Feb 02, 2025: Jupiter Trine Mercury Cause Stock Market Volatility

Last Week Stock Market Analysis Jan 27, 2024 – Jan 31, 2025

S&P 500 (SPX): The S&P 500 closed at 6,040.53, experiencing a 0.5% decrease for the week.
Nasdaq: The Nasdaq Composite closed at 19,627.44, seeing a 0.28% decrease.
Dow Jones Industrial Average (Dow): The Dow Jones closed at 44,544.66, marking a 0.3% increase for the week.
Nifty: The Nifty index saw a 1.70% increase, closing at 23,482.15.

Federal Reserve Update

The Federal Reserve decided to hold interest rates steady at the current target range of 4.25% to 4.50%. Powell emphasized that the central bank is in no hurry to adjust its policy stance, particularly as the economy remains strong. He reiterated the Fed's commitment to achieving a 2% inflation rate and mentioned that real progress on inflation or some weakness in the labor market would be needed before considering policy changes. The Fed's cautious approach is due to uncertainties around economic policies, including tariffs, immigration, fiscal policy, and regulatory policy.

Trading Insight

I called out that earnings would disappoint in my trade alert email sent out on Jan 29, 2024, at 10:35 AM New York Time. The sell-off accelerated towards the end of Friday. Interestingly, after SPY's late close session ends at 4:15 PM New York time, there was a further slump on SPY so they do not need to pay a huge premium to put holders. Markets will do their best in any market condition to screw up retail, which is why I depend on astrology to make decisions.

Even though Sunday Futures are going down, I do not think we will crash directly from here. We may have a significant bounce from the low during market hours on Monday. At the same time, it is not easy to understand the swing and trade as Jupiter goes direct on Tuesday, Feb 04, 2025. This could change fortunes for everyone in a different way compared to the last few months.

It is a good idea to wait until mid-next week to form a bottom to go long. I see Wednesday, Feb 5, and Thursday, Feb 6, 2025, could be significant days to make big money for options players.

Astrological Calculation for the Week Starting from Feb 02, 2025

• Moon transiting in Revati Nakshatra looks bearish and it may continue until Monday 12:00 PM Eastern Time.
• We may see a significant bounce in the afternoon session on Monday. If there is no bounce, then this market could bottom as soon as Tuesday morning. Otherwise, we need to wait until late Wednesday.
• Jupiter makes conjunction with the Moon after market closes on Wednesday. Its effects can be noticeable in the overnight session on Wednesday or Thursday during market hours.
• If SPX has gone down significantly by Wednesday evening to below 5850, then it is okay to go long SPY for the next few sessions that will take it to a new ATH.
• Note: Buy and Hold Strategy will not work, as a big crash is coming up possibly starting from mid-Feb 2025.

Weekly Trading Forecast