Trend Changes as Sun Enters Leo

A change of trend is forecast in the stars for next week, writes Susan Gidel.

A change of trends is in the air on Tuesday, July 23 as the Sun enters its ruling sign of Leo. That also marks one of 10 days annually that legendary trader W.D. Gann considered ripe for trend changes because the day marks one-third of the astrological year beginning on March 21. Four markets: Crude oil, 10-year Treasury notes, gold and soybean, could be particularly influenced by the Gann Day because of planetary connections to their first-trade horoscope charts.

Another theme for the week is debt. Money planet Venus trine to Neptune on Thursday, July 18 made it easy to create more debt. On Sunday, July 21, Venus is exactly opposite the ruler of debt, Pluto. Both aspects are in play through mid-week and could indicate a continued high-profile struggle about expanding the U.S. debt ceiling before Congress begins its month-long August recess at week’s end.  

Monday, July 22—Wednesday, July 24

• High in Crude Oil: The first three days of the trading week are all contenders for a high in crude oil because the Sun, Mercury and Venus are at 90-degree angles to both the first-trade Mars and Pluto for crude oil. Which day prevails depends on the position of the transiting Moon, which makes three separate, significant connections. My pick for strongest setup is Wednesday, July 24 because the transiting Moon will be aligned with the first-trade Mars, emphasizing an emotionally inspired action-packed day. (On Monday, the Moon is aligned with the first-trade Sun; on Tuesday, it is aligned with the first-trade Mercury.)

Planetary price conversion areas in the September contract to watch include $57.20 per barrel, and then $60.90-$61.00 (site of the mid-July highs). Next higher is $62.30-$62.90. Support is at $56.80, then $50.80.

Monday, July 22

• Low in 10-year Treasury note: Pressure continues in the 10-year T-note  as Mercury and Venus join the Sun in a 90-degree aspect to both Saturn and Pluto in the market’s first-trade horoscope chart. Like last week, transiting Mars remain at a 90-degree square to the first-trade Sun. But, this week, the transiting Moon touches two corners of the first-trade contract’s “mystic rectangle,” by being conjunct Venus and opposite Mars. Look for support in the September contract at 126-00 (which held the July 16 low of 126-230), then 125-08.

Tuesday, July 23

• High in Gold: This is the strongest of the three setups over three weeks for a potential high in the gold futures market. On Tuesday, July 23, the Sun will just have moved into its ruling sign of Leo—both of which rule the gold market—during overnight trading hours at 10:50 pm Tuesday. In addition, the Sun, Mercury and Venus all are opposite the first-trade Venus. Both transits occur often at market highs. Finally, the transiting Moon and Mars will be connected with the market’s first-trade Moon and Mars to form a Grand Trine, which could indicate a wildly emotional trading session. Planetary price resistance of $1,423 per oz. in nearby August was being tested the week of July 15-19. If prices break through, the next resistance level is $1508.

Thursday, July 25

• Low in Soybeans: The transiting Moon lines up with the strong Venus/Uranus axis in the soybean market’s first-trade horoscope on Thursday, July 25. In addition, the Sun, Venus and Mercury are all in a conjunction with the first-trade Pluto. Look for planetary price conversion support in the November contract first at $8.87 per bushel, then $8.73-$8.75.

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

Pretty Darn Good
Monday, July 15

• High in Gold on Monday, July 15: Gold prices didn’t set a high on July 15, but they did fall $20 per oz. over the next two days. August gold tested planetary price conversion support of $1,401, then closed above Jupiter’s price conversion level of $1,423 on Wednesday.

• Low in 10-year Treasury-note on Monday, July 15: The September 10-year T-note set a low on Tuesday, July 16 at 126-230, above planetary price support of 126-00. It rallied to 127-170 by Wednesday’s close.

Off the Mark

Monday, July 15

• Low in S&P 500 on Monday, July 15: Instead of a low, the S&P 500 set a record high at 3017.80. However, it did retreat below planetary price conversion resistance at 3003-3010 two days later.

• Low in Soybeans on Friday, July 12: Soybeans made a high on Monday, July 15, but they had rallied 19 cents per bushel from Thursday’s low. The July 9 low in August beans at $8.86 was just one cent below planetary price conversion support of $8.87.

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.