Steve Puetz found that most of the major market crashes have happened around the PUETZ window, which is 6 days ahead/behind the full moon within 6 weeks of a solar eclipse. This effect is magnified when the full moon is also a lunar eclipse.
Chris Carolan found striking similarities between the 29, 87, and other crashes in terms of lunar calenders and the distance between the initial high, low, final failed rally, and crash.
Looks to me like we could be in a bit of an 87 pattern here with a similar drop to this point, temp bottom, bounce/retrace, final failed rally, then crash. I'm just putting two and two together here from the work of the above as well as my own.
The 87 crash also had a solar eclipse going into the final failed rally - so do we at this point (8/1) and there's a combined full moon and lunar eclipse 8/16. The crashes of 87 & 29 also had solar eclipse and then a full moon/lunar eclipse at the crash or close thereby.
So, not only do we have a 3:3:3 coming in Elliott Wave terms, but we're also poised to break under a very important 1200 (actually 1170), and we now have a similar setup to 1987 in terms of recent price movement and the solar/full moon/lunar eclipse events pending.
Man is this interesting. The one primary thing to realize here is that all this is happening ahead of the normal October crash month, and with the last leg of this decline initiating in May, it appears its going to be early this year, which will keep everyone (except WSBers) off guard. You'll notice that 8/01 is the last solar eclipse of 2008 and thus, August 10 - 22 is the final PUETZ window of the year.
If the market continues to match the 1987 pattern from this point forward, you may see one more day bounce (or not), then about a 3 - 5 day drop to retest the lows, and then climb into the new month 8/1 or 8/2 and potentially beyond. In 1987, market rallied for 8 days beyond the solar eclipse. That would be 8/8 in our terms and probably a target between 1296 and 1310, if the pattern of being a week behind & 2 months ahead of the 1987 pattern holds.
I would probably plan to be mostly back in by 8/1 (about 85%- I'm 55% in now) and let some calls ride up to potentially 8/8 if she doesn't drop before hand.
Check out the chart of the 1987 SnP with the eclipses and full moon/lunar eclipse plotted with the new month 10/1 also shown. You can relate it to our progress with the solar eclipse due 8/1 and lunar eclipse due 8/16.
Sure looks a little too similar to be a coincidence at this point in time/price in the SnP.
BearSmith
[ Post Last Edited By BearSmith on Mon, Jul 21, 2008 - 02:39 AM ]
[ 本帖最后由 yefc88 于 2010-1-24 18:56 编辑 ] |