It has been a while since Keystone posted the eclipse indicator. It on the esoteric side so you have to detach pre-conceived notions and have an open mind. Many human behaviors are rooted in metaphysical phenomena that we do not yet understand. The Keystone Speculator Eclipse Indicator takes eclipse dates, if they are near each other, and averages a date between. If there is an eclipse taking place, and no other, a few months before or after, that eclipse date is the average date. Then take one month before and month after as the key dates for a potential stock market top give or take 2 weeks. Is that clear as mud? The entire eclipse period (blue box) is in play for a top but the tops will tend to occur either near the beginning of the box or the end of the box (blue circles) which correspond to the target dates +/- 2 weeks.
When a selloff begins for the first date in the box, it usually takes all the energy so the second target date does not result in a top or if it does it is a minor pullback. If a selloff does not begin in the first date's circle, there is high likelihood it will begin in the second window of the box.
The SPX chart above shows the last five boxes where potential stock market tops may occur, based on the eclipses, as per The Keystone Speculator Eclipse Indicator. The indicator caught the December 2018 top in the market. Also, a minor pullback in March 2019. That big selloff took all the energy. Last summer, the first window resulted in nothing, stocks were rallying not selling off, but the second window caught the August swoon. Last Fall, the eclipse indicator delivers buptkis. Remember, the financial system was in a stealth shutdown and about to go over Niagara Falls in September/October when Federal Reserve Chairman Powell panicked and started goosing the economy and markets like a madman to save the day. That obscene Fed Keynesian money-printing sent the stock market to the stratosphere (green line). Isn't it comical that there are idiots that think capitalism exists? The average person has no idea what happened last Fall.
There were more eclipses than usual at the tail end of last year into this year which created that odd double box stuff. Both boxes overlapped in that December 2019 time frame but that was when the Fed was pumping like mad to save the markets. Interestingly, the second window of the box that runs from last year into this year nailed the February top. The Fed delays the tops in the market with their out of control Keynesianism but the tops eventually appear. It is always fun to monitor the eclipse indicator and how it oddly gets things exactly right now and then. The indicator forecasted both big tops on that chart the December 2018 drop and the February 2020 crash.
That's all well and good but as the saying goes, "What have you done for me lately?" This month is very interesting since two eclipses are in the bag and a third occurs on July 4th, America's Independence Day. The average of this triple eclipse cluster is 6/20/20 so one month before is 5/20/20 and one month after is 7/20/20. As the chart shows, the 5/20/20 window did not result in a pullback in stocks. Instead, the rally continues, and like late last year, the Fed and other global central banks, are printing money endlessly which sends stocks vertical. Moral hazard be damned.
7/20/20 is the next target date give or take 2 weeks. Thus, 7/6/20, Monday, when stocks begin trading again after the holiday, through the first few days of August, is a window where a significant stock market selloff can begin. Of course the entire box is in play so we are in position now where a selloff may begin but the July time frame is especially vulnerable as per the eclipse indicator. Time will tell.
Other upcoming dates for potential tops based on the eclipse indicator are 11/7/20 +/- 2 weeks, 1/7/21 +/- 2 weeks, 5/2/21 +/- 2 weeks and 7/2/21 +/- 2 weeks. It is interesting that next year at this time will be a window for a big selloff to begin just like now. If a selloff does start perhaps a year from now it would repeat on its anniversary. That is too far out in the weeds to think about and it hurts Keystone's head. He will be glad to still fog a mirror and be able to yell at the neighbor kids at that time.
Stay alert going forward. We are likely going to experience something big especially with the rampant complacency that has been ongoing for a month. After a month, even the most die-hard partiers like Ozzy and Sabbath would have to take a rest.
The Bradley Siderograph is another esoteric indicator and it calls for turn dates (which can be up or down) on 3/17/20, 5/11/20, 8/19/20 and 12/2/20. The Bradley nailed the March bottom this year and also the May stutter-step. Thus, keep an eye out for 8/19/20 give or take a week based on the Bradley and this could be a turn up or down. Keystone's eclipse indicator and the Bradley almost, barely, touch during the first few days of August. 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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