Weeks following holidays can be difficult and the starts are added to that. Look for a high in gold early in the week and a low in beans on Friday.

Just as trading begins for the week after the July 4 holiday, Mercury turns retrograde in motion at 7:14 pm EDT on Sunday, July 7. Mercury is the planet that rules trading, stock indexes and communications, so mistakes can be more prone to happen while it is retrograde and slacking off on its normal duties. It remains retrograde through July 31. So, be on the safe side and doublecheck orders (particularly those placed online) and statements to catch any errors.

The rest of the week chimes in with difficulty, too. Beware arguments and anger on Monday, an overwhelming amount of work on Tuesday and accidents on Thursday. The bright spot is on Monday, when unexpected money could fall into your lap, perhaps not coincidentally, the day of a potential short-term high in gold.

Monday, July 8

  • High in Gold: Look for a short-term high in gold as transiting Venus is opposite the futures contract’s first-trade Sun and the transiting Sun is opposite first-trade Mercury. The end-of-cycle planetary price conversion level set by Jupiter is $1423 per oz., which could be a fulcrum point. If August prices remain above that level, the next price conversion point is $1,508. If $1,423 becomes resistance, then $1,401 and $1,372 are the next two critical support areas. 

Friday, July 12

  • Low in Soybeans: Look for a short-term low in soybeans as the first-trade Sun and Moon are activated from transiting planets. The transiting Sun and Venus are at a 90-degree angle to the first-trade Sun, and the transiting Moon is opposite where it was when the contract first began trading in 1935, and on an important axis with first-trade Jupiter. Planetary conversion price support is at $9.03 per bu., $8.87 and $8.75.

Last Week’s Scorecard (through Wednesday’s close)

Bullseye!

  • Low in Gold on Tuesday, July 2: August gold traded in a $38 per oz. range, from a low of $1,386.20 to a high of $1,424.00, closing $18.70 higher. On Wednesday, July 3, August gold rallied up to $1,441, closing at $1,420.9, just below the end-of-cycle planetary price conversion level of $1,423. 

Pretty Darn Good

  • High in Euro FX on Friday, June 28: The September contract made a high of $1.4640 on Friday, then fell down to $1.13345 by the following Wednesday, July 3, just below the planetary price support of $1.1360-$1.1380. The September contract closed at $1.13475.

 

  • Low in Soybeans on Tuesday, July 2: November soybeans did close 9.75¢ per bu. lower at $8.96 ¾, with prices on Wednesday falling to $8.96 and closing 9.25¢ higher at $9.08.
  • Low in S&P 500 on Tuesday, July 2: The S&P 500 set back a little into the gap area between 2943 and 2952 to a low of 2955. The index rallied to close out pre-holiday trading at a new all-time high of 2995.

Off the Mark

  • High in 10-year Treasury notes on Monday, July 1: Prices made a low at 127-170 and closed lower on the day, setting the stage for a two-day rally that honed in on the planetary price resistance level of 128-05. The September contract closed at 128-08 on Wednesday.

The position of planets in the sky as they relate to their positions when a market first began trading can provide clues to potential trend changes. The energy is strongest on the days noted in this post, but it is not unusual for the effect to be seen a day or two either side. See backgrounder “Market Analysis with Astrology” for further information. 

Susan Gidel is editor of the Red Letter Trading Days newsletter.