Technical Analysis | by FutureAnalyzer.com | Monday, 22 August 2011 11:26 UTC
In this article we will talk about the perigee and apogee of the moon and the influence they have on the events in the financial market. Is there any connection between these astrological moments and the methods of predicting market evolution? Do you think we can find any? Let’s see…For starters let us decide what we are analyzing…The graphic analysis will represent the evolution for DOW and for E-mini S&P 500 (futures graphic).
1. What is the perigee and apogee of the moon?
The path the Moon describes around the Earth is in the shape of an ellipse. This is why the distance between the Moon and the Earth is not constant, it grows to a point and then the moon gets closer. When the Moon is the farthest from the Earth it is called the apogee. The perigee is the point on the ellipse where the Moon is closest to the Earth.
This image shows how the Moon looks when it reaches these points on the ellipse.
This is a schematic drawing of these moments of lunar revolution about the Earth.
As we have understood what these lunar aspects are, let us see how they influence people…
When the Moon reaches perigee, it is the closest to the Earth. This means its effect over humans is strongest. The Moon influences the emotional side of a person, the way one feels and reacts in certain circumstances. Being so close to the Earth, the Moon will make people to be restless, nervous, agitated. How do you think a person having this state of mind will act? For sure one will not trust the information one gets and will be very emotional regarding any decision. This way, traders and the other persons involved in financial markets will be tempted to sell, to give up the products they owned and everything because of fear and nervousness.
Concluding, the financial market will have a High during the apogee and a Low on perigee. You will observe in the following graphics, that this is usually a rule in more that 70% cases. We have to remind you that, although the Moon’s influence during apogee is weak, there are other astrological aspects that could have a negative impact on the market. In this situation (apogee) even though we would be expecting a High, the market could go down because of other factors.
Yet, what can we know for sure? We can be sure that close to the day of the apogee (one day before or after), the market will show a reversal point. Even though, let’s say, before the apogee the market was going down, during the apogee this decline will stop (the graphic will show a Low). In the other 70% of the cases, the market will have a High, so the raise will stop during apogee. So we can be sure there will be a strong reversal point of the price!
Let us analyze the real deal…
This is a table that shows the apogee and perigee times for year 2008:
You are told the month, day and hour when the astrological event will happen and the distance between Earth and Moon at that specific time. The sign ++ marks the closest perigee and -- marks the furthest apogee for year 2008.
Let us read the graphics for some indices. We have marked the moment corresponding to the perigee and apogee.
DOW: January - June 2008
DOW: July – December 2008
E-mini S&P 500 futures, continuous: January – June 2008
E-mini S&P 500 futures, continuous: July - December 2008
a. The graphics show a great correlation between the Highs and Lows and the apogee and perigee
b. We can also see that most of the times a High will happen during apogee and a Low during perigee
c. When this rule does not apply, the price will show reversal points during these lunar aspects. The trend will change direction after the Moon passes the point on the ellipse.
d. We have also analyzed many past years and the rules apply. You can verify the correlation also if you are attracted to this kind of research work
e. By showing you this study we are not trying to convince you that astrology is perfect. We just want to highlight the fact that there are correct ways of predicting the local High and Low and the reversal points. These kinds of studies helped us along the years build our trading system, the system we are basing our analysis and forecasts on.
"Written by FutureAnalyzer.com"
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