LunaticTrader

Investing with the Moon

Outlook August 23

Posted by Danny on August 23, 2010

Stocks traded largely flat last week.

With another week of Red Period coming up we may still get a retest of the early July lows. But as days pass by we will have to start positioning ourselves for the next Green Period.
It appears to me the July lows will hold, and we will be well set for a rise into early September.

Despite some wild swings up and down, the Nasdaq and S&P 500 are basically flat since May.
Currently it is unclear whether this situation will be resolved with a break up or downward. Also the lunar cycles do not give clear indications for the moment.
Most likely we will see a rather large move when we break out of this sideways pattern, something in the order of 20% up or down..

All we can do is wait and be ready.

Good luck, Danny

6 Responses to “Outlook August 23”

  1. Twisted_Ether said

    What is your thought on the fact that we just entered Mercury retrograde? Perhaps that is mixing up some of the signals? Also given that Rx retrograde can sometimes bring about huge swings, how comfortable are you to already start positioning for longs while still in the red period?

    • Danny said

      Hi,

      I do not consider things like Mercury retrograde and so. Because looking at too many different factors usually leads to more confusion , conflicting signals…, rather than clarity.

      We are in the last week of Red Period, and prices have been coming down.
      So, what I mean with start positioning for the next Green Period is:
      1) close some or all short positions this week, preferably on a good down day.
      2) next look for chances to take some bets on the upside.

      Generally I try to use the last 3 trading days of Red Period for it, so next Wednesday till Friday. Exception is when the chart indicates that a major turning point is imminent, as was the case at the end of last Green Period.
      Then I may act earlier, or later..
      This is where some experience comes in.

      I do not know how some people manage to monitor 20 technical indicators, plus a number of astrological factors like Mercury retrograde, Jupiter opposite Saturn, and so on.., and still have any idea of where the market is going.

      Personally I found out I function a lot better by looking at less factors, indicators and financial news channels.

      Danny

  2. willem said

    hi danny how about the pillars do they still have affect? gold and silver seems to go further even with negative energy or whe could see a crash later?

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