THE MOON IN ACTION-LXXI-FULL MOON FED FEVER

AUG 26, 1999

On July 1st I wrote THE MOON IN ACTION LXV-THE FULL MOON FED. At that time, the Fed raised interest rates - and the market went up, rather than down as market folklore says it should. This week, history repeated itself. The similarity is striking. In both cases, the Full Moon was the source of this "lunatic behavior."

Here is what happened this time.

This chart shows the September S&P for August 24th and 25th, 1999. The -MoonTide forecast is shown at A. Over two days, it said to expect 6 swings starting with a decline. It said to look for the most volatile swing the afternoon of the 24th. That made sense, since the FOMC was meeting, and a 2:15 Eastern announcement was expected.

Prices started out near the electric field flux cluster at B. This was formed by the Moon, Node, and Sun-the players in an eclipse. The full or new moon before or after an eclipse are often as powerful as the eclipse. The -MoonTide was on track at the high at C. But prices were balanced at the "Chaos Balance Level" of 1368, at 0 degrees. This is very near the S&P natal Moon. That's always a touchy point.

Prices sagged going into the Fed annoucement. Then CHAOS STRUCK. When it was made, prices dropped sharply to the Sun flux line at D, then "band gap jumped" to the -M000 Moon flux line at E. One of our suggested trades was to sell at 1378 with a two point stop. It took guts to do it, but it was a great "Moon Bounce" trade.

Prices dropped 23 points in minutes to the +M000 Full Moon flux line at F, then bottomed at the Node line at G, bottomed again at H on the -M090 flux line, and make a third bottom at J on the Sun flux line.

So the whole Fed event left prices balanced about where they were at C, after whipping them "rail to rail" between the two quantum levels set by the Sun, Moon, and Node at B and R. But there was more to come.

Overnight, the Moon electric field flux lines crossed, shown at S. And on the 25th, they were "pinched". This often leads to a fast, big, move. Futher, the Full Moon, shown by the vertical yellow line with the ball on it, had moved to align with Uranus, Mercury, and the Sun. This cluster is shown at K. The -MoonTide forecast the low of the day here. So that's where I placed the One-A-Day trade.

The low came at L, right on the FULL MOON. And it came at the Sun flux level. Then the market began to rise, electing the One-A-Day long at M.

Prices then jumped up to the -M000 FULL MOON flux line at N. The NODE flux was also there. This resistance caused a pullback into P, which stopped out our One-A-Day for +6.9 points, or $1725 before slip and commissions.

From there the rally continued, until peaking at Q, on the last -MoonTide high. At the close, it was settling back to the quantum level at R.

So the FULL MOON affected the market reaction to the rate cut, just like it did in July. Of course, there were more players involved.

This is the ephemeris wheel for the event. The Grand Cross is outlined in green. The Moon crossed the south-east leg at A. It was very powerful , as it was nearly on the ecliptic plane (D), forming what I call a Near Eclipse. Prices rallied along the arc at B, covering 3/8 of a circle. The attractor for prices is the north-west leg of the Grand Cross, where Sun, Node, Venus, and Mercury are clustering near 1395. 1395 is the .779 "Chaos Retracement" of the July-early August decline. I expect it may be the rally high.

From all this, you can see that the Fed's action was coupled into a dynamic market system that was not yet in a state to turn down. It's like pushing a child on a swing. You can only push the child when the swing comes back to you. Push when the swing is away, and the effort is wasted. The swing comes back toward you, even though you pushed. So the illusion is that the push had the effect of a pull. That's what happened to the Fed when the market caught FULL MOON FED FEVER.

You may now want to revisit THE MOON IN ACTION LXV-THE FULL MOON FED. The similarities are striking.