Tag Archives: price consolidation

Stock Market Trading at the Summer Solstice

Yesterday’s market action just after the announcement from the Federal Open Market Committee was a clear reminder not only of the power of the Fed in swinging market sentiment, but also of the power of the cardinal zodiac points.

It’s the 90-degree location that’s in play right now, at the start of the zodiac sign of Cancer.

This was one of W. D. Gann’s favorite spots to watch in his astro-trading research and market forecasting, and for very good reason.

As I’ve noted before, one of the things that made the timing of the announcement yesterday so noteworthy was the fact that transiting Mercury was conjunct Pluto in the Federal Reserve horoscope, which also happens to be at this key 90-degree zodiac location.

This kind of conjunction is not terribly rare in and of itself, of course– what was unusual was the fact that it came during an FOMC meeting.

The result, of course, was an extremely sharp response from the markets, as I noted in my post after yesterday’s market close.

In a kind of knee-jerk overreaction to the announcement, the equities indices rallied sharply during the final hours of trading, but we’re expecting some solid price consolidation and a possible pull-back during today’s trading, as the transiting Mars activation of the Fed’s Moon/Saturn midpoint comes into play more strongly.

The next time we get an activation of this key zodiac point is just ahead of us– it’s the Summer Solstice coming up this Saturday.

While the market impact is a little hard to forecast because this is a weekend event and because the net effect may be reduced somewhat by Mercury’s current retrograde condition, the Summer Solstice itself has a solid track record for triggering trend reversals in the markets– it happens about 3 out of 4 times.

S&P Summer Solstice
The Summer Solstice helps trigger trend reversals in the S&P 500 about 74% of the time.

We’ve been back-testing the last 53 times this event has happened, and have found that the Summer Solstice has previously triggered a trend reversal down roughly 44% of the time, a trend reversal up 30% of the time, and no trend reversal at all 26% of the time.

Since the stock market remains in a disturbingly persistent uptrend right now, it looks like the odds favor a move to the downside following the June 21 Summer Solstice this year.

We won’t know how it works out until Monday, of course, but right now our expectation is that we’ll see declining prices in equities as the new trading week gets underway.

Mars Stations and Stock Market Trading

“Does this stuff really work?”

That’s a question I get a lot from people who haven’t experienced the astro-trading advantage for themselves.

The answer, of course, is Absolutely YES!

But that response doesn’t really tell us much, mainly because the question itself is so limited.

A far better question would be “HOW does this stuff work?” or “What kinds of effects do the planets actually have on the markets?”

The Mars direct station coming up next week is a case in point.

Mars stations are definitely market accelerators, and sometimes they trigger trend reversals. But each Mars station brings its own unique characteristics to the circumstances surrounding stock market trading.

If you take a look at these trading charts for the S&P you’ll see what I mean:

Stock Market Trading - Mars Stations 2007 and 2008
Prices fell in the stock market trading that took place while Mars was retrograde in late 2007 and early 2008. A brief bounce immediately after the Mars direct station on January 30, 2008 was followed with price congestion and a fresh price decline.

 

Mars Stations and S&P 2009-2010
The Mars stations in late 2009 and early 2010 defined a profitable period in stock market trading, with the direct station on March 10, 2010 signaling a break above previous resistance.
Mars station Impact on the S&P in 2012
A rising price trend in stock market trading during much of the time while Mars was retrograde in 2012 culminated with a pull-back just prior to the direct station on April 13, which was following by trading congestion prior to a steep decline.

“Gann was very private about using astrology….”

When I joined Michael Yorba for my weekly interview on his Traders Network radio program on Thursday, he asked me to help make sense of the market action.

“A lot of folks are getting whipsawed,” he said, because of the contradictory signals and the confusing market action.

I told him that one of the clearest indicators we’ve got going right now is the change of seasons at the Spring Equinox, which was a key market timing indicator used by W. D. Gann.

“W. D. Gann was very private about his use of astrological cycles in market forecasting,” I said, “but he had a pretty good track record.”

As an extra bonus for Michael’s listeners, I had also used the social network page on his website to post a link to my recent video about the back-testing we’ve done with the Spring Equinox, resulting in a specific trading strategy for precious metals, individual equities, and market indices from around the world.

Michael also commented about the savings his listeners could get when they used his special YORBA coupon code to order the new report on The Stock Market Collision Course.

You can here the entire interview, which also includes Michael’s questions about Elliott Wave counts and price targets, by clicking the player here:


click here to download or listen on your mobile device
By the way, even if you missed the original broadcast you can still use the Coupon Code I mentioned in the interview to get a 10% discount on the new Stock Market Collision Course report.

Just go to http://bit.ly/ATsmcc and click through to order, then use Coupon Code YORBA during the check-out process.

The Moon, Emotions, & The Markets

I got a great view of the Full Moon earlier this evening when I went out on the terrace overlooking the Manatee River.

Looking at the Moon is always a calming, almost hypnotic experience for me. I connect first at a visceral level, and then after a few minutes the more cerebral stuff kicks in– thoughts about rhythms and cycles, amazement at the physical and emotional impact of the gravitational pull, and a little pondering about the potential effect on the markets.

It’s my own personal antidote for Full Moon Madness, I guess.

And, as I pointed out earlier this week in the current issue of the FinancialCyclesWeekly.com newsletter, this particular Full Moon is especially powerful because it’s also a lunar syzygy, with the Moon at apogee as well.

That added intensity, plus some additional planetary factors at work, suggests that we could see an important response in the markets during the next couple of days, most likely in the form of price consolidation.

We’ll have to wait and see how things actually play out in the markets, of course, and respond accordingly in ways that are congruent with our overall astro-trading strategies.

But for now, at least, I’m just going to enjoy looking at the Full Moon one more time tonight.