Energy Flow Theory & Financial Markets | Al Larson

As planets orbit the sun, they exert tidal forces upon the gases of the sun. These tidal forces cause swirling motions on the sun, creating sun spots, solar flares, coronal holes, and other energy events. All these effects combine to vary the amount of radiation that leaves the sun. That solar radiation is our sole source of energy. We are subject to every fluctuation in it. Solar radiation travels to the earth in two ways: as direct radiation, such as sunshine and radio waves, and as charged particles carried by the solar wind. This flow of charged particles forms a torrent of energy that blasts earth creating a bow wave and a wake, just as a boat going upstream would do. This bow shockwave forms a magnetopause between the earth and the sun. It interacts with the earth’s electromagnetic field, shaping and adding energy to it. At the poles, charged particles follow the magnetic lines of force into our atmosphere. This creates a charged layer called the ionosphere.

As this solar wind passes earth, it shapes our magnetosphere into a teardrop shaped envelope of trapped charged particles. As solar radiation varies so does the earth’s magnetic field, atmospheric ionization, and temperature. Scientists have tracked down a host of relationships between these events and a variety of earthly phenomena such as weather, climate, crime rates, plant growth rates, frequency of thunder storms, blood Ph levels, psychiatric emergencies, and many others.

As part of this activity the solar wind charges our ionosphere to a voltage of approximately +300,000 volts. This charged layer above the earth represents the positive end of a battery. When you stand on the ground you are standing on the negative end of this battery. This is the earth’s electric field that we all live in. When you stand erect, it places a voltage on the top of your head of about 240 volts. That is the same voltage as used by your oven element. Fortunately for us, this is not a high current power source. Otherwise, we would fry.

 

 

 

We are affected by this field. This voltage causes currents to flow through us as we live on earth. These currents are approximately 2000 times as strong as the biological currents that run our brain, our nervous system, our muscles, and our organs. All of our body’s electro-chemical systems are subject to the fluctuations in these currents. The ionosphere and the charges on it form a very dynamic system. Events such as solar flares can cause rapid and large changes in this voltage. Our biological circuits feel these changes. These changes can affect all our biological processes including our emotional moods. Scientific studies have shown that changes in ionization cause people to feel giddy to gloomy. These moods show up in the markets. It is well accepted that markets move in response to fundamental forces and investor psychology. A major finding of my work is that investor psychology is driven by the physical energy system. Those emotional rallies and declines are controlled by the currents that run through us. We call those currents emotions.

[...] I have related the timing and price level of market turns to these currents. I have exhaustively verified every link in this chain of cause and effect. I have developed a solid mathematical knowledge of how this energy flow controls pattern, price, and time in markets. While it is not possible in a chaotic system to make perfect predictions, I have been able to formulate a computer program called XGO which predicts markets with between 60% and 90% accuracy […] This S&P forecast has been running about 80% accurate over the past two months. It was computed over one year ago, and used no price data! It is simply a computation of the energy coming into the S&P. These forecasts can be made for any market, for any time in the future. This is a unique scientific technology.

Quoted from:
Al Larson (1997) – Energy Flow Theory.

See also:

Hans Hannula ( 1987) - In Search of the Cause of Cycles.

Hans Hannula (1991) - A Lunar Chaos Theory.

Al Larson (1997) - Your Electric Life.

Al Larson (2001) - The Sun and the S&P 500.
Al Larson - www.moneytide.com

DrAlLarson - YouTube Channel.

TPR - Financial Markets and Solar Activity.

Financial Markets & Seasonal Geomagnetic Field Variation | Hans Hannula

Any grade-school pupil can tell you when the seasons begin. In the northern hemisphere, generally, spring begins March 21, while summer begins June 21. Autumn begins September 23, and winter begins December 21. Actual dates may vary by one day in a particular year. So step one is simple.

The physical reason behind the seasonal cycle is the tilt of the Earth's axis. The 23.5-degree tilt of the Earth's axis causes more direct heating of the northern hemisphere in the summer, when the Earth tilts toward the sun. It causes less heating in the winter, when the Earth tilts away from the sun. This change in heating and cooling causes the seasonal weather patterns that we are familiar with.

 

Charged particles from the sun form a teardrop-shaped envelope about the globe called the magnetosphere.

Not so well known is the effect of the seasonal variation on the Earth's geomagnetic field. As the sun emits energy, charged particles flow outward, carried by the solar wind. As these particles sweep past Earth, they form a teardrop-shaped envelope around the globe called the magnetosphere.

There is a seasonal variation in two important parts of the magnetosphere. When the Earth tilts toward the sun in the summer, the charged particles can more directly flow into the north pole, where they affect the Earth's magnetic field. This effect is lessened when the Earth tilts away from the sun in the winter.

The second magnetic effect is on the magneto-tail, that part of the magnetosphere which streams away from the sunny side of the Earth. As the Earth tilts toward the sun, this tail "rides higher." As the Earth tilts away from the sun, the tail "rides lower." This affects how our moon, which moves in and out of the magnetosphere, interacts with the Earth's magnetic field.

Australian Government Bureau of Meteorology (2023):
The Seasonal Distribution of Geomagnetic Disturbances.

So what does this have to do with stocks and commodities? Scientific evidence suggests that these fluctuations in the Earth's magnetic field affect humans. Studies show that magnetic field changes are linked to blood PH changes, which in turn cause mood swings. Perhaps the psychological mood swings of traders are also subject to these magnetic field changes.

More obviously, the seasonal cycle could be expected to affect crop prices, such as those of wheat, corn and other commodities. Similarly, with most businesses running on a quarterly profit cycle, seasonal variations in the buying and selling of materials and equipment can be expected. Thus, on both a fundamental and technical basis, a trader can expect season price variations in stocks and commodities.

To perform step 2, mark the dates of the cycle on a chart with solid dots, and place them above or below the price as you estimate that price is high or low relative to what it was approximately one-fourth cycle earlier. Points do not necessarily have to alternate between high and low.

Now look for cycle "inversions." If two lows or highs occur in succession, the cycle has "inverted" between the points. A normal inversion point is halfway through the cycle.

Quoted from:
Hans Hannula (1991) - The Seasonal Cycle. In: Stocks & Commodities V. 9:11 (458-460).

 

See also:
Tianbao Zhou, Xinghao Li & Peng Wang (2021) - Chinese Stock Indices, Gann Time Theory & Solar Terms.

Chinese 24 Solar Terms for 2023.

 

 

CNN Business - Fear & Greed Index as of June 16, 2023.

The Heartbeat of the Sun│Valentina V. Zharkova et al.

Valentina V. Zharkova (2016) - We will see it from 2020 to 2053, when the three next cycles will be of a very reduced magnetic field of the sun. Basically, what happens is these two waves, they separate into the opposite hemispheres and they will not be interacting with each other, which means that resulting magnetic field will drop dramatically nearly to zero. And this will be a similar condition like in the Maunder Minimum.

 

What will happen to the Earth remains to be seen and predicted because nobody has developed any program or any models of terrestrial response – they are based on this period when the sun has maximum activity — when the sun has these nice fluctuations, and its magnetic field [is] very strong. But we’re approaching the stage when the magnetic field of the sun is going to be very, very small. 

Reference:
V. V. Zharkova, S. J. Shepherd, E. Popova & S. I. Zharkov (2016) - Heartbeat of the Sun from Principal Component Analysis and prediction of solar activity on a millenium timescale.

 

See also:

Anthony Watts (2016) - Solar physicist sees global cooling ahead.

Mikhail Gorbanev (2016) - Solar Activity and Economic Recessions. 

 Tom McClellan (2012) - Sunspots - The Real Cause of Higher Grain Prices. 

Henrik Svensmark (2007) - The Cloud Mystery.

Martin Durkin (2007): The Great Global Warming Swindle.

Judith Lean, Juerg Beer & Raymond Bradley (1995) - Reconstruction of solar irradiance since 1610: Implications for climate change.

 

Wheat Prices vs Sunspots, 1900-2012

Solar Activity and Economic Recessions, 1935-2012