Thursday, November 19, 2009

Crash into early-December?

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The stock market is cycling a half lunar cycle off of the 1929 and 1987 patterns as overviewed in my 10/14 blog. The crashes in '29 and '87 occurred between the full moon and new moon in the latter half of the second lunar cycle following a new moon top.

The equivalent new moon top this year occurred around the Oct. 18th new moon (10/19 top in broad market indices). The first lunar cycle has completed with the new moon on 11/16 and this had been associated with a secondary high in mass mood with the DJIA and other key indices reaching all-time highs while the broader market has not.

We are now into the second lunar cycle after the top using the 29-87-09 analogy. This is the cycle when the crashes occurred in '29 and '87 following the full moon. As shown below, recent correlation between mass mood and the lunar cycle suggests a low into the full moon instead of the next new moon. If so, this suggests the possibility of a crash into the upcoming full moon on Dec. 2nd. If a collapse in mass mood lasts until the next new moon, this would run until December 16th. (Note that the full moon December 2nd falls six weeks before a solar eclipse on January 15th, 2010, so there's a 'Puetz eclipse crash window' from November 26th - Thanksgiving - to December 5th. Maybe "Black Friday" will be a major disappointment?)

For those who are doubtful of lunar effects on mass mood and the stock market, read the following:

The Lunar Cycle and Stock Returns

Autumn Panics: A Calendar Phenomenon

The Spiral Calendar: Chapter One

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