by Rick Ratchford
Some good dialog about the planets and the markets. Is there any connection?
Let's go to a more basic premise.
Is there any connection between the planets and the products we trade?
Is there any connection between the planets and trading decisions?
It's a known fact that many of the products we trade depend on the weather. Rain, drought and the seasons, including day and night all have an effect on crops and products that rely on those crops (such as livestock). And of course, since we use money to buy those products, there is an indirect connection to the indexes and bonds.
So since weather is directly and indirectly the result of planetary action, we can give a YES to the first question as to whether there is a connection between the products we trade and the planets. Thus, the planets affect our trade.
There is also evidence that we are affected personally by the forces surrounding our planet (Earth) and how other planets, most notably the moon, affects this planets forces. The moon directly and/or indirectly affects the tides as we know. So its affect on water is clear. We as humans are approximately 80% water, so there 'may' be some effect. In addition, our brains operate on a small electrical charge. That charge 'may' be affected by the electromagnetic field that surrounds this planet, from pole to pole. When the moon or other neighboring planet causes a change in this field, there would likely be a noticable reaction in the small charge that exists within us. Therefore, it stands to reason that there 'may' be an affect to our mood or felling of well being, etc.
Another example of a connection between planets and people (traders) is that even if weather was the only thing planets affected, the weather does affect us as well. Statistically, people tend to me more depressed in areas of less sunshine and constant gray skies, and happier in areas with more fair weather.
It is a fact that our 'mood', our psychology, plays a major part in how effectively we trade. Fear and greed are psychologically based, and we all know this is a problem many have. Add to this perceived biases of bullishness or bearishness based on weather reports of drought, flood or other, and our actions are dictated by these.
So no matter from what angle you look at this, there is DEFINITELY a connection between the planets and the markets.
With that all said, I must state that for my own part I do not personally subscribe to astrology. Astrology goes beyond just noting a planet's position and its potential implications to a market. It gets into mapping out your whole life, telling you what kind of person you are, whether a president may become assassinated, etc. This puts astrology right up there with spiritualistic practices of fortune telling.
A person can easily become acquainted with ASTRONOMY and weather affects or its affect on the markets. Or how the mood of the masses can be affected. Or simply be aware of the fact that the planets do affect us and our planet (crops, livestock, etc.) and plot it by other means such as cycle analysis. Cycles are the result of the planets movements. The earth turns every 24 hours, this is a daily cycle. The Earth goes around the sun once every 365 days, this is a yearly cycle. There are 4 seasons that repeat. Another cycle. Water cycles. Weather cycles. Seasons cycle. There are just cycles within cycles that can be traced back as originating from the planet or planets.
Just like the moon causes the tide to rise and fall (another cycle), you don't have to watch the moon, just extract the cycle itself. While I accept where cycles originate, I personally do not need to watch the planets to forecast market turns. Just extract the cycles they cause from the price data itself.
With that said, I have no problem with noting the position of a planet or two and its historical affect on price action. If I see that Live Cattle tends to turn usually 5 days prior to a new moon (just an example, not a stated fact), then I'm simply taking advantage of an obvious phenomena.
In conclusion: Yes, the markets are affected by the planets. The patterns do tend to repeat (that is why you see many trading books on price patterns...they repeat). And yes you can draw a connection between a particular planetary alignment and some kind of price action in the markets. And no, you do not need to dabble into Astrology in order to associate the planets with the markets or use the planets to make obvious observations of potential price action. And finally, you can take advantage of the planets affect by simply taking advantage of the signature it leaves behind in historical price data by using cycle extraction methods.
Oh, and as for the Pepperoni Pizza, make that a deep pan please.