Thursday, September 07, 2006

Solar Flare And Down Markets

The correction which started following the geomagnetic storm* last weekend seems to be taking on a familiar pattern; namely, the bears get excited and sell the market down, it finds support and the sellers back away.

...

* study by the US Federal Reserve found a close correlation between geomagnetic storms and subsequent corrections in the stock market. "Geomagnetic solar storms occur approximately 35 days per year. For their study, Krivelyova and Robotti [the Fed researchers] correlated the dates of all such storms over the past 70 years with the behavior of 12 of the world's stock markets over the same period. An unmistakable pattern emerged: When the sun flares up, the markets go down. The condition lasts for about six days after the storms end."

No comments: