Last Friday in my weekly review I mentioned the risk of a "risk off" end of January warning that the euphoria generated by last week bullish breakout could fade at the end of January and that is precisely what happened since yesterday with short covering in bonds (German Bunds in the example below) and profit taking in stocks (German Dax in the example below). I have prepared a couple of tables below to explain how I made that "forecast:" I found a "probable planetary cause" of a "risk on" trade and I predicted the effect based on the evolution of the same planetary cause over the following days.
A bullish Sun/Jupiter configuration and its effects as mentioned last week in my weekly review
A bearish Sun/Saturn configuration and its effects as mentioned last week in my weekly review
I must warn that such techniques not always work so smoothly: this is not exact science but just an example of how natural cycles may be related to human activities in the short term as well. Quite often other and more complex cycles are at work at the same times confusing the observer and making this kind of prediction useless, this time it was a good help (beware that its utility is almost over, it does not say anything for the next few days) Some of you may think this is non sense, however from time to time I also use this kind of timing tools because under certain circumstances I think they are a good help (why disregard something that helps? I could use any variable in my "market equations" if it improves the results. Tomorrow, in my weekly review I will try to post some less esoteric stuff with more classical charts if I can find enough time to write.
This blog is not intended to provide its visitors with financial advise: no recommendation is being made to buy/sell any stock, commodity, option or any other financial instrument, the articles posted in this blog are for educational purposes only and reflect the personal opinions of the author, you should talk to your investment advisor for any kind financial advice. The methods and examples on this blog are posted free of charge as simple educational material: past results are not indicative of any future results.