New Moons, Full Moons, and the Markets

"As Above, So Below." The ability of the planets to affect our daily lives was closely followed by the ancients. The same is true today. If in doubt, ask any farmer, commercial fisherman, police officer, pickup artist, or veteran trader about the significance of new moons and full moons. I guarantee you'll learn a lot about life.

Here I'm referring to the influence of the lunar cycle, the 28-day phase of the moon, on the markets. In the chart above, I've shown each new moon as a dashed line and each full moon as a solid line. For illustration purposes, and since nothing is 100% in the markets, I've only included "direct hits." I didn't have to delete that many.

Since trading is a business of probabilities, I present this chart only as something extra to consider in your daily preparations. The way I use this information is that I simply circle these two days on my calendar each month. When we become overbought or oversold, I check to see if there is a new moon or a full moon nearby. If so, it can add a bit more to my conviction, that's it. But in this particular case, I find it interesting that it lines up with the Ides of March and a record number of up closes on the S&P.