Look for Low in Euro & 10-year on Monday

10/04/2019 9:52 am EST

Focus: STRATEGIES

Susan Gidel

Editor, Red Letter Trading Days

The stars are forecasting a low in the euro and 10-year note on Monday and a high in the S&P on Thursday, reports Susan Gidel.

It’s a fairly quiet week in the cosmos, with just a bit of tension early in the trading week. Watch for heightened volatility in Sunday’s overnight session for Monday’s trade date as Mercury, ruler of trading and stock indexes, is opposite Uranus, ruler of the internet.

Tension between leaders and their responsibilities perks all day Monday, reaching a peak in the last hour of the stock market’s trading session. On Tuesday, the planet that rules money, Venus, enters the sign of Scorpio. Opposite Taurus, which Venus rules, means that Scorpio is the planet’s least favorite sign and could struggle.

Monday, Oct. 7

  • Low in Euro FX: The market’s first-trade Mercury is highlighted with aspects from three transiting planets: Moon, Mercury and Uranus, which form a tension-filled T-square that could produce an emotional trading session. Venus, the all-important money planet, also is in play. The transiting Sun is opposite the first-trade Venus, while transiting Venus is opposite the first-trade Saturn. Look for support in the December contract at 1.0980.
  • Low in 10-year Treasury note: The transiting Moon and Mars connect with the market’s first-trade Mercury and Mars to form a Grand Trine, a formation that has appeared only at previous market lows and never a market high. Another important player in this market is the Sun. The market’s first-trade Sun is opposed by transiting Mercury, while the transiting Sun is conjunct the first-trade Saturn. Finally, transiting Venus is aligned with the first-trade Pluto. Look for support at 129-04, then 128-05.

Thursday, Oct. 10

  • High in S&P 500: The three most critical planets typically in play at market highs: The first-trade Sun, Mercury and Venus, are stimulated by transiting planets. Transiting Moon is conjunct the first-trade Sun, with transiting Venus trine to the market’s natal Venus and Mercury. One typical indicator of a low also is present, with the transiting Sun opposite the index’s natal Moon to the same degree. Upside resistance based on planetary price conversions stands at 2896 and 2931, with 2944 a formidable hurdle that the market has jumped over and under for months. 

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

Bullseye!

  • Low in 10-year Treasury note on Tuesday, Oct. 1: In a wide-range day, the market bottomed at 129-200, and rallied to a high of 131-310 by Thursday, Oct. 3.

Pretty Darn Good

  • Low in Euro FX on Friday, Sept. 27: The December contract made a low of 1.09660 and closed at 1.10010, so the Venus conversion level of 1.0980 proved supportive. Ultimately, the market bottom two trading days later (Oct. 1) at 1.09385, and rallied to a high of 1.10550 by Thursday, Oct. 3.
  • High in Soybeans on Thursday, Oct. 3: November beans came within 1.5¢ of the high on Oct. 1 at $9.20 per bushel on Thursday. They closed just one tick below the Sun’s planetary price conversion level of $9.12.

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.

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