Using Lunar Cycles to create a Swing Trading Edge

Discussion in 'Trading' started by RangeTrader, Aug 25, 2012.

  1. The number of traders using lunar cycles bugged me recently so I decided to look into it and see if it was all Lunacy.

    There is lots of research done on it. From the respected peer reviewed academic journal The Journal Of Private Equity to many research papers done at colleges and elsewhere. Behavior physiologists have also looked into it.

    The statistics are undeniable. The market gains 2-3x more during new moons and waxing moons than full to waning moons.

    Why? It has to do with women... Most women on average still have their periods tied to the lunar cycle. Investors wives mood swings have a large impact on whether they feel like buying stocks or not. Be careful if everyone's wives are on the Rug... They might just be so stressed out they panic and crash the markets! LoL...

    So, how can you use this scientifically proven fact of equities markets to your advantage? It's best to plan your swing trades long into new and waxing moons. It's best to plan your swing trades short into full and waning moons.

    This will give you a double advantage over investors that are not paying attention to the effects of the lunar cycles.

    One of the biggest influences overall on the market this year in the bigger picture isn't the lunar cycle which provides a slight push and pull on the market... It's the Election year cycle where the market is on average 7-8% stronger than non election years.

    One thing this chart below proves... Beware of German women on their periods... They really stress their men out and destroy their investment optimism. Italian men are not so effected. If you look at their cultural differences this actually makes total sense. Take advantage of it while you can. The effects of the lunar cycles will diminish as more quant funds and others add the correlation to their models and price it out.
  2. Yep... Just as I figured... Investors are starting to front run the lunar cycles. Each market top is confirming on the new moon as the point of maximum optimism nowadays.

    LoL... :D :D :D
  3. Man speaks thr truth about German women, I don't know about the rest.
  4. You can definitely see the heightened optimism that puts in the market highs from the new moon into the waxing moon as investors are getting laid the most during these periods and feeling good.
  5. My projections were for the market to be topping out mid September... The lunar calendar also says maximum optimism shall be mid September!
  6. Mid September is the whole circus of central bankers and the German supreme court and all that, not a thing to do with the moon.
  7. Yea, this post is mostly entertainment. The moon cycles are a proven market correlation though. If the market is in a downtrend it will be strongest during the new moon into the waxing. And weakest from the full moon into the waning.

    Do realize though that over a very long period of time the lunar cycles have a very high proven market correlation.

    It has been demonstrated that an $10,000 investment done 100 years ago positioned during full moon to waning cycles would have only risen to $22,000. An investment done 100 years ago during new moon into waxing cycles would have turned into $400,000. +...

    For an investor that's a backtest with serious statistical proof that is not to be ignored...

    I think we can all realize there is a very important trading rule to be taken from this... When everyone's wives/girlfriends are being bitchy is the time to invest when nobody is getting laid!!!
  8. You're saying that pussy controls the stock

    Fair point I guess, I'll keep my computer on my girlfriend's back and let you know what happens.

  9. I thought it was lunacy myself... But after reviewing document after document of university research and peer reviewed professional journals including biologists and behavior physiologists...

    Behavioral correlations with the moon are across the board and have been scientifically analyzed with precise math. It's a scientific proven fact!!!

    The only link in humans is that womens menstrual cycles are on average aligned with the moon.
  10. I still remember the countless short calls during this run up, yet it would not turn.

    Now they are obvious in hindsight ?

    You see what you doing here right, the market is tricking you into showing you the past and showing you how "easy" it can be, yet in real time, you could not get it right.
    #10     Aug 25, 2012