1776, the U.S. has 2° Sagittarius rising, square to Jupiter, its ruler, in 1° Pisces. There is an air of freedom and a return to fun and leisure in America. But it may also indicate excess and over-indulgence. The Sun, on the other hand, is in the 8th house, the natural house of Pluto, and thus the theme of transformation is very present. This is reinforced by transiting Pluto at 25° 55’ of Capricorn, in the same degree as the U.S. natal Moon. The U.S. natal Pluto is posited in 27°35’ Capricorn, all in the solar return second house of wealth, money, and values. It may seem like good times are returning. But there is also an undercurrent of something deep, profound, and potentially disturbing or coercive taking place in society and government.

It is time for a serious conversation and a serious effort to listen to all voices in America, and in fact, in the whole world It is a time for all parties vying for power to refrain from trying to “bully” the “other side” to their way of thinking just because they believe they have “the power” (they don’t) and the “soapbox” to control the messaging. Under Pluto, the center of power changes, as does the control of the messaging. How that process unfolds these next three years in the U.S. will be a drama for the entire planet to witness.

Author

Raymond Merriman, CTA

Raymond Merriman, CTA

The Merriman Market Analyst

Raymond A. Merriman is the President of the Merriman Market Analyst, Inc and founder of the Merriman Market Timing Academy.

More from Raymond Merriman, CTA
Share:

Editor's Picks

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans. 

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.