Tuesday, December 21, 2010

Solstice & lunar eclipse make this one day in 166,440 although stock market seems oblivious - for now

Today's remarkable because the full lunar eclipse overlaps with the winter solstice - it's a rare comjoining of the two events. While dome note it's been 372 years, the actual prior time these occurred same day was 456 years ago. That makes today one in 166,440! Does it affect financial markets? Perhaps, especially if it affects sentiment. Some people think that full moons affect market prices, so maybe an eclipse of one could have an effect too. Below are some photos from articles indicated about the solstice eclipse, and a quick look at the S&P 500 and sentiment:


The above excellent photo is associated with an article at the Montreal Gazette, Solstice-eclipse overlap first in 372 years

Here's information from the NASA website about the phenomenon, at

See Explanation. Moving the cursor over the image will bring up an annotated version. Clicking on the image will bring up the highest resolution version available.

A Lunar Eclipse on Solstice Day
Credit & Copyright: Jerry Lodriguss (Catching the Light)

Explanation: Sometime after sunset tonight, the Moon will go dark. This total lunar eclipse, where the entire Moon is engulfed in the shadow of the Earth, will be visible from all of North America, while the partial phase of this eclipse will be visible throughout much of the rest of the world. Observers on North America's east coast will have to wait until after midnight for totality to begin, while west coasters should be able to see a fully darkened moon before midnight. Pictured above is a digital prediction, in image form, for how the Moon (watch on YouTube) and the surrounding sky could appear near maximum darkness. Rolling your cursor over the image will bring up labels. Parts of the Moon entering the circle labeled umbra will appear the darkest since the Sun there will be completely blocked by the Earth. Parts of the Moon entering the circle labeled penumbra will be exposed to some direct sunlight, and so shine by some degree by reflected light. The diminished glare of the normally full Moon will allow unusually good viewings of nearby celestial wonders such as the supernova remnant Simeis 147, the open star cluster M35, and the Crab Nebula M1. By coincidence this eclipse occurs on the day with the shortest amount of daylight in the northern hemisphere -- the Winter Solstice. This solstice eclipse is the first in 456 years, although so far it appears that no one has figured out when the next solstice eclipse will be.

I'm not sure if the last statement is true since I saw a statement elsewhere of the timing of the next one, but I do tend to believe NASA!

Here's how sentiment looks according to the volatility index ($VIX) and equities put-call ratio ($CPCE), below. Still complacent but interestingly these gauges were slightly up - a somewhat bearish divergence to price:


It's interesting to compare since price edged higher, see chart below. Maybe the market can continue up from here because it "should" be in a small third wave that could proceed much higher in January - just so long as it remains above 1234 in the $SPX. That's a good level to watch now!

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