Written November 29th, 2001
This week the market started by moving higher, but without a lot of enthusiasm. Then on Tuesday it rallied sharply to a new Patriot's Rally high, only to come tumbling down just as fast. On Wednesday, the slide continued. On Thursday, today, the market congested sideways. Until the last hour, that is. Then it shot sharply higher. It's enough to make the average trader think markets do follow a random walk.
Nothing could be further from the truth. The truth is this: Markets move within electric fields, set up by the sun and the planets in the earth's ionosphere. If you know how this system works, you can often understand what is happening. That understanding can give you a trading edge.
This week that understanding gave me a tremendous trading edge. You see, I noticed that the whole week was a Lunar Combust scenario. Combust is is what astrologers call it when Mercury aligns with the the Sun and the earth. I call it a planetary eclipse ( see my article on them in my book, Market AstroPhysics and Chaos, available in the EStore and the regular catalog).
Anyway, this Combust is special, because it is coming during the Full Moon. And it is not just any Full Moon, but the one before a solar eclipse. (see my book on Trading the Eclipses, available in the EStore and the regular catalog)
With all that going on, the market effects ought to be pretty clear, right? Look at this chart.
On Monday the 26th, the market was following the green +MoonTide, but without much enthusiasm. I did notice that the low at A came on a Sun and Mercury electric field flux line pair. I said to myself, "OK, it's reacting to the coming Combust."
When prices turned down at B, I figured they would drop back to this Cumbust flux pair. I was holding a short position, and taking some heat, but I figured Combust would bail me out.
On the 27th, prices did drop back to this flux pair, and I stopped worrying about my short (a position trade) and worked on my newsletter. I finished it just about the time prices hit point D. I was still shifting mental gears when prices began to streak higher.
"Oh,oh. My short is is trouble!"
Just as panic began to set in, I recognized that this was a Band Gap Energy Jump, and it would not be likely to get much above 1164.
"OK", I said, "when it gets there, I'll shove a sell stop under it. Then I'll put a stop at 1167." Knowledge banished my fear.
I quicky shifted my MoonTide forecast to fit reality. It said the sharp rally would be reversed. Would it be right?
I also took a look at my planetary aspectarian. That is a detailed list of everything the planets are doing, minute by minute. I saw that there was a helio Mercury 285.00 to Neptune at 14 54.
"OK, energy right when it is needed, and Mercury is the fast planet."
So in theory, it SHOULD turn at Mercury.
I sold at 1160.5 and covered 1150.5 for a quick 10 point day trade. And I held my position trade. I held because the drop made ANOTHER bandgap energy jump, reversing the earlier one. That is a spike reversal, and usually sets a high or low that lasts at least weeks.
Wednesday I did nothing but watch. This chart shows Wednesday, Thursday, and tomorrow.
I noticed the early high on Wednesday was set by Mercury, as the Exchange passed the Full Moon. This is at A.
On Thursday, prices headed lower, and hit the harmonic price of 1125. Then as the Exchange approached the Moon, they rallied. I quickly covered my position trade. A 39 point move is pressing one's luck. A full S&P circle is 72 points, and 36 is half of that, so this move went 3 extra points. I figured today was a congestion day. I fear congestions. They can eat you up.
Then prices congested as I expected. I had the hotline 1ADay trade set up to trade counter the 20 minute EXMA at 1:11. That resulted in a buy off the low near 1:30. I really liked that setup-a bottom right on that Mercury/Sun flux pair- Combust at work again.
I got stopped out on the pullback at 3:00, for a 1 point gain. But the green MoonTide told me prices could reach 1142.5 or better. Before I was stopped out, that was the cover order I had in. I figured that if prices rallied, that they would go back up to the 1143 quantum where the Moon electric flux lines cross.
Unfortunately, an office distraction caused me to miss that late rally. It was moving before I saw it. I have a rule never to chase a trade, and I followed it. Besides, even if you miss the trade, you get FREE INFORMATION.
Can you tell me anything about tomorrow?
The Moon, Sun, and Mercury line up at Noon. That is the high energy point of the day. Depending on which MoonTide is being followed, the key price is 1129.5 or 1147.5. And half way in between is a congestion price, near 1138.5. Note the circles C and D. They are trading target zones.
How would you plan a 1ADAy trade? I'd say wait until noon, then trade counter trend.
And if prices open at 1138.5? And start up? Get on it for a ride up to 1147.5. If they start down, get on it for a ride to 1129.5.
This of course does not gurantee that these trades will set up. But if you KNOW about this Lunar Combust, you are way ahead of other traders, especially those closed minds that don't believe that the planets affect the markets. May those minds always stay closed. That way we can trade with an edge.