Comments on: Stock Market Correlations With Moon Cycles – Should You Buy Stocks On a Full Moon?

By: MoneyEnergy

MoneyEnergy — Wed, 30 Dec 2009 18:13:45 +0000

Sounds like you might know a thing or two about it, H.D. Franke – I agree there’s a lot of complexity involved, and you know what? Complexity exhibits macro patterns, too, so it wouldn’t surprise me to find larger patterns like that in trading activity.

By: H.D.Franke Dr.

H.D.Franke Dr. — Tue, 29 Dec 2009 13:46:07 +0000

Most biological rhythms are governed by moon phases. Considering that the market is a total of individual decisions that due to technical analysis react upon decisions reflected in prices one must assume that these decisions are all algorithmic and none are gut feeling , sentiment, etc. I don’t believe human decisions are only rational.I rather believe decisions to be sentiment mood dependent and also rational. I should expect indeed
an influence of moon phase although weak. One could apply tools of dimensional complexity ( that gives the degree of dissimilarity) to verify this.

By: tfm

tfm — Wed, 02 Dec 2009 18:27:19 +0000

There are numerous correlates between Moon Sun cycles and financial market activity. It is surprising that this has not been given earlier recognition. The earliest study I know of linking the lunar phase with the market was published in 1977. Probably the best site on this topic is:

http://www.davidmcminn.com

By: MoneyEnergy

MoneyEnergy — Sat, 21 Nov 2009 03:50:50 +0000

@RetSav – actually, the analyst who was discussing the moon cycles theory did refer to the fact that supposedly there are some correlations between moon cycles and peoples’ moods (which might then translate to market behaviour). I’m not the one doing the experiments, so I can hardly say. Does seem to be a stretch, but no less outlandish than the short skirts theory!

By: Redcodz

Redcodz — Sat, 21 Nov 2009 01:32:14 +0000

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By: Market Maker Stock Indicator

Market Maker Stock Indicator — Wed, 18 Nov 2009 08:03:40 +0000

I am hearing about moon cycles for the first time. What is it exactly mean ?

By: Jackie

Jackie — Tue, 17 Nov 2009 23:03:29 +0000

Nope, I’ve never heard of the moon cycles theory before. Although I have to say that I originally misread that as the motor cycles theory. I guess that’s just as plausible, right?

By: RetSav

RetSav — Tue, 17 Nov 2009 18:42:58 +0000

Most good TA is usually based on market psychology, as proponents believe you can see the emotions and actions of aggregate market participants creating those above patterns. I’d have a tough time seeing moon cycles fit into this.

For a detailed run-down on this theory with analysis, check out: http://marketsci.wordpress.com/2009/05/12/the-lunar-cycle-and-the-stock-market/

By: MoneyEnergy

MoneyEnergy — Tue, 17 Nov 2009 18:19:38 +0000

@Chad – interesting points – even when there is strong correlation without causation… perhaps there is no causation between the two things compared, but perhaps both can be caused by something else? Even if hard to imagine in this scenario.:)

By: MoneyEnergy

MoneyEnergy — Tue, 17 Nov 2009 18:17:30 +0000

@Tom – yes, the Superbowl theory is a fun one, too:)
@arohan – I like your tinkering theory!:) Yes, low tide-high tide would be a variant on the moon cycles theory – you should contact the analyst mentioned, maybe you can still contribute to the book!:)