Santa is coming to town, along with the winter solstice, have markets been good? Asks Susan Gidel.

One of the most optimistic and growth-oriented transits—Jupiter trine Uranus—occurs on Sunday, Dec. 15, and marks the start of what could be an optimistic end to the year in the stock market.

The last time this pair were 120 degrees apart was on three occasions from September 2014 to June 2015, when the S&P 500 rallied from an October low of 1841 to a May high of 2134. Next week’s trine is the only pass of the transit. The pair meet again next in a tension-filled square in January 2021.

The transiting Sun connects with both Jupiter and Uranus near Christmas, adding a final booster shot of optimism before heavier energy hits in early January. The Sun is trine Uranus on Christmas Eve, then conjunct Jupiter on Friday, Dec. 27.

However, do note that the winter solstice occurs on Saturday, Dec. 21 when the Sun enters the sign of Capricorn. This is one of the 10 days each year W.D. Gann watched for a change in trend, and the winter solstice is arguably one of the strongest of the set. This is because the Sun has reached its nadir, and the amount of light each day begins to grow toward its peak at the summer solstice.

Monday, Dec. 16

  • High in Crude Oil: Mercury is the featured transiting planet in today’s connection with the first-trade crude oil horoscope. Mercury is conjunct both natal Jupiter and Uranus while also trine to natal Sun and Mercury. Another relatively swift planet, Venus, is at a 90-degree angle to the market’s strong Mars/Pluto opposition in the first-trade chart. Based on four planetary price conversions, look for resistance at $60.90-$61.00 per barrel in nearby January, then $62.30-$62.90.

Friday, Dec. 20

  • High in S&P 500: Four transiting planets connect with those in the first-trade horoscope for the S&P 500 index on quadruple witching day. In direct opposition are transiting Moon and Mars to their same first-trade positions. The transiting Sun is exactly 120 degrees away from first-trade Pluto, and transiting Mercury is 90-degrees away from the first-trade Sun. What’s more, money planet Venus is at 00 Aquarius, so shedding its shackles a bit after leaving Capricorn. Finally, the winter solstice is on Saturday, marking one of the more significant “Gann Days” of the year. Four index levels loom as stiff resistance based on planetary price conversions—3190, 3210, 3213, and 3223.  
  • Low in 10-year Treasury note: Money planet Venus is the star in this connection as it completes a Grand Trine triangle with first-trade Mars and Mercury. On top of that, Venus is newly in Aquarius, so bringing a shift in energy. Also significant is that the transiting Moon is conjunct the market’s first-trade Saturn. In the March contract, look for support at planetary price conversion levels of 128-05, then 127-07.

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

Pretty Darn Good

  • High in Gold on Friday, Dec. 6: February gold traded in a $22 per oz. range, opening near the day’s high of $1,485.30 and closing near the day’s low of $1,463.30, down $18 for the day.
  • High in 10-year Treasury note on Monday, Dec. 9: Even though prices didn’t establish an interesting high or low, the planetary price conversion level of 129-04 did provide significant resistance. Monday’s high was 129-05.5 in the March contract, with closes below 129-04 the first two days of the week. On Wednesday, March closed at 129-09, but then took a big fall on Thursday to a low of 128-05 (a planetary price conversion level).
  • High in Soybeans on Wednesday, Dec. 10: January soybeans made a high of $9.02 per bu. (1.5¢ below Monday’s high), and closed 7.75¢ lower, ultimately dropping to $8.88 ¼ on Thursday.

Off The Mark

  • Low in 10-year Treasury note on Thursday, Dec. 5: This day turned out to be in the middle of a range established by a high at 130-04.5 in the March contract two days earlier and continued pressure into the week of Dec. 9-13.

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.