The Effect of Sunspot Activity on the Stock Market | Charles J. Collins

Charles J. Collins (1965) - Solar phenomena have been a source of scientific interest and investigation since Sir William Herschel, in 1801,found a correlation between sunspot activity and terrestrial phenomena [...] Modern science is giving considerable attention to solar phenomena in relation to disruption of the earth's magnetic field, to human health, and to weather, including rainfall, temperature, and cyclone frequency. The security analyst's interest is more directly concerned with the directly concerned with the effect of solar phenomena on business, and on speculation as evidenced by the ebb and flow of prices over our stock exchanges [This paper points] out one simple correlation of solar-stock market movements that will, fortunately, come to another test within the two or three years ahead. This is an apparent relationship between a recurrent phase of each sunspot cycle and an important stock market peak. The matter is of interest at this time for the reason that considerable attention is being given by students of the stock market as to when the broad advance that has been under way for a number of years is to reach a terminal point. This sunspot correlation, as discussed below, may throw some light on the subject. Briefly stated: It appears that an important market peak has been witnessed or directly anticipated when, in the course of each new sunspot cycle, the yearly mean of observed sunspot numbers has climbed above 50.

[...] Over the 94-year period under review, there were seven completed sunspot cycles, and it appears that an eighth was completed and a new cycle was started in 1964.During these eight cycles, not onlywas an important stock market peak concurrently witnessed (1881, 1892, 1916, 1936,1946, 1956)or directly anticipated (1906, 1929) by the above-50 count in sunspots, but, in four instances (1881, 1916, 1929, 1936), the designated peaks also marked the extreme or secular peaks for the entire sunspot cycle. The year 1890 seems an exception. In May of that year, the stock index reached its high of 5.62. In August 1892, the 5.62 level was again attained and, as concerns the yearly mean of the monthly stock indexes, the year 1892 peaked at 5.55, as compared with 5.27 for the year 1890 [...] In other words, in six instances, important stock market peaks and the sunspot climb above 50 came the same year, the two exceptions being 1906 and 1929. As to the 1906 exception, it will be noted, from the monthly range stock market chart, that the market peaked in January of that year, with December 1905 not far behind the January 1906 peak.

From a study of stock market history in relation to solar phenomena, a second theorem may be adduced: In each solar cycle, the largest stock market decline, in terms of percentage drop, comes after the sunspot number, on an annual basis, has climbed above 50. In the light of the foregoing observation, the 94 years of sunspot activity under review seems to occupy a rather narrow latitude for dogmatism. Thus, the preceding remarks should not betaken as a definitive prognosis of pending stock market behavior. Instead, they present a rather interesting correlation that has existed for a period of years between sunspot activity and major market peaks. Ergo, since the solar cycle is now at a point germane to this correlation, it seems worthwhile to present the previous relationship and await events, not without interest, of course, but mostly in the spirit of an enquiring attitude.

Originally printed in Financial Analysts Journal, November-December 1965; reprinted in Cycles Magazine in March 1966, and again in Cycles Magazine, Vol. 40, No. 3, September/October 1989]; editor's postscript of the 1989 reprint: "It is interesting to note the relation between above-50 crossingsand the stock market since 1965. In July 1966, the mean sunspot number moved above 50. The stock market shortly thereafter plunged in a major correction. In January 1978, the mean sunspot number again went above 50. The stock market, which had been in a downtrend, continued into a bottom after this date. In October 1987, the mean sunspot number went well above 50 to 60.~ and the 1987 crash followed. The mean sunspot number will next rise above 50 in about 1998."

Fibonacci-Relation between Lunar Cycle and Rainfall in the U.S. | 1900 - 1963

Sun — Earth — Man | In Tune With Cosmic Rhythms

"The unanimous message of mystics of all ages that all entities in the universe are interconnected and constitute an indivisible whole is proven now by unequivocal physical experiments that have been replicated again and again. From this undeniable unity, connectedness, and inseparability follows that any action or configuration in any distant part of the universe can influence processes in the solar system inhabited by man. This is also valid for the interrelations of Sun and planets within the solar system and especially the Earth's connections with other cosmic bodies in the solar environment. 

To look at the solar system and its constituent parts as a whole that embraces a complex web of holistic interrelations, is a premise of traditional astrology, which seemed antiquated, but turns out to be trend-setting. Thus, it appears promising to subject the astrological thesis of an influence of celestial bodies on the Earth and life on its surface to a new test. The quality of the astrological body of theses matches the holistic results of modern research, as it represents the archetype of an integrating science. Astrology of this brand was a historical reality in the era of Kepler, Galileo and Newton. It is well known that Kepler was both an astrologer and one of the creative founders of modern science. Book IV of his principle work Harmonices Mundi (1619) with the heading "Book on Metaphysics, Psychology, and Astrology" is evidence of this, as well as his papers De fundamentis astrologiae certioribus (1602) and De stella nova (1604). Those who pretend that Kepler was not really engaged in astrology should read these writings." 

Theodor Landscheidt - German jurist, mathematician, astronomer, astrologist, 

and climatologist, in Sun - Earth - Man: A Mesh of Cosmic Oscillations (1988).

Theodor Landscheidt (1989): Mini-Crash in Tune With Cosmic Rhythms.
Solar system instability events and the stock market.
In: Cycles Magazine - Volume 40, Number 6 Nov-Dec, pp. 317-319.

The Sun, the Moon, and the Number 56 | David McMinn

A 56-year cycle has been established in trends of US and western European financial crises since 1760 (Funk 1932; McMinn 1996). Clearly, many major financial crises are precipitated by some mechanism, as they tend to occur preferentially in patterns of the 56-year cycle and not as random events. Numerous cosmic factors were examined for some link with the timing of financial crises.

 

Traditional astrology and sunspots were the initial areas favoured for assessment, but no significance could be realized. This is hardly surprising, as rigorous research has offered little support for astrological theory (Dean and Mather 1978; Culver and Ianna 1984). However, the 56-year cycle was found to correlate very closely with cycles of the sun and moon.

The author believes changing mob psychology forms the basis of cycles of financial crises. This repetitive cycle of speculative frenzy, panic, and pessimism has persisted throughout modern economic history; people learn very little from the greed and foolishness of the preceding generation. People are hypothesized to undergo alterations in mass mood in accordance with changing sun-moon cycles. Financial crises occur when there is a sudden shift in sentiment from optimism to fear.

This paper follows directly on from the work of McMinn (1996). The underscored years are listed as major crises by Kindleberger (1989).

Solunar Cycles: The nodal cycle (or nutation cycle) equals 18.6 years. The north and south nodes are two hypothetical points, 180° apart on the ecliptic circle, where the plane of the earth’s orbit around the sun (the ecliptic) is intersected by the plane of the moon’s orbit around the earth. (The moon’s orbit is inclined at 5° to the ecliptic.) The ascending (north) node is the point where the moon crosses from below to above the ecliptic. The descending (south) node is where the moon crosses from above to below the ecliptic. The moon’s north node takes 18.6 years (one nodal cycle) to complete one cycle retrograde (clockwise) through the ecliptic circle.

The solar year equals 365.24 days. This is the time the sun takes to complete one cycle of the ecliptic circle. This time unit forms the basis of the 56-year sequences, the 36-year subcycles (9, 18, 36, 54 years), and the various artifact subcycles (10/20 years, 13/26/52 years, etc.).

The eclipse year equals 346.62 days. This is the time the sun takes to complete one cycle, north node to north node. For an eclipse to take place, the sun-moon-earth must align in a straight line, which can only happen when the sun and moon are near the north and/or south node. A solar eclipse (partial or total) can occur only when a new moon (i.e., the sun is 0° to the moon) is within about 19° of the nodes. Similarly, a lunar eclipse may only be evident when a full moon (i.e., the sun and moon are 180° apart) is within about 12° of these points.

The saros cycle equals 18.03 years. It has been widely appreciated for millennia and was known to the ancient Babylonian astronomer-priests. Every 223 lunar months (one saros cycle), the sun, moon, and the moon’s nodes align in the same relative angles to each other within a fraction of a degree. One saros cycle of 18 solar years is equal to 19 eclipse years.

The half-saros cycle equals 9 years. Every 9 solar years (or 9.5 eclipse years), the moon’s mean relative position is the same angle to the north node, with the sun 180° on the opposite side of the zodiac.

The 56-year cycle. Every 56 years, the sun conjuncts (0° angle) the moon’s north node in almost the same zodiacal position (3° clockwise) and on the same date (minus three or four days). Every 56 solar years (or 59 eclipse years), the sun’s relative position is approximately the same angle to the north node, with the moon 180° on the opposite side of the zodiac.

A similar alignment of solunar cycles occurs every 56 years (692.5 lunar months), as is evident for the half saros (111.5 lunar months) (see Table 1). The 5 in the latter two figures result in alternating solar/lunar eclipses and full/new moons every 111.5 and 692.5 lunar months, respectively.
These cycles—based on the angles 0° and 180° between the sun, moon, and nodes—repeat to within one degree. This is an astonishing astronomical fluke.

 

Solar year: one cycle of the sun from spring equinox to spring equinox; equal to 365.2422 days
Eclipse year: one cycle of the sun from north node to north node; equal to 346.6200 days.
Synodic month: interval between two successive new moons; equals 29.5306 days
Tropical month: one 360° cycle of the zodiac (tropical) by the moon; equal to 27.3216 days.
Nodical month: one cycle of the moon from north node to north node; equal to 27.2122 days.

 

Note: These are average figures. Perturbations exist in the motions of the earth and moon around the sun and deviations from these figures are evident.
 

These 9- and 56-year solunar cycles would not arise if the radii of either the earth-sun or earth-moon orbits varied a little from their current mean distance. The reasons for the importance of 0°/180° angles in these two cycles is unknown, though it may be related to the fact that the north and south nodes are always 180° apart in zodiacal and aspectual circles.

Perturbations. Most importantly, solunar cycles are expressed in terms of mean periods, with considerable fluctuations around the averages. For example, the zodiacal position of the moon may vary by as much as 8° from its mean position.