All of the major U.S. and European stock indices continued down after their highs posted in the prior week, near the Venus direct date. So indeed the Venus retrograde period worked with uncanny symmetry this time. In the U.S. markets, for example, the 50-week and primary cycle trough formed on May 12, as the Dow Jones Industrial Average dropped to 9852. The following Monday, on May 17, as Venus began its retrograde motion, it made a double bottom at 9862. The DJIA then started a rally that did not end until it posted a high of 10,487 on June 24. The following week, June 30, exactly as Venus turned direct, it posted a double top at 10,471. The market fell almost the entire week, down as low as 10,166 on Thursday, and closing the week at 10,213. The NASDAQ Composite exhibited a similar pattern. After posting a seasonal high of 1056 on June 30, as Venus changed directions, it fell all the way back to 1034 this past Thursday, and closed the week only slightly higher at 1946.

In Europe, the DAX completed a secondary high at 4101 on July 1, but continued to fall all this past week, with the weekly low on Friday at 3882. It closed at 3924. The Netherlands AEX also completed its high on July 1 at 348.70, then fell back to 332.40 on Thursday before closing the week at 335.90. The FTSE was also down most of this week, with a low on Thursday at 4324, but then rallied a bit into Friday to close the week out at 4393. The Swiss Stock Index was also down into Thursday with a low of 5511.70, but then closed slightly off that at 5548.10.

The picture was similar in Japan, where the Nikkei fell as low as 11239 on Thursday, just one week after posting a seasonal high of 11,988 on July 1. But it was different in Australia and Hong Kong. In the former, prices continued marching to new record highs as the All Ordinaries reached 3562.90 on Thursday, July 8. It closed not too far away either, at 3558.90. And although the Hang Seng of Hong Kong did not make a new high, it also did not fall to new lows either. It traded between 12,345 on Thursday, July 8, and 12,115 earlier in the week. It closed at 12,202. And the Argentina Merval stock index also performed well, closing at 985.51, its highest level since it primary cycle trough back on May 17.

So we can see that most, but not all, of these stock indices did indeed make a powerful cycle low nearby to Venus turning retrograde, and all made significant rallies throughout the Venus retrograde period, with most topping out very close in time to the date that Venus turned direct. Now our attention will turn mostly to the period of August 6-18, when Jupiter will form a waning square to Pluto (August 6), and Mars an opposition to Uranus (August 18). Both of these are Level 1 signatures, the most powerful correlates to primary or greater cycles in U.S. stocks, as reported in The Ultimate Book in Stock Market Timing Volume 3: Geocosmic Correlations to Trading Cycles. Somewhere between these two dates, and ideally around August 12, we would expect to see something significant happening in a fundamental, mundane, sense. And whatever it is, it is likely to cause a strong reversal in the trend of stock prices that is in effect at the time.

We never know for certain what this “thing” might be, since we (well, at least me) are not psychic. But we can get some guidelines by applying basic astrological interpretations to these symbols. Jupiter, for instance, indicates something exaggerated. It is something that happens on a larger scale, possibly affecting many people. The waning square is something that represents the principle of ending things, an awareness that a cycle is coming to an end, and things will change. Pluto can represent the principles of threat (to lives) and debt. We have been alerted already by the Homeland Security office that Al Queda is planning a major terrorist offensive in the United States. This geocosmic combination could coincide with such a threat. At the same time we are warned about this threat, that same government office advises us to not change any plans, and continue living “normally.” Well, OK- except that Mars in opposition to Uranus then tells us that a big surprise is possible, and we may be too complacent to adjust quickly enough to it. Mars and Uranus are the principles of sudden and quick action, and together they can be explosive, as in a literal explosion. Mars, Uranus, and/or Pluto are usually involved when there is a terrorist attack, and lives are lost.

But Pluto can also represent debt, and the waning square suggests the awareness of the end of a cycle that will probably end in 3-4 years when the same two planets form a conjunction to one another. So it could relate to the matter that the U.S. deficit is once again reaching record levels, and both politicians and the public start to become a little more alarmed. And just in time for the presidential conventions, when taking the facts and exaggerating their meaning to suit one side’s needs, becomes the order of the day.

How are we going to handle the out-of-control deficit spending? How are we going to handle the increased threat of terrorism on American soil? Well, coping with the later threat means placing the former threat on “the back burner.” But that won’t be possible in an election year. The problems and the finger of blame, will point at each party and candidate by the other side.

Yet Pluto tells us that “behind the scenes” deals are likely to be made now too. And these “deals” will, presumably, address these concerns. Only we may not be privy to what those deals are, unless someone (like the media) starts to ask tough questions of both candidates. How are we going to deal with threat of terrorism, given that military personnel are already over-stretched in their length of time overseas, and they need fresh help? Well maybe the answer lies in the twin bills S89 and HR 163, legislation currently pending in the Senate and House of Representative alike, which refer to a military draft for young people being re-instituted. I wonder what each candidate’s would say if someone asked them about a draft next year? Would they support it – under any circumstances? To agree to such a concept prior to election is almost a sure step to the loss column.

And then we have the concept of debt, another Pluto principle. How does each candidate intend to lower the federal deficit that is ballooning like crazy now? Well one way might be to raise taxes, which is also the domain of Pluto. But would either candidate risk giving such an answer if the big “T” question was asked? Not after what happened to George Bush Sr. after the 1988 election. When asked if he would raise taxes if elected, he said: “Read my lips. No new taxes!” Two years later he apologized to the American people, explaining that indeed it was necessary to raise their taxes after all. It wasn’t, and he lost to Bill Clinton two years later.

So we are coming into a funny season, when exaggerations of fears and hopes will be foisted upon the American people, and hence the world too. I think until mid-August, the investment community is going to have hard time finding things to be certain and optimistic about. And then just like that, I think it will change, and suddenly confidence will return by late September and into early October as the Sun, Mercury, Mars, and Jupiter all transit into Libra within one week of each other. Just six weeks before the election, everything starts to look great again. Funny how that works. I think if I was a small nation that is giving any kind of grief to the United States, I would lie very low in the next 1-2 months. This would not be a good time to test the resolve of a President who, like most presidents before him who were running for re-election, may look for reasons to show he is a powerful commander in chief shortly before the election. For Al Queda, or any terrorist organization, to attempt a terrorist act on American soil at this time in order to get Americans to abandon support of their government just prior to the election would be a gross error in judgement. In my opinion, it would almost guarantee victory for George W. Bush. But this is precisely the type of miscalculation that could occur in the Jupiter square Pluto, and Mars in opposition to Uranus period, coming up in the next five weeks.

Disclaimer and statement of purpose: The purpose of this column is not to predict the future movement of various financial markets. However, that is the purpose of the MMA (Merriman Market Analyst) subscription services. This column is not a subscription service. It is a free service, except in those cases where a fee may be assessed to cover the cost of translating this column from English into a non-English language. This weekly report is written with the intent to educate the reader on the relationship between astrological factors and collective human activities as they are happening. In this regard, this report will oftentimes report what happened in various stock and financial markets throughout the world in the past week, and discuss that movement in light of the geocosmic signatures that were in effect. It will then identify the geocosmic factors that will be in effect in the next week, or even month, or even years, and the author’s understanding of how these signatures will likely affect human activity in the times to come. The author (Merriman) will do this from a perspective of a cycle’s analyst looking at the military, political, economic, and even financial markets of the world. It is possible that some forecasts will be made based on these factors. However, the primary goal is to both educate and alert the reader as to the psychological climate we are in, from an astrological perspective. The hope is that it will help the reader understand these psychological dynamics that underlie (or coincide with) the news events and hence financial markets of the day.

No guarantee as to the accuracy of this report is being made here. Any decisions in financial markets are solely the responsibility of the reader, and neither the author nor the publishers assume any responsibility at all for those individual decisions. Reader should understand that futures and options trading are considered high risk.