One hypothesis is that fluctuations in solar output can be caused by the movement of the planets. The ensuing variations in electromagnetic waves transmitted to Earth by the Sun can have an impact on human psychology and, as a result, investor behaviour in the financial markets. The Federal Reserve Bank of Atlanta, for example, published a white paper titled “Playing the Field: Geomagnetic Storms and the Economy.” “World and country-specific stock returns appear to be negatively affected by geomagnetic storms during their recovery phase,” the Fed stated in this research. This effect appears to provide some trading benefits and is statistically and economically significant.“
“Research by Ilia D. Dichev and Troy D. Janes investigating stock values during the 28.5 lunar cycle is cited in a November 2006 article by Lisa Burrell in the Harvard Business Review. According to the report, the cycle might be used to forecast stock values. Given that the markets are fuelled by the energy of market players, this is not surprising.
The Sun and all the planets, including the Earth, carry massive electrical currents, and the electromagnetic waves they emit penetrate the magnetic field and biosphere of the Earth in the form of electrical storms. The magnetosphere of the Earth is highly sensitive to these waves. Each planet has a different effect on the Earth’s magnetosphere. Although we know the planets directly emit electromagnetic radiation, we do not know how effective they are. As the planets emit electromagnetic energy in every direction, they affect each other as well as the Sun. The electromagnetic radiation emitted by the planets affects the inner part of the sun and leads to the formation of sunspots. Some combinations of planetary gravitation also affect the sunspots on the surface of the Sun and trigger solar flares.
In 2007, NASA scientist Ching-Cheh Hung declared in an article titled Apparent Relations Between Solar Activity and Solar Tides Caused by The Planets that the sunspots cycles were affected by the changes in the tidal waves of the planets. As proof, he stated that 28 out of the 35 inflammations were observed when one or more planets that cause dominant tidal waves (Mercury, Venus, Earth and Jupiter) were over the existing positions (<10°) or in opposition (180°) with the sun. As observed in the last 300 years, Hung emphasized that Venus, Earth, and Jupiter alignment cycles were similar to Schwabe sunspot cycles of 11 years.
Solar Energy does affect Financial Markets.
Dr. Al Larson, a leading pioneer in astro-finance, explains: The planets, as they orbit the Sun, cause a stirring effect in the mass of gases that make up the Sun. This is caused by each planet pulling the part of the Sun nearest it just slightly, distorting the shape of the mass. These distortions cause movements in the gases, which affect the amount of radiation given off by the Sun. This radiation, in various forms, travels from the Sun to the planets. One form, the particles making up the solar wind, travel in paths that are steered by the planets. This solar variation in radiation causes a variety of changes in the earth’s environment, such as heating effects, electromagnetic effects, various weather changes, etc. These environmental changes in turn cause changes in human behavior which is most detectable in data that reect mass behavior, such as financial markets.
The Sun gives off radiation which varies by about 2%. The variations are caused by tidal forces that the revolving planets exert on the gases in the Sun.These tides cause vortexes in the Sun’s surface leading to solar flares, coronal holes, and magnetic storms. The energy changes from these are carried to Earth on an ionized stream of particles called the Solar Wind.
When the Solar Wind reaches Earth it is deflected around the Earth by the Earth’s magnetic field. This creates a magnetosphere around the Earth. At the poles ionized particles can penetrate the Earth’s atmosphere. Changes in the solar radiation cause changes in the voltage in the ionosphere.
This in turn causes changes in the electrical currents flowing through humans on Earth. These emotional swings account for about 40% of price motion.
Does Moon Affect Markets?
The Delta Phenomenon is based on the lunar cycle and the rhythm of the tides. It was discovered by Jim Sloman who then sold his insights to Welles Wilder, inventor of technical analysis indicators such as Relative Strength Index (RSI), parabolic SAR, and ATR.
Basically, Jim Sloman claimed that financial markets behave according to a predictable repeating order and patterns having roughly the same number of major high and low turning points in specific time frames.
Unlike most other trading systems, the Delta Phenomenon places emphasis on time rather than price. It is essentially a swing trading system focusing on time, a cycle system, where markets make highs and lows based on pre-determined solunar cycles. Delta does not attempt to forecast exact price levels, but a combination with price-focused approaches such as Fibonacci, trend lines, Elliot Waves is recommended. Read Wilder’s book on the Delta Phenomenon.
The basic assumptions of the Delta Phenomenon are that all freely traded financial markets repeat directly or inversely . . .
1. every 4 revolutions of the Earth = every 4 Days = Short Term Delta (STD)
2. every 4 revolutions of the Moon around the Earth = every 4 synodic Lunar Months (of 29.5306 CD each) = 118.1224 CD = Intermediate Term Delta (ITD)
3. every complete Tidal Cycle = every Lunar Year = 12 * 29.5306 CD = 354.3672 CD = Medium Term Delta (MTD)
4. every 4 revolutions of the Earth around the Sun = every 4 Solar Years = 1,461 CD = Long Term Delta (LTD)
5. every complete total interaction of the Sun, Moon and Earth = Metonic Cycle = 235 Lunar Months = 6,939.691 CD = every 19 Years and 5 Hours = Super Long Term Delta (SLTD)
* Inversions = change of Delta high/low or low/high rotation = can only occur in the Inversion Time Window (ITW).
* Inversion Time Window (ITW) = period of time repeating with exact frequency. The ITW begins with last Delta turning point in previous series and continues until the second turning point in the new series. The ITW is the only place in time that inversion can occur. A common ITD-solution for the S&P 500 is a series with 12 turning points within 4 Lunar Months.
* In-Between Point (IBP) = extra point in series may occur only in ITW = IBP may occur on either side of Point #1 thus causing an inversion resulting in change of rotation = IBP may also occur on both sides of Point #1 thus causing two inversions which result in no change of rotation. Hence for example the above mentioned ITD-solution for the S&P 500 may have up to 14 turning points.