A Mid-August Caution Ahead of the Virgo Eclipses
Virgo Eclipses and Volatility: A Celestial Market Warning
Headline Snapshot
Powell signals flexibility: Fed Chair Jerome Powell says the labor market is no longer a source of significant inflation pressure, with a September rate cut “on the table.”
Global easing trend: The Swiss National Bank has cut interest rates by half a point to 0.5%, underscoring a global tilt toward accommodation.
Mixed European signals: Germany’s manufacturing PMI rose to a four-month high, but its services PMI fell to a nine-month low — a sign of uneven momentum.
Markets near highs: After a strong multi-month rally, U.S. equities remain elevated, raising questions about sustainability heading into the fall.
This update is outside of my usual weekend cadence. Normally, I use those posts to review the past week through the lunar lens and track the Lunar Landing Portfolio. Today, however, I want to look forward. I am also making this post free to all subscribers; however, please consider becoming a paid subscriber. If you want personal guidance, please set up a consultation with me. Your support is important.
The reason for this update now is simple: the upcoming new moon in Virgo is not just another lunar reset. It is the first in a sequence of three major lunations in Virgo, a run that includes both a solar eclipse and a lunar eclipse. That series will stretch across late summer into early autumn, and it deserves attention right now.
When we get a cluster of eclipses in one sign, we know we are entering a period where markets are less predictable, more volatile, and often prone to reversals. Layer that on top of the strong equity rally we’ve seen over the past several months, and the message becomes clear: this is not the moment to rush in headfirst.
The Virgo Eclipse Cycle
The new moon in Virgo marks the opening act of a three-part cycle that will unfold over the next several weeks. Unlike an isolated new or full moon, this series activates the full span of Virgo, from the first degrees of the sign through the last. That means the effects won’t be confined to a single week — they will reverberate through September and likely into the first days of October.
Two eclipses make this stretch especially charged. Eclipses are historically disruptive. They tend to mark turning points, not just for individual markets but also for sentiment and confidence as a whole. This is why traders and investors alike often approach them with caution.
On top of this, Mercury — ruler of Virgo — while protected by the chariot in Virgo will be subject to the power of the eclipses there and once in Libra remains in a condition of combustion through early October, when it finally gains some separation from the Sun. Until then, Mercury’s themes of clarity, analysis, and decision-making are compromised. That creates an environment where market participants are more easily swayed by noise, rumors, and quick swings.
The Market Backdrop
Since the early-year pullback, equities have staged an impressive rally. The indexes have been climbing steadily, and many investors are now looking at their portfolios with a sense of relief and even excitement. It’s easy to feel the temptation to add more exposure when the tape is green and profits are showing.
But eclipses rarely arrive at moments of calm. More often than not, they punctuate phases of exuberance, reminding traders that what goes up in a straight line does not stay that way forever. Given the magnitude of the recent rally, the probability skews toward downside volatility in this cycle rather than another leg higher.
At the same time, the macro news flow is mixed. Federal Reserve Chair Jerome Powell recently noted that the labor market is no longer a major source of inflationary pressure, and he opened the door to a rate cut as soon as September. Abroad, the Swiss National Bank surprised markets by cutting rates by a half point to 0.5%. Meanwhile, Europe’s picture remains uneven: Germany’s manufacturing PMI has bounced to a four-month high, but services activity has slipped to a nine-month low. These signals suggest global growth is fragile, and central banks are leaning toward accommodation.
That backdrop — easing policy but softening demand — often aligns with eclipse periods. The outer story looks supportive, but beneath the surface cracks appear, and volatility creeps in.
Practical Guidance for Investors
This is where discipline matters. A few points to consider as the Virgo lunations unfold:
If you’re already invested and sitting on profits, consider trimming. Locking in gains after a multi-month rally is not the same as abandoning your position. It’s simply risk management in advance of a period known for instability.
If you’re on the sidelines, don’t chase right now. The time to add exposure is during pullbacks, not after a long run-up when eclipses are signaling reversals. Patience will give you better entry points.
If you’re comfortable with hedging tools, use them selectively. That might mean light exposure to inverse ETFs like SQQQ, or the use of options to cap downside. But this advice is only for those already familiar with these instruments. For everyone else, the main point is caution, not complexity.
Above all, avoid big sudden moves. Eclipses are historically poor times to initiate aggressive new positions. They are better suited to watching, waiting, and steadying your hand.
The Timing Window
From mid-August through the first week of October, the market is in a higher-risk zone. We should expect:
Increased volatility. Sharp swings up and down are likely, with sentiment shifting quickly.
Potential downside pressure. After months of gains, indexes may trend lower. Whether this develops into a full correction is uncertain, but the risk of meaningful pullbacks is elevated.
A shift after early October. Once Mercury leaves combustion around October 3–4, conditions may begin to stabilize. Until then, clarity will be harder to find.
This doesn’t mean sitting out the entire period. It means recognizing the climate. Think of it as sailing into rough waters: you don’t abandon ship, but you trim the sails, secure the deck, and wait for steadier seas before pushing forward.
Final Word
Cycles of exuberance are infectious. When gains stack up, it’s natural to feel like the time is right to add more. But history — both market history and astrological history — suggests caution when eclipses are in play, particularly after a long upward run.
The next six weeks are not about chasing. They’re about discipline, risk management, and readiness. If the market does swing down as expected, those who have preserved capital will be positioned to take advantage of opportunities when they emerge.
So as this Virgo cycle begins, steady your hand. Take profits where you can. Protect gains if you’re comfortable with hedges. And if you’re waiting for the right time to enter, remember: opportunities are best seized on the downswing, not the upswing.
Between now and early October, the market is entering unsettled territory. Watch closely. Act carefully. And above all, remember that restraint is often the most profitable move in volatile times.