Bank of Scotland: Market timing with the Moon

Thanks to astrologers Deb Houlding and Martin Davis for posting a link to this article on Facebook.

The Bank of Scotland has studied the performance of six different international stock indices over a period of several decades to determine a correlation between stock trading and the Moon.  The interesting thing about this article is that it seems to have no connection to any astrological group or individual.  Their premise is this:  “New moon traditionally symbolises the period of low energy, or energy accumulation period, whereas the time of full moon is the period of high energy or spending period.”

The first observation is that the daily change in an index is significantly higher on the new moon days than on average….However, there was no observation of a particular direction of the markets movement on the new or full moon.
It appears that the performance of moon-investing over ordinary investing is higher in rising markets, but it also “falls sharply in falling markets.”
The conclusion?
The proposed trading strategy can be summarised as follows: buy an index on the new moon (if this is a non-trading day, buy on the next trading day), hold till the full moon (usually 14-15 days), sell the index on the full moon (similarly, if non-trading day, sell on the next trading day), repeat the investment of the overall amount on the next moon cycle (usually in 14-16 days), enjoy your profits!
Remember, this is not to be considered any kind of trading advice – merely an interesting correlation to keep in mind.
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By | 2010-11-04T14:31:17+00:00 November 4th, 2010|Money and markets, Moon|Comments Off on Bank of Scotland: Market timing with the Moon
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