THE MOON IN ACTION--LXV-THE FULL MOON FED

JUL 1, 1999

The street widely expected the Fed's .25 percent raise in the Federal Funds rate yesterday, but the Fed surprised many by not raising the discount rate, and by announcing a shift to a neutral bias, meaning that another increase in August is less likely. That's about the craziest ( looniest = lunar-iest) Fed move yet. And the market responded very emotionally.

Of course, the Moon was there to help magnify the reaction. The chart below shows what happened.

Remember that, to a large extent, E-motions come from the earth's E-lectric field. So it should not surprise you to learn that the Fed announcement came just as the Exchange lined up with the FULL MOON AND MERCURY. But let's start at the beginning.

Line A is the MoonTide forecast. Except for the two hours 11:00 to 1:00 on the 29th, if was quite good. Note how the slope of price and the MoonTide match at B and C. On the 29th, prices moved steadily up to the intersection of the -M090 Moon electric field flux line and the Pluto flux line. I'll come back to Pluto in a moment,

Note the little double bottom at E and F, as forecast by the XTIDE. XTIDE computes the "rumble of the rotating earth." On the 29th, the FULL MOON was between these two points, and Mercury (vertical magenta line) was just after F.

On the 30th, prices traded between the +M000 Moon flux line, and line H, at 270 degrees. This is a "Chaos Balance Level." Now, note the double bottom in XTIDE and price at N and P. At P the news broke that the discount rate was not being raised and that the Fed was shifting to a neutral bias. How did they know to make that annoucement just as the Exchange lined up with the FULL MOON AND MERCURY? They didn't become rich bankers by being dumb. Or was it just dumb luck?

Prices shot right up the vertical Moon line, topping for a while at the -M000 flux line. The close was right on the Pluto electric field flux line at M.

The MoonTide low was right on Mercury (K). Without any scale adjustment, the MoonTide predicted the size of the rally quite well. Note the vertical jump in the MoonTide at the close. Sometimes these "over night gaps" left shift into the market time. Here it did.

So while the Fed may have made a logical, calm, deliberated decision, they sure picked a high energy time to annouce it!

But there is more - Pluto. Pluto is associated with explosions, and nuclear. This was a nice price explosion. The wheel below shows why.

This is the heliocentric wheel. At A, you see Venus, Mars, Mercury, and Pluto forming a "harmonic convergence." Prices followed the blue arc right up to close 180 degrees to this convergence at B. This came as the Exchange squared price at C. The close was also vertically above the Moon, shown at D.

So that excitement was all in the system. Some men think they have great power when they accidently trigger a chaotic move by doing something at the right time. In reality, it's just the system in action. Pretty neat.