I have always been
fascinated by astronomy and archetypal cosmology. What might be the external and universal
influences upon the universe within? How does the timeless universe above affect the universe below? Is the Jungian
Collective Unconsciousness expressed in the financial markets? And is it written in the stars, already neatly
filed away in the Akashic Records?
You may be
wondering what place such idle ruminations have in an apparently otherwise
serious blog on financial markets and technical analysis. In case you are, I dare you to read on…
Let us look at the
celestial phenomenon of eclipses. Most
are familiar with the astronomical concepts of lunar and solar eclipses. And perhaps some are also familiar with the
great meaning that folk placed upon them in times yonder. They often signal times of great change,
omens, and warnings. Take heed!
Using Germany’s
DAX 30 Index as a proxy for ‘risk’ I have highlighted timely occurrences of
both lunar (total, partial & penumbral) eclipses and solar (total &
annular) eclipses, 2007 – 2017. You can refer to NASA’s website for all historical dates (https://eclipse.gsfc.nasa.gov/eclipse.html).
My observations:
1.
Eclipses
tend to come in pairs, sometimes in threes;
2.
Eclipses
often appear to coincide with major market inflexions;
3.
Eclipses
often highlight arrears of minor swing low/highs;
4.
Eclipses
highlight significant price levels, if not on a timely basis;
5.
Eclipses
can coincide with periods of consolidation.
February kicks
off 2017's eclipse season with a lunar penumbral eclipse on February 10th and a
solar annular eclipse on February 26th. We have a partial lunar eclipse on August 7th and August 21st brings us a total
solar eclipse that will ominously streak through the centre of U.S.A. I will leave
it to you as to what meaning you may attach to these grand celestial events...
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