With equities experiencing a resumption of volatility, an ominous anniversary is approaching in August, writes Susan Gidel.
The march toward the five fastest-moving planets all residing in the sign of Virgo by month’s end, and begins on Sunday, Aug. 18 with Mars. Venus joins in on Wednesday, Aug. 21, with the Sun arriving on Friday, Aug. 23. By Aug. 30, Mercury and the Moon will have joined the party.
What makes this significant is that it is the first time in 32 years that these five planets have been together in the early degrees of Virgo. The last time, the S&P 500 made its pre-crash top on Aug. 25, 1987 as these five planets opposed the first-trade Sun, Mercury and Venus of the index. That setup occurs again this year on Friday, Aug. 30.
Before each of these planets hit Virgo, they will have passed by 28 Leo, the degree of the Great American Eclipse of 2017 and the degree of North Korea’s natal Saturn. Look for potential tension surrounding nuclear weapons between the United States and North Korea to heat up this week and stay prominent through month’s end.
Monday, August 19
- Low in Crude Oil: Two Grand Trines attached to the most important planets in the crude oil first-trade horoscope chart that indicate a low both occur on Monday, so this could be a significant turning point. First, three transiting planets in a Grand Trine (Moon in Aries, Mercury in Leo, Jupiter in Sagittarius) connect with the first-trade Sun and Mercury in Aries. Second, transiting Sun, Venus and Mars fill in a Grand Trine with the contract’s natal Mars and Neptune. The planetary price conversion level of $50.80 should continue to provide support in the nearby September contract.
Thursday, August 22
- High in Euro FX: Two of the main planets in the Euro FX first-trade horoscope chart that are activated at market highs get some attention on Thursday, Aug. 22. A gang of three transiting planets—Sun, Venus and Mars—are opposite the currency’s first-trade Moon. In addition, the transiting Moon is aligned with first-trade Mars. Expect stiff resistance in nearby September at the $1.136 to $1.138 area, the planetary price conversion levels of Mars and the Sun, respectively. Even more formidable is the next conversion price (from the midheaven of the first-trade Euro FX horoscope) of $1.162.
Friday, August 23
- High in S&P 500: The transiting Sun, Venus and Mars are in a tight pack that tightly opposes Mercury and Venus in the natal horoscope of the S&P 500 cash index from 1957, two of the planets almost always highlighted at the time of a market high. In addition, transiting Mercury is trine the first-trade Moon, while the transiting Moon is at a 90-degree angle to first-trade Pluto and conjunct the first-trade ascendant. The end-of-cycle planetary price conversion level of 2863 could provide tough resistance on the upside. Then look to 2944 and the current record high of 3028.
Last Week’s Scorecard (through Thursday’s close)
Pretty Darn Good
- High in Gold on Monday, Aug. 12—Gold peaked on Tuesday, Aug. 13 at $1,546.10 per oz. in the active December futures contract, just above planetary price resistance of $1,545. In the same session, December gold dropped to $1,488.90 for a $58 range in an outside trading day.
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.