This current bear market is similar to 1987 in terms of the speed of the decline. When it bottoms ha...
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Starry Markets: Clear Eye for the Fuzzy Guy
02/21/2020 9:08 am EST
Though a bit hazy, stars indicate high in Euro and lows in gold and crude next week, reports Susan Gidel.
Review of previous ideas and actions remains in focus as Mercury retrograde in Pisces hits the halfway mark in its Feb. 16 to March 9 travels on Tuesday, Feb. 25. The bad news is that both the Sun and retrograde Mercury are in Pisces, so that the inability to see clearly creates quite a bit of confusion. The good news is that Mercury retrograde is in the heart of the Sun from 5:19 pm EST Tuesday through 12:04 am Wednesday, which is akin to being in the eye of a hurricane. Calmness prevails, and there is potential for issues to become crystal clear.
Both the Sun and Mercury are in position to work well with Mars this week, which could result in discussion about how new ideas have a practical path forward.
At week’s end, Mercury is 60 degrees away from Uranus for the second of three times, a connection that suggests the opportunity for surprising news. The first pass occurred on Feb. 5, the day the U.S. Senate voted on articles of impeachment for the president. That vote could be the topic of conversation again during the second pass, with final resolution at the third pass on March 22.
Monday, Feb. 24
- High in Euro FX: Transiting Venus conjoins its position in the first-trade horoscope for Euro FX futures, a connection last made in March 2018 as it was peaking near 1.24-1.25. At the previous connection in May 2017, prices burst through resistance at 1.10 to the upside. Given that prices are at three-year lows, perhaps strength to the upside (ala 2017) is more in order than a high. Adding to potential strength are the transiting Sun, Moon and Mercury all aligned with the first-trade horoscope’s Moon. March contract prices are in a no-man’s land of support/resistance based on planetary price conversion levels at 1.072-1.073 and 1.0980.
Thursday, Feb. 27
- Low in Gold: Venus, the first-trade horoscope planet getting a lot of love recently as prices have rallied, is in the mood for an argument as transiting Moon and Venus make a 90-degree square. But, it could just be a tiff in the big scheme of things as transits through mid-March support continued strength. Planetary price conversion levels to watch in April gold include $1,629 per oz., $1,581, $1,573 and $1,545.
Friday, Feb. 28
- Low in Crude Oil: Prices could feel peak pressure as the transiting Moon and Uranus are traveling together and directly opposite the first-trade horoscope’s natal Moon/Saturn. Also applying pressure is a square to the first-trade Sun from transiting Mars, and connection to first-trade Mars by both conjunction (Venus) and square (Saturn/Pluto). Look for support in the April contract at a planetary price conversion level of $50.80 per barrel.
Last Week’s Scorecard (through Thursday’s close)
Pretty Darn Good
- Low in Crude Oil on Friday, Feb. 14: The low in April crude oil was $51.55 per barrel, just 40¢ higher than the more significant low one trading day later, Tuesday, Feb. 18, at $51.15 as transiting Mars was conjunct the market’s ruling planet, Neptune. By Thursday, Feb. 20, prices had rallied to $54.66. Indeed, the planetary price conversion level of $50.80 provided support.
- Low in Soybeans on Tuesday, Feb. 18: March soybeans were under pressure as transiting Venus was opposite the first-trade Sun, ultimately finding a low the following day at $8.85 per bu., just below the planetary price conversion level of $8.87. Prices stalled at $8.98, a nickel below the next conversion level of $9.03.
- High in Gold on Wednesday, Feb. 19: April gold was on a tear all week with Jupiter and Venus in the picture, rallying $17.20 per oz. on Tuesday and another $8.10 on Wednesday. Prices had broken through resistance at the planetary price conversion level of $1,581 the previous Friday and within three trading days were approaching the next level of $1,629. All this from the low on Friday, Feb. 14 at $1,576, a move of more than $50 over four trading days.
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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