A Trader's Guide to Financial Astrology - Larry Pasavento - E-Book

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Larry Pasavento

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Beschreibung

Look to the stars for a whole new approach to market cycle forecasting

A Trader's Guide to Financial Astrology is the definitive guide to trading market cycles based on astrological data. Written by a highly-respected technical analyst, this book makes the connection between the movements of planets and the volatility of the market. Readers can draw upon one hundred years of historical data as they learn how to spot correlations from the past, and refer to planetary and lunar data for the next five years as they shape their own strategy. The book covers the principles of astrological forecasting as applied to the financial markets, explaining what to watch for and how to interpret planetary and lunar activity, plus expert insight on everyday practical application.

A study by the Federal Reserve Bank of Atlanta determined that the U.S. stock markets tend to be negatively affected by geomagnetic storms, and the Royal Bank of Scotland demonstrated that a trading system based on the phases of the moon would have outperformed the market. A Trader's Guide to Financial Astrology shows traders how to tap into the planetary forces that influence market activity. Readers will:

  • Learn how planetary and lunar movements relate to the financial markets
  • Draw upon 100 years of historic correlations and five years of forecast data
  • Forecast long-term and short-term activity based on planetary relationships and lunar movement
  • Enter the markets at key turning points, using price patterns and other tools

When integrated with technical trading patterns, astrology can be an effective way of shifting perspective and approaching the market differently. For traders who have always wanted to know what to do when Mercury is in retrograde or the moon is new, A Trader's Guide to Financial Astrology provides information and insight from a leading market educator.

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Seitenzahl: 273

Veröffentlichungsjahr: 2015

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A TRADER’S GUIDE TO FINANCIAL ASTROLOGY

 

 

 

The Wiley Trading series features books by traders who have survived the market’s ever changing temperament and have prospered—some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future. For more on this series, visit our website at www.WileyTrading.com.

Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding.

      

A TRADER’S GUIDE TO FINANCIAL ASTROLOGY

Forecasting Market Cycles Using Planetary and Lunar Movements

Larry PesaventoShane Smoleny

 

 

 

 

Cover image: © iStock.com Cover design: Wiley

Copyright © 2015 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.

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ISBN 9781118369395 (Paperback)

ISBN 9781118420553 (ePDF)

ISBN 9781118417027 (ePub)

CONTENTS

Foreword

Preface

Acknowledgments

Chapter 1: Introduction

Introduction

Purpose of the Book

Brief Historical Background

Theory of Financial Astrology

Summary

Chapter 2: Planets

Introduction

Planets

Summary

Chapter 3: Zodiac Signs

Introduction

Zodiac Signs

Determining the Meaning of Signs

Precession

Discovery of New Constellations

Summary

Chapter 4: Planetary Position Coordinate System

Introduction

Planet Positions

Summary

Chapter 5: Transiting Aspects

Introduction

Transiting Aspects

Grouping Planetary Energies

Key Aspect Angles

Key Sun-Moon Aspects

Putting It All Together: How Astrology Works

Summary

Chapter 6: Visual Representation of Transits

Introduction

Visual Representations of Planetary Aspects and Alignments

Orb of Influence

Conjunction

Visual Strength of Aspect versus Peak Event

Overlapping Asymmetrical Aspects Flare Up

Retrograde Motion of Planets Making a Transit

Summary

Chapter 7: Introduction to Cycles and Transits for Forecasting

Introduction

Defining a Cycle

Advantages and Disadvantages of Cycles

Use of Transits to Forecast Markets

Summary

Chapter 8: Testing the Effect of the New Moon on the Market

Introduction

Case Study: The Sun and the Moon

How an Efficiency Test Works

Efficiency Test: Dow Jones Behavior around the New Moon from 1885 to 2013

Walk Forward Analysis

Summary

Chapter 9: Verification of Planetary Meanings and Transits

Introduction

Verification of Planetary Meanings Using Cycles

The Moon/Poseidon Cycle

Verification of Transits in Financial Markets

Past Issues with Accuracy and Financial Markets

Summary

Chapter 10: Financial Forecasting Using Solar Cycles

Introduction

Types of Cycles

Summary

Chapter 11: Financial Forecasting Using Lunar Cycles

Introduction

Moon versus Sun Cycle (Angle) for Dow Jones since 1885

Moon versus Sun Cycle (Angle) Matched to Angle Key Turning Points

Moon versus Sun Cycle (Angle) for Dow Jones since 2009 with Quantitative Easing

Moon versus Sign Cycle for S&P 500 since 1950

Moon versus Sign Cycle for S&P 500 since 2009

Conclusion

Appendix A: Full Moon, New Moon Dates

Appendix B: Bradley Barometer

2015–2024

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Appendix C: Sun/Moon Lunar Cycles

Sun/Moon Lunar Cycle 2015 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2016 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2017 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2018 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2019 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2020 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2021 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2022 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2023 for S&P 500 Since 1950

Sun/Moon Lunar Cycle 2024 for S&P 500 Since 1950

Appendix D: It’s Not What You Think, It’s How You Think!

Index

End User License Agreement

List of Tables

Chapter 7

TABLE 7.1

Chapter 8

Table 8.1

Table 8.2

Chapter 10

Table 10.1

Table 10.2

List of Illustrations

Chapter 2

Figure 2.1 The Sun

Figure 2.2 Mercury

Figure 2.3 Venus

Figure 2.4 The Moon

Figure 2.5 Mars

Figure 2.6 Jupiter

Figure 2.7 Saturn

Figure 2.8 Uranus

Figure 2.9 Neptune

Figure 2.10 Pluto

Figure 2.11 Cupido

Figure 2.12 Hades

Figure 2.13 Zeus

Figure 2.14 Kronos

Figure 2.15 Apollon

Figure 2.16 Admetos

Figure 2.17 Vulcanus

Figure 2.18 Poseidon

Chapter 3

Figure 3.1 Signs as Geometric regions of Space

Figure 3.2 Aries

Figure 3.3 Taurus

Figure 3.4 Gemini

Figure 3.5 Cancer

Figure 3.6 Leo

Figure 3.7 Virgo

Figure 3.8 Libra

Figure 3.9 Scorpio

Figure 3.10 Sagittarius

Figure 3.11 Capricorn

Figure 3.12 Aquarius

Figure 3.13 Pisces

Figure 3.14 Summary of the Sign Characteristics

Chapter 4

Figure 4.1 Defining the Aries Point

Figure 4.2 Zero Degrees of Aries

Figure 4.3 Defining Cancer in Reference to Aries Point

Figure 4.4 Defining Libra in Reference to Aries Point

Figure 4.5 Defining Capricorn in Reference to Aries Point

Figure 4.6 Defining Planetary Position in Reference to the Current Sign

Chapter 5

Figure 5.1 Venus-Sun Superconjunction (June 5, 2012)

Figure 5.2 Conjunction Aspect between Two Planets

Figure 5.3 Overcoming Activation Energy

Figure 5.4 Sextile Aspect between Two Planets

Figure 5.5 Trine Aspect between Two Planets

Figure 5.6 Square Aspect between Two Planets

Figure 5.7 Opposition Aspect between Two Planets

Figure 5.8 Saturn Opposition of Uranus during the 2008 Financial Meltdown

Figure 5.9 Aspect Polarity

Figure 5.10 Table of Aspect Meanings

Figure 5.11 Aspect Positions on 360-Degree Wheel

Figure 5.12 Zodiac 360-Degree Wheel View of Sun and (New Moon)

Figure 5.13 Zodiac 360-Degree Wheel View of Sun and Moon (Waxing Square)

Figure 5.14 Zodiac 360-Degree Wheel View of Sun and Moon (Opposition)

Figure 5.15 Zodiac 360-Degree Wheel View of Sun and Moon (Waning Square)

Figure 5.16 How Astrology Works

Chapter 6

Figure 6.1 Visual Representation of Longitude

Figure 6.2 Isometric View of Longitudinal Relationships

Figure 6.3 Visual Appearance of Declination

Figure 6.4 Top View of Longitudinal Angles

Figure 6.5 Visual Representation of Orb Interactions

Figure 6.6 Visual Representation of Conjunction

Figure 6.7 Visual Representation of Superconjunction

Figure 6.8 Strength of Aspect versus Time

Figure 6.9 Slow-Building Tension of a Peak Transit

Figure 6.10 Strength of Aspect versus Time of Two Overlapping Transits

Figure 6.11 Strength of Aspect versus Time of Overlapping Transits (Peak Transit Zone)

Figure 6.12 Strength of Aspect versus Time of Overlapping Transits (Superposition)

Figure 6.13 Overlap of a Trigger Planet on a Slower Building Transit

Figure 6.14 Strength of Aspect versus Time of Overlapping Transits (Asymmetrical Peak)

Figure 6.15 Strength of Aspect versus Time of a Retrograde Transit

Figure 6.16 Strength of Aspect versus Time of a Retrograde Transit (Peak Zone)

Figure 6.17 Retrograde Motion of a Planet across the Peak of an Aspect

Chapter 7

Figure 7.1 Basic Sine Wave Cycle

Figure 7.2 Financial Astrology Cycle by Aspect

Figure 7.3 Financial Astrology Cycle by Position or Signs

Figure 7.4 How Transits Affect Markets

Chapter 8

Figure 8.1 Daily Chart of the Dow Jones Industrial Average (1885–2013)

Figure 8.2 Efficiency Test Results of Market Behavior around the New Moon (1885–2013)

Figure 8.3 Efficiency Test around New Moon for Dow Jones 1895–1900

Figure 8.4 Efficiency Test around New Moon for Dow Jones 1900–1910

Figure 8.5 Efficiency Test around New Moon for Dow Jones 1910–1920

Figure 8.6 Efficiency Test around New Moon for Dow Jones 1920–1930

Figure 8.7 Efficiency Test around New Moon for Down Jones 1930–1940

Figure 8.8 Efficiency Test around New Moon for Dow Jones 1940–1950

Figure 8.9 Efficiency Test around New Moon for Dow Jones 1950–1960

Figure 8.10 Efficiency Test around New Moon for Dow Jones 1960–1970

Figure 8.11 Efficiency Test around New Moon for Dow Jones 1970–1980

Figure 8.12 Efficiency Test around New Moon for Dow Jones 1980–1990

Figure 8.13 Efficiency Test around New Moon for Dow Jones 1990–2000

Figure 8.14 Efficiency Test around New Moon for Dow Jones 2000–2005

Figure 8.15 Efficiency Test around New Moon for Dow Jones 2005–2013

Figure 8.16 Efficiency Test around New Moon Summary Graph

Chapter 9

Figure 9.1 Rising Markets into Mars Conjuct Apollon

Figure 9.2 Sinking Markets into Mars Conjunct Admetos

Figure 9.3 Rising Markets into Venus Conjunct Jupiter

Figure 9.4 Falling Markets into Venus Conjunct Saturn

Figure 9.5 Rising Markets into Moon Conjunct Cupido

Figure 9.6 Falling Markets into Moon Conjunct Hades

Figure 9.7 Rising Markets into Moon Conjunct Zeus

Figure 9.8 Rising Markets into Moon Conjunct Kronos

Figure 9.9 Rising Markets into Moon Conjunct Apollon

Figure 9.10 Falling Markets into Moon Conjunct Admetos

Figure 9.11 Rising Markets into Moon Conjunct Vulcanus

Figure 9.12 Rising Markets into Moon Conjunct Poseidon

Figure 9.13 The Bradley versus the Dow 2001–2004

Figure 9.14 The Bradley versus the Dow 1929–1933

Figure 9.15 The Bradley versus the Dow 1986–1989

Figure 9.16 Combined Transits versus S&P Futures Summer Crash 2011

Figure 9.17 Aspect Classifications

Figure 9.18 Transit Analysis

Chapter 10

Figure 10.1 Examples of Cycles

Figure 10.2 Interpreting a Basic Solar Cycle Graph

Figure 10.3 Key Turning Dates of Solar Cycle since 1885

Figure 10.4 U.S. Chart in Relation to Cardinal Points

Figure 10.5 Axiom: April Earnings Report (since 1885)

Figure 10.6 Axiom: Sell in May and Go Away (since 1885)

Figure 10.7 Axiom: Summer Rally (since 1885)

Figure 10.8 Axiom: Fall Crash Cycle (since 1885)

Figure 10.9 Axiom: Santa Claus Rally (since 1885)

Figure 10.10 Axiom: The January Effect (since 1885)

Figure 10.11 Axiom: The Ides of March (since 1885)

Chapter 11

Figure 11.1 Moon versus Sun Cycle (Angle): Key Turning Points for Dow Jones (1885–2013)

Figure 11.2 Moon versus Sun Cycle Matches to Angle: Key Turning Points (1885–2013)

Figure 11.3 Moon versus Sun Cycle (Angle): Key Turning Points for Dow Jones since 2009

Figure 11.4 Moon versus Sign Cycle: Key Turning Points for S&P 500 since 1950

Figure 11.5 Moon versus Sign Cycle: Key Turning Points for S&P 500 since 2009

Guide

Cover

Table of Contents

Preface

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CHAPTER 1

Introduction

■ Introduction

This chapter will provide a brief historical background on the concept of astrology. Then the basic concept of financial astrology will be introduced.

Key Concept Questions

What is the purpose of this book?

What is astrology?

What is financial astrology?

How is astrology like a clock?

Why is it important to have a working knowledge of astrology to pursue financial astrology?

Why is financial astrology easier to prove than personal astrology?

How can astrology affect financial markets?

What does financial astrology guarantee?

Who were some popular early astrologers in America?

How does Newton’s second law apply to astrology?

■ Purpose of the Book

The purpose of this book is to introduce basics concepts of astrology and financial astrology to lay the framework for future applications. This book will be the first in a series to show a clear relationship between what’s happening up in the sky with the planets and equity market behavior here on Earth.

So what exactly is astrology? Astrology is the study of the relationships between movements and interactions of the planets and human behavior. Financial astrology is the study of the link between the movements and interactions of the planets with market behavior. There are many different ways to look at financial astrology. But no matter how one looks at it, time and time again clear patterns emerge showing distinct market correlations to planetary behavior.

This book will begin by giving one a basic background on astronomy and astrology. Then the application to financial markets will be introduced. It is important to lay the foundation from both perspectives because some of the terms between astronomy and astrology are the same and some are different. So it is critical to clarify and distinguish the similarities and the differences between the two. This book is meant to be a beginner’s guide and the focus will be on cycles between the Sun and the Moon. However, the groundwork will be laid for further editions and revisions of this book.

For those of one who are new to astrology, one can begin by thinking of the universe as a giant clock. A normal clock has just an hour hand, a minute hand, and a second hand. But an astrological clock has literally hundreds of hands spinning at different rates. When the hands of the clock line up at certain positions, then the time is right and the energies are aligned for specific actions. The alignment of planetary energy tends to provide a push or a force in one direction or another. Some of these energies are positive and some of these actions are negative. These energies affect the psyche of individuals and eventually human behavior.

It is important to note that astrology does not have every answer. It is one set of tools one can use to understand the universe and our place within it. The truth is that we don’t know how or why astrology works. We just know that it does and we can measure its effects on financial markets. That is difficult for some people to accept.

Throughout the years, people have pursued links between external events and the market outcomes. In financial astrology, there are literally millions of permutations to pursue to find links between planets and market behavior. In the past and the present, there have been many studies that attempted to correlate planetary movements with market behavior. However, without a working knowledge of astrology it is very difficult to know how to set up the experiments. In other words, one is not even qualified to set up an experiment without knowing the traditional meaning of the planets, the signs, the houses, and the angles that they make with one another. By understanding the meanings of planets, angles, and signs, one can begin to set up a hypothesis to build experiments. At the very least, the so-called negative aspects should correlate with falling markets, and positive aspects should correlate with rising markets.

Of course, there are always surprise correlations between planetary behavior and market behavior when experiments are run over time. Statistical tests can be run around events to determine positive correlation, negative correlation, positive noncorrelation, or negative noncorrelation. These correlations and noncorrelations can then be pieced together and applied to artificial intelligence applications such as neural networks to predict market behavior. Proving astrology is actually much easier through financial markets because the statistical relationship to price data is clear and unbiased. In contrast, personal astrology is more difficult to pinpoint. In personal astrology, the meanings of the planets can take on many different interpretations. This depends on the context and the attitude of the individual involved. In many ways, financial astrology is a much better starting point to verify the meaning of planets and transits in regard to their effect on financial markets.

So how can astrology affect financial markets? The energy combinations of the planets affect humans, which in turn affects the mass social mood on the planets. If a large enough mass of people participate and interact to form a marketplace, then the planetary behavior can be used as a proxy to predict financial market behavior. Financial astrology does not guarantee that events will unfold. But it gives one a road map for likely outcomes. The goal is to obtain a statistical advantage obtained through a large sample size to increase our probability of success. For example, if we can get a 55 to 70 percent success rate in a neutral market with a high sample size, then we can gain an advantage over a market with 50 percent odds.

In financial astrology, outcomes and meanings of planets are often clear-cut even before any analysis is run. This is because people have been observing the planetary interactions and the links to human behavior for thousands of years. This energy of planets can be divided into positive and negative outcomes. This observation of key angles is how financial astrologers created accurate financial astrology forecasts and models before computers existed. Many of these models are still used today.

■ Brief Historical Background

In the late 1920s and early 1930s, financial astrology was made popular by astrologer Evangeline Adams. Adams was known as America’s first big astrology superstar.She made astrology popular with her newsletter making stock market predictions. During the 1920s, Adams consulted many big financial names of the time, including banking giant J. P. Morgan. He was a big believer in financial astrology. The New York library of J. P. Morgan is full of information on astrology, and there is even a zodiac painted on the ceiling. A famous quote of Morgan’s is Morgan famously said, “Millionaires don’t use astrology, billionaires do!”

In 1947, Donald Bradley proposed the first financial astrology forecasting tool, known as the Bradley Barometer siderograph. This siderograph uses key astrological aspects and declination to forecast market turning points. It is not linked to market prices directly. The Bradley Barometer was created using key astrological aspects that were observed throughout the centuries. These aspects were grouped into positive and negative classifications. These classifications were then used to forecast markets. Negative aspects correlated with falling markets, while positive aspects correlated with rising markets. The important thing to note here is that this barometer was created before the arrival of computers to confirm the graph. This barometer is still used today in financial astrology. Today, with computers, these outcomes can then be plotted, tested, and correlated statistically.

■ Theory of Financial Astrology

Financial astrology begins with observing market behavior when two planets interact. However, financial astrology is not limited to that alone. One can also analyze the effects of multiple planets interacting. In physics, Newton’s second law states that the sum of the forces equals the net force. In other words, on the outside an observer does not necessarily see all of the forces at work. What the observer sees is the net result of all the forces added up. The net force is what appears to the observer after everything is thrown together. In astrology, there may be different energies working together or against each other. The final result will be whatever wins the tug-of-war. What the observer sees at any given time in the markets is often the net result of all of the transits added up. However, single transits between two planets can be powerful, too. There are times when a singular transit is so powerful that it might dominate everything else around it. This is especially true when large planets are involved in the picture. Therefore, it can be said that all transits are not weighted the same. Some have more powerful effects on the markets than others. Some transits last for a long period of time and others last for a short period of time. So a transit for an outer, slow-moving transit such as Saturn will be much stronger and last much longer than a fast-moving transit from a faster-moving object such as the Moon.

In addition to the effects of transits on markets, there is also the topic of planetary cycles within the field of financial astrology. A financial astrology cycle can be broken down into two basic methods: (1) a correlation to the position of a planet in its orbit to the behavior of the financial markets, and (2) a correlation to the longitudinal angle between two planets to the behavior of the financial markets. Cycles are interesting because one can get a very large sample size and quickly increase the correlation of the markets to past events. By using these cycles it is possible to increase the predictability of outcomes in the future using cycles. A popular cycle that is often studied is the lunar cycle. This is often done out of convenience because everyone knows when the New Moon is and when the Full Moon is. Each of these is listed on a basic calendar for the layman to read month by month. However, this basic cycle is only a small piece of the pie. In reality, there are thousands of lunar cycles to study regarding financial markets. In addition, there are thousands more combinations and cycles involving other planets and energy points.