Are you Team Edward or Team Jacob? If you don’t know what that means, you are being left in the cultural dust! When Stephanie Meyer published the “Twilight” novel in 2005 it rose to #5 on the New York Times Best Seller list, and remained on the list for 91 weeks. The notions of vampires, werewolves and full moon-fueled-actions is certainly not a new phenomenon, Meyer has led a youth-backed resurgence into these fantastic entities. While our opinions may differ about the writing styles and capabilities of Meyer and other fantasy related authors, we must be ever vigilant to identify new concepts that can enhance our trading performance.
Whether or not you wish to buy into the validity, there is a contingent of traders that take on a fourth dimension of analysis: sentiment, technical, fundamental and astrological. Before you try to “Baker Act” our entire team, here are a few readings just to prove that we aren’t crazy:
RBS makes an interesting case for following moon cycles. The 236% increase in profits from buying on a new moon and selling on a full moon makes the lunar-equity correlation too appetizing to investigate if nothing else. What is very important though in the RBS reading is that these moon cycles are only correct 60% of the time. Arsch Crawford (from the Seeking Alpha article) has had incredible success trading on lunar and planetary cycles, but even he cannot predict them all correctly. He claims that we should see a massive sell off around August 1st of 2010, in fact the Dow gained 200 points and the Russell 2000 gained 11 points.
Our goal at FxST, like yours, is to make profits. In one of the most competitive markets, any insight can metamorphose into a serious advantage for the intelligent investor. While we do not advocate trading solely on lunar or planetary positions, such a large correlation should at least be evaluated by every serious trader.
Filed under: Trader Tips
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