Moon + Markets

Credits: Dieter Geweniger, 2010
The Delta Phenomenon is based on the lunar cycle and the rhythm of the tides. It was discovered by Jim Sloman who then sold his insights to Welles Wilder, inventor of technical analysis indicators such as Relative Strength Index (RSI), parabolic SAR, and ATR

Basically, Jim Sloman claimed that financial markets behave according to a predictable repeating order and patterns having roughly the same number of major high and low turning points in specific time frames.  

Unlike most other trading systems, the Delta Phenomenon places emphasis on time rather than price. It is essentially a swing trading system focusing on time, a cycle system, where markets make highs and lows based on pre-determined solunar cycles. Delta does not attempt to forecast exact price levels, but a combination with price-focused approaches such as Fibonacci, trend lines, Elliot Waves is recommended. Read Wilder's book on the Delta Phenomenon e.g. HERE 

The basic assumptions of the Delta Phenomenon are that all freely traded financial markets repeat directly or inversely . . .
  1. every 4 revolutions of the Earth = every 4 Days = Short Term Delta (STD)
  2. every 4 revolutions of the Moon around the Earth = every 4 synodic Lunar Months (of 29.5306 CD each) = 118.1224 CD = Intermediate Term Delta (ITD)
  3. every complete Tidal Cycle = every Lunar Year = 12 * 29.5306 CD = 354.3672 CD = Medium Term Delta (MTD)
  4. every 4 revolutions of the Earth around the Sun = every 4 Solar Years = 1,461 CD = Long Term Delta (LTD)
  5. every complete total interaction of the Sun, Moon and Earth = Metonic Cycle = 235 Lunar Months = 6,939.691 CD = every 19 Years and 5 Hours = Super Long Term Delta (SLTD)
  • Inversions = change of Delta high/low or low/high rotation = can only occur in the Inversion Time Window (ITW).
  • Inversion Time Window (ITW) = period of time repeating with exact frequency. The ITW begins with last Delta turning point in previous series and continues until the second turning point in the new series. The ITW is the only place in time that inversion can occur. A common ITD-solution for the S&P 500 is a series with 12 turning points within 4 Lunar Months.
  • In-Between Point (IBP) =  extra point in series may occur only in ITW = IBP may occur on either side of Point #1 thus causing an inversion resulting in change of rotation = IBP may also occur on both sides of Point #1 thus causing two inversions which result in no change of rotation. Hence for example the above mentioned ITD-solution for the S&P 500 may have up to 14 turning points.

The debate about how far the Moon causes biological effects has continued for two millennia. Pliny the Elder argued for lunar power “penetrating all things”, including plants, fish, animals and humans. He also linked the Moon with tides, confirmed mathematically by Newton. A review of modern studies of biological effects, especially from plants and animals, confirms the pervasive nature of this lunar force. However calculations from physics and other arguments refute the supposed mechanisms of gravity and light. Recent space exploration allows a new approach with evidence of electromagnetic fields associated with the Earth’s magnetotail at full moon during the night, and similar, but more limited, effects from the Moon’s wake on the magnetosphere at new moon during the day. There is now evidence for mechanisms such as calcium flux, melatonin disruption, magnetite and cryptochromes. Both environmental and receptor variations explain confounding factors and inconsistencies in the evidence. Electromagnetic effects might also account for some evolutionary changes. Further research on lunar biological effects, such as acute myocardial infarction, could help the development of strategies to reduce adverse effects for people sensitive to geomagnetic disturbance (HERE). 

The reason for the tidal effect is the ecliptic path of the Moon around the Earth and the Earth’s daily cycle of 24 hours. Through this mechanism, the Moon affects our daily lives. It also affects the biological clocks and the mental attitudes of all living organisms through a mysterious mechanism. The force of the Moon’s gravity on the Earth is 2.5 times more than the Sun’s, and for that reason alone it affects us that much more. Humans, animals, and plants change under the Moon’s light. Nothing stays the same in terms of thoughts and attitudes. Two phases of the Moon are most important: The new Moon and full Moon. During full-Moon periods, the Earth’s magnetic field is filled with extra ionization and biological life is influenced more. As the number of positive ions entering is temporarily higher, humans and animals feel repressed. Some scientists say humans are bombarded by a wider spectrum of electromagnetic waves during full Moons.

The Earth is negatively loaded normally, but during full Moons it is loaded with positive particles. This is because the Moon reflects the Sun’s energy to the Earth. As humans are also negatively loaded, they are influenced by this change and feel repressed. Sensitive people are influenced more by full Moons. People who are restless may give exaggerated responses and make themselves and others uneasy. They may behave in a way they always wanted, and their attitudes become sharper. In some extreme cases, they may go mad. People who tend to be violent may give harsh responses. It is well known that suicides, accidents, and heart attacks increase during full moons. 

The word “lunatic” describes people who go crazy at those times, because psychotic behavior increases during full Moons. At the full-Moon phase, the Moon is at the “magnetic tail” created by particles swirling around the Earth. The Moon reaches that point in four days, and this sometimes creates an imbalance in the Earth’s magnetic field. In the new-Moon phase, the Moon enters between the Sun and the Earth, and its physical body obstructs the particles coming from the Sun, and some geomagnetic disturbances are experienced.  During full Moons, our creativity also peaks. It is the time to give birth to new things. Everything now becomes evident. Instead of acting alone, this period gives us the energy to act together. Consequently, full Moons allow us to integrate and exchange love instead of conflict and diversity. As I emphasized before, the Sun, the Moon, and the planets are the universal powers that emit electromagnetic waves. We respond to these energies in the light of our consciousness and awareness level.