LunaticTrader

Investing with the Moon

LT wave for March

Posted by Danny on March 1, 2016

The Nasdaq ended the recent lunar red period with a massive 323 point gain, one of the strongest red periods ever. In the recent months the market has been going counter to what we normally see in green and red periods, but somehow our LT wave keeps doing very well. This is very interesting as there must be some reason for this. I may be able to use the current observations to figure out in advance when the red and green periods are more likely to have a “cycle inversion”. I will keep you posted on the progress, if any.

Let’s have our weekly look at the S&P 500 chart:

^SP500 (Daily)  5_21_2014 - 2_29_2016

The S&P has reached its highest level since early January. Technically the slower Earl2 (orange line) is still going up with further room to rise. But the faster Earl (blue line) has peaked and is starting to go down. This suggests the market needs a bit of pullback or pause at this point, but there are good chances it will resume higher after the Earl bottoms out again. The MoM indicator is still pointing up as well, but appears to flatten out. A new lunar green period is now underway, but the setup suggests that this may become another weak green period. In best case scenario the S&P may march on to just below 2000, but more likely is a sideways period.

We also have the new LT wave chart for March:

ltwaveMarch2016

The wave did very well in February, correctly indicating the weakness in the first half of the month, followed by a much more positive second half.
For March the wave suggests weakness in the first week, followed by strength until the 25th. The final days of the month look weaker again. The lowest LT wave values come on the 6th and the 28th. The highest LT wave value will be on the 24th.
For new readers, please remember that this LT wave is experimental and I cannot guarantee anything.

4 Responses to “LT wave for March”

  1. arnjhart said

    Danny,

    I have really appreciated your work and pointed many people in your direction.

    Is this a way i can contact you directly to share some thoughts specifically regarding the research you mentioned in the article today?

    Also: are you located outside the US?

    My name is Ted Smith and I live in Boone, Iowa USA.

  2. mike said

    March 1st Massive +349.00 up day dow +46.00 s&p & enormous +134.00 nasdaq in the news I hear china stockmarket plunge down -9.00% 2 days yet usa soars. Does the lt wave still suggest weakness in the first week of March? will law of gravity prevail?

    • Danny said

      Hi Mike,

      One day’s market action doesn’t change the LT wave.
      Actually, nothing ever changes the LT wave because it gets calculated without any market data input.
      I can already calculate the LT wave for the next 100 years.

      But of course, some months it will always work better than others and in some months it may be completely wrong.
      We cannot take anything for granted when it comes to stock markets.

      Also note that March 1st did have a positive value in the LT wave.

      Danny

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