Changing Trends

07/17/2020 2:04 pm EST

Focus: TECHNICAL

Susan Gidel

Editor, Red Letter Trading Days

Expect highs in crude and beans on Monday with lows in gold and the S&P later in the week, reports Susan Gidel.

As the Sun enters its ruling sign of Leo on Wednesday, July 22, it marks the one-third point of the astrological year that begins at the spring equinox. Thus, it is one of 10 days annually that legendary trader W.D. Gann flagged as marking a “change in trend.”

Also on Wednesday, be on the lookout to take advantage of bright, new ideas as Mercury is just 60 degrees away from Uranus; they could be related to ideas spawned near June 5 and June 30, when this aspect also occurred.

The New Moon in Cancer occurs on Monday, July 20 at 1:33 pm EDT, exactly opposite in the sky from Saturn. This connection highlights the focus on making Cancer-like intentions of concern, nurturing and compassion vs. a more cold-hearted business and government as represented by Capricorn.

  • Crude Oil high on Monday, July 20: The market’s first-trade opposition between Mars and Pluto gets hit hard from two directions. The New Moon at 28 Cancer and transiting Saturn at 28 Capricorn are exactly square the market’s Pluto at 28 Libra and just 3 degrees away from first-trade Mars at 25 Aries. Look for stiff resistance at $41.68 per barrel to $41.72, based on planetary price conversions.
  • Soybean high on Monday, July 20: The New Moon at 28 Cancer is exactly conjunct the market’s first-trade Pluto at 28 Cancer, while transiting Venus is nearly aligned with the sensitive first-trade Moon. In addition, transiting Mars is exactly opposite the market’s first-trade Sun. Based on planetary price conversions, if November beans can clear resistance at $9.12 per bu., the next stop higher is $9.38.
  • Gold low on Wednesday, July 22: The gold market’s ruler, the Sun, enters its ruling sign of Leo, which could bring support to prices. In addition, transiting Mars and Venus create a kite formation with the market’s first-trade Mars and Saturn. Look for August gold to find support at end-of-cycle planetary price conversion level of $1,783 per oz.
  • S&P 500 low on Friday, July 24: Transiting Mars is aligned with the market’s first-trade Moon, which could stimulate trading emotion, while the transiting Sun aligns with surprise-giver Uranus. Meanwhile, the transiting Moon, Jupiter and Saturn complete a Grand Trine with the market’s first-trade Mars and Jupiter. For downside support, the planetary price conversion level of 3028 is one cycle lower than the 3388 level, just 5 points shy of the record high. Beyond that, important levels to watch are 2896 and 2863.
  • 10-year Treasury note high on Friday, July 24: As it does once a month, the transiting Moon is aligned with the market’s sensitive first-trade Moon. Simultaneously, however, the transiting Sun is making its annual trine to both Venus and Uranus (two sensitive corners of a “mystic rectangle”) in the first-trade horoscope, completing a Grand Trine. Finally, Mars is opposite, and Venus is trine to the market’s first-trade Saturn. The market remains in a no-man’s-land of planetary price conversion levels of 136-08 and 143-07.

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

Bullseye!

  • Euro FX high on July 15: With four planets aspecting the market’s first-trade Jupiter, ruler of expansion, the September contract hit a high of 1.14675 on July 15. By the next day, prices had fallen to 1.13845.  

Pretty Darn Good

  • Crude Oil low on July 13: August crude oil scored a low of $39.47 per barrel on July 13 as the Moon aligned with the market’s first-trade Mars, but the lows on the trading days either side were a bit lower. On Friday, July 10, the low of $38.54 held at the planetary price conversion level of $38.50; on Tuesday, July 14, August crude oil’s low of $39.07 supported a rally to $41.26 on July 15.

Off The Mark

  • S&P 500 high on Thursday, July 9: This was an outside day with a lower close, but the high of 3179.78 was less than that of 3182.59 three days prior.
  • 10-year Treasury note low on Friday, July 10: As the transiting Moon opposed this market’s first-trade Moon, September prices made a high, not a low, at 139-225. However, the market did close near its lows that day and settled into a low the following Monday at 139-005.
  • Gold high on July 14: This day’s Sun/Jupiter opposition in the same degree as the market’s first-trade Venus marked more of a low than a high. The day’s low at $1791.10 per oz. supported a rally that day to $1815.00 and to $1819.50 the day following.
  • 10-year Treasury note high July 14: This day’s trade and rally to 139-165 was in between Monday, July 13’s low and Thursday, July 16’s high.

For more about the Fed’s horoscope chart and how eclipses affected it in both 2020 and 2001, please see my blog post, “Eclipse Spotlights Fed as Key World Player.

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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