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, several investors/traders choose to utilize 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), rather than more volatile individual stocks. ETFs provide shares from a “basket” of stocks from the same 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 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, and sector “rotation” (also discussed in our Sector Search – Morning Scan blog, dated 10-25-24) is a 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 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 3rd Quarter of 2025 (September 30), recent sector strength has included infotech, communications, cryptocurrency, and metals, as expected. September was unusually strong (so far), for the second straight year, and Quarter-end window dressing on the last few days of the month, where fund managers replace losing stocks with winning stocks, may also add to the gains.
The 4th Quarter looks to be positive for sectors including infotech, communications, precious metals (silver & gold), energy, industrials (defense of home and infrastructure), healthcare, while real estate and cryptocurrencies may struggle. The annual Santa Claus Rally, expected anear the end of December through the first few days of January, will also be anticipated.
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, 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.
Some important transits/aspects through the 4th Quarter include Mars’ ingress to Scorpio (one of its 2 “home” signs) on Sept 22, suggesting some initial volatility, followed by potential strength, and Uranus Retrograde, beginning on Nov 7 (and lasting for about 3 months), an expected time of high volatility and large, sudden price swings. A Jupiter Retrograde, beginning a few days later, and lasting until March 11, also suggests a pullback in metals sometime during that event. Be cautious with new positions, and consider reducing share sizes during these time frames. As we move into December, both Saturn and Neptune turn “direct” (in Pisces) from their retrograde periods, which can calm the markets a bit, and show improvements in infrastructure and energy.
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.
