Hammer Comes Down

January 2020 Red Letter Trading Days Newsletter

(All times Eastern)

One of the most significant planetary connections in more than 30 years occurs on Sunday, January 12 when Saturn and Pluto are exactly together in the sign of Capricorn at 11:59 am—and it could deliver a harsh dose of reality to the world and to the markets.

Pluto first entered Capricorn in 2008 with its assigned task of transforming the status quo in business and government. The year’s financial crisis that shook up the markets and regulations was Pluto’s first volley. The second was shaking up the status quo in government, represented most significantly by Brexit and the 2016 U.S. presidential election. Pluto has until 2024, when it leaves Capricorn and enters Aquarius, to complete its job in remaking the status quo of business and government as compared with 2008.

Saturn first entered Capricorn in December 2017 and leaves for Aquarius in December 2020. Saturn’s job is to supply discipline, restriction and authority. In Capricorn, the sign that Saturn rules, it likes to take the high road and use its penchant for rules, regulations and organization in a way that supports society for the good of all.

The Saturn/Pluto conjunction in Capricorn starts a new multi-decade cycle and ends the previous one that began when the planets conjoined in November 1982, just after the start of a big bull market.

At this conjunction, the stock market is at record highs, and the U.S. economic expansion also is in record territory at more than 10 years. Saturn and Pluto often can be seen as harsh taskmasters, forcing change and transformation that wouldn’t necessarily be anyone’s first choice, but turns out for the good.

January 13 is Top Red Letter Trading Day

Pluto in Capricorn has upset the basket cart in business and government since 2008. Saturn’s arrival at its side in 2020 says that it is time to rein in the chaos—and get it done by 2024.  

That’s why this month’s Top Red Letter Trading Day is Monday, January 13. It is the first trading day after the exact Saturn/Pluto conjunction, and is the day when the Sun is conjunct both Pluto (at 4:21 am) and Saturn (at 10:15 am). In addition, the money planet Venus enters the sign of Pisces at 1:39 pm, its absolute favorite sign.

Interestingly, four markets have planetary setups relative to their first-trade horoscope charts that could produce a market high on Monday, January 13. These four markets include the S&P 500, gold, Euro FX and the 10-yr. T-note. Soybeans could make a high the following day, January 14. Crude oil could make a low on January 13.

This month’s dates of astrological note include:

  • January 3                     Mars enters Sagittarius
  • January 10                   Full Moon in Cancer/Lunar Eclipse
  • January 10                   Uranus direct in motion
  • January 12                   Saturn conjunct Pluto in Capricorn
  • January 13                   Venus enters Pisces
  • January 16                   Mercury enters Pisces
  • January 20                   Sun enters Pisces
  • January 24                   New Moon in Aquarius

This month’s dates for potential market trend changes include:

Crude Oil                  

  •             High on January 17
  •             Lows on January 13, January 24

Euro FX

  •             Highs on January 13, January 15, January 27

Gold   

  •             Highs on January 7, January 10, January 13, January 24, January 28

Soybeans

  •             High on January 14
  •             Low on January 30

S&P 500

  •             High on January 13
  •             Low on January 23

10-year T-note

  •             High on January 13
  •             Low on January 24

Red Letter Trading Days for January 2020

The month’s first newsletter gives you a heads-up on which trading days are astrologically interesting this month. Following are the day-before emails to explain what’s going on in the sky and how it might affect the markets. I’ve highlighted bullish-leaning days with a plus sign and bearish-leaning days with a minus sign.

+Thursday, January 2—Big Kickoff

The new trading year could kick off with big volume. Mercury, the planet that rules trading and stock indexes, aligns with Jupiter, the planet that likes to expand anything it touches. Their conjunction is exact at 11:42 am.

Thursday’s reports include:

  • Wednesday 8:45 pm  China PMI Manufacturing Index
  • 12:00 am  India PMI Manufacturing Index
  • 8:30 am  US Jobless Claims
  • 2:00 pm  US FOMC Minutes of December 10-11, 2019 meeting

Friday, January 3—International Action

High-profile action concerning international trade could be in the headlines as Mars enters Sagittarius at 4:37 am. Mars is the planet that likes to be on the front lines, and in Sagittarius, the playing field is global. The one downside is that Mars is leaving the sign of Scorpio, which it rules. Thus, Mars could trip up a bit as it adjusts to a less-comfortable sign.

Friday’s reports include:

  • 8:00 am  Germany CPI
  • 10:00 am  US ISM Manufacturing Index
  • 11:00 am  US EIA Petroleum Status

+Tuesday, January 7—Responsible Vision

Be on the lookout for overnight news that world leaders are taking a responsible view of their actions and world view. The Sun in Capricorn is sextile Neptune in Pisces at 1:21 am.

The Sun represents leaders of all stripes, and in Capricorn, they make responsible decisions. Neptune, the planet that allows new visions to be imagined, is in its ruling sign of Pisces. In their sextile aspect, the Sun and Neptune can work together well if they try. If they don’t, the low-road of authoritarian rule based on religious belief could prevail.

Tuesday’s reports include:

  • Monday 7:30 pm  Japan PMI Composite
  • 2:30 am  Switzerland CPI
  • 8:30 am  US International Trade
  • 8:30 am  Canada Merchandise Trade

+Wednesday, January 8—Visionary Statements

On Wednesday, it is Mercury’s turn to connect with Neptune following the Sun’s lead on Tuesday. Mercury is the planet that rules communication and trading; in Capricorn, it is quite serious and measured about both. In a sextile to Neptune in Pisces, exact at 8:03 am, Mercury has the opportunity to express the new visions/ideals that the Sun imagined on Tuesday.

It also could be that it is easy to let trades slip out of your grasp as Neptune is in a Water sign, which makes it hard to catch and contain.

Wednesday’s reports include:

  • 10:30 am  US EIA Petroleum Status

Friday, January 10—Sudden Endings

Friday’s planetary action is a prelude to one of the biggest astrological events of the year—Sunday’s conjunction between Saturn and Pluto in Capricorn, which introduces a intensely serious tone to world events and markets.

On the last trading day before the exact conjunction, the Sun and Mercury align in Capricorn at 10:19 am, creating the availability of “aha” flashes of insight and brilliance for most of the day. By Sunday, these two planets also will be in close proximity to the Saturn/Pluto conjunction, adding even more weight to its significance.

At 2:21 pm Friday, the Full Moon/Lunar Eclipse occurs, which is connected to the New Moon/Solar Eclipse of December 26. Each event reflects sudden endings and traumatic transformation.

After markets are closed for the week, the planet Uranus turns direct in motion at 8:49 pm after having been appearing to move backward in the sky since August 11, 2019. This change of direction brings an element of shock, surprise and instability to both the eclipse and Sunday’s Saturn/Pluto conjunction.

Friday’s reports include:

  • Thursday 6:30 pm  Japan Household Spending
  • 7:00 am  India Industrial Production
  • 8:30 am  US Employment Situation
  • 8:30 am  Canada Labour Force Survey
  • 12:00 pm  USDA Annual Crop Production
  • 12:00 pm  USDA Grain Stocks
  • 12:00 pm  USDA Winter Wheat/Canola Seedings

Monday, January 13—Pressure

Monday, January 13 is this month’s Top Red Letter Trading Day because it is the first to fully reflect a new 33-year cycle between Saturn and Pluto. Those two planets were at the same degree and minute of Capricorn at 11:59 am Sunday, January 12. Pluto has been in Capricorn since 2008, with the job of transforming business and government by the time it leaves that sign in 2024. Saturn joins Pluto in that task of Sunday, with just four years until the final deadline.

So far, Pluto has created upset and chaos in its efforts, which include the 2008 financial crisis and the 2016 Brexit and U.S. presidential votes. Saturn is in its ruling sign of Capricorn, and now brings order to the chaos. Saturn in Capricorn represents restriction, stability and playing by the rules. So, free-wheeling is over, and that’s likely not something the stock market will like.

Adding emphasis to this conjunction are that Mercury conjoined both Saturn and Pluto early Sunday morning, and the Sun does the same at 10:15 am and 8:21 am, respectively, on Monday. These two planets, which rule communications and leaders, tell us that those two areas also are in on doing it Saturn’s responsible way, not Pluto’s chaotic way.

A bright spot in Monday’s trade is that money planet Venus enters Pisces at 1:39 pm. In this sign, Venus’s wishes are its commands. So, expect about three weeks where the money spigot is turned on full blast. That ends on February 8, when Venus enters one of its least favorite signs, Aries.

Bitcoin Options Launch, Too!

Options on CME Bitcoin futures launch at 6 pm Sunday, so have this extraordinary Saturn/Pluto/Sun/Mercury power baked into their DNA. Read “Bitcoin Options Complement Futures,” my astrological analysis of the launch on my blog.  

Monday’s reports include:

  • 10:30 am  Bank of Canada Business Outlook Survey

+Thursday, January 16—Electric

Trading gets a jolt of energy on Thursday, January 16 when Mercury, the planet that rules trading and stock indexes, enters the sign of Aquarius at 1:31 pm. Mercury is highly stimulated in Aquarius and so all things mental and detail-oriented are working on all cylinders.

At the beginning of overnight trading hours, Venus and Uranus connect at 6:18 pm Wednesday with the ability to find stability in new money-oriented ventures. Venus, the money planet, is in its most favorite sign of Pisces where it is able to bestow financial goodness. Venus is 60 degrees away from Uranus, which is in Taurus and able to bring financial change.

Thursday’s reports include:

  • 8:30 am  US Jobless Claims
  • 8:30 am  US Philadelphia Fed Business Outlook Survey
  • 8:30 am  US Retail Sales

+Thursday, January 23—Positive Spin

Overnight surprises from economic leaders assembled in Davos, Switzerland for the World Economic Forum could be viewed as good news by the time the US stock market opens on Thursday morning.

The WEF day of presentations begins at 3 am, little more than an hour after the Sun in Aquarius makes an exact square to Uranus in Taurus at 1:54 am. Thus, news from these forward-looking leaders could challenge the status quo as it concerns economic change.

At 8:07 am, the two benefic planets—Venus and Jupiter—connect in a harmonious way. Eight minutes later, Angela Merkel, Federal Chancellor of Germany, makes a special address to Davos attendees. Expect her remarks to touch on both the benefits of fiscal responsibility (Jupiter in Capricorn) as well as humanitarian aid (Venus in Pisces).

Based on astrological transits to market first-trade horoscopes, look for a low in the S&P 500 on Thursday. Then, with the New Moon on Friday, lows in both crude oil and 10-yr. T-notes; gold could make a high.

Thursday’s reports include:

  • Wednesday 6:50 pm  Japan Merchandise Trade
  • Wednesday 7:30 pm  Australia Labour Force Survey
  • 8:30 am  US Jobless Claims
  • 11:00 am  US EIA Petroleum Status

Monday, January 27—Easy Go

What was easy come after a slew of new record highs in the S&P 500 could easy go on Monday, January 27 due to the conjunction between money planet Venus and Neptune at 3:00 pm. Venus is the guest of honor while in Pisces and gets whatever it wants. However, Neptune rules Pisces, so both are still playing by Neptune’s rules.

When it comes to money, Neptune in Pisces can be compassionate and give it away freely. It also can simply make money dissolve. So, it’s a good day to pitch for charitable causes. Not so good a day for hanging on to your money.

Monday’s reports include:

  • 10:00 am  US New Home Sales

Tuesday, January 28—Rough Waters

Brace yourself for rough waters as Mars and Neptune square off on the day the Fed begins its first two-day meeting of the new year, with its conclusions announced on Wednesday at 2:00 pm.

Mars in Sagittarius wants to take action to find the truth. Neptune in Pisces, its ruling sign, is happy to make the details fuzzy and out of focus. At a 90-degree angle to one another, Mars will be trying to stir up the ocean with its Sagittarius spear to see what it can stab and bring to the surface.

Because Neptune rules both inflation and crude oil, the Fed’s discussions could revolve around those topics, especially as it concerns discerning and revealing their truths.

Tuesday’s reports include:

  • 8:30 am  US Durable Goods Orders
  • 10:00 am  US Consumer Confidence

December Review–Record High on Top Red Letter Trading Day

December 2019 S&P 500 daily price chart
Source: Barchart.com

A post-Christmas Santa Claus rally to a record high of 3247.93 in the S&P 500 arrived on the last Friday of the trading year as the Sun, Jupiter and Mercury in Capricorn were all in an easy 120-degree trine aspect to Uranus in Taurus.

On the same day, Mars, Pluto and the Moon were connected in a way that made them willing to go along for the ride with the four that were in the easy trine. Thus, seven of 10 planets were ready to support Santa in the markets!

The record high was just beyond the 3213-3223 end-of-cycle Venus/Sun planetary price conversion levels that marked highs in 1987 at 337, 1999 at 1431 and 2015 at 2134.

For the record, the S&P 500 closed out 2019 at 3230.78, a gain of 28.8% for the year. The Dow Jones Industrial average, which closed the year at 28,538.44, was up 22.3% in 2019.

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