LunaticTrader

Investing with the Moon

Outlook May 31

Posted by Danny on May 31, 2010

I guess you are happy if you took our advice and stayed out of the market over the last couple weeks.
We are down about 100 points on the Nasdaq over the current Red Period, after being down as much as 200 points last Tuesday.

Now we are heading into the Green Period and should see some more positive bias over the next few weeks.
It is important to watch whether we get a serious rebound or just a sideways market.
A sideways market would suggest further weakness ahead in the second half of June.
This is how we try to read the market using the lunar cycles.

There was again a geomagnetic storm the day before yesterday, so keep that in account if you do any trading this week.
Geomagnetic storms tend to have a negative effect on stock returns for about 6 days.
Out of the three geomagnetic storms we got this year, two have come right at the beginning of a serious downturn in the market.
The other one saw stocks steam ahead without interruption.

Happy Trading, Danny

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