A Trader's Guide to Financial Astrology

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.

Foreword ix

Preface xi

Acknowledgments xiii

Chapter 1: Introduction 1

Introduction 1

Purpose of the Book 2

Brief Historical Background 3

Theory of Financial Astrology 4

Summary 5

Chapter 2: Planets 7

Introduction 7

Planets 8

Summary 20

Chapter 3: Zodiac Signs 23

Introduction 23

Zodiac Signs 24

Determining the Meaning of Signs 26

Precession 33

Discovery of New Constellations 35

Summary 35

Chapter 4: Planetary Position Coordinate System 37

Introduction 37

Planet Positions 37

Summary 43

Chapter 5: Transiting Aspects 45

Introduction 45

Transiting Aspects 46

Grouping Planetary Energies 48

Key Aspect Angles 49

Key Sun-Moon Aspects 61

Putting It All Together: How Astrology Works 65

Summary 65

Chapter 6: Visual Representation of Transits 67

Introduction 67

Visual Representations of Planetary Aspects and Alignments 68

Orb of Influence 71

Conjunction 72

Visual Strength of Aspect versus Peak Event 73

Overlapping Asymmetrical Aspects Flare Up 77

Retrograde Motion of Planets Making a Transit 79

Summary 81

Chapter 7: Introduction to Cycles and Transits for Forecasting 83

Introduction 83

Defining a Cycle 84

Advantages and Disadvantages of Cycles 88

Use of Transits to Forecast Markets 89

Summary 91

Chapter 8: Testing the Effect of the New Moon on the Market 93

Introduction 93

Case Study: The Sun and the Moon 94

How an Efficiency Test Works 95

Efficiency Test: Dow Jones Behavior around the New Moon from 1885 to 2013 96

Walk Forward Analysis 99

Summary 113

Chapter 9: Verification of Planetary Meanings and Transits 115

Introduction 115

Verification of Planetary Meanings Using Cycles 116

Verification of Transits in Financial Markets 126

Past Issues with Accuracy and Financial Markets 130

Summary 130

Chapter 10: Financial Forecasting Using Solar Cycles 133

Introduction 133

Types of Cycles 134

Summary 144

Chapter 11: Financial Forecasting Using Lunar Cycles 145

Introduction 145

Moon versus Sun Cycle (Angle) for Dow Jones since 1885 146

Moon versus Sun Cycle (Angle) Matched to Angle Key Turning Points 147

Moon versus Sun Cycle (Angle) for Dow Jones since 2009 with Quantitative Easing 148

Moon versus Sign Cycle for S&P 500 since 1950 149

Moon versus Sign Cycle for S&P 500 since 2009 150

Conclusion 153

Appendix A Full Moon, New Moon Dates 155

Appendix B Bradley Barometer 159

Appendix C Sun/Moon Lunar Cycles 169

Appendix D It’s Not What You Think, It’s How You Think! 201

Index 215

LARRY PESAVENTO is a forty-year veteran trader. He is the author of nine books on trading. Currently he is a private trader for a large hedge fund.

SHANE SMOLENY is the pack leader and founder of Wolftrader.net, which is dedicated to nonstop market forecasting and analysis.

PRAISE FOR
A TRADER'S GUIDE TO FINANCIAL ASTROLOGY

"If you are interested in financial astrology, A Trader's Guide to Financial Astrology is the place to start. It is a comprehensive guide to all the key factors of astrology and how they may relate to market trends. And importantly, they include many statistical studies of the major influences and stock market trends and reversals."
—Robert Miner, President, Dynamic Traders Group, Inc.

"Larry and Shane have written an important guide for the trader who wants to explore financial astrology. Most books on financial astrology assume too much and put you in the middle of the subject without help. This book lays out the principles that will allow the trader to properly use the tools of financial astrology. With these principles the trader can intelligently explore the world of financial astrology. The statistical work on the lunar cycle is brilliant. This book is a must for anyone who wants to explore financial astrology."
—Richard Mogey, Former Director, Foundation for the Study of Cycles

"Larry Pesavento and Shane Smoleny's new book, A Trader's Guide to Financial Astrology, is an excellent beginner's guide to a complex subject that is essential to understanding the seemingly unexpected booms and busts the markets are prone to. This book thoroughly explains everything you will need to know about planets and astro cycles and how they work to enable you to come to your own conclusions about the value of using financial astrology with your investments. I have been familiar with Larry's work for more than 30 years and can honestly say this will make a valuable addition to anyone's financial library."
—Michael S. Jenkins, Professional Trader and Publisher, Stock Cycles Forecast newsletter

"Larry has taken an approach that I have no knowledge of and made it an understandable and useful complement to my technical analysis, taking a complex subject and simplifying its application to the futures market. His insight has proven invaluable to me over the years."
—Richard E. Anderson, President, Anderson Capital Management LLC

"A Trader's Guide to Financial Astrology is a solid introduction and overview of financial astrology that every trader should read."
—Dr. Al Larson, Owner, MoneyTide.com

"A Trader's Guide to Financial Astrology is a must-have book for the serious trader who wishes to understand and utilize timing in the markets. This book is destined to become a classic in the study of financial astrology.It is a wonderful addition to the library of any student of the market."
—Byron Tucker, formerly with Goldman Sachs Futures Department; previously a member of the CME, CBOT, COMEX; Private Investor, Financial Consultant, Trading systems development