Beware Of The New Moon, It Could Cost You!

Yes, I know it sounds crazy but the reality is the phases of the moon do affect the way we feel. There has been a lot written about how the moon affects people, which in turn would affect the market.

I first learned about this phenomenon in a little-known booklet titled, "The Great Wheat Secret". This tiny booklet was written and I suspect illustrated by a gentleman named Burton H. Pugh some time back in the 30s. In what turned out to be a series of booklets, Mr. Pugh went on to explain how a full moon created optimism and in turn pushed wheat prices to move higher. In his booklets he showed examples of the prices of wheat moving up at the Chicago Board of Trade during a series of moon cycles.

It probably sounds a little crazy to you, but the moon cycles are really no different from market cycles. Many market cycles have been well documented in the marketplace for many years.

That brings us to 2015 which is proving to be a very exacting year for many traders, as the market really hasn't gone anywhere except up and down.

We are very close to seeing a full moon in just a couple of days on the 31st. That should bring some optimism into the general markets. What was also interesting to me was seeing how a new moon was affecting the markets. Here it seemed as though we had a clear cycle that could be tracked and linked to the lunar cycle.

Now I don't want you to get carried away and think Adam's gone crazy, but take a look at the rhythm of the market and these dates.

New moon date(s) and close in the S&P500 that day.

Jan 20th Close 2022.55
Following low, Jan 30th @1994.99 = + 27.56

Feb 18 @ 2099.68
Following low, Mar 11th @2040.42 = + 57.26

Mar 20 @ 2108.10
Following low, Mar 26th @2056.15 = +51.95

April 18 @ 2100.40
Following low, May 6th @2080.15 = + 20.25

May 18 @ 2129.20
Following low, June 9th @2080.15 = + 49.05

June 16 @ 2096.29
Following low, July 27th @2046.68 = + 49.61

July 15 @ 2107.40
Following low, July 27th @2067.64 = + 39.76

With almost 300 points under its belt (295.44 to be exact) and a perfect record, maybe we should all be paying more attention to the New Moon.

Be aware that the next New Moon is on August 14th.

In addition to looking at the major indices, gold, crude oil and the euro, I will also be looking at a couple of stocks I found.

Let us know what you think about lunar cycles and the market. Crazy or not so crazy, I think the results speak for themselves.

Every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub

9 thoughts on “Beware Of The New Moon, It Could Cost You!

  1. Every one of these periods were down, not up. What am I missing.

    Jan 20th Close 2022.55
    Following low, Jan 30th @1994.99 = + 27.56

    This period should be down - 27.56?

    1. All matter and life itself is the result of sound waves. Every single day the Earth is bombarded by radio signals from planets within our solar system. When Sun and Moon and Earth form alignments on the New and Full Moon days, the Earth and all life receives peculiarly different sets of radio signals. Given that human phenomena are conditioned but not shaped by Lunar and Solar activities, in the world of trading, it can be noted that human responses may stray from the norm and form identifiable patterns with a high degree of probability. Of course the one important factor about human decisions is the principle of uncertainty, Nevertheless, In such manner eclipses become important in the annual trading calendar as they occur every 6 months and tend to correlate with trends that form for a 6 month period. From July 2014 large specs piled the pressure on the EUR/ USD and WTI crude oil to set a trend in motion which saw the EUR/ USD drop to 1.05 and WTI to $45. Within the context of such an understanding the last few months have been non-eventful with most markets sideways trending. Logic dictates that come the next set of eclipses in September 2015, either one way or the other there is going to be a momentum movement. Most certainly we will not experience a 2nd sideways channel.

      On the one hand the US Fed is wary of a tightening labor market and core inflation and Q3 data may become the tipping point to official hike rates by 25 basis points. However, given yesterdays FOMC comments and global events ranging from Grexit to a Chinese equities crisis, there is a dearth of new news to trigger large spec action as in the case of last year which forced the hand of EUR/ USD and WTI and response was rather muted in the currency markets. On the other hand, consider today’s article on Bloomberg where economists differ in opinion on US GDP growth and point to an economic slowdown in US as a result of corporate America exposure to a Chinese equities loss of confidence.

      Please read here –

      Given that the Chinese consumers are just as likely to spend on a McDonalds, or KFC or Starbucks or purchase an Apple item and even a Ford motor vehicle, the knock on effect of shrinking revenues for US corporations is a major reason the Fed needs to keep rates low to fuel credit not only for US corporations but for China and Europe as well and assist US corporate increase their market share in new Asian markets Either way, come the beginning of October either we are going to see EUR/ USD tumble to the 1.05 region and perhaps parity on the basis of an expanded ECB Q.E. program as the new unknown news that hasn’t been quantified yet for large spec action on the short side of the EUR/USD and pressure on US fixed income markets; or should the Bloomberg article today amplify the muted reaction of currency specs to the FOMC July statement, then we might actually see more short covering on the EUR/ USD as large specs unwind positions and create a bounce that eventually triggers buy stops above the 1.13 and 1.15 as funds follow suit. Should an all out assault on the EUR/ USD fail to materialize in October 2015 we could see pressure on the US Dollar with USDX back down to the 90 mark and a strong rally in US equities and US fixed income markets. Either way eclipse markers point to a period of activity over the next 6-12 months to signify a trend to follow the current period of sideways price action with the monthly new and full moon radio signals pressuring markets to set the lower and upper ranges of such a 6 month trend.

      The key to the next wave will be US Q3 performance which will be the spark that pushes markets coincidentally around the time of the next Lunar and Solar eclipses.

  2. As much as radio frequency can be used to burn body fat, break a glass or condense particles and atoms, the new moon alignment of sun and moon, and the full moon, creates a radio frequency that affects all aspects of life on growth. Plot new and full moon activity over a year and a remarkable correlation appears with the zigs and zags of a trading channel or Bollinger Band. In addition the semi-annual lunar eclipses become the focal point of major market moves with a high degree of probability. In 2014 large specs started assaulting the EUR/USD from Apri 2014 in a move which saw the EUR/USD plummet from 1.35 ro 1.25 with the arrival of total lunar and solar eclipses. Thereafter in Oct 2014 large specs assaulted the EUR/ USD once again pushing the pair to 1.05. But as sound frequency can be silenced and blocked the eclipses of April 2015 did not conclude a third major assault as the Grexit evaporated and today EUR/USD demonstrates resilience as we approach the next wave of eclipses in September 2015. If over the next 2 months the EUR/USD does not tumble to parity to match the preceding 2 waves of sound frequency affecting the currency markets then indeed sound has truly cancelled sound and created in itself a consolidation period and platform between April 2015 and Sept 2015 for the EUR/ USD where large specs began short covering their positions. In the next 6 months after the eclipses due in September 2015 the wave of sound dictates 2 possible outcomes to follow the current spate of inertia; as sound moves in waves logic dictates a 3rd wave down to parity or secondly, the current sideways channel may become the the platform for an upswing for EUR/USD as sound frequencies push traders into motion.

  3. Timing is everything! Star watchers say there are other influences going on this weekend, so this moon cycle may have some assistance. Unfortunately the moon phases are moody and timing is not easy, technical indicators can assist on the when. The trader still has to know how to trade and how to control loss as the market may not cooperate or your entry timing could be off. Fair warning - the moon can make you dizzy.

  4. I think that the luner system affects everything on the planet earth. Now that s Just my opinion, Be it right or wrong.

  5. I'm a farmer and well aware of the effect of the moon on plant growth and animal behavior, Ask any police person or someone that works in a hospital of the affects of a full moon on people . I just haven't thought about the markets before. thank you ..

  6. I have noticed that stocks tend to go up for three days before going down in price. At most a stock may go up for five days. This correlates with the moon staying in a sun sign for 2 I/2 days astrologically. The moon affects emotions. Day traders get in a stock as it goes up and usually after three days they fear a price drop and may sell their stock. When a stock has gone up three days in a row, I wait until it drops before buying.

  7. Typically the New Moon (Full Moon) signifies (for those who follow these cycles) a 'change in market direction', not simply an upward move. If the market continues this current upward bias into the 31st we could be in for a major turn down in direction.

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