The January barometer shows a bullish market outlook, but with some storm clouds on the horizon, wri...
The Party's Over
12/02/2019 9:10 am EST
Long-term astrological bullish indicator is leaving its 12-year rule, being replaced by a more bearish sign, this could cause problems, notes Susan Gidel.
Jupiter, the Cosmic Santa Claus that wants us to have everything we could possibly want, is leaving its ruling sign of Sagittarius on Monday, Dec. 2 at 1:20 pm EST, not to return for another 12 years. The party of hope and bullishness that Jupiter has been hosting for the last 12 months is over.
Worse, Jupiter enters Capricorn, the sign it dislikes the most. Jupiter feels homeless in Capricorn because the restrictions and boundaries that Capricorn insists upon are diametrically opposed to the freedom that Jupiter relishes. So, not only is Jupiter in this restrictive sign until the winter solstice 2020, but it also has to make a significant downshift from ruling sign to worst sign. The transition could be rough and put general pressure on all markets.
Monday, Dec. 2
- Low in Soybeans: Transiting Mars is exactly conjunct the position of Venus in the first-trade soybean horoscope and exactly opposite first-trade Uranus, an important axis in the soybean horoscope. At the same time, transiting Mercury is conjunct the market’s natal ascendant. Rounding it out are that transiting Venus is trine natal Mars, which is at the top of the soybean horoscope chart, and the transiting Sun is opposite the market’s natal Moon. In January beans, $8.87 per bu. is the first level of planetary price conversion support, then $8.73-$8.75.
Tuesday, Dec. 3
- High in Euro FX: This market’s first-trade Moon and Mars, which often are activated at price highs, are both stimulated from transiting planets. The transiting Moon is conjunct the natal Moon, while transiting Mercury is opposite first-trade Mars. In addition, first-trade Mercury is receiving both an opposition from Mars and trine from Venus. Resistance is at 1.107, Saturn’s planetary price conversion, in the December contract.
Thursday, Dec. 5
- Low in 10-year Treasury note: Transiting Mars and Venus both connect with the placement of this market’s first-trade horoscope Sun, typically involved at market turns. In addition, the transiting Moon is aligned with the important Venus/Mars axis in the first-trade horoscope, while transiting Saturn has just crossed the market’s natal descendant. In the March contract, look for planetary price conversion support at 129-04, then 128-05.
Friday, Dec. 6
- High in Gold: Gold prices are especially prone to making turns when a planet is at 00 degrees of a new sign, and the biggest planet of all—Jupiter—is at that point, having entered Capricorn on Monday afternoon. On Friday, the transiting Moon is exactly square to the first-trade Moon, with the transiting Sun exactly conjunct first-trade Mars. Finally, both transiting Venus and Saturn are conjunct natal Mercury, the planet most associated with gold highs. In the February contact, look for planetary price conversion resistance at $1508 per oz. Support should be good at $1423, the end-of-cycle conversion level.
Last Week’s Scorecard (through Friday’s close)
Tuesday, Nov. 26
- High in Crude Oil: The New Moon in Sagittarius brings both the Sun and Moon into conjunction with the crude oil market’s first-trade Jupiter and Uranus, while transiting Mars and Uranus are connected in a straight line with the market’s natal Moon/Saturn conjunction. Finally, the crude oil market’s ruler — Neptune —is in play as transiting Venus/Jupiter are aligned with its position in the first-trade chart. On Wednesday, Nov. 27, transiting Neptune turns direct in motion having been retrograde since the June 21 summer solstice, which could provide positive support. Based on planetary price conversions, $56.80-$57.20 per barrel is a critical pivot area. The next resistance to the upside is $60.90, with the next support to the downside at $50.80.
- High in 10-year Treasury note: The New Moon in Sagittarius is aligned with an important axis between Mercury and Uranus in the first-trade chart for 10-yr. T-notes that often is in play at market highs. At the same time, transiting Mars is exactly conjunct first-trade Jupiter, stimulating outsized growth. Also important is that transiting Mercury is opposite the market’s first-trade Sun, and that the money planet, Venus, has just moved into a new zodiac sign. On the upside, planetary price conversion resistance is stiff at 132-03; the year-to-date high on September 3 was 132-13, and the subsequent rally stalled at 132-01 in early October. The next conversion resistance level is 134-06.
- High in Gold on Friday, Nov. 29: February gold rallied more than $10 per oz. to a high of $1,472.90, closing up $9.60 at $1,470.40.
Pretty Darn Good
- High in Crude Oil on Tuesday, Nov. 26: January crude oil set a high of $58.56 per barrel, which was surpassed by 12 cents on Wednesday. But, Tuesday’s close was the highest of the pre-holiday trading week at $57.76.
- High in 10-year Treasury note: Prices rallied on Tuesday to a high of 129-26 in the March contract, falling to a low of 129-125 on Wednesday.
Off the Mark
- High in S&P 500 on Friday, Nov. 22: This was the last trading day before a potentially explosive situation on Sunday, Nov. 24 that did not materialize. The S&P 500 did not set a record high but was merely within a string of several record-setting days on either side.
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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