Tuesday, November 10, 2009

Beaver Moon Did It Again...

The U.S. stock market bounced on the full moon (Beaver Moon), yet again. Just when I started uneasy holding long positions after seeing high-volume selloffs (that clearly signal distribution - pros are getting out).

This moon cycle pattern was first mentioned back in September by one of the members (a very strange one, too) on the Yahoo SKF message board. I laughed, but I didn't sell out, partly because of his insistent comments. Another bounce occurred on October's full moon. And another on November's full moon, which has now sent Dow to 2009 high. This latest full moon, I learned, was considered the most powerful full moon in 100 years, according to this Indian guru. (The link was given to me by my primary physician.)

This is a daily Dow chart, marked with green arrows for full moons, and red arrows for new moons.

Please don't trade on the moon cycle unless you do your own DD (I don't know how you do DD on moon cycle but...) and are convinced of it. I am definitely not recommending anything here. It's lunatic, literally. And MACD and RSI both show negative divergence, although slow stochastics (60,3) is nicely above 80 again.

Negative divergence on a short-term daily chart usually indicate a correction is imminent, and I thought we would get that correction today. All we got was S&P500 down 0.07 points and Nasdaq down 2.98 points. Instead of selling off, Dow managed to go positive. What do I know? (Can't win against Goldman Sachs, who's doing "the God's work", can we?)

No comments:

Post a Comment