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While the notion of using Astrology in the markets seems ludicrous, it has been used successfully by traders long enough to generate interest and studies by some Universities and the Federal Reserve. Their results confirm a Moon effect that can consistently increase returns by about 5% a year vs. the benchmark indexes of many countries as seen here.

Other studies link industrial output to the Solar cycle of 11 years and link increased volatility to large Solar flares and influx as seen in the Federal Reserve study here. Although the Solar cycle predicts increased volatility and a recession into the next 4 year Election-Business cycle low of 2014, what is more important is what lies ahead for the current 4 year Election cycle low of Fall 2010.

Before Man laid trans-Atlantic cables, radio was the only way to communicate, and great efforts were made to increase its reliability, but RCA researchers ran into an obstacle they could not overcome, and that was the fact that radio communications were impaired when the Planets were at 90 and 180 degrees from each other, and those have been known as negative angles in Astrology for thousands of years, obviously for a good but unexplained as yet reason as seen here.

Now that we have gained some credibility about the effects of our Solar system on our activities, we can see that it can be applied with measureable success in the markets as seen by the performance of the best known Financial Astrologer, Mr. Arch Crawford and listed on his website. Arch Crawford recently made some dire predictions for a rare Cardinal Climax in August 2010 as seen in the original here or our archived copy here - IE only.

Before we get to the Full Cardinal Climax of early August 2010, we have a sort of Half Preview in May which has surprised in a very negative way and may be a warning sign that Arch Crawford is right and a dose of reality and Debt Deflation will enter in the market and force a repricing of risk and assets like we saw in 2008.