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Associated with beauty and love, the planet Venus shows its ugly side when it moves backwards (retrograde). Some undone housekeeping is going to get done during this period, and it won't be pretty.

A retrograde planet is one which appears to be moving backwards in the sky. Of course, this is just an illusion, but it works well for timing events. The Venus and Mercury retrograde periods are highly accurate indicators for the markets. Their strongest influence is seen just as they begin the retrograde period, and as they begin moving direct again. These are called the Stationary Retrograde and Stationary Direct dates because the planet appears to be standing still in the sky.

With Venus about to start another retrograde period from 5/15/2012 to 6/27/2012, I thought it would be a good time to revisit the past OEX charts and see what correlations we can spot. Below are the charts for the last 6 Venus retrograde periods. The red rectangle is the retrograde period.

Observations:

  1. 5 out of 6 times the market moved higher enough to say it rallied.
  2. 6 out of 6 times the market made a high higher than the day the retrograde began. The move in 2007 was not enough to say it rallied.
  3. 6 out of 6 times the market was lower on the day it went direct (right-hand border of the red box) than the high it reached during the retrograde period.
  4. 6 out of 6 times, regarding the 5 days before and after the Stationary Direct date (right-hand border of the red box), the market experienced a change in trend.

Looking forward, we should expect the following between 5/15/2012 to 6/27/2012:

  1. The market moves higher with a good chance it will rally.
  2. Within 1 week of 6/27/2012, the market should not move above the high it made during the retrograde period.
  3. 6/27/2012 should see a short-term reversal.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: OEX Ready For A Reversal: Venus Retrograde