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.

The Moon’s Passage through Earth’s Magnetotail

Solar Wind - Magnetosphere Coupling (HERE)

The Earth’s magnetic field is influenced, amongst other factors, by the Moon. The Earth’s magnetotail is formed by the solar wind, which is a stream of electrons and protons ejected from the Sun. This stream of charged particles (plasma) hits the Earth with speeds of up to 1.6 million km/h. The Earth is protected to a large degree from this solar wind by the magnetic field, leading to a deflection of this particle stream, and the Earth's magnetotail extends way beyond the Moon into space. Every 27.3 days the Full Moon moves through Earth’s magnetic tail; the passage takes about six days. The Moon is not protected by an atmosphere or magnetic field that could shield it. Hence the lunar surface facing the Earth during a Full Moon is bombarded by the solar wind deflected from Earth which then in turn influences the Earth’s magnetic field again. Humans are extremely sensitive to electric field changes. Our brain can detect changes as small as one nanoampere while the voltage on the ionosphere can change as much as 25% in a few hours. The Earth’s magnetic field affects the pineal gland which was regarded by the ancients as the Third Eye and the Seat of the Soul (HERE + HERE). The inside of the gland is filled with water and has the highest blood-flow per cubic volume in our body. The pineal gland releases not only melatonin but also dimethyltryptamine (DMT) - Rick Strassmann's Spirit Molecule, a very powerful psychedelic. This is why dreams are much more intense during Full Moons.

Throughout the span of recorded human history, Pinecones have served as a
symbolic representation of Human Enlightenment, the Third Eye and the
Pineal Gland (HERE).

The Fourth State of Matter

NASA Hubble Space Telescope image of planetary nebula NGC 2818:
red = nitrogen, green = hydrogen, and blue = oxygen (HERE)

"The whole of space is filled with electrons and flying electric ions of all kinds. We have assumed that each stellar system in evolution throws off electric corpuscles into space. It does not seem unreasonable therefore to think that the greater part of the material masses in the universe is found, not in the solar systems or nebulae, but in "empty" space." | Kristian Birkeland (1913) | see also HERE 

“99.9 percent of the Universe is made up of plasma. The magnetosphere provides a barrier between our planet and particles continually given off by the Sun’s corona called the 'solar wind'. These particles constitute a plasma – a mixture of electrons (negatively charged) and ions (atoms that have lost electrons, resulting in a positive electric charge). Plasma is not a gas, liquid, or solid – it is the fourth state of matter [...] The Sun is composed of plasma, fire is plasma." | NASA 1999

Marvels of Creation - The Sun and the Lunar Cycle

This Persian manuscript made in 1566 is a translation of the famous cosmography “Marvels of Creation”, originally written in Arabic by the thirteenth-century Persian lawyer, physician, astronomer and geographer Zakariya ibn Muhammad al-Qazwini (1203-1283). The miniatures illustrate the lunar cycle and the path of the Sun’s rays interrupted by the globe of the Earth at the time of a lunar eclipse. Born in the Persian town of Qazwin, Zakariya served as legal expert and judge in several localities in Persia, traveled in Mesopotamia and Syria, and finally entered the circle patronized by the governor of Baghdad. He also wrote a futuristic proto-science fiction tale entitled “Awaj bin Anfaq” about a man who traveled to Earth from a distant planet. 

Credits: Nick Anthony Fiorenza

The Sun spews forth an endless stream of charged particles in all directions. This solar wind blows far out into the solar system and beyond. The Earth's magnetic field shields from direct contact with the solar wind's charged particles. The Earth's magnetic field is rounded towards the Sun, and stretches out in a long tail away from the Sun. The solar wind rushes around and past the Earth and on out into space while the Moon passes through the different sections of the Earths magnetic sphere in its monthly orbit. At New Moon it is always in the upstream portion of the magnetosphere, facing the Sun and downstream in the Earth's tail at Full Moon. At First Quarter, the Moon is to the dusk side of Earth and at Fourth Quarter, the Moon is in the dawn side of the magnetosphere. The 10th and 25th days of the lunar cycle are significant periods because these points are more or less in line with the 45 degrees vector along which solar corpuscular radiation reaches the Earth. At a phase angle of some 315 degrees the Moon effectively blocks and cuts off most of solar radiation during its cycle, while at the opposite point around 135 degrees, the Moon reaches a point of least blockage. When the Moon is less than 3.5 degrees from the plane of the ecliptic, geomagnetic activity reaches a minimum during the Second Quarter and a maximum during Third Quarter.

SPX vs IMF

[...] I have determined the major and minor time factors which repeat in the history of nations, men and markets [...] In making my predictions I use geometry and mathematics, just as the astronomer does, based on immutable laws.

[...] My calculations are based on the cycle theory and on mathematical sequences. History repeats itself. That is what I have always contended, that in order to know and predict the future of anything you only have to look up what has happened in the past and get a correct base or starting point.

[...] In making my calculations on the stock market, or any future event, I get the past history and find out what cycle we are in and then predict the curve for the future, which is a repetition of past market movements [...] harmonic analysis, is the only thing that we can rely upon to ascertain the future.

W.D. Gann (1927): The Tunnel Thru The Air

Sunspot Cycle 24: "None of us alive have ever seen such a weak cycle"

Conventional wisdom holds that solar activity swings back and forth like a simple pendulum.  At one end of the cycle, there is a quiet time with few sunspots and flares. At the other end, Solar Maximum brings high sunspot numbers and solar storms. It’s a regular rhythm that repeats every 11 years. 

Reality, however, is more complicated. Astronomers have been counting sunspots for centuries, and they have seen that the solar cycle is not perfectly regular. For one thing, the back-and-forth swing in sunspot counts can take anywhere from 10 to 13 years to complete; also, the amplitude of the cycle varies. Some solar maxima are very weak, others very strong (HERE). 

But "none of us alive have ever seen such a weak cycle [as the sunspot cycle 24]", said Dr. Leif Svalgaard of Stanford University and other prominent solar scientists at the 2013 Fall Meeting of American Geophysical Union (AGU), held on December 11, 2013 in San Francisco. This solar max is weak, and the overall current cycle conjures up comparisons to the famously feeble Solar Cycle 14 in the early 1900s (see also HERE & HERE).

John Hampson recently expected the "solar cycle 24′s flat top to end by mid-2014", and one of two possibities playing out: "One, equities peak out within the next 6 months, commodities don’t come again, and we thereafter enter the typical post-solar-peak recession (deflationary). Or, two, equities are peaking now and commodities are breaking upwards out of their large consoliation triangles since 2011 to produce a typical late-cyclical final rally and help tip the weak economy into that recession." (see also HERE).

Credits: John Hampson

Credits: Jan Alvestad

 

Credits: Jan Alvestad

Solar Tides & Financial Markets | Al Larson

Astrophysics & Chaos [Mar 30, 1999]

"The Solar Energy System does affect markets. The Sun gives off radiation which varies by about 2 percent. These variations are caused by tidal forces that the revolving planets exert on the gases in the Sun.

These tides cause vortexes in the Sun’s surface leading to solar flares, coronal holes, and magnetic storms. The energy changes from these are carried to Earth on an ionized stream of particles called the Solar Wind.

When the Solar Wind reaches Earth it is deflected around the Earth by the Earth’s magnetic field. 

This creates a magnetosphere around the Earth. At the poles ionized particles can penetrate the Earth’s atmosphere. Changes in the solar radiation cause changes in the voltage in the ionosphere.

This in turn causes changes in the electrical currents flowing through people standing on the Earth. These emotional swings account for about 40 percent of price motion."

 

Al Larson a.k.a. Hanns Hannula [extracted from his "Cash in on Chaos Newsletter" @ www.moneytide.com - more HERE & HERE]

 

Hans Hannula (1991): A Lunar Chaos Theory; p. 14

The Cloud Mystery | Henrik Svensmark

Nir Shaviv and Henrik Svensmark (HERE)

Looking at the Milky Way from above, we see four giant spiral arms. Our solar system is currently located within a small armlet called Orion between the two big spiral arms Sagittarius-Carina and Perseus. But it doesn’t stay there. It rotates at a speed of some 830,000 kilometers per hour around the galactic center and does a whole round about every 250 millions years. This rotation period is called one galactic year. That means on average every about 65 million years our solar system moves through one of the major spiral arms of the milky-way. 

The Solar System's passage
through the Milky Way (HERE)

During such a passage the average temperature on Earth is about 5-10°C colder than outside the spiral arms where more clouds can be created and are causing cooler climatic conditions. Within a spiral arm more cosmic rays reach the Earth because there are more super novae in the immediate neighborhood of our solar system. These dying stars are sending out cosmic rays, subatomic particles with enormous energy rushing through the galaxy at almost the speed of light. And some of them shower and bombard the Earth. In our atmosphere the cosmic rays are nuclei for condensation of water vapor and cloud formation. And the clouds reflect the sunlight and cool the Earth.

The Sun of course also plays an important role in the formation of clouds: When there are a lot of sunspots, the magnetic fields of the Sun are emitting more charged particles, called the solar wind. The solar wind fights and neutralizes the cosmic rays and controls how many of them reach the Earth. During the 20th century the magnetic activity of the Sun has almost doubled. As a result fewer cosmic rays reach the Earth, the cloud cover became thinner and the Earth’s climate warmer. 

Nir Shaviv (HERE)

A ‘lazy’ Sun would produce less magnetic activity, less solar wind and more cosmic rays would reach the Earth’s atmosphere able to build up clouds there and to cool the planet’s climate down: The Sun controls the Earth’s cloudiness. The climate is controlled by the clouds. The clouds are controlled by cosmic rays. And the cosmic rays are controlled by the Sun.

Sources: Henrik Svensmark and Eigil Friis-Christensen, astrophysicists, Danish National Space Institute (DTU Space), Copenhagen | Nir Shaviv, astronomer,  Racah Institute of Physics, Hebrew University of Jerusalem | Jan Veizer, geologist, Department of  Earth Sciences, University of Ottawa and Institute for Geology, Mineralogy and Geophysics, Bochum Ruhr University | Jasper Kirkby (2011): The CLOUD experiment at CERN [65 m] | Lars Oxfeld Mortensen (2007): The Cloud Mystery - Henrik Svensmark on Climate Change [53 m] | Martin Durkin (2007): The Great Global Warming Swindle [76 m]