Fall Equinox Change of Trend

09/18/2020 10:00 am EST

Focus: STRATEGIES

Susan Gidel

Editor, Red Letter Trading Days

The fall equinox, when the sun enters the sign of Libra, occurs on Tuesday, September 22, and marks one of 10 days each year that legendary trader W.D. Gann earmarked for a potential “change of trend,” analyzes Susan Gidel.

Indeed, in 2018, the S&P 500 set the high for the year on the fall equinox at 2940, then dropped 20% to the year’s low at 2346 on December 26. Last year, the S&P 500 came within six points of the year-to-date high at 3027 from late July just two days ahead of the fall equinox, then fell 5% to a low of 2855 on October 3.

Supporting the idea of a trend change is that fast-moving Mercury (ruler of stock indexes and trading) makes hard aspects to Pluto (Monday), Saturn (Wednesday), and Mars (Thursday).

  • 10-year T-note high on Wednesday, September 23—The Sun, Moon, and Mercury make direct connections with three important planets in this market’s first-trade horoscope—Mars, Neptune, and Pluto, respectively. Prices remain in a wide no-man’s-land of planetary price conversion levels between 136-08 and 143-07.
  • Soybean low on Friday, September 25—Pressure on prices could peak as five of 10 planets form a Grand Square formation with the market’s first-trade Pluto. On the same day, the transiting sun is exactly aligned with the market first-trade Mercury. In November beans, look for support at the planetary price conversion levels of $9.78 per bu., $9.50 and $9.38.

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

Bullseye!

  • Soybean high on Monday, September 14—November soybeans peaked at $10.08 ¾ per bu. as transiting Mercury was aligned with the market’s first-trade sun. Two days later, prices had fallen to $9.85.

Pretty Darn Good

  • Crude oil low on Friday, September 11—October prices set back into a low at $36.67 per barrel before rallying to above $40 the following week.

Off the Mark

  • Crude oil high on Monday, September 14—The fortuitous Grand Trade kept lifting prices through at least Thursday’s trade, when the October contract peaked at $41.22 per barrel.
  • 10-year T-note low on Monday, September 14—Prices made a high, not a low, as the Sun was aligned with the first-trade moon. December futures peaked at 139-230, falling to 139-105 two days later.

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.

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.

Susan Gidel is editor of the Red Letter Trading Days newsletter.

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