SECTOR SEARCH
Quarterly Preview
In this episode of Sector Search, we will begin a Quarterly Preview blog, on the next to last week of the quarter, to discuss the upcoming quarter’s sectors/industries in focus. As noted in our previous Sector Search – Finding Sectors blog, dated 6-25-24, there are several investing styles, strategies, and time availability, that may decide whether one invests in, or trades, sectors, rather than individual stocks. There are many avenues in which to invest in or trade certain industries, including the use of Exchange Traded Funds (ETFs), explained in our publication When to Buy and When to Sell:Combining easy Indicators, Charts and Financial Astrology (available on Amazon). Please also review our recent Sector Search – ‘Tis the Season blog, dated 5-27-25, for a better understanding of seasonality.
As discussed in that Seasonality 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. Sector “rotation” (as discussed in our Sector Search – Morning Scan blog, dated 10-25-24) is another common strategy utilized by many professional traders. As always, if 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 screen for unusual news events and/or the next earnings announcement (for single stocks), as they may alter 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 2025 (June 30), recent sector strength has included infotech, communications, and cryptocurrency. The Russell small cap re-alignment, an annual re-balance of small-cap stocks, and Quarter-end window dressing, where fund managers replace losing stocks with winning stocks, are expected to add to the bullishness before months end.
The 3rd Quarter looks to continue positive for sectors including technology (AI, chips, and infotech), precious metals (silver, gold, etc.), and utilities. Keep in mind that August tends to be a bit weak in the markets, following the typically strong July.
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 with 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. Jupiter recently entered the sign of Cancer, on June 9 (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.
Some important transits/aspects in the 3rd Quarter include the planet Uranus’ initial ingress into the sign of Gemini, on July 7, which symbolizes sudden price moves in either direction in the advanced technology sectors. Two Saturn-Neptune conjunctions on July 15 and July 31, may help keep markets balanced, as push and pull energies are associated with these two planets. However, beware the coming Mercury Retrograde (July 18 – Aug 11), as that 3 to 3 ½-week period almost always results in some chaos and market decline. In early September, Uranus will then turn retrograde, and make its way back to Taurus. The associated sudden, unexpected, movement in money associated industries, and may signify a period of decline in cryptocurrency. Mars ingress to Scorpio (one of its 2 “home” signs) on Sept 22, finishes off the quarter, and suggests some initial volatility, followed by potential strength.
The “inner” planets (Moon, Mercury, Venus, and Mars), also possess significations regarding quarterly sector influence, with the Moon often used for day-trading, while Mercury, Venus, and Mars can be used by swing-traders.
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.
