Updated: Feb 20
Astrologically based tools such as the Solar Cycle and Lunar Cycle are well-recognized tools to forecast future market tendencies. But what about other astrological based tools? Is it possible that what’s going on up in the sky can affect markets? I have found that broad-based equity markets tend to respond best to the speed of the planets. When one considers the bizarre world of quantum physics and parallel universes then idea of the speed planets affecting the markets is rather tame in comparison. The advantage of applying astrology to financial markets is that we have clear objective data to consider.
When the speed of the planets is fast markets tend to function well and generally rise. When the speed of the planets is slow the market tends to lag and often decline. In fact, most of the major market crashes in the United States have occurred when Mercury was a few days from a standstill (station). I have developed an indicator called the planetary speed index that combines the speed of key planets that affect market movement. There are 3 charts below to highlight this effect. Keep in mind that this planetary speed index is not linked in any way to price. In other words, this is a mutually exclusive event that tracks markets in a time of turmoil extremely well.
Take a look at the October 2008 Great Recession Meltdown (Mercury Station 10/15/08)
Take a look at the May 2010 Flash Crash (Mercury Station 05/11/10)
Take a look at the August 2011 Summer Meltdown (Mercury Station 8/2/11)
There is one common denominator here: during large scale meltdowns the planets are always moving slow or slowing down. The planetary speed index tends to forecast best when: 1. There is a very strong emotional reaction in the markets. 2. The Fed is weakly involved. In general, when there is a strong emotional reaction to markets astrological based indicators tend to do well. In the peak of the 2008 financial crisis we saw peaks and toughs of financials markets landing exactly on the new and full moon cycle. But the planetary speed index is the best one in my opinion. Since 2009 the Fed has become stronger with the markets. When the Fed is strong the Fed Juice tends to mute astrological aspects against it. The examples shown here in 2008, 2010 and 2011 were a period where the Fed was relatively “weak“ with quantitative easing. But we can use the planetary speed index in harmony with the Fed Juice to create favorable outcomes. Keep in mind that this is just one tool (albeit a good one) that must be used in harmony with the big picture and the "tale of the tape".