The Spring Equinox will be here on March 20, bringing the possibility of a big inflection point in the markets.
Equities usually react pretty bearishly to the Equinox, at least for the short term. There’s a big price dip for a day or two, as the high-energy impact of the Sun’s passage into Aries makes itself felt in interpersonal emotions and on the trading floor.
Then things begin to settle down.
They settle down and then often start to look so rosy that we actually see a bit of bullishness invading the market environment!
When I observed this phenomenon, it inspired me to take another look at some of W. D. Gann’s ideas, which soon confirmed that I was on the right track in following the planetary influence on the markets.
But I didn’t stop there.
I came up with a hypothetical trading plan based on the Spring Equinox, and then did extensive back-testing to see if that approach — a “14-Day Spring Equinox Trading Strategy” — would actually hold up under pressure.
The results were pretty amazing, which is why I recorded this video about the project:
In spite of the fact that it can sometimes be a little challenging to understand and apply, W. D. Gann’s work is always worth paying attention to. For example, I was just reviewing the brief report I did a couple of years ago, W. D. Gann on Natural Trend Change Dates in Daily Market Movements, and seeing how accurate his simple method proves to be. Interesting stuff!