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Financial Astrology: Art Cashin Goes Lunar

y Karen Starich

I had several subscribers emailing me today about comments Art Cashin made on CNBC this morning. Apparently the buz on the floor today was "The Moon did it!" referring to the big rally and reversal in the markets. Jeff and I both thought it was very odd, since when did Art Cashin start following astrology?

What Art is referring to is the Moon cycles with the new and full Moons and how the markets tend to reverse or change course when the Moon peaks at the cycle. Art promised to bring a chart next week to show everyone how it works, well I 'm going to beat him to it because it's not a reliable trading indicator, and I want everyone to see our view on this phenomena first. Art did admit he is using some other cycles too but he did mislead viewers on his comments today and I want to illustrate that so investors know what to look for next week when he brings his chart out.

Art said that on June 23rd the markets would top on July 3rd lining up with the full Moon, which did happen. He also said that he used the Moon phase to predict a market turn for today which would reverse the downtrend and lead to a positive move into mid next week, but warned not to go buy furniture suggesting the rally could be short. What is wrong with his statement?-there is NO new Moon phase today! The next new Moon is on July 19th.

There is much more to trading with financial astrology than just using the phases of the Moon. If it were that simple everyone would do it. With Astrology Traders I use a very complex system of planetary movements and mundane astrology charts to determine the direction of the stock market and commodities. Jeff has added below a chart with the Moon phases along with my astrology projections to illustrate how our trades compare.

On March 3rd I wrote to subscribers that we would have an opportunity to setup long positions in selected technology stocks on the pullback the first week of March that could see a solid move up into March 19th. I advised there could be a negative turn with financials after March 28th and illustrated April 19th-24th for a downturn and then bounce up into May 3rd, where it could potentially become more critical for financials and lead to a bigger decline into May 18th. Jeff's technicals confirmed the astrology setup on May 2nd and we sent out a trade alert after the market close for subscribers to enter short positions on the indexes. If we were to have followed the Moon phases we would have been considerably off on our timing and not had the edge.

Art was also jubilant about a new study released by the Fed last Wednesday that shows 80% of the time the market rallies 24 hours before the FOMC minutes are released. A convenient way to "trade 8 times a year" says Art. I am sure Art has good intentions and is not trying to manipulate the market, but according to my analysis I won't be taking his advice. In my view there looks to be an ambush coming in the markets that may not fit Art's indicators quite so perfectly.

The following is by Karen Starich, who uses astrology to forecast events in the financial markets. Astrology Traders provides specific dates and in-depth analysis of future events for the financial markets through weekly updates, trade alerts, and educational webinars.

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