hello again my numerically keen friends on ATS. I'm here to make a rather shallow but fun observation re: market performance on major stock indices
over this last month. Anyone with an eye for trading will agree things have been strange in the equities world all September, if not all ze capital
we can note that:
-correlations have remained so tight, despite (or in spite of
unusual moves in precious metals, currencies (the yen, most notably). Its strange
how indexes are still ticking together but gradually further and further apart from one another.
-Volume is reaching all time lows in a scary way. September 17th was quadruple witching and not counting closed market trading, the lowest volume
quadruple witching EVER. For those who don't know, quadruple witching is a very important trading session, in which contracts for stock index
futures, stock index options, stock options and single stock futures all expire. Expiration means outstanding obligations on the above mentioned are
settled and the instruments cease trading. It is typically a high volume occasion. Please see this article on
charts illustrating this and how it was mostly overlooked thanks to 1bil in volume all traded one minute after close. weeriiirrrd.
anomalies for the 17th continue to pile up. One key data point released was US consumer confidence, which unexpectedly dropped 2.3pts from 68.9 to
66.6. 70 was the estimate from most analysts except for, well, SATAN (couldn't resist the church lady reference).
US september consumer confidence...
let me spook you a bit more. On august 31st, the DJI dipped below 10k, a psychologically important #, hitting an intraday low of 9941.84 before
buying back just over 10k to close. It was a fitting way to end what was an extremely disappointing month for stocks, where things seemed so bleak.
Astrologers will note August's cardinal cross as well as the role of Mars/Uranus who have supervised most major market pullbacks of the last 100
Voila- September 17 witching is 13 trading sessions (including labor day, as many non-US markets still trade) after august 31st (inversion noted). We
close at 10607.85, or roughly 666.1 points from the 31sts shocking low. As if to reinforce this interplay, Monday the 20th retraced a low of 10608,
before charging over 10750, again expressing a 666 point difference from the prior months low.
Today the Fed strolls out for another round of kabuki theater about saving us all (from them), sandwiched between yesterdays trading post a
Jupiter/Uranus conjunction and tomorrows full moon (which as I've covered in another thread, tends to signal broads pullbacks before the moon cycle
I'm no astrologer, but I can't ignore how, especially the past 6 months, significant astrological events have landed right in the middle of
technically noteworthy market trends. If we chart the DJI since may, and mark the previously mentioned alignments: Jupiter/Uranus conjunction on June
8th, grand cardinal cross climaxing around 8/10, and yesterday's jupiter/uranus conjunction, there emerges an obvious Head and Shoulders pattern,
requiring a drop to trace the right shoulder. Try it for yourself! pick some fun places to sell some calls.
And troll all you want about how arbitrary numerical relationships are, but please don't forget the 09 bear market low of the S&P was also 666. As
well, the day LEH collapsed, the DJI lost 777. its all for fun