Tag Archives: Elliott Wave

Planetary Resistance Confronts Markets

Planetary resistance.

It’s a trading concept astro-traders use.

But most other traders have never even heard of it.

But there it is.

Resistance?

Planetary resistance is like regular resistance in technical analysis.

It’s an upper limit.

Essentially, it’s a zone that inhibits prices from going higher.

In technical analysis, we can find resistance in previous market highs.

More specifically, a high that’s held up after being tested repeatedly offers strong resistance.

When that happens, prices are unlikely to go higher.

Or we can use technical tools to project resistance zones.

A Fibonacci retracement. A Fibonacci extension.

Or an Elliott Wave target.

It doesn’t really matter how we get there.

By defining resistance, we can set price targets.

We can clarify our trading expectations.

And we can trade more effectively as a result.

What About Planetary Resistance?

But what makes planetary resistance different?

It’s market resistance derived from planetary positions.

So correspondences between planetary positions and market prices are a key.

As described in the book Gann Secrets Revealed Volume 1,  each degree of the zodiac matches specific prices.

By understanding those matches, we can track trading action.

Then, based on specific planetary alignments, we can anticipate trend changes.

It’s a fabulous trading tool.

That’s why I discussed planetary resistance with Larry Pesavento yesterday on his TFNN show.

We chatted about this S&P chart:

Mars Planetary Resistance with S&P
The red lines on the chart correspond to the positions of Mars. The blue lines represent Saturn. Note the heavier red line moving diagonally near the top of the chart. This first-harmonic Mars line clearly defines planetary resistance. The lighter red lines are Mars harmonic increments.

It highlights planetary price lines for Mars and Saturn.

With either stocks or commodities, planetary price lines reveal trading opportunities.

“There Must Be Something There.”

So I shared this chart with Larry.

He noted that “You mention Mars. You know W. D. Gann spent a great deal of time… And a lot of his charts have markings of Mars and things like that. Is that the same type of work you’re working on?”

I confirmed that connection. In response, Larry noted the precision of planetary resistance.

He looked at the price bars on the chart. Then he said “it’s amazing how they bounce off those red lines. There must be something there. That’s for sure!”

Here’s the full interview from the Trade What You See program:

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Helical Market Vortex Harmonics

It’s no secret that the markets move to a universal rhythm. It’s a rhythm that creates a market vortex. It’s the engine that drives prices up and down.

That rhythm is revealed through astrology.

To astro-traders who are willing to dig a little deeper it also opens up a wealth of mathematical patterns and relationships.

You may have encountered some of those patterns and relationships before. Some of them are favorites of traders and market theorists who are eager to explore esoteric forces and hidden harmonies.

Like the Golden Ratio and the Fibonacci sequence. Or the remarkable progression of wave impulses documented in the Elliott Wave Theory.

And, as it turns out, it’s a also a key to an accurate understanding of the Sun’s influence on the solar system.

Can You Visualize The Solar Action Behind The Market Vortex?

CopernicusHelioModel
Copernicus had the revolutionary idea that the Sun is at the center of the solar system, but he didn’t visualize the helical dynamic that drives the market vortex.

You’re probably used to the old two-dimensional textbook models of how the solar system operates. That’s why it can be a little tough to get this kind of dynamic imagery in your mind. But you need to be able to do that to understand the power of the market vortex properly.

Animation helps.

That’s what you’ll find in this video. Right now it’s gotten more than 2.5 million views on YouTube. That may seem like a lot. But not really. Basically it means this is still cutting-edge stuff:

This cosmic unfolding may well be part of the master pattern that generates the market vortex in stock, bond, and commodity markets around the world. Although we may not be conscious of it at the time, we can see the results in the market news at the end of each trading day.

But think about it.

With the Sun behaving in this way, is it any wonder that seasonal influences have such a strong impact on price trends in all the markets?

Understanding the true power of this market vortex – and learning to use its force intelligently – is what the astro-trading advantage is all about.

The Stock Market and the U.S. Presidential Election

Robert R. Prechter, Jr., best known for his work with the Elliott Wave Principle as a tool for forecasting stock market and economic trends, also wrote a book called The Wave Principle of Human Social Behavior and the New Science of Socionomics, published in 1999.

This book is must reading for anyone hoping to understand the ways that social mood impacts the markets, and in defining the science of socionomics Prechter laid some important groundwork that has brought more refinement and accuracy to the work of predicting future trends.

The big forecasting question on everybody’s mind right now is, of course, the outcome of the U.S. presidential election in November, and right on time Bob Prechter came out last Thursday with an updated version of a research report that he authored earlier this year with Deepak Goel, Wayne D. Parker, and Matthew Lampert, published by the Socionomics Institute.

Titled “Social Mood, Stock Market Performance and U.S. Presidential Elections”, this report makes for fascinating reading. Here’s the abstract:

“We analyze all U.S. presidential election bids. We find a positive, significant relationship between the incumbent’s vote margin and the prior net percentage change in the stock market. This relationship does not extend to the incumbent’s party when the incumbent does not run for re-election. We find no significant relationships between the incumbent’s vote margin and inflation or unemployment. GDP is a significant predictor of the incumbent’s popular vote margin in simple regression but is rendered insignificant when combined with the stock market in multiple regression. Hypotheses of economic voting fail to account for the findings. The results are consistent with socionomic voting theory, which includes the hypotheses that (1) social mood as reflected by the stock market is a more powerful regulator of re-election outcomes than economic variables such as GDP, inflation and unemployment and (2) voters unconsciously credit or blame the leader for their mood.”

In other words, the better the stock market does during the years of a U.S. president’s first term of office, the more likely he is to be reelected if he runs for a second term. For example, here’s a chart of the Dow Industrials, showing the market trend for the last six years, with the time that Barack Obama took office in January 2009 noted on the chart:

Dow Industrials 2006-2012
This chart shows weekly price bars for the Dow Jones Industrial Average. Note the market bottom just after President Obama took office in late January, 2008, with an overall uptrend after that.

We’ll have to wait until November to see just how accurate this forecasting tool proves to be. In the meantime, however, you can download a complete copy of the report on “Social Mood, Stock Market Performance and U.S. Presidential Elections” by clicking here.