Best Financial Markets Analysis Article 3 days of geomagnetic disturbance trumped positive seasonality and lunar phasing for the stock markets in May's opening days. The first chart below shows the geomagnetism readings of the planetary A index over the last 3 months and the second chart below shows the inverse correlation in stock market performance over the same period, with periods of higher geomagnetism bringing about bearish sentiment in the market, and low geomagnetism bullishness:

Underlying Source: Jan Alvestad

The longer term correlation between bad geomagnetic disturbance and the stock market is shown here:

Source: Robotti / Krivelyova

The long term correlation of lunar phasing with the stock market is shown here:

Source: Dichev/Janes

So... Using the NOAA geomagnetism 27 day forecast and combing this with lunar phasing and seasonality statistics (merging seasonality stats from Marketsci and Senitmentrader), I have produced the below model for the rest of May 2011, where green is bullish, red is bearish and white is neutral for the stock market. From that I have identified those days where the three do not conflict and the model is suggesting to be either long or short:

I will review how the model has performed at the end of the month.

John Hampson

www.amalgamator.co.uk

John Hampson, UK / Self-taught full-time trading at the global macro level / Future Studies
www.amalgamator.co.uk / Forecasting By Amalgamation.

© 2011 Copyright John Hampson - All Rights Reserved

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