Saturday, February 03, 2007

New Moon and the Stock Market

I've been quite busy recently, and am getting a backlog of post material. Here's on oldie I never got around to blogging, which is weird and short: there is evidence that the lunar phase affects stock market performance.
We find strong lunar cycle effects in stock returns. Specifically, returns in the 15 days around new moon dates are about double the returns in the 15 days around full moon dates. This pattern of returns is pervasive; we find it for all major U.S. stock indexes over the last 100 years and for nearly all major stock indexes of 24 other countries over the last 30 years. In contrast, we find no reliable or economically important evidence of lunar cycle effects in return volatility and volume of trading. Taken as a whole, this evidence is consistent with popular beliefs that lunar cycles affect human behavior.
You can see the abstract and download the paper here: Lunar Cycle Effects in Stock Returns, on the Social Science Research Network.

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27 Comments:

Anonymous Anonymous said...

> "...lunar cycles affect human behavior"

What's new? They obviously do, just go some place without electric lights at night and you'll see (or not, depending on the moon phase and clouds).

OTOH, the effect in the article is infinitesimal and of no practical value (about theoretical value see above). I guess this is what passes for science here...

6:52 PM  
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9:35 AM  
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2. Political issue - Indo-US nuclear issue.

3. 25 Basis cut which was expected by US people of atleast 50 basis.

4. Low volumes due to holidays in coming week.

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6:39 AM  
Blogger www.ShareTipsInfo.com Team said...

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Time changes and with every passing day graphs of stock market changes which in turn changes the portfolio of investor. Like recent fall in Indian stock market
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we again warns all investors that don’t be too over tempted by this rise as its just a minor upmove. Until Nifty doesn’t close above 5300 for 3-4 sessions we are not at all bullish in market. So invest in market for short term or prefer day trading commonly known as Intraday trading.

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Blogger www.ShareTipsInfo.com Team said...

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Today that is 20-June-08 Inflation data has broken the records of past 13 years. Today declared Inflation was 11.05% which is too high. From last one month market is in no trade zone. Everyone is feeling pain from market response.

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The Sensex has lost more than 27% since its January peak, and trading volumes are down 46%.
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1. DIGJAM
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Most of the stocks are trading near to there 52 weeks lows. There are many fundamentally strong scripts too that are trading at lower levels. One can buy and hold them.

Nifty is expected to correct bit more and after that we can say market will be bullish. As this correction was overdue reason being if we observe in past months speculated stocks whose fundamentals are zero has also shown tremendous upward rallies in the market and now again they are trading at there real values. But still investors are trapped in them and no one is sure those scripts will ever reach those highs or not.

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4:41 AM  
Blogger www.ShareTipsInfo.com Team said...

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We require 2-3 days positive closing else nifty can crash. Political issues are also hampering market along with inflation and crude oil price. Major support for Nifty is 3650 and Resistance is 4300. Nifty will remain range bound overall trend will be bit bearish in coming days.

For any query feel free to contact us.

Regards
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+91- 9891655316
+91- 9899056796
+91 - 9891890425

3:12 AM  
Blogger www.ShareTipsInfo.com Team said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. It’s our pleasure to post informative content on this useful blog created by webmaster.

We require 2-3 days positive closing else nifty can crash. Political issues are also hampering market along with inflation and crude oil price. Major support for Nifty is 3650 and Resistance is 4300. Nifty will remain range bound overall trend will be bit bearish in coming days.

For any query feel free to contact us.

Regards
SHARETIPSINFO TEAM

+91- 9891655316
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4:20 AM  
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Hi,

Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
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4:45 AM  
Anonymous Anonymous said...

Hi,

Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
and result season.


Happy Trading,

ShareGyan

6:29 AM  
Anonymous Anonymous said...

Hi,

Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
and result season.


Happy Trading,

ShareGyan

6:30 AM  
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3:14 AM  
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2:10 AM  
Blogger KnowYourProfit said...

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Now as such the final stages of the formal completion of nuclear deal has come,so we can expect some positive news effecting the
movement of the INDIAN STOCK MARKET which means stocks coming in power sector will take new direction

Companies which will benefited includes mainly

1.Larsen n Tourbo(LT)
2.Hindustan Construction Co. Ltd(HCC)

and the list had few more names..

Happy Trading

Have Query

Feel free to contact us at


Team
www.KnowYourProfit.com
+91-9871142419

2:40 AM  
Blogger KnowYourProfit said...

This blog is novice and informative,it is a pleasure to post a comment on this usefull blog created by a webmaster

Now as such the final stages of the formal completion of nuclear deal has come,so we can expect some positive news effecting the
movement of the INDIAN STOCK MARKET which means stocks coming in power sector will take new direction

Companies which will benefited includes mainly

1.Larsen n Tourbo(LT)
2.Hindustan Construction Co. Ltd(HCC)

and the list had few more names..

Happy Trading

Have Query

Feel free to contact us at


Team
KnowYourProfit

+91-9871142419

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2:19 PM  
Blogger sharetips said...

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2:13 AM  
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6:35 AM  
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2:54 PM  

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