A Traders Guide to

Financial Astrology
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A Traders Guide to
Financial Astrology
Forecasting Market Cycles Using Planetary and
Lunar Movements

Larry Pesavento
Shane Smoleny
Cover image: iStock.com
Cover design: Wiley

Copyright 2015 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

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10 9 8 7 6 5 4 3 2 1
 Contents

Foreword ix
Preface xi
Acknowledgments xiii
v
Chapter 1: Introduction 1
Introduction 1
Purpose of the Book 2
Brief Historical Background 3
Theory of Financial Astrology 4
Summary 5
Chapter 2: Planets 7
Introduction 7
Planets 8
Summary 20
Chapter 3: Zodiac Signs 23
Introduction 23
Zodiac Signs 24
Determining the Meaning of Signs 26
Precession 33
Discovery of New Constellations 35
Summary 35
 Chapter 4: Planetary Position Coordinate System 37
Introduction 37
Planet Positions 37
Summary 43
Chapter 5: Transiting Aspects 45
Introduction 45
Transiting Aspects 46
Grouping Planetary Energies 48
Key Aspect Angles 49
Key Sun-Moon Aspects 61
Putting It All Together: How Astrology Works 65
Summary 65
Chapter 6: Visual Representation of Transits 67
Introduction 67
Visual Representations of Planetary Aspects and Alignments 68
Orb of Influence 71
Conjunction 72
vi Visual Strength of Aspect versus Peak Event 73
Overlapping Asymmetrical Aspects Flare Up 77
Contents

Retrograde Motion of Planets Making a Transit 79

Summary 81
Chapter 7: Introduction to Cycles and Transits for Forecasting 83
Introduction 83
Defining a Cycle 84
Advantages and Disadvantages of Cycles 88
Use of Transits to Forecast Markets 89
Summary 91
Chapter 8: Testing the Effect of the New Moon on the Market 93
Introduction 93
Case Study: The Sun and the Moon 94
How an Efficiency Test Works 95
Efficiency Test: Dow Jones Behavior around the
New Moon from 1885 to 2013 96
Walk Forward Analysis 99
Summary 113
Chapter 9: Verification of Planetary Meanings and Transits 115
Introduction 115
Verification of Planetary Meanings Using Cycles 116
Verification of Transits in Financial Markets 126
Past Issues with Accuracy and Financial Markets 130
Summary 130
Chapter 10: Financial Forecasting Using Solar Cycles 133
Introduction 133
Types of Cycles 134
Summary 144
Chapter 11: Financial Forecasting Using Lunar Cycles 145
Introduction 145
Moon versus Sun Cycle (Angle) for Dow Jones
since 1885 146
Moon versus Sun Cycle (Angle) Matched to
Angle Key Turning Points 147
Moon versus Sun Cycle (Angle) for Dow Jones
since 2009 with Quantitative Easing  148 vii
Moon versus Sign Cycle for S&P 500 since 1950 149

Contents
Moon versus Sign Cycle for S&P 500 since 2009 150
Conclusion 153
Appendix A Full Moon, New Moon Dates 155
Appendix B Bradley Barometer 159
Appendix C Sun/Moon Lunar Cycles 169
Appendix D Its Not What You Think, Its How You Think! 201
Index 215
 Foreword

A t last! After a 25year hiatus in financial astrology books we have a new addition
that deserves your attention. Larry wrote his first book, AstroCycles:The Traders
Viewpoint, many years ago and it was immensely popular. This new book is for both
neophytes and experienced traders and those interested in cycles. ix
When Larry first approached me on doing a book using the software that we de-
veloped here at AIR Software, I suggested he find someone with a good background
in computer skills. Ive known Larry for over 30 years and I know computers are
not his forte.
Then he got very lucky. He found a young man named Shane Smoleny, who was
not only well versed in astrology and trading but blessed with the ability to work us-
ing sound scientific and statistical methodology. His vast experience in astrology was
invaluable in making this book a viable entity.
Even if you have no knowledge of astrology, this book will give you a solid foun-
dation on how astrology and its cycles apply to infect all markets. Shane and Larrys
exciting book includes many of the various techniques for which astrology is used
for forecasting. This book will give you a basic foundation to start applying astrology
to your own trading, whichever market you happen to favor. The backtesting went
back many decades, so it is certainly statistically accurate, in my opinion.
Most of us know that there are 12 astrological Sun signs. Professional astrologers
go much deeper because there are more factors to consider than just the Sun.
Astrologers work with the planets, their aspects, houses, and so on. Shane and Larry
take you through all the basics about these planets aspects signs in positions and
earmark the trigger planets.
Aspects are angular openings between planets as calculated from the ecliptic.These
are particularly important because they create geometric angles or configuration
 between certain points (i.e., time). Certain openings are positive and favorable,
while others are negative and nonfavorable.
Shane and Larry discuss the planetary cycles, as well as those of the solar and lunar
orbs and their functions and influences. They then pull it together for you to glean a
full understanding about using the synthesis of these components to see how astrol-
ogy works in trading. All of this research is based on probabilities. There is no 100
percent in any methodology.
Many people know the planetary cycles are true cycles that can be scientifically
tracked and depended upon for their accuracy. No one knows this more than NASA.
Our space program depends on the reliability of the cycles in planetary orbs. They
can be calculated within seconds.
What this book does, in my opinion, is give you a glimpse into what makes some
of these markets go up and down on a regular basis. The results will surprise you.
Shane use rigid scientific methodology to set up the studies in a way that could be
evaluated for effectiveness. The results speak for themselves. You will find yourself
referring back to this book constantly as you learn to astro trade and realize the im-
portant connection between these heavenly orbs in our human activities in trading.
There are plenty of welldesigned graphics in this book, sending a clear show
andtell approach. Fortunately, my relationship with Larry was instrumental in their
x using my software developed by AIR Software.
As a final thought, I can remember the words that were spoken by J. P. Morgan
Foreword

back in the 1900s: Millionaires dont use astrology, billionaires do.

Ive also found it interesting that three of the greatest minds to ever walk on this
planet were heavily involved in looking into the cosmos: Galileo, Sir Isaac Newton,
and Dr. Albert Einstein.

Alphee Lavoie, certified astrologer NCGR level 4 (highest level), 50 years

as a fulltime professional astrologer and financial astrologer, and creator of Air
Software, the astro and financial software for astrologers
 P r e fa c e

We in academia have it made, after all especially scientists in academia. W ere

kind of at the top of the pecking order. And in order to maintain that illusion,
which is what it is, weve got to not appear the fool. So the majority of the scientific
community is a very nonrisk taking group of people that live in a rather small xi
reality and are in fact scared of things which seem to be outside that reality.
Michael D. Swords, PhD, Biochemist,
Prof. Emeritus, W. Michigan University

T his book will evaluate the meaning and effects of planetary cycles on financial
markets. This book was written to begin to establish the link between planetary
cycles and market patterns. There are many people who believe the movement of
markets is in fact random. They argue that a system of random movements often
creates the illusion of patterns in markets. But how do you really know for sure?
There is a flip side to that coin. Markets that have an orderly system will appear to be
random to those who are not conscious of the system. Therefore, it is not possible to
acknowledge one side of the coin without the other.
Some people want to see patterns everywhere and some want to see randomness.
Who is right? Who is wrong? The answer is that they are both right and they are both
wrong depending upon the situation! In statistics there are two basic types of errors.
Type 1 errors are false alarms assuming that there is meaning when there is not. Crit-
ics of market timing assert that the landscape is full of Type 1 errors with forecasters
ringing false alarms suggesting meaning everywhere where there is none. People
who assume there is always order in the market are by default creating Type 1 errors.
On the flip side of the coin, Type 2 errors fail to recognize meaning when meaning
does in fact exit. People who constantly assume that there is no order to markets
 and everything is random are by default creating Type 2 errors. To many, somehow
it is considered wise to be a skeptic all the time regarding events outside of the con-
servative zone. However, if scientists always took this viewpoint, then nothing new
would ever be discovered. In science, it is important to have an objective viewpoint
and consider all possibilities. A scientist should not be concerned with one theory or
another, but rather the pursuit of the truth. Events that seem unlikely should not be
discarded without testing and analysis. Even if there is meaning and one cannot de-
termine why it is happening, then it must be considered. So we ask to keep an open
mind and consider the possibilities here.

xii
Preface
 Ac k n ow l e d g m e n t s

I would like to give special thanks to Larry for the opportunity to write this book
and his trading insights. I would like to express my appreciation to Alphee for cre-
ating this amazing trading software and for his help to understand it. I would like to
acknowledge my astrology teacher, Rose, for her patience, knowledge, and wisdom. xiii
Finally, I would like to thank my wife, daughter, and family for their constant belief,
support, and encouragement during this process.
 Shane Smoleny