Correlation Of Stock Markets With Moon Phases

As antique as the days of 16th century, Paracelsus has once written that some patients suffer from a specific array of illness due to the moonrise and moonset, or also known as moon phases. More recent reports were from Sherin that the homicides of human are significantly connected to the peaks crafted during the full moon then the secondary peak during the aftermath of the new moon phase. If proven that the lunatic changes are capable of affecting human’s individual character then is it possible that it might affect the financial markets? If investors do react according to the character influenced by moon forces, then indirectly the finance market is correlated to the lunar phases as well.

There was an in-depth research done based on the psychological inferences, having vast association to previous studies by James Rotton and Ivan Kelly. These great figures analyzed the connection between the moonset, moonrise and how these movements affect the human’s endeavor. Although former researches did not prove anything significant, the latter and newer research has come to prove something different. The study was done using a ten year bond, five major indices, information of the moon phases and four lunar phases. This experiment has resulted that there is some correlations between the two.

During the study, there were several issues that were inevitably neglected such as the natural disasters, political actions, technological developments which have been common factors that affect the market. However this study only take into consideration the major moonrise and moonset then deeply analyzed with the trends of the market. The findings showed that every single regression sees that the equities experience increment in value with the occurrence of new moon. In fact, indirect influence can also be seen. If the moon phases are deemed to affect human’s mood then the time when people are at their highest confidence, they would most likely to handle the economy the healthier way and otherwise. Less jobless people, higher security and stronger money power would eventually lead to a stable worldwide financial status.

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