There is a correlation between the Sunspot Cycle and the Stock Market: Since 1933-34 all bull market highs (= start of a bear market) occurred 0-13 months after the peak of the Solar Cycle (List):
- HIGH of Solar Cycle #17 in 4/1937 = bear market starts in the Dow Jones 8/1937 (+4 months)
- HIGH of Solar Cycle #18 in 5/1947 = bear market starts in the Dow Jones 6/1948 (+13 months)
- HIGH of Solar Cycle #19 in 3/1958 = bear market starts in the S&P 500 8/1959 (+6 months)
- HIGH of Solar Cycle #20 in 11/1968 = bear market starts in the S&P 500 12/1968 (+1 month)
- HIGH of Solar Cycle #21 in 12/1979 = bear market starts in the S&P 500 11/1980 (+11 months)
- HIGH of Solar Cycle #22 in 7/1989 = bear market starts in the S&P 500 7/1990 (+12 months)
- HIGH of Solar Cycle #23 in 3/2000 = bear market starts in the S&P 500 3/2000 (+0 month)
In early 1968 the quasi gold standard was more or less abolished, which lead to the inevitable expansion in money supply and inflation. Since that time every solar top made a bubble burst, in 3 of the 4 cases even in the same or following month which is incredibly precise:
- HIGH of Solar Cycle #20 in 11/1968: stock market bubble bursts 12/1968 (the S&P 500 high of late 1968 was only exceeded nominally but not in real terms for decades)
- HIGH of Solar Cycle #21 in 12/1979: commodity bubble bursts 1/1980
- HIGH of Solar Cycle #22 in 7/1989: Japan bubble (stocks & real estate) bursts 12/1989
- HIGH of Solar Cycle #23 in 3/2000: stock market bubble bursts 3/2000
The more sun-spots, the more important for financial markets. The solar super-storms of 1859, 1921 and 1989 went along with inflation peaks (Credits: Manfred Zimmel):
- September 1-2, 1859 (highest inflation 1810-1910).
- May, 1921 (highest inflation 1860-1940).
- 1989 (highest inflation since mid 1960s).
(1) 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.
(2) 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.
Another pattern of stock market tops about 2.5 years before the Sunspot Peak is based on a 11-year smoothing of the data yielding slightly different highs compared to nominal prices (HERE):
Jeffrey Owen Katz and Donna L. McCormick developed a profitable Trading System based on
Sunspot numbers (HERE & HERE p. 198 ff.):
Like
seasonality and lunar phase, solar activity
appears to have
a real influence
on some markets, especially the S&P 500 and Minnesota Wheat. As with
lunar cycles, this influence is not sufficiently strong or reliable to be a
primary element in a portfolio trading system; however, as a component in a
system incorporating other factors, or
as a system
used to trade
specific markets, solar
activity is worth attention. We personally do not believe
solar influences directly determine the market.
We do suspect
that they act
as triggers for
events that are
predisposed to occur, or as
synchronizers of already-present market rhythms with similar periodicities. For
example, if a market is highly over-valued and unstable, as was the S&P 500
in October 1987, a large solar flare might be sufficient to trigger an already-imminent
crash.
The observation that sharp down-turns can occur after solar flares has been supported.
Flares are
the most powerful and explosive of all forms of solar eruptions, and the most
important in terrestrial effect. Large flares release energy equivalent to the
explosion of more than 200 million hydrogen bombs in a few minutes' time,
sufficient to meet mankind's energy demands for a 100 million years (HERE - HERE - HERE).
Everything in the universe is constantly bathing in fluctuating electro-magnetic forces and fields that affect virtually every circuit in biological systems. Human physiological rhythms and global behaviors are not only synchronized with solar and geomagnetic activity, but disruptions in these fields can also create adverse effects on human health and behavior. Changes in geomagnetic activity are correlated with altered blood pressure, heart rate, melatonin levels, and increased occurrence of cancer, balance of hormonal system, reproductive system, cardiac and neurological disease, hospital admissions and mortality, as well as depression, fatigue, mental confusion, and traffic accidents. 
