Sell in May and Go Away

A six-week bearish planetary alignment begins nest week, reports Susan Gidel

Planetary energy takes a significant downturn this week with three planets connected to the economy and stock market turning retrograde in motion over the course of four days.

• Saturn retrograde at 12:09 a.m. EDT May 11—review structures—through Sept.28
• Venus retrograde at 2:45 a.m. May 13 — review money — through June 25
• Jupiter retrograde at 10:32 a.m. May 14 — review growth — Sept. 12

The stock market is especially sensitive (in a bearish way) when Venus and Jupiter are retrograde at the same time, which they are this year from May 14 through June 25. This is the sixteenth time the dual retrograde has happened in the last 50 years. In all but two instances, the S&P 500 fell from 2.5% (1996) to 11.3% (1986); the two years when the market rallied, it was less than 1%. Over all 15 events, the average decline when both planets were retrograde (in a range of 1 to 42 days) was 3.2%. That seems pretty small potatoes now given this year’s volatility, but the main message of general bearishness holds.

Note that five of the six markets regularly highlighted here could be poised to make highs this week, before the retrograde pressure takes hold. Also be advised that this is the last supportive-looking astrological transit for the S&P 500 until after November’s presidential election.

• High in Crude Oil on Tuesday, May 12: The monthly transit of the Moon joins three planets providing consistent pressure on crude oil prices this year as they are square to the market’s first-trade Mars and Pluto. At the same time, transiting Mars also connects to the contract’s natal Mars/Pluto opposition. In the July contract, three levels of important planetary price conversion levels include $28.48 per barrel, $29.23 and $32.08-$32.80. 

Can you help me find Brent crude first-trade data? I’d like to switch my ongoing analysis to ICE Brent crude oil futures from WTI at NYMEX but need a definitive first-trade date and time to conduct my astrological research before I do. All I know right now is that the current active Brent contract at ICE launched in London at the International Petroleum Exchange in June 1988. Many thanks in advance for any data or leads on where I might find Brent crude’s launch information. Please email susan@susangidel.com.

• High in Gold on Tuesday, May 12: The Moon in Capricorn is conjunct with the position of Venus in the first-trade gold contract horoscope, while the transiting Sun makes an exact trine to the degree. Look for resistance in the June contract at planetary price conversion levels of $1,732 per oz., $1,761 and $1,783; the only one between $1,800 and $1,900 is $1,868. 

• High in 10-year Treasury note on Tuesday, May 12: The Sun, Moon and Mercury in the sky form powerful “grand trines” with Mercury and Mars in the 10-year Treasury note first-trade horoscope. Those two planets are at important corners of the contract’s “mystic rectangle” formation that often are activated at times of highs or lows. Formidable resistance in the June contract is at two planetary price conversion levels of 143-07 and 143-08.

• High in S&P 500 on Wednesday, May 13: Today’s setup between planets in the sky and the 1957 launch horoscope for the index is the last bullish-looking one until after the presidential election in November. Transiting Mars is conjunct both Mercury and Venus in the first-trade horoscope, stimulating trading and money. Transiting Sun and Jupiter form an as-good-as-it-gets Grand Trine with the index’s first-trade Jupiter, the planet of growth and expansion. However, support for stocks might extend into May 18 to reflect the strong connection among the Sun, Jupiter and Pluto from May 15-May 18. For planetary price conversion level resistance, 3003-3010 could be the uppermost target; 2853-2863 represents end-of-cycle support/resistance. Levels in between to watch closely are 2896, 2931 and 2944.

• High in Euro FX on Friday, May 15: The transiting Sun and Moon are aligned within their first-trade counterparts for Euro FX futures by no more than 3 degrees, creating a comfortable lift in energy. Transiting Mars gives the Moon a boost, too. In the June contract, look for resistance at the planetary price conversion levels of 1.0980 and 1.1070-1.1080.

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

Bullseye!

• Low in 10-year Treasury note on Wednesday, May 6: The June contract hit a low of 138-085, its lowest price since the upside breakout on April 15. Three planets in the sky were aligned with the market’s first-trade Sun; three more planets were aligned exactly with the contract’s first-trade Moon, Jupiter and Pluto.

Pretty Darn Good

• Low in Crude Oil on Monday, May 4: This was a setback low in an uptrend at $18.05 per barrel, basis June. Prices rallied to $26.74 by Thursday, May 7.

• High in Gold on Tuesday, May 5: The high in June gold was on Monday at $1,726.00 per oz., just below the planetary price conversion level of $1,732. Prices dropped more than $40 to 1,683.90 by Thursday, May 7.

Off the Mark

• High in Crude Oil on Thursday, April 30: This was a bullish day, with the June contract closing $3.78 per barrel higher at $18.84. But it was not a high.

• Low in 10-year Treasury note on Friday, May 1: Not a high, just in the middle of a sideways pattern in the June contract. The market made its low on May 6 (see Bullseye! above).

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.© Copyright 2020 SusanGSays LLC