The Ultimate Book on Stock Market Timing Volume 4: Solar/Lunar Correlations to Short-Term Trading Cycles

Rating:
Summary: Key Short-Term Trading Reversal Dates Pinpointed by Merriman
Review: This book is Merriman's fourth book in a series of comprehensive volumes in the Ultimate Book on Stock Market Timing series:
Volume I. Cycles and Patterns in Indexes
Volume II. Geocosmic Correlations to Investment Cycles
Volume III. Geocosmic Correlations to Trading Cycles
Volume IV. Solar/Lunar Correlations to Short-Term Trading Reversals
Volume V. Technical Tools and Trading Cycles (not yet completed)

As is the case with his previous volumes II and III, the reader unfamiliar with astrology will have difficulty in understanding the book. Many of the astrological terms are neither clearly defined, nor explained as to their importance. Those readers familiar with astrology will have no such problems. Readers unfamiliar with astrology and the financial markets, should first read Merriman's 60-page basic primer "Basic Principles of Geocosmic Studies for Financial Market Timing."

Volume IV is a 241-page paperback (8.5" x 11"). Very few researchers and market analysts have the stamina, knowledge, time, and skill to write one ground-breaking book on the markets. Merriman has accomplished that feat four times over, and he is not done yet, with a fifth volume underway.

As I expected, Merriman has produced exhaustive research on the correlation of geocosmic signatures with high and low points in three equities markets. The book's hypothesis is that short-term traders can take advantage of specific reversal dates during the year that can be identified by using specific solar/lunar combinations. Most researchers who have found statistically valid correlations of data to stock prices that can be used for profitable trading, tend to keep it to themselves, and not share it with the public. Merriman has taken the opposite road and shares his years of research with all of us. Therefore, it is incumbent upon us (short-term traders) to give his findings serious consideration. Any edge that we can get in the markets is something that should be examined and put to the test.

Merriman's reviews 60 years of DJIA price data coupled with all the Sun-Moon combinations. He also reviews similar combinations with almost two decades of data for the Nasdaq composite and the Japanese Nikkei index. He focuses on determining the important reversal dates ( one or three day time bands a few times a year) - 4% or more changes in value -- for specific Sun-Moon combinations. Traders can get ready to act on these reversal points with minimal risk. Traders who use the QQQs, SPYs, and DIAs, as well as futures and options can benefit from Merriman's identification of these timeframes.

Merriman found that certain lunar cycles and certain Sun-Moon signs correlate consistently with tradable highs and lows in the financial markets, and identifies them. At the end of the book, Merriman has a chapter devoted to a short-term trading methodology that clearly spells out the 16 steps required to take advantage of the key reversal dates. He covers a few intraday technical indicators with his 16-step methodology, and then shows a detailed example.

In summary, this book is another significant contribution in the area of timing the market -with specific emphasis on using solar/lunar correlations to identify high probability key reversal dates. For those readers with a solid understanding of these subject areas, the usefulness of this book is apparent. For other readers who feel that the material presented is useful, but cannot fully understand it to use it, then consider Merriman's other services that include newsletters, seminars, software, annual forecasts and reports ... In conclusion, Merriman continues to add significant value to short-term trader's ability to profit from identifiable and profitable market situations. Those who take the time to study his work will find a new tool to use.