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 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, 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 4rd Quarter of 2025 (December 31), recent sector strength has included infotech, communications, cryptocurrency, and metals, as expected. November was unusually weak (as we hinted at last quarter), considering it has become the strongest month of the year for equities over the last couple of decades. A mid-month slump (when the Fear & Greed Index fell to 8) quickly recovered as usual, but overall the month very volatile. Quarter-end window dressing (where fund managers replace losing stocks with winning stocks), and the annual anticipated Santa Claus Rally, both expected on the last few days of the month, may have come a bit early, with 5 consecutive days of gains this past week, from December 18 – December 24 (+210 points on the S&P 500). Unfortunately, on this occasion, the rally followed a 4-day slump from December 12 – December 16 (-178 points on the S&P), which basically cancelled each other out.
The 1st Quarter of any calendar year is always considered important, as it presumably sets the tone for the remainder of the year, a phenomenon known as The January Effect (also discussed in our publication). The 1st Quarter seasonally, however, tends to fade any momentum moving into February (historically the 2nd weakest month of the year) and March, which is typically very volatile. The coming 1st Quarter of 2026 looks to be positive for sectors including energy, precious metals (though beware of a pullback), and utilities, while real estate, cryptocurrencies, and consumer discretionary/retail (which had its typical short boost around the holidays), may struggle. The latter’s gains were likely a result of higher prices, combined with unaffected affordability for the wealthy, rather than widespread spending, as major job losses occurred in the 4th quarter. Look for that sector to decrease significantly.
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 1st Quarter of 2026 include the Sun and Venus conjunct Mars on Jan 9 (bullish), Saturn sextile Uranus and Venus conjunct Pluto (bearish), which would be reflected on Jan 20 (markets closed on the 19th), Uranus turning “direct” on Feb 4 (sudden shifts and volatility), Saturn entering Aries on Feb 13 (neutral), a long-awaited Saturn-Neptune conjunction on Feb 20 (volatility), Mercury Retrograde from Feb 26 – Mar 20 (bearish) at the same time Mars squares Uranus (high volatility), and a Lunar Eclipse on Mar 3 (bearish). Overall, look for continued volatility and uncertainty in the markets through the larger part of the quarter.
Please note that the “inner” planets (Moon, Mercury, Venus, and Mars), also possess significations regarding quarterly shorter-term 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.
