Tuesday, December 18, 2012

Keystone's Eclipse Sell Off Indicator

The chart highlights the eclipse windows over the last year that target large market sell offs.  The lunar and solar eclipse dates are averaged if within one month of each other and then a window is developed (black rectangle) where there is a higher potential for a market sell off to occur. The beginning of the window and end of the window (black circles) are more prone to experience the market down move rather than the center area but the entire box opens up the potential for a strong market down move.  In mid 2011, both the early and late dates resulted in market sell offs, the second date precipitated the August waterfall crash.

The eclipse indicator also identified the November 2011 sell off. Also the April roll over and May sell off this year.  Also the October-November sell off. The main eclipse sell off window remains open currently, from mid-October to mid-January, so the markets remain open to a potential large sell off. The last two windows show that the strong market selling at the beginning of the window took all the negative energy and the right side of the boxes resulted in no sell off (green lines).  The days ahead, as the New Year begins, will tell us if all the negative energy was used for the October-November selling, or, if a second market down move is about to begin like mid 2011. This tool is simply a tool to gauge the background currents of the markets. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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