The moon, meanwhile, maps the soul’s domain, felt but not necessarily seen. Archetypally, the sun represents the ways we project our identity onto the world. On a new moon solar eclipse, the moon passes over our view of the sun, momentarily obscuring its rays. What shadows will emerge when the sun goes dark, even for only a moment? And how should you prepare for a Hellmouth battle royale? Consult our guide for everything you’ll need to come out alive. Eclipse season launches on April 20 at 12:13 AM EST with a hybrid new moon total solar eclipse in Aries, officially initiating the Aries-Libra eclipse cycle. It’s free.It has begun and nothing can stop it. Subscribe to our blog if you want to get an email each time we post new information. The other and weaker lunar cycles tend to kick in when 2 or more of them show extremes simultaneously, or coincide with the switch between lunar red and green period. While not as important as Moon Distance (Apogee-Perigee), we can watch this cycle for potential market reversals when Declination reaches an extreme.īottom line: the lunar green and red periods are the main thing to watch. So it affects the direction of the Moon’s gravitational pull. The varying declination of the Moon manifests itself in the Moon appearing higher or lower in the sky. When the Moon reaches maximum latitude, either above or below the ecliptic, sudden price reversals are possible. Most of the time the Moon is either above or below the ecliptic plane, and the measure of it is called ecliptic Latitude. The path of the Moon is slightly tilted to the plane of the ecliptic (inclination : ~ 5°). Contrary to what astrological sources usually contend, lunar nodes and eclipses were found to be rather irrelevant for the markets. Solar and lunar eclipses can only occur when the Moon is near one of the lunar nodes. Lunar nodes are where the orbit of the Moon crosses the ecliptic plane. For example, the recent major low on Macame right on a lunar perigee. In the markets it is not uncommon for prices to reverse when the Moon is at apogee or perigee, so we can watch out for short term turning points on these days. resulting in stronger tides when the Moon is at perigee. So the gravitational pull of the Moon varies, e.g. At its closest point ( perigee) the Moon is about 10% closer to Earth than at its farthest point ( apogee). The Moon’s path around the Earth is slightly elliptic. (called Moon Distance Cycle in the LunaticTrader software) Other moon cycles have weaker effects, but will occasionally come to life. Lunar Phase & Financial Panics (David McMinn) Carolan)Īre Investors Moonstruck? Lunar Phases and Stock Returns (K. Janes, University of Michigan)Īutumn Panics, a Calendar Phenomenon (C. You can check out the Forward test 2009-2020, where we keept track of the market movements during the red and green periods since 2009.įor more advanced strategies and software to calculate the exact starts of lunar Green and Red periods, you are welcome to download and try our LunaticTrader ebook and software. This basic strategy of being long during lunar green periods has continued to work well since the start of this blog. During red periods the average annualized return was only 3.6%. During green periods the average annualized gain has been 10.9%. Investing during red periods only would have seen $1000 grow into $2840. $1000 would have grown into $21000, a 21-fold increase. The green line shows the return on investment in S&P 500 index during green periods only (staying in cash during red periods). The outperformance in green periods is significant and persistent over long periods of time, as you can see in this chart (1950 – 2009): Green periods start about 3 days after Full Moon, and red periods begin about 3 days after New Moon. It was also observed that major market crashes have a history of happening about 3 days before a New Moon, typically in 8th or 9th lunar month in the Chinese lunar calendar ( = September or October).īased on research of stock market data since 1950, we have identified a “Lunar green period”, when stocks tend to do better than average, and a “Lunar red period”, when stocks generally underperform. Generally, stocks tend to perform better in the days around the New Moon, while price weakness is more frequently seen in the days around Full Moon. Several studies found a connection between full and new Moons and stock market performance.
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