The Bull, the Bear and the Planets

Despite some hopeful signs of change, I find it disheartening that the financial industry continues to cling to narrow theories when it is obvious that many of the causes of events in our world are intangible and cannot be seen, felt or heard. We know that tides at the seashore rise and fall. Try as we may, we can never see or feel the actual force that moves the water. We know that earthquakes and volcanos can cause tremendous damage. Yet, we are unable to see the shifting tectonic plates deep in the Earth’s crust that cause these events. Scientists have now explained how the gravitational pull of Jupiter and Saturn on the Sun’s gaseous matter contribute to solar sunspot activity. Yet, we cannot readily see these planets with the naked eye nor can we feel their gravitational pull. Because we are unable to physically see and feel the causes of events around us, we immediately opt for the comfort of eloquently penned explanatory theories derived from large streams of data collected over long spans of time. And so it is that individual investors entrusting their hard earned dollars to Investment Advisors and Financial Planners soon become resigned to the notion that investing in the financial markets is a weary, mind numbing, long term process overlain and interwoven with models, analyst opinions and theory.

It need not be so.

The financial markets are nothing more than one big psychological event ruled by the emotions of fear and hope. When market participants are fearful they sell. When they are feeling hopeful, they buy. If intangible forces are capable of causing events like tidal motion, earthquakes, volcanos and sunspots, surely then it must be plausible that these same forces can influence the emotions of fear and hope within human beings and thereby influence buying and selling activity on the markets.

Science tells us planet Earth is one gigantic electro-magnet with poles situated north and south. The various other planets that comprise our solar system are also electromagnetic in nature and exert gravitational pulls on each other as well as on planet Earth. Science also tells us the Sun shines on our gigantic electro-magnet while continually emitting high frequency waves of radiation.

In grade school science class we all at one point played with a simple prism. We learned that by varying the angle of light being shone on the prism, we could influence the refraction of the light to produce different colors. And so it is with the Sun’s radiated energy experienced by mankind on the surface of the Earth. As the various planets orbit the Sun and make different angles with one another, the intensity of the Sun’s radiation reflecting off their surfaces varies. As a result, the intensity of the Sun’s radiation reaching Earth varies. This reasoning forms the basis for the notion that our emotions are continually changing in response to these variances. By extension of the argument, it is these changing emotions that can influence the behavior of our buying and selling patterns as we trade on the financial markets.

As a result of my trading experiences on the markets and my esoteric research over the past decade, I have now completely divorced myself from the theories that continue to be embraced by the financial investment industry. Trading and investing have become vibrant and exciting. I have come to embrace astrological phenomena such as Moon phases, planetary aspects and synodic patterns. In addition, I have also come to rely on Fibonacci patterns and sacred mathematics all as factors that are related to the movements of markets. I use these various phenomena and patterns in close conjunction with technical chart analysis techniques to look for trend change developments on indices, stocks and commodity futures.