Do you think astrology has influence in the stock market?
I suppose the majority of people think that this question is stupid, and perhaps they are right. They are probably better off investigating other niches of the vast world of financial investing.
However, the question to that answer could very well be affirmative. After all, horoscopes seem to be determinant in the personal and psychological features of people.
Why could the stock markets not be related to the planetary cycles?
Astrology stock market prediction
It is in the long-term cycle’s approach where we should concentrate in my opinion. There could be some correlation.
For all those who have a cyclical view of history, it is not difficult to accept the astrological thesis, although anecdotally. Which means that as a believer in cyclic theories of history, and therefore of financial markets, I believe in some influence – or correlation – between planets and markets (which are an image of society after all).
The problem is that I think that it must be very difficult to find that correlation and put it into practice so to speak. Not to mention, if we want to trade for a living using astrology, which quite a lot of people try anyway in places like the United States.
In the US we can find many webs dedicated to this area and some of them quite popular in fact, with some well known gurus.
Webs for astrology stock market prediction
One of these websites is Arch Crawfored´s www.crawfordperspectives.com, where the author offers his own newsletter based on technical and astrological analysis since 1977. There are different opinions regarding his services. There are people who think that it does not beat a simple buy and hold strategy, and there are those who believe that the guy beats the market most of the time. Who should we believe?
Another interesting website is that of Bill Meridiam. www.billmeridiam.com. There, the author promotes his research in the field offering a newsletter as well. We can find references to Fibonacci series or Gann.
Update: Bill Meridian site dissapeared. I do not know if it was because his predictions did not come true or what.
Anyway, let us continue with this issue of astrology and the stock market.
Actually, I think that there could be a connection between the Fibonacci series and human society. After all, Fibonacci series and the Golden Number seem to be very important in the act of Creation.
If that is correct we should assume that the one who ordered or created this material reality counted very heavily on Fibonacci and Golden Number rules. They influence planets, body, animals, and, why not? They could influence the stock market cycles.
As well as with Kondratiev we have a lot of people and new agers that believe that society moves in a cyclical way.
Trading stocks astrology and New Era
For instance, followers of Blavatsky doctrines believe that we are in the Age of Aquarius, and a new messiah, so-called Maitreya, is about to come.
These people point of views have a lot in common with astrological and planetary movements. In fact, I remember reading some Alice Bailey book about astrological esotericism.
In a nutshell, I do not think astrology may play an important role in the short term moves of the stock market, in such a way that some guru could determine the next week stock market direction.
The ones who try to operate based on those assumptions; I do not think they may be right more than 50% of the time. That is why all those who love day trading, scalping, short-term trading, will not probably find an edge by studying astrological esotericism.
Nevertheless, I believe that it is an interesting world for people who have interest from an intellectual point of view.
For those who are interested, reading some books about it would be no harm.
It is, even, not out of question that someone could find long-term correlations between planetary moves and economic cycles, in a similar way to that of Kondratiev´s.
Astrology stock market timing
Anyhow, we should not expect to become rich by doing that. We can satisfy an intellectual hunger, and who knows? Maybe, writing an interesting book about it. What means that as a leisure and learning project, it could be fine, but we are not going to be the next Jesse Livermore or Bruce Kovner by doing it.
So, I think that there are better ways of approaching the world of investing than through astrological knowledge, which, I repeat, could be fine as a leisure activity, for those who like to learn new things.
Meanwhile, we carry on with business as usual.
Thanks for reading and sharing.