(All times Eastern)
In the big scheme of things astrologically, February is a relatively quiet month. Mercury turns retrograde, Mars and Venus change signs, and the two strongest transits of the month are a day apart. And, in the category of really unusual, there are no planetary transits at all during the trading week February 10-14, which may indicate a very quiet week in the markets.
Mercury Retrograde
Mercury turns retrograde in motion on Sunday, February 16 at 7:54 pm and remains so until March 9. Mercury enters the sign of Pisces—its absolute worst sign—at 6:37 am on Monday, February 3. Mercury’s nature is to be sharp and quick. In Pisces, Mercury is underwater without goggles, i.e., slow and fuzzy. So, this Mercury retrograde could be a double whammy of both inability to concentrate (Pisces) and miscommunication (retrograde).
As always during a Mercury retrograde period—but especially so with the planet in Pisces—be sure to doublecheck your trading orders before hitting send, and watch your trading statements like a hawk.
Venus and Mars Change Signs
Venus, the planet that rules money, enters the sign of Aries on Friday, February 7 at 3:02 pm, with less than an hour to go before the U.S. stock market closes for the week. Venus is leaving Pisces, it’s most favorite sign where it is treated as the guest of honor, and moving into a sign where it feels under constant scrutiny. This abrupt shift from best to worst could be jarring to the stock market as it goes into the close.
On Sunday, February 16 (the same day as Mercury turns retrograde), action-taker Mars enters the sign of Capricorn at 6:33 am, where it is treated as the guest of honor. Mars in Capricorn likes to take up the good fight and tackle worthy causes. It will hook up with the Jupiter/Saturn/Pluto crowd in Capricorn in the second half of March, which is when action could occur that supports a responsible, rules-based approach to transforming business and government—the mission of Saturn and Pluto.
Top Red Letter Trading Day
The two strongest transits of month define Friday, February 21 as this month’s Top Red Letter Trading Day and the day for a potential significant high in the S&P 500.
The strong, do-gooder Mars in Capricorn connects with trickster Uranus in Taurus on February 21 in an easygoing trine at 4:10 am. This could precipitate surprise, well-planned breakthroughs in overnight trading hours. This shorter-lived transit occurs the day after a longer transit between Jupiter and Neptune peaks. Jupiter in Capricorn is sextile Neptune in Pisces on Thursday, February 20 at 10:56 am. Their connection, in range throughout February and into early March, focuses on envisioning practical solutions to idealistic principles.
The Mars/Uranus transit ties into the S&P 500 natal horoscope in an important way because each planet is sextile to the index first-trade Venus to the degree, while the transiting Sun is just 1 degree from an exact conjunction with the market’s natal Venus. In addition, transiting Venus in conjunct the S&P 500’s natal Moon.
The transiting connections to the index’s natal Venus and Moon are the major reasons why the market could set a high on February 21. For further detail, please refer to the special report I sent to all subscribers in early January, 2020 Outlook—Standard & Poor’s 500.
This month’s dates of astrological note include:
- February 3 Mercury enters Pisces
- February 7 Venus enters Aries
- February 9 Full Moon in Leo
- February 16 Mars enters Capricorn
- February 16 Mercury retrograde through March 9
- February 18 Sun enters Pisces
- February 23 New Moon in Pisces
This month’s dates for potential market trend changes include:
Crude Oil
- Highs on February 7 and February 20
- Lows on February 14 and February 28
Euro FX
- High on February 24
Gold
- Highs on February 12, February 19
- Low on February 27
Soybeans
- Lows on February 12, February 18
S&P 500
- High on February 21
10-year T-note
- High on February 7
Red Letter Trading Days for February 2020
Monday, February 3—Midwinter Slowdown
Mercury’s march toward a retrograde period of confusion begins on Sunday when it enters the degree area that will be traversed while retrograde, known as the shadow period. On Monday at 6:37 am, Mercury enters the sign of Pisces, one of its least favorite. Mercury likes being quick and sharp; in Pisces, it is underwater with no goggles and no flippers. So, expect the next few weeks to be especially confusing in regard to the news, trading ideas and communications of all sorts.
The money planet, Venus, connects with both Saturn (Monday at 5:01 pm) and Pluto (Sunday) in a sextile. Like Mercury, Venus is in Pisces. However, Venus is considered the guest of honor in that sign, so has the opportunity to help fund the transformation of business and government that Saturn and Pluto are working on.
Tuesday, February 4 marks the halfway point between the winter solstice and spring equinox, and is one of 10 days each year that legendary trader W.D. Gann watched for a potential change in trend.
Monday’s reports include:
- Sunday 7:30 pm Japan PMI Manufacturing Index
- Sunday 8:45 pm China PMI Manufacturing Index
- 12:00 am India PMI Manufacturing Index
- 4:30 am Great Britain CIPS/PMI Manufacturing Index
- 10:00 am US ISM Manufacturing Index
Wednesday, February 5—Surprising Ideas
Mercury and Uranus make the first of three 60-degree aspects through March 22 at 4:43 am on Wednesday, February 5. Be on the lookout for surprising ideas regarding financial changes that could seem so far-fetched as to be pulled from thin air. They could resurface on February 28 and reach closure on March 22.
If the Iowa caucus result snafu is any indication, the upcoming Mercury retrograde period will be a doozy! Mercury had entered Pisces, its absolute least favorite sign, on the morning of the caucuses (Monday, February 28). Mercury likes to be quick and sharp, but in Pisces, it is in a complete fog and can’t see what it is doing. And, you have to like the Universe’s sense of humor when the firm that created the faulty app was named Shadow, Inc., and Mercury had just moved into its “shadow” period ahead of turning retrograde on Sunday, February 27.
Please note that the U.S. Senate plans to vote on the articles of impeachment at 4:00 pm Wednesday, just after the stock market closes.
Wednesday’s reports include:
- Tuesday 7:30 pm Japan PMI Composite
- Tuesday 8:45 pm China General Services PMI
- 4:30 am Great Britain CIPS/PMI Services Index
- 5:00 am Eurozone Retail Sales
- 8:30 am US International Trade
- 8:30 am Canada Merchandise Trade
- 10:30 am US EIA Petroleum Status Report
Friday, February 7—Big Downshift
Venus, the planet that rules money, makes a huge downshift in the last hour of trading for the week as it enters the sign of Aries at 3:02 pm. Venus is in its detriment in Aries, which means it feels constantly under scrutiny about what it is doing with money. The downshift is big because Venus is leaving the sign of Pisces, where it is exalted, and pretty much gets to do whatever it wants with money.
Note that Thursday’s all-time high in the S&P 500 was 3347.96. Expect resistance at the planetary price conversion levels of 3363-3370.
Look for potential short-term highs in crude oil and 10-yr. T-notes.
Friday’s reports include:
- Thursday 6:30 pm Japan Household Spending
- 8:30 am US Employment Situation
- 8:30 am Canada Labour Force Survey
-Monday, February 10—Power Exposed
The only action in the cosmos this week was Sunday’s Full Moon in Leo. In a rare occurrence, there are no major aspects between any of the planets this week!
The Full Moon in Leo puts the spotlight on leaders. On the upside, strong leaders can exhibit their leadership skills. On the downside, the spotlight could expose the emperor as having no clothes.
Look for lows in three markets this week:
- Soybeans on Monday, Feb. 10
- Gold on Wednesday, Feb. 12
- Crude oil on Friday, Feb. 14
Monday’s reports include:
- Sunday TBD China Merchandise Trade Balance
- Sunday 8:30 pm China CPI
- 2:30 am Switzerland CPI
- 8:15 am Canada Housing Starts
Tuesday, February 18—Push/Pull
This is the first trading day since Mercury retrograde began on Sunday at 7:54 pm, and the first since Mars entered Capricorn on Sunday morning. The former is a drag on the market while the latter is a stimulant because Capricorn is Mars’ favorite.
Mars in Capricorn tackles actions with gusto. But with Mercury retrograde, some of the details could get missed or glossed over, so take news of forward movement with an attitude of “prove it.”
Low in Soybeans
A setback low could occur as transiting Venus is directly opposite the market’s first-trade Sun, a transit that occurs once every 19 months. Transiting Mercury also is in aspect to the first-trade Sun, one that suggests discomfort and change. Finally, both the Moon and Mars are in an easy trine to first-trade Mars at the top of the soybean market’s natal horoscope. Look for planetary price conversion levels of $8.73-$8.75 per bu. area to continue as support in March beans; $8.87 in the May.
Tuesday’s reports include:
- 4:30 am Great Britain Labour Market Report
Wednesday, February 19—Relief
The Sun brightens up a bit on Wednesday, February 19 because it left one of its least-favorite signs, Aquarius, and entered Pisces at 11:57 pm Tuesday. Now, instead of being under a microscope that picks on every little thing, the Sun (i.e., leaders) can feel free to do a bit of envisioning. Just in time for the latest Democratic presidential debate in Las Vegas.
Note that the Fed releases minutes of its January meeting (no rate hike, coronavirus could dampen global growth, out of repos by end-April) on Wednesday at 2:00 pm.
High in Gold—After an $18 rally on Tuesday, the Moon and Jupiter are aligned with the gold market’s first-trade Mercury, one of the most sensitive planets at market highs, on Wednesday. The money planet, Venus, is in position in the sky to form a Grand Trine with natal Mars and Moon, which suggests the upside is easy. Meanwhile, transiting Mercury is conjunct first-trade Jupiter, a planet that typically expresses ultimate joy when activated. Finally, the Sun is at 00 Pisces, a significant shift uptick in energy for the planet that rules gold. Planetary price conversion levels that could provide resistance in the April contract include $1629 and $1651.
Wednesday’s reports include:
- Tuesday 6:50 pm Japan Merchandise Trade
- 4:30 am Great Britain CPI
- 8:30 am US Housing Starts
- 8:30 am US PPI-FD
- 8:30 am Canada CPI
- 2:00 pm US FOMC Minutes (January 28-29)
Thursday, February 20—Visionary
There is opportunity for great, humanitarian vision on Thursday, February 20 that is uplifting to the world as Jupiter is sextile Neptune at 10:56 am. Jupiter in Capricorn expands responsibility while Neptune in Pisces (its ruling sign) governs compassion. Perhaps there is good news about a broad clampdown on the coronavirus outbreak, a news event that would be supported by the Moon and Saturn, also in Capricorn. This connection also could represent increased religious fanaticism.
High in Crude Oil—In addition to expansive Jupiter sextile to crude oil’s ruler, Neptune, transiting Moon and Venus team up with connections to the first-trade crude oil horoscope chart that could mark a peak. The Moon moves into position with slow-moving planets Saturn and Pluto to form a 90-degree aspect with the market’s natal Mars/Pluto opposition. Money planet Venus touches first-trade Mercury for the first time in 19 months. Finally, the Sun makes an easy trine with first-trade Moon and Saturn. The next upside resistance based on planetary price conversion is $56.80 per barrel in the April contract; the February 4 low at $49.50 was just $1.30 below the previous planetary level of $50.80.
Thursday’s reports include:
- Wednesday 7:30 pm Australia Labour Force Survey
- 2:45 am France CPI
- 4:30 am Great Britain Retail Sales
- 7:30 am Eurozone ECB Minutes
- 8:30 am US Jobless Claims
- 8:30 am US Philadelphia Fed Business Outlook Survey
- 11:00 am US EIA Petroleum Status Report
Friday, February 21—Breakthrough
The two strongest transits of month define Friday, February 21 as this month’s Top Red Letter Trading Day and the day for a potential significant high in the S&P 500.
The strong, do-gooder Mars in Capricorn connects with trickster Uranus in Taurus on February 21 in an easygoing trine at 4:10 am. This could precipitate surprise, well-planned breakthroughs in overnight trading hours. This shorter-lived transit occurs the day after a longer transit between Jupiter and Neptune that peaked on Thursday morning and focuses on envisioning practical solutions to idealistic principles.
High in S&P 500— The Mars/Uranus transit ties into the S&P 500 natal horoscope in an important way because each planet is sextile to the index first-trade Venus to the degree, while the transiting Sun is just 1 degree from an exact conjunction with the market’s natal Venus. In addition, transiting Venus in conjunct the S&P 500’s natal Moon. What’s more, transiting Mars and Uranus make an exact Grand Trine with the index’s natal Uranus, another sensitive planet in the S&P 500 horoscope.
The transiting connections to the index’s natal Venus and Moon are the major reasons why the market could set a high on February 21. Watch the 3370 planetary price conversion level closely. If the S&P 500 convincingly surpasses that level (current all-time high from February 19 stands at 3393.52, with the February 20 close at 3373.23), then the next major stopping point is the end-of-cycle levels at 3573-3583. If the 3370 area stands, the next significant downside planetary price conversion level is 3256.
For further detail, please refer to the special report I sent to all subscribers in early January, 2020 Outlook—Standard & Poor’s 500.
Friday’s reports include:
- Thursday 6:30 pm Japan CPI
- Thursday 7:30 pm Japan PMI Composite Flash
- 3:15 am France PMI Composite Flash
- 3:30 am Germany PMI Composite Flash
- 4:00 am Eurozone PMI Composite Flash
- 4:30 am Great Britain CIPS/PMI Composite Flash
- 5:00 am Italy CPI
- 8:30 am Canada Retail Sales
- 9:45 am US PMI Composite Flash
- 10:00 am US Existing Home Sales
- 3:00 pm US Cattle on Feed
Monday, February 24—Money Tension
The two planets that want to help the most in any situation—Venus and Jupiter—are at odds with how to go about that. Venus, the planet that rules money, and Jupiter, the planet that expands what it touches, made an exact 90-degree aspect on Sunday morning. Venus in Aries wants to move forward with spending plans, while Jupiter in Capricorn wants to stick to the budget.
At the same time, the New Moon in Pisces on Sunday weighs in by wanting to initiate projects that support doing the right thing for people who need help. As Pisces is ruled by Jupiter, that spending likely will be kept within reason, and likely tips the scale to Jupiter in terms of which planet wins the Venus/Jupiter tussle.
High in Euro FX
Transiting Venus conjoins its position in the first-trade horoscope for Euro FX futures, a connection last made in March 2018 as it was peaking near 1.24-1.25. At the previous connection in May 2017, prices burst through resistance at 1.10 to the upside. Given that prices are at three-year lows, perhaps strength to the upside (ala 2017) is more in order than a high. Adding to potential strength are the transiting Sun, Moon and Mercury all aligned with the first-trade horoscope’s Moon. March contract prices are in a no-man’s land of support/resistance based on planetary price conversion levels at 1.072-1.073 and 1.0980.
Monday’s reports include:
- 4:00 am Germany Ifo Survey
Tuesday, February 25—Doing Good
Well. Today was interesting, eh? A 61-point gap lower on the S&P 500 chart, with a close down 111 points from Friday’s close, which would equal a move of $5,550 per E-mini S&P 500 contract ($1,110 per Micro E-mini contract).
After our regular daily programming about Tuesday’s trade, please take a look at how the planets lined up with the S&P 500 last Wednesday at the current all-time high—two days before this month’s Top Red Letter Trading Day and my pick as a potential high in the stock market.
Monday’s close of 3225.89 was just above the
end-of-cycle support area of 3213-3223 that are the levels found by converting
the zodiacal position of the Venus and Sun, respectively, in the index 1957
launch chart into price. Consider that a battleground of support/resistance for
the long haul. The current record high of 3393.52 is just 5 points beyond Pluto’s
conversion level. Other significant planetary conversion points between
those two include 3256 and 3363-3370.
Tuesday
For Tuesday’s trade date, doing the right thing is in order as the Sun and Mars connect at a 60-degree angle on Monday at 9:06 pm. The Sun in Pisces represent compassionate leaders while Mars in Capricorn like to tackle the good fight.
We’re halfway through the Mercury retrograde cycle on Tuesday, which means it is time to ask for and listen to “aha” flashes of brilliance (even in your dreams) when Mercury is in the heart of the Sun. Tell Alexa to set an alarm for 5:19 pm Tuesday, when the cazimi period begins; it stays in effect through 12:04 am Wednesday.
Tuesday’s reports include:
- 10:00 am US Consumer Confidence
Astrological Anatomy of the Feb. 19, 2020 S&P 500 High
This biwheel shows the March 4, 1957 launch horoscope of the S&P 500 index in the center, with the transits for the day of the all-time high of 3393.52 on February 19, 2020 on the outside. Because the S&P 500 index launched when the New York Stock Exchange opened at 10 am, I use that same time for all transit charts, even though the market now opens at 9:30 am.
A—Transiting Moon and Jupiter in Capricorn were square to the index natal Moon in Aries. (Pluto is square to natal Mars; Saturn is a little far away.)
D—Transiting Venus was conjunct the index natal Moon.
B—Transiting Sun was partile (same degree) conjunct natal Mercury at 00 Pisces.
C—Transiting Mercury was conjunct the index natal Sun.
E—Transiting Mars and Uranus were within two days of their exact 120-degree trine, and both connected to the market’s natal Uranus at 03 Leo. (90-degree square from transiting Uranus; 150-degree quincunx from transiting Mars).
I had picked two days later, February 21, as the market’s potential high for two main reasons: (1) the Mars/Uranus trine was exact at 4:10 am; and (2) transiting Sun was at 02 Pisces, splitting the difference between natal Mercury and Venus. On Friday, the transiting Moon was conjunct the index midheaven.
Clearly, the transiting Moon’s square to its natal position on Wednesday was the key, especially as it was fortified by nearby Jupiter. All the rest of the transit/natal connections were essentially the same on Friday.
-Wednesday, February 26—Confused
Confusion reigns on Wednesday, February 26 as Mercury retrograde in Pisces plays big role. Mercury is the planet that likes to hum fast and deliver messages quickly. Being retrograde in motion is one strike against that preference, and being in the sign of Pisces is another because Mercury is trying to swim underwater rather than fly through the air.
The Sun and Mercury are conjunct in Pisces on Tuesday at 8:45 pm, which marks the halfway point of Mercury’s retrograde period. It also is in a five-hour window of extreme clarity, similar to being in the eye of a hurricane, known as cazimi. (Good news for tonight’s Democratic debators!) But, then it’s back to muddled confusion, particularly as it concerns leaders being able to be articulate and clear, particularly as it concerns hidden disease, such as the coronavirus.
Also in overnight trading, Mercury is sextile Mars in Capricorn at 12:59 am. Mercury is back to being fuzzy, but does try to figure out a way to get things done the right way. It just takes longer to figure out because of the retrograde and confusion about which path is correct because of Pisces.
Circuit Breakers
After the stock market crash in 1987, when the S&P 500 dropped 21% in one day, “circuit breakers” were initiated to close all stock markets and related derivative markets upon reaching certain declines. (To those of us from the futures industry, this is akin to daily limits.) Since then, circuit breakers have been tripped just once, on October 27, 1997, during the Asian financial crisis when the S&P 500 fell 65.91 points, or 7%.
The current circuit-breaker levels and their associated trading halt durations during NYSE trading hours are: (1) down 7%, 15 minutes; (2) down 13%, 15 minutes; (3) down 20%, close for the day. In overnight trading hours, a drop of 5% would bring a complete halt until the next morning’s open.
At S&P 3000, here are the circuit breaker numbers to keep in mind
- -5% = 150 points, 2850
- -7% = 210 points, 2790
- -13% = 390 points, 2610
- -20% = 600 points, 2400
Gold low on Thursday, Feb. 27
Venus, the first-trade horoscope planet getting a lot of love recently as prices have rallied, is in the mood for an argument as transiting Moon and Venus make a 90-degree square. But, it could just be a tiff in the big scheme of things as transits through mid-March support continued strength. Planetary price conversion levels to watch on the downside in April gold include $1629 per oz., $1581, $1573 and $1545. The $1545 level should be rock-solid from an astrological point of view.
On the upside, the Mars conversion level of $1694 held the recent rally, which peaked at $1691.70. Breaking through that leads to the next significant planetary price conversion resistance at $1732, $1761 and $1783.
Wednesday’s reports include:
- 10:00 am US New Home Sales
- 10:30 am US EIA Petroleum Status Report
Friday, February 28—Closing Pressure
After Thursday’s big down day in stocks, it’s hard to imagine how Friday’s trade could provide “closing pressure” like it did today. But, an hour after the close for the day and week, money planet Venus makes a tension-filled square to Pluto at 5:08 pm. This is money feistiness squaring off against Pluto’s power to transform business and government. The square is exact after the close, but is building throughout the trading day.
The S&P 500 broke through Pluto’s price conversion level of 3028 on Thursday as it closed at 2978.76, down 137.63 for the day. The next significant price conversion level is 2896, with intermediate stops at 2931, 2944, 3003 and 3010.
Also building throughout the trading day (but exact at 10:13 pm) is a 60-degree aspect between retrograde Mercury and Uranus, the second of three this Mercury retrograde season. The day of the first pass is when the Senate voted on articles of impeachment, so that storyline might reappear on Friday or over the weekend.
Low in Crude Oil—Prices could feel peak pressure as the transiting Moon and Uranus are traveling together and directly opposite the first-trade horoscope’s natal Moon/Saturn. Also applying pressure is a square to the first-trade Sun from transiting Mars, and connection to first-trade Mars by both conjunction (Venus) and square (Saturn/Pluto). Look for support in the April contract at a planetary price conversion level of $44.30 per barrel. Upside resistance is at the next conversion level of $50.80.
Friday’s reports include:
- Thursday 6:30 pm Japan Unemployment Rate
- Thursday 6:50 pm Japan Industrial Production
- 2:45 pm France CPI
- 5:00 am Eurozone HICP Flash
- 5:00 am Italy CPI
- 7:00 am India GDP
- 8:00 am Germany CPI
- 8:30 am US International Trade in Goods
- 8:30 am US Personal Income and Outlays
- 8:30 am Canada GDP
- 8:30 am Canada Monthly GDP
January Review – Record High as Impeachment Trial Begins
Monday, January 13 was the Top Red Letter Trading Day because it was the first trading day to fully reflect a new 33-year cycle between Saturn and Pluto in the no-nonsense sign of Capricorn. This suggests that the free-wheeling is over, and that’s likely not something the stock market will like.
The S&P 500 set a new record high that day, the third in a string of eight consecutive record highs. The S&P missed making it a full 10 consecutive days that ended with the current all-time high of 3337.77 on January 22 by less than a point. By month’s end, however, the S&P had backtracked to where it started the new year—closing 5 points below the year-end 2019 close and 11 points above the month’s low of 3214.
The natal horoscopes of the S&P 500 and the U.S. Constitution are strongly connected, so I think it is worth noting that the current record high was set on the day after the impeachment trial of the U.S. president began.
All information in this newsletter 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.
© Copyright 2020 SusanGSays LLC