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 1st Quarter of 2026 (March 31), markets have been predictably volatile (as noted in our previous issue), with seasonality, inflation uncertainty, global tensions, and conflict. Recent sector strength has been mainly limited to energy and utilities, with pullbacks in essentially all other industries. Quarter-end window dressing (where fund managers replace losing stocks with winning stocks), and oversold conditions may provide a boost the next couple of days, but beware not to get caught in any false rallies for the time being.
The 2nd Quarter of 2026 looks to be positive for sectors including energy, precious metals (though remaining volatile), while real estate related companies and consumer discretionary will likely continue to struggle. Of course, the global conflict is the main focus at the current time, as are growing concerns of Stagflation (slowing growth and rising inflation). We have also addressed the old adage “Sell in May and Go Away,” in both our publication and previous blogs, which no longer seems to hold true in the equity markets.
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. In the 2nd Quarter of 2025, Jupiter entered the sign of Cancer, in early June (where it remains until the end of the 2nd Quarter in 2026), symbolizing potential gains in sectors like silver, real estate, and defense of the home related stocks, while Pluto in Aquarius (much longer term) will continue the AI and robotics themes, though these are very volatile. Real Estate and Real Estate Investment Trusts (REITS) showed signs of improvement as interest rates were cut twice in the 4th quarter, but have tailed off significantly with another round of heavy job loss, default, and inflation.
As we warned, another typical Mercury Retrograde, from Feb 26 – Mar 20, resulted in a significant pullback and heavy volatility in the 1st Quarter, which is also common seasonally. This event taking place in the sign of Pisces added to the constant over-reactions to unclear information (Mercury and Pisces). The long-awaited Saturn-Neptune conjunction also took place on Feb 20, as both planets entered the sign of Aries, resulting in more volatility, and non-directional bias, as expected. The planet Uranus (sudden/unexpected change) also made its presence felt, with typical sharp price moves around its aspect to Saturn on January 20, ending its retrograde period and turning “direct” on February 4, its square with Mars on February 27, which resulted in a week-long pullback in equities. Additionally, two Mercury (speech and communications) conjunctions with Mars (aggressive, act first-think later energies) in the quarter kept markets on edge concerning the global conflict. Finally, two eclipses, on February 17 and March 3, added to the overly emotional state of the markets.
Some important transits/aspects through the 2nd Quarter of 2026 keeps the “fire burning” as both Mercury and Mars join the Sun, Saturn, and Neptune in the sign of Aries within the first 2 weeks. Since the beginning of Aries “Season,” on March 20, we have experienced many “fast” starts that fade by days end, which will likely continue for the time being (again with an extra dependence of the conflict status). Continue to beware “false rallies” over the coming weeks. As we approach the end of April, Taurus “Season” will kick in, normally a time of calmer market conditions. This year, however, the planet Uranus will make its final ingress to the sign of Gemini, on April 25, where it will remain until May of 2033. As we have been addressing in recent months, this is another potential shake-up, as the planet leaves the money sign of Taurus, and enters the intelligent, advanced technology, but 2-sided sign of Gemini. Combined with Pluto in Aquarius (which began late last year) these are times of significant advancement in technologies, but also a time of global military conflict and extreme price action. The 2nd Quarter will also end with the next Mercury Retrograde beginning on June 29, and the next sign change for Jupiter, which will ingress the sign of Leo, on June 30, which will be discussed in next quarter’s preview and additional blogs.
As discussed, 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 favorable 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.
