Fed Watching the Stars

02/14/2020 9:28 am EST

Focus: MARKETS

Susan Gidel

Editor, Red Letter Trading Days

Stars could impact Federal Reserve action next week, reports Susan Gidel.

Be on the lookout for well-thought-out plans to shake up the financial industry—perhaps the Federal Reserve Board—this week as Mars and Uranus form an aspect that lets them work together easily. Mars is in Capricorn, representing a master planner. Uranus is in Taurus, representing shakeups in finance.

The Mars/Uranus influence on the horoscope chart for the Fed (founded Dec. 23, 1913) begins as the stock market opens on Tuesday at 8:30 am EST following the long holiday weekend. That’s when the Moon in Capricorn joins Mars in an exact conjunction by degree with the Fed’s natal Sun, the most important planet in any horoscope chart. The last time Mars was aligned with the Fed’s Sun was in March 2018 — the same day as newly appointed Chair Jerome Powell conducted his first Fed meeting — but Uranus had not yet moved into Taurus, which rules banking.

The aspect between Mars and Uranus is exact on Friday, Feb. 21 at 4:10 am EST and signals the potential for big breakthroughs. For the Fed, it could signify a fundamental shift in its operations and its identity. In between, the Fed releases minutes of its January meeting (no rate hike, Coronavirus could dampen global growth, out of repos by end-April) on Wednesday at 2:00 pm.

Mercury Retrograde

The planet Mercury, which rules trading and stock indexes, turns retrograde in motion on Sunday, Feb. 16 at 7:54 pm, lasting through March 9. During this period, Mercury is on vacation from its normal duties of paying attention to the details concerning communications and travel. So, double-check your online orders before hitting send, beware potential fat-finger trades that could rock the markets, double-check your statements every day, and back up your computer before Sunday! 

Tuesday, Feb. 18

  • Low in Soybeans: A setback low could occur as transiting Venus is directly opposite the market’s first-trade Sun, a transit that occurs once every 19 months. Transiting Mercury also is in aspect to the first-trade Sun, one that suggests discomfort and change. Finally, both the Moon and Mars are in an easy trine to first-trade Mars at the top of the soybean market’s natal horoscope. Look for planetary price conversion levels of $8.73 to $8.75 per bu. area to continue as support in March beans; $8.87 in the May.

Wednesday, Feb. 19

  • High in Gold: The Moon and Jupiter are aligned with the gold market’s first-trade Mercury, one of the most sensitive planets at market highs. The money planet, Venus, is in position in the sky to form a Grand Trine with natal Mars and Moon, which suggests the upside is easy. Meanwhile, transiting Mercury is conjunct first-trade Jupiter, a planet that typically expresses ultimate joy when activated. Finally, the Sun is at 00 Pisces, a significant shift uptick in energy for the planet that rules gold. Planetary price conversion levels that could provide resistance in the April contract include $1,581 per oz., $1,629 and $1,651.

Thursday, Feb. 20

  • High in Crude Oil: Transiting Moon and Venus team up with connections to the first-trade crude oil horoscope chart that could mark a peak. The Moon moves into position with slow-moving planets Saturn and Pluto to form a 90-degree aspect with the market’s natal Mars/Pluto opposition. Money planet Venus touches first-trade Mercury for the first time in 19 months. Finally, the Sun makes an easy trine with first-trade Moon and Saturn. The next upside resistance based on planetary price conversion is $56.80 per barrel in the April contract; the Feb. 4 low at $49.50 was just $1.30 below the previous planetary level of $50.80.

Friday, Feb. 21

  • High in S&P 500: All four of the important planets often activated at market highs are being touched exactly within no more than a two-degree range. The transiting Sun is conjunct both Mercury and Venus; transiting Mercury is conjunct the Sun; and transiting Venus is conjunct the Moon. What’s more, transiting Mars and Uranus make an exact Grand Trine with the index’s natal Uranus, another sensitive planet in the S&P 500 horoscope. If the S&P 500 breaks through planetary price resistance at 3370 significantly, the next major stopping point is the end-of-cycle levels at 3573-3583.

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

Bullseye!

  • Low in Gold on Wednesday, Feb. 12: April gold set the week’s low at $1,564.40 per oz, with prices rallying to a high of $1,581.70 the following day. Nearby gold futures have held at Saturn’s price conversion level of $1,545 since breaking through on the year’s first trading day.

Pretty Darn Good

  • High in Crude Oil on Friday, Feb. 7—March crude oil set a high of $52.20 per barrel on Thursday, February 6, dropped to $49.42 on Monday, February 10.
  • High in 10-yr. T-note on Friday, February 7: Friday’s action was a strong up day leading to a high the following Monday at 131-125 in the March contract. Prices fell to 130-195 on Wednesday, Feb. 12.
  • Low in Soybeans on Monday, Feb. 10: The low in March beans on Monday was $8.79 ½ per bu., just 1.5¢ above Tuesday’s low of $8.78. Both lows were above the planetary price support levels of $8.73 to $8.75. By Thursday, Feb. 13, prices had rallied 20¢, to $8.99 ¾.

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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