Holiday Eclipse Dominates Trading Week

07/03/2020 6:00 am EST

Focus: STRATEGIES

Susan Gidel

Editor, Red Letter Trading Days

The eclipse occurring over the Four of July Holiday has the potential to disrupt markets, reports Susan Gidel.

The final of three eclipses over the last month kicks off the trading week with a bang. The Full Moon/Lunar Eclipse at 13 Capricorn is exact at 12:44 am on Sunday, July 5, and because it occurs at night will be visible across the United States. What’s more, the Full Moon and eclipse occur exactly opposite the natal Sun of the United States, at 13 Cancer.

Thus, the eclipse meaning of individual restrictions and the potential to misjudge a situation is particularly connected the United States. Indeed, expect the holiday weekend to produce an over-the-top display of public emotion about the country, its identity and its leaders.

The first two in this series of eclipses were near events that represented the restrictive/misjudging theme. The first eclipse, also a Full Moon/Lunar Eclipse, on June 5 was the second (and most restrictive) weekend of Black Lives Matter protests. The second eclipse, the most potent of the three as a New Moon/Solar Eclipse, occurred on June 21 at the world point of 00 Cancer just as news of surging Coronavirus cases in the United States began to spread.

The effect of all these eclipses remains in range through July 28, so news about protests, civil rights and the Coronavirus are all apt to remain top of mind in the markets until then.

  • Gold low on Tuesday, July 7: The transiting Sun aligns exactly with the market’s first-trade Saturn, which highlights restriction. At the same time, the Sun is opposite the market’s first-trade Mercury. Finally, the transiting Moon is opposite the market’s natal Moon. The end-of-cycle planetary price conversion level of $1783 remains critical; one level lower is $1761.
  • S&P 500 high on Thursday, July 9: Prices could peak as the transiting Sun and Moon are both tickling the market’s first-trade Sun. The Moon is directly conjunct, while the Sun is 120 degrees away. Upside resistance from planetary price conversion levels is at 3190, then a cluster of three points between 3210 and 3223.
  • 10-year Treasury note low on Friday, July 10: The transiting Sun is at 90-degree angles to the market’s first-trade Saturn and Pluto, while the transiting Moon is opposite the market’s natal Moon. The market currently is in a no-man’s land of planetary price conversion levels, between 136-08 and 143-07.

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

Bullseye!

  • Soybean low on Monday, June 29: November beans set a low of $8.56 ¾ per bu. on Monday, with Mars opposite the market’s natal Mercury. The June 30 acreage report was bullish, and sent prices up more than 40 cents, to a high of $9.03 on Thursday, July 2.
  • Gold high on Tuesday, June 30: August gold peaked as the transiting Sun and Mercury were opposite its first-trade Sun. On Tuesday, June 30, August gold hit a high of $1,804.00 per oz, closing at $1,800.50. Prices rallied to $1,807.70 on July 1 only to close $20.60 lower at $1779.90 after having been as much as $32 lower on the day.

Pretty Darn Good

  • 10-year Treasury note high on Friday, June 26: The September contract rallied through resistance at 139-00 to close at 139-070, its highest close in more than two months. The market reached 139-140 on June 30.  

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.
All information in this post is merely the personal opinion of the author and not that of any other person, company or entity. This information is not to be construed as financial advice, nor relied upon as such. Please contact your broker or financial advisor for trading and investment advice. Past results are not necessarily indicative of future market behavior.

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