Keystone's Eclipse Indicator for Major Market Sell Offs

This indicator is an abstract forecasting tool with a very good track record. Typically a major sell off occurs either a month before or month after the solar and/or lunar eclipses. In trading, all you need to know is what works, or does not work, and the abstract quality, or non-scientific or non-technical quality of the indicator, is of no interest or concern.

Thus, simply find the eclipse date and subtact a month, and add a month, and these two areas are target zones for major sell offs in the indexes.  If the solar and lunar ecipses occur within a couple weeks of each other, simply take the average of these two dates and use that as your base line date to project one month ahead and one month after.

The market sell offs typically occur a month before, or a month after, sometimes both but more typically one side or the other.  Thus, if the first target area does not result in substantial selling, then place more weight with the zone one month after. Sometimes sell offs may occur at the actual eclipse dates but the data shows that using a month before or month after is a higher percentage play.

No trading should ever be solely based on this type of indicator, period.  Keystone's Eclipse Indicator is simply another tool in the tool box.  Let's look at some dates thru history up to present day.  Panic selling occurred within a month of either side of the following dates:

1/18/1637
11/4/1799
9/11/1857
4/17/1884
11/8/1929
9/30/1987
2/13/2008
8/8/08
2/2/09
7/21/09

Looking at the nearer term:

1/7/10 eclipse date.  Major selling occurred 1/15/10 thru 2/4/10. Thus, the selling was after the eclipse date, not quite a month but the method is verified.

7/3/10 eclipse date.  This targeted early June 2010, and early August 2010, as potential sell off areas. The second half of June experienced major selling, then the markets recovered thru the eclipse date during July, then August experience another sell off as per the indicator.  This is the time period where the markets were collapsing but Chairman Bernnake stepped in to save equities with the QE2 announcement.

12/28/10 eclipse date.  This targeted November and January as potential large sell off areas.  November 2010 experienced significant selling, thus, the eclipse indicator was verified again.

Now we are in an eclipse window again since the next eclipse date basis is 6/15/11.  Remember, once you have the eclipse date, project about a month before, and about a month after to set target dates for market sell offs.  Thus, expect a large market sell off around the mid-May 2011 time frame (NOW), and/or the mid July 2011 time frame.

This year rounds out with an eclipse date basis of 12/3/11.  Thus, watch the November 2011 and January 2012 areas for potential large market sell offs.

Again, this is only a single tool in Keystone's big tool box.  No trading should ever be based on this indicator by itself.  Keystone's Eclipse Indicator is useful for intermediate term (IT) forecasting. So mark your calendars accordingly.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here or any links connected to any of this information.  Consult your financial advisor before making any investment decision.