Raymond Merriman – The Ultimate Book on Stock Market Timing (VOL IV) – Solar-Lunar Correlations to Short-Term Trading Reversals

Volume 4 of this 5-volume series on The Ultimate Book on Stock Market Timing is the most comprehensive analysis yet of all the Sun-Moon combinations and their correspondence to price movements in stock indices available today. It examines 60 years of daily data on the Dow Jones Industrial Averages, and the past 16-18 years of daily data on the NASDAQ Composite and Japanese Nikkei stock indices. The probability of 4% or greater reversals is assigned to each Sun-Moon combination, which are usually in effect 1-2 (sometimes 3) trading days per year. In all, there are approximately 30 of these 1-2 day periods that stand out as high probability trade dates each year, in each index. Thus when a Sun-Moon combination with a high correlation to 4% or greater price swings is in effect, a trader knows that this 1-2 day period offers a high probability for an isolated low or high to form, from which the market will reverse a substantial amount in a very short time. This is the ideal situation for short-term traders: high profit probability with a minimal amount of time exposure (risk) in the market.

This book also identifies which Sun-Moon combinations have a much lower than expected correlation to short-term trading reversals, thereby allowing traders the comfort of not feeling pressured to exit (or enter) on certain dates. In addition, each Sun-Mercury and Sun-Venus sign combinations are examined for high and low probability reversal zones, and used along with Sun-Moon combinations to determine the most and least volatile times for trading stock indices. If you are a short-term trader of stock exchange futures, options, or the stock exchange traded indices on the AMEX, like the DIA, SPY, or QQQ, this is a book that can provide an extremely valuable market timing advantage. This is the “edge” that traders seek.