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A Traders Guide to Financial Astrology: Forecasting Market Cycles Using Planetary and Lunar Movements by Larry Pasavento

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CHAPTER 10

Financial Forecasting Using Solar Cycles

image Introduction

This chapter introduces the solar cycle in relation to the Dow Jones Industrial Average. A solar cycle is simply an annual cycle. You may see this cycle appear in traditional stock almanacs. The solar cycle creates repeating patterns or seasonals that most investors know of. Some of these include popular seasonals such as the January effect, April earnings rally, sell in May and go away, summer rally, fall crash cycle, and Santa Claus rally. The chart of the United States will be looked at in relation to cardinal points of the year. Since the U.S. chart is a cardinal sign, the markets tend to be sensitive to cardinal points. These cardinal points tend to show selloffs or bottoms.

Key Concept Questions

  • What is a solar cycle?
  • How can solar cycles be used to forecast market movement?
  • What are seasonals?
  • What are key dates of the seasonals?
  • How do the cardinal points affect financial markets?

image Types of Cycles

Figure 10.1 shows the two basic subdivisions of cycles discussed in previous chapters: planet/sign cycle and planet/planet cycle. Within these subdivisions, there are three important cycles to analyze: the Sun as it passes through the signs (solar cycle), the Moon as it passes through the signs, and, finally, the ...

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