SECTOR SEARCH
Quarterly Preview
In this episode of our Sector Search - Quarterly Preview blog, we will discuss the upcoming quarter’s sectors/industries in focus. As noted in our previous Sector Search – Finding Sectors blog, dated 6-25-24, many investors/traders choose to utilize Exchange Traded Funds (ETFs), rather than more volatile individual stocks, as explained in our publication When to Buy and When to Sell: Combining easy Indicators, Charts and Financial Astrology (available on Amazon). ETFs provide shares from a “basket” of stocks from the same sector/industry, reducing the risk of owning just one company. Please also review our Sector Search – ‘Tis the Season blog, dated 5-27-25, for a better understanding of sector rotation and seasonality.
As discussed in that blog, there are certain segments/sectors of the equities markets (as well as specific stocks), that tend to trade in cycles based on the calendar, making “sector-rotation” a popular strategy utilized by many professional traders (also discussed in our Sector Search – Morning Scan blog, dated 10-25-24). As always, when choosing a specific stock, selection is key and a good barometer is to lean towards the best stocks in the strongest sector (for bullish positions), and the worst stocks in the weakest sector (for bearish positions). This does not mean, however, that the price action in these months or quarters begins on the very first day, or ends on the last, so continue to perform due diligence (including fundamental and/or technical analysis) before opening a position. Also, be sure to consider economic conditions, unusual news events, interest rate policies, and/or the next earnings announcement (for single stocks), as they all can affect the flow of the cycle. Finally, remember that these historical figures lend to the probability of a repeated outcome, not the certainty of it.
As we approach the end of the 2nd Quarter of 2026 (June 30), just in the past week, markets have been shifting away from the recently high-flying Semi-conductor/Chips and Energy sectors. Recent sector strength has included Financials and Utilities (a safe-haven during volatile periods), Consumer Discretionary, which has been hit hard with inflation and extremely low consumer sentiment. Quarter-end window dressing (where fund managers replace losing stocks with winning stocks), and the annual Russell Re-Alignment (see our Financial Focus – Russell Re-Alignment blog, dated 6-1-26) may provide a boost the next couple of days, as we head into July, the 2nd strongest month of the year for equities over the past few decades.
The 3rd Quarter of 2026 looks to be positive for sectors including healthcare, consumer-related, and communications. Precious metals, real estate, and technology will likely remain volatile, and energy may spike again if the military conflict re-ignites, but otherwise would remain subdued.
Astrologically speaking, the planet Jupiter is known to heavily effect certain sectors related to the sign in which it is positioned, as it expands energies and has a mostly positive connotation (please see Chapter 4 of our publication and our Planet Power - Jupiter Effect blog, dated 3-27-24 for more details). This planet generally remains in a sign for about 1 year, which relates to strong energies for about 3-4 quarters. The planet now enters the sign of Leo, on Monday, June 30 (where it will remain until July of 2027), symbolizing potential gains in sectors like gold, solar, and art/entertainment/travel type related stocks, while Pluto in Aquarius and Uranus in Gemini will continue the AI, space, quantum computing, and robotics themes much longer term.
The 2nd Quarter was highlighted by Mercury and Mars joining the Sun, Saturn, and Neptune in the sign of Aries within the first 2 weeks, which resulted in defense and energy-related industry gains. Many instances of “fast” starts, that faded by days end, were experienced in the markets, typical of Aries energies. Taurus Season took over in late April, calming down volatility, as expected, resulting in market gains. This year, however, the planet Uranus made its final ingress into the sign of Gemini, on April 25 (where it will remain until May of 2033). As we addressed, this planet’s change from the sign of Taurus (money), into the sign of Gemini (intelligence, advanced technology, but 2-sided), combined with Pluto in Aquarius (which began late last year) signifying times of significant advancement in technologies, but also a period of global military conflict and extreme price action. The last few weeks have followed that path, with increased volatility and sector rotation.
Some important transits/aspects through the 3rd Quarter of 2026 include another Mercury Retrograde, which begins Monday, June 29, lasting until July 23. These periods, as stated repeatedly in the past, often result in significant pullbacks and heavy volatility in the markets. On the last occasion, in the 1st Quarter of 2026, the S&P 500 declined 4.6%, during the 3 ½-week period from February 26 – March 20. This event took place in the water sign of Pisces, which added to the constant over-reactions to unclear information (symbolized by Mercury and Pisces). On this instance, the retrograde will occur in the sign of Cancer (ruled by the Moon), another emotion-based water sign, during the seasonally strong Cancer season. This retrograde likely will not be severe, like the last, but may temper the usual strength of July.
The skies are also very busy as Jupiter changes from Cancer to Leo, Mars conjuncts Uranus on July 4th (fireworks to say the least – though U.S. markets will be closed) Saturn turns retrograde (beginning July 26), a Solar Eclipse occurs in Leo on August 12, the North Node changes from Pisces to Aquarius (the historical bottom of the business cycle) on August 18, a Lunar Eclipse occurs on August 28, and the next Uranus Retrograde begins on September 10. All of these aspects symbolize change, reversals, volatility, and uncertainty, so expect a summer of non-directional price action with many ups-and-downs.
As mentioned, the “inner” planets (Moon, Mercury, Venus, and Mars), also possess significations regarding sector influence, with the Moon often used for day-trading, while Mercury, Venus, and Mars can be used for swing-trading.
Please stay tuned for future “Sector Search” blogs, as well as other related blogs, that include industries to focus on during specific economic and astrological conditions.
***As always, this information is not intended to be financial advice, or any specific buy or sell recommendation, but rather a guide to assist the reader in some further understanding of current economic conditions/movements in the sky, and how they can affect moods, behaviors, world events, and financial markets.
