Sunday, March 30, 2014

Keystone's Eclipse Indicator

This quirky and esoteric signal is very interesting and has a good track record forecasting market sell offs. The eclipse technique starts with identifying the eclipse dates and note where they cluster. Within that cluster area (large red box), markets are prone to large sell offs.  Once a center point is identified for the dates, a time period of one month before that date, and one month after that date are key, as shown by the small red boxes, which identifies the strongest window for a market sell off to occur.

Typically, if a large sell off occurs from the first small red box, the second box becomes benign since the negative energy is dissipated. The large eclipse window is open right now from 3/8/14 through 6/5/14. The tighter periods that are more prone to experience a sell off are the small red boxes from 3/8/14 through 4/4/14 and 5/8/14 through 6/5/14. So this week is a key week since the strong first window of the eclipse indicator remains open through Friday for the potential of a large sell off to begin. If markets remain in a flat sideways struggle into late spring the middle and late May period will create a strong negative window. The actual eclipse dates are 4/15/14 (comically this is tax return deadline day) for the total lunar eclipse and 4/29/14 for the annular solar eclipse.

The circles show where the eclipse boxes tagged market pull backs, about 10 of the 12 small red square windows resulted in market sell offs, and right now there are only five days remaining in this current small red box window. The eclipse window is now occurring at the same time with Bradley turns occurring so wild market gyrations would be expected. The markets sit in the first small red box right now so it is now or never for bears. Either bears begin beating markets lower this week or they may not have the juice until May. The week of trading ahead will be very interesting as well as the next two months of April and May. 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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