rols
Experienced member
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There is a total LUNAR ECLIPSE coming up tomorrow night. The moon is going to turn red around 7-8pm!
http://spaceweather.com/
This site is excellent and if you sign up they send you an email giving warning of all the nasty space weather out there.
What has this got to do with trading you may ask?
I know you probably think I'm a loon, but if the moon can move the oceans might it perhaps have a teeny effect on us 60% water based beings?
More than you think.....
Here is the opening para of a PDF I have just read..
Explaining movements in daily stock prices is one of the most difficult tasks in modern
finance. This paper contributes to the existing literature by documenting the impact of
geomagnetic storms on daily stock market returns. A large body of psychological research
has shown that geomagnetic storms have a profound effect on people’s moods, and, in turn,
people’s moods have been found to be related to human behavior, judgments and decisions
about risk. An important finding of this literature is that people often attribute their
feelings and emotions to the wrong source, leading to incorrect judgments. Specifically,
people affected by geomagnetic storms may be more inclined to sell stocks on stormy days
because they incorrectly attribute their bad mood to negative economic prospects rather
than bad environmental conditions. Misattribution of mood and pessimistic choices can
translate into a relatively higher demand for riskless assets, causing the price of risky assets
to fall or to rise less quickly than otherwise. We find strong empirical support in favor
of a geomagnetic–storm effect in stock returns after controlling for market seasonals and
other environmental and behavioral factors. Unusually high levels of geomagnetic activity
have a negative, statistically and economically significant effect on the following week’s stock
returns for all US stock market indices.
http://spaceweather.com/
This site is excellent and if you sign up they send you an email giving warning of all the nasty space weather out there.
What has this got to do with trading you may ask?
I know you probably think I'm a loon, but if the moon can move the oceans might it perhaps have a teeny effect on us 60% water based beings?
More than you think.....
Here is the opening para of a PDF I have just read..
Explaining movements in daily stock prices is one of the most difficult tasks in modern
finance. This paper contributes to the existing literature by documenting the impact of
geomagnetic storms on daily stock market returns. A large body of psychological research
has shown that geomagnetic storms have a profound effect on people’s moods, and, in turn,
people’s moods have been found to be related to human behavior, judgments and decisions
about risk. An important finding of this literature is that people often attribute their
feelings and emotions to the wrong source, leading to incorrect judgments. Specifically,
people affected by geomagnetic storms may be more inclined to sell stocks on stormy days
because they incorrectly attribute their bad mood to negative economic prospects rather
than bad environmental conditions. Misattribution of mood and pessimistic choices can
translate into a relatively higher demand for riskless assets, causing the price of risky assets
to fall or to rise less quickly than otherwise. We find strong empirical support in favor
of a geomagnetic–storm effect in stock returns after controlling for market seasonals and
other environmental and behavioral factors. Unusually high levels of geomagnetic activity
have a negative, statistically and economically significant effect on the following week’s stock
returns for all US stock market indices.