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eclipse for trading
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  Stocks & Commodities V. 9:12 (512-515): Trading The Eclipse Cycle by Hans Hannula, Ph.D., C.T.A. Trading The Eclipse Cycle  by Hans Hannula, Ph.D., C.T.A. T he ancients saw eclipses of the sun and moon as something mysterious and magical. The high priest of the day controlled the masses by telling them: Look out, there is an eclipse coming. Do as I say to avoid its ill effects. The modern-day equivalent, the modern stock market adviser, advises the trading and investing masses much the same way: Look out, there is an eclipse coming. Trade and invest as I say to avoid its ill effects. And sometimes there is an effect. Look at the Dow Jones Industrial Average (D JIA ) for August 6, 1990, for an example. The intraday chart of August 7 shows that the market opened with a dramatic 100-point plus nosedive, which stopped abruptly at 10:15. At 10:10 that morning, a lunar eclipse peaked. The trading masses were somehow affected.But often there is no effect. Do eclipses really matter, or are these high priests simply repeating the folklore handed down by others? Do eclipses really cause trend changes? Do these trend changes really occur regularly, or is this just market folklore? Is there a rational explanation of how eclipses could affect markets? Let's look at the eclipse cycle.   M ECHANICS OF ECLIPSES Eclipses are alignments of the sun, moon and the Earth. The plane of the Earth's orbit around the sun, called the ecliptic, is used as a reference plane for astronomy. This plane always passes through the Earth and the sun . The moon's orbit tips about five degrees to this plane. As the moon travels around this orbit, it crosses through the ecliptic. This crossing point is known as a node. Since the moon crosses through the plane once from above and once from below on each orbit, it has two nodes—the north node, when the moon crosses from below, headed north, and the south node. The Chinese called these two nodes the dragon's head and the dragon's tail, and thus, the moon's cycle of passing from north node to north node became known as the draconic cycle. On average, the draconic cycle is 27.212221 days long. Article Text1Copyright (c) Technical Analysis Inc.  Stocks & Commodities V. 9:12 (512-515): Trading The Eclipse Cycle by Hans Hannula, Ph.D., C.T.A. FIGURE 1:  The effect of an eclipse, direct or indirect, can be seen here. Here, the market opened with a dramatic 100-point plus noisedive, which ended abruptly at 10:15. FIGURE 2:   A lunar eclipse occurs when the Earth blocks the sun's light and casts a shadow on the moon. A lunar eclipse has also been shown to have an effect on the markets.  Stocks & Commodities V. 9:12 (512-515): Trading The Eclipse Cycle by Hans Hannula, Ph.D., C.T.A.  Eclipses affect markets because eclipses mark points when the moon exerts maximum influence on the flow of energy from sun to Earth. The moon also makes a synodic cycle. (Synod means coming together. ) When the sun, Earth and moon come together in a straight line, we have new moons or full moons. Since the sun lights up the moon, these are easy to observe. The lunar synodic cycle averages 29.530589 days.Much of the time, the moon is above or below the ecliptic plane when it is at new or full moon. These are ordinary new or full moons. Sometimes, however, the moon is very close to the ecliptic, and eclipses occur. Figure 2 shows a lunar eclipse, when the Earth blocks the sun's light and casts a shadow on the moon. Figure 3 shows a solar eclipse, when the moon blocks the sun's light, casting a shadow on the Earth.   E NERGY FLOW AND THE ECLIPSES The shadows of light are not the most important things about eclipses; what is important is the effect the eclipses have on the energy flow from the sun.My theory of how physical cycles affect markets is explained in Figure 4. As the planets orbit the sun, they exert tidal forces on the gases of the sun, much as the moon raises tides on Earth. In Figure 4, this tidal effect is shown as planets 1 and 2 rotating around a gaseous portion of the sun's surface. These gas swirls cause several solar effects, including sunspots and solar flares. These combine to vary the amount of radiation that leaves the sun.The solar radiation travels toward Earth in two ways: as direct radiation, such as sunshine and radio waves, and as particles, carried by the solar wind. This flow of charged particles forms a torrent of energy that blasts Earth, creating a bow wave and a wake, just the way a boat going upstream does. This bow shock wave forms a magnetopause between the Earth and the sun and interacts with Earth's magnetic field, shaping and adding energy to it. At the north and south poles, the charged particles follow the magnetic lines of force and enter our atmosphere, leading to an atmospheric condition called an auroral oval, which produces our northern and southern lights.The bow wave also creates an envelope about Earth called a magnetosphere. As the solar wind flows past the Earth, the magnetosphere forms a teardrop-shaped envelope of trapped particles, ending in a magnetotail. As the solar radiation varies, so does the Earth's magnetic field, atmospheric ionization and temperature. A host of relationships have been tracked down between these events and a variety of earthly phenomena such as climate, weather, crime rates, plant growth rates, frequency of thunderstorms, blood PH levels and psychiatric emergencies. My research has correlated these events with market action as well. E clipses affect markets because eclipses mark points when the moon exerts maximum influence on this flow of energy from sun to Earth. During a solar eclipse, the moon is actually outside the bow wave and, at the exact time of the eclipse, does its best job of blocking the energy flow from the sun. During a lunar eclipse, the moon is in the plasma sheet behind the Earth, where it normally reflects not only light but Article Text 2Copyright (c) Technical Analysis Inc.  Stocks & Commodities V. 9:12 (512-515): Trading The Eclipse Cycle by Hans Hannula, Ph.D., C.T.A. FIGURE 3:  A solar eclipse occurs when the moon blocks the sun's light, casting a shadow on the Earth. FIGURE 4:  As the planets orbit the sun, they exert tidal forces on the sun's gases, shown here as planets 1 and 2 rotating around a gaseous portion of the sun's surface. These gas swirls cause several solar effects, including sunspots and solar flares.
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