The use of Astrology to measure market tops and bottoms is another form of technical analysis that can be exploited in your trading, notes Susan Gidel editor of the Red Letter Trading Days newsletter.
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 below, but it is not unusual for the effect to be seen a day or two either side.
During the week of Feb. 25 to March 1, traders will be focused on the looming March 1 deadline for the U.S-China trade disputes and prevent U.S. tariffs on $200 billion of Chinese goods to jump to 25% from 10%. The U.S. stock market and soybeans have been particularly sensitive to any news surrounding this issue. Longer-term, the Brexit deadline of March 29 shadows the Euro FX market, in particular.
Monday, Feb. 25: High in Euro FX
At previous significant highs in the euro, the first-trade moon and Mars were stimulated by transiting planets that were aligned with them. On March 25, the transiting sun is conjunct the first-trade moon, and the transiting moon is conjunct the first-trade Mars. In addition, first-trade Mercury, Jupiter, and Saturn all are receiving strong aspects from transiting planets.
Nearby March could be hitting resistance at 1.136-1.138, price areas that represent the contract’s natal position of Mars and the sun, respectively, converted to price. The next major resistance is the mid-heaven horoscope conversion point at 1.162; major support is at the moon’s conversion price of 1.056.
Tuesday, Feb. 26: Low in Soybeans; High in 10-year T-note
Five out of 10 natal planets in the first-trade soybean horoscope are either aligned or opposite planets in the sky on Tuesday, March 26. Importantly, four of the five natal planets are on two important axes in the soybean first-trade chart—Moon/Jupiter and Venus/Uranus. Nearby March prices are near the natal sun’s conversion price of $9.12 per bushel, with the next area of resistance at the Venus price of $9.38.
In 10-year Treasury-notes, all the important elements for a high are activated on Feb. 26. Most importantly, the sun is in play by both transit and stimulation by transit. Also, each corner of the first-trade chart’s formation called a “mystic rectangle” are being stimulated exactly by transiting Mercury or moon. Price-wise, nearby March is in a no-man’s land when it comes to support or resistance from planetary price conversions. The nearest support is at 118-8 (Ascendant conversion), with nearest resistance at 125-1 (Moon conversion). U.S. Housing Starts for December are released on Tuesday at 8:30 am.
Wednesday, Feb. 27: High in S&P 500
The S&P 500 index is approaching its birthday of March 4, 1957, so the sun is almost aligned with its natal position as well as the index natal Venus. Either of these natal planets is often in play when the S&P 500 makes a top. Note that I track the cash index formation rather than the futures contract first-trade date in 1982 for high/low projections. My research shows the cash index horoscope not only most sensitive to the transiting planets, but also connected to a variety of stock index contracts and securities industry events.
Also on Feb. 27, both the moon (emotions) and Jupiter (excessive optimism) are creating some energy with the S&P 500’s natal Mars (action) that wants to be expelled.
Astrological price resistance is at 2830-2833, which marks first-trade conversion points for the mid-heaven of the cash index as well as the fourth-house cusp and natal Jupiter of the E-mini S&P 500 futures contract. With the tariff deadline just two days away, the U.S. International Trade report at 8:30 am may hold particular sway.
Thursday, Feb. 28: Gold Low, Crude Oil High
The gold market’s first-trade sun and Venus are often activated by transiting planets in the sky at market lows, and both those planets are in play on Feb. 28. Gold’s natal sun is being stirred up by both Mars and the moon, while transiting Venus and Pluto are aligned with gold’s natal Venus. On the downside, there is nearby support at $1,328-$1,330 per oz., the mid-heaven and Neptune conversion prices; then support jumps to $1,291, the price conversion point from natal Uranus. Major upside resistance exists at the Venus conversion price of $1,372.
In crude oil, the transiting Venus/Pluto combo are making a 90-degree square to the market’s natal Pluto, which is considered the market’s astrological “ruler.” Venus in a similar position marked crude oil highs in February 2003 and July 2008. The $57.20 area on nearby April is imposing resistance as it equals the planetary price conversions of the futures contract’s natal moon and Saturn. The next area of resistance is $60.90-$61.00, the price conversions from natal Uranus and Jupiter, respectively.
Both markets could be affected by the U.S. GDP report at 8:30 am.
